JLL plays crucial role in bringing manufacturing back to South Australia

22 May 2024

Leading global commercial real estate and investment management company JLL has been instrumental in facilitating one of the largest pre-lease deals seen in South Australia for industrial real estate.

As leasing agents, JLL brought tenant Noumed Pharmaceuticals to the table along with developer Terre Property, resulting in Noumed building a $100million purpose-built facility located within Terre’s Nexus North Industrial Estate in Adelaide’s north-east.

“This is not the type of significant deal you see happening every day in Adelaide,” said JLL Director, Logistics & Industrial Kym Hutchins.

“Noumed Pharmaceuticals could have chosen anywhere else in the world, but they didn’t, which means South Australia has ticked a number of key metrics for them to relocate such a big manufacturing facility here.”

While construction has now commenced on Noumed’s pharmaceutical manufacturing plant, Mr. Hutchins noted that the deal was a long time in the making.

“Deals like these are always a lengthy process, with many hurdles along the way,” he said. “This one began in 2020, with Stage 1 initial lease by Noumed for a 3,000 square-metre office warehouse within the estate. There followed a more ambitious Stage 2 plan for a 26,000 square metre state-of-the-art pharmaceutical manufacturing facility. The pre-lease new facility was not a foregone conclusion.”

JLL worked closely with the team from Terre and Noumed to get things over the line.

“It was not until 2024 that approvals and documentation were able to be signed off; it was an exciting moment for all concerned when it finally came together,” Mr. Hutchins said.

The pharmaceutical giant will join prominent and international companies Asahi, Telstra, Haighs Chocolates and FJT Logistics as neighbours at the 15-hectare, master-planned Nexus North Industrial Estate, which is now fully committed.

Noumed’s new manufacturing plant will receive up to $20 million in Australian government funding and is a key part of the state’s 10-year health and medical industries strategy. It is being built on a 43,000 sqm site and will have a floor area of 26,000 sqm.

When finished, the facility will be the most modern of its kind in Australia and allow certain OTC pharmaceutical products to be manufactured in South Australia rather than overseas, giving a competitive advantage to Noumed’s clients with shorter lead times and making it a supplier that can react quickly to individual needs.

Further benefits to the local economy include the construction of the manufacturing plant creating 250 jobs. Noumed is expected to employ more than 180 people when local production begins in 2026.

Strategically positioned 30 minutes from Adelaide’s CBD, the Nexus North Industrial Estate is on Cross Keys Road, Salisbury South, functioning as a gateway to the northern industrial precinct, with convenient access to major transport routes.

“The location is an ideal place for high-tech industries and we’re looking forward to Noumed leading the way in Australian pharmaceutical manufacturing, right here in South Australia,” said Mark Brammy, Terre Property Partners CEO.

“Not only has this been a significant pre-lease deal for JLL, the new Noumed facility also speaks volumes for the globally recognised expertise of South Australia’s high-tech medical industry. This shows we can compete and secure world class international business.” said Mr. Hutchins.