Large-Scale Adelaide Infill Development Opportunity Sells for Well Above $29.5M Expectations

A generational large-scale infill site in Gepps Cross has sold for well over the asking price of $29.5 million in the latest show of strength of Adelaide’s industrial market.

McGees Property’s Simon Lambert and Andrew Wilson negotiated the sale of 535 Grand Junction Road, Gepps Cross via a Deadline Private Treaty process on behalf of private owners.

The campaign marked the first time in decades the property had been offered for sale.

Set across two certificates of title on 45,220sqm of land, the property comprises a mix of older and near-new high clearance and sawtooth warehouses, updated offices, and amenities, totalling 18,788sqm, and is currently utilised as a precast concrete manufacturing facility. The site includes on-site car parking, sheds, and partial perimeter fencing.

The property is occupied by Bianco Walling Pty Ltd on a lease expiring 30 June 2026, with additional right of renewal periods of five years each. Current passing net rent is $1,484,519 per annum plus GST.

“The outstanding outcome of this campaign is another show of strength of Adelaide’s industrial market,” Lambert said.

“We received local and national interest from developers, investors, and manufacturing owner-occupiers, given this was a truly generational opportunity to secure one of Adelaide’s last remaining large-scale development sites.”

A development clause within the lease allowed for developers to terminate the lease. The private purchaser intends to keep in place the existing tenancy.

“Investors were attracted to the property for its excellent lease covenant, backed by an A-grade tenant with secure options, and were joined in the pursuit by developers for its irreplaceable, substantial footprint in the heart of Adelaide’s tightly-held northern industrial and commercial precinct, at a time in which Adelaide is experiencing the most significant industrial land shortage in Australia.

“We continue to see investors show heavy interest in Adelaide industrial assets with existing improvements and value-add potential.”

He said the property is favourably zoned Strategic Employment in the City of Port Adelaide Enfield, which together with its substantial facilities and low site coverage offered large scope for expansion of facilities, or development, from a value-add play to a new logistics estate.

“Its flexible zoning, unparalleled connectivity, and exposure to tens of thousands of vehicles daily made it a legacy development opportunity, and very attractive to owner-occupiers.”

Wilson said the property importantly offered excellent accessibility and connectivity, positioned minutes from the North-South Motorway, and centrally located between the Port and the CBD, making it ideal for industrial, manufacturing and logistics operations.

The property is also close to Princes Highway, Main North Road, Churchill Road, and Salisbury Highway.

The prime industrial precinct is home to some of the nation’s largest occupants, including Mainfreight, Linfox, Aldi’s distribution centre, Costco, Coopers, and Gepps X Home HQ, which is occupied by JB Hi-Fi, The Good Guys, Harvey Norman, Hungry Jack’s Ampol, Bianco Construction, Wattyl Paint and Coles.