Once-in-a-Generation Opportunity: Port Adelaide Distribution Centre Hits the Market

The Port Adelaide Distribution Centre offers immediate scale, strong passing income, rental reversion potential and multiple exit strategies.

Adelaide’s most recognisable industrial estate, the Port Adelaide Distribution Centre, has come to market, offering a generational opportunity of strategic scale.

Situated in Adelaide’s high-performing and tightly held Gillman industrial market, the estate offers strong passing income, rental reversion potential, and multiple exit strategies, supported by major infrastructure investment and urban renewal projects like the Port Adelaide Renewal and Henderson Defence Precinct.

Consisting of 174,594 sqm of GFA across a contiguous 319,600 sqm land holding, the estate provides access to 17 established and high-quality tenant covenants, including Visy Logistics, Ameropa Australia, Toll Transport, and Spendless Shoes, representing a range of sectors including Distribution and Logistics, Recycling, Agricultural, and Manufacturing.

The Colliers team of Gavin Bishop, Sean Thomson, Tom Barrett, and Paul Tierney, in conjunction with Chris O’Brien, Andrew Bell, and Paul McKay of CBRE, are marketing the property, with price expectations of circa $225 million.

“This truly rare industrial listing provides incredible scale and the ability for the incoming purchaser to capitalise on significant occupier demand and rental growth within Adelaide’s inner north market, setting this up as one of the best investment opportunities to hit the market this year,” Mr Bishop said.

“The strategically short WALE of 3 years by income allows the possibility of value-add opportunities in the short-term, providing the incoming purchaser with flexibility, but also the ability to build immediate scale with approximately $12.8 million in base passing income,” Mr Thomson added.

The estate benefits from high historical occupancy, low tenant attrition, and low market vacancy, providing all the fundamentals necessary for impressive ongoing leasing performance. The site is also perfectly positioned for refurbishment, reconfiguration, or repositioning, with the potential to transform the asset into a modern warehousing and logistics estate (STCA).

Gentrification of Port Adelaide through large-scale infrastructure projects and economic growth will continue to revitalise the region, while exceptional connectivity to Adelaide’s major arterial motorways and infrastructure including the Port River Expressway, Grand Junction Road, Northern Connector, Port Adelaide, and Osborne Shipyards, adds to the appeal.

The $368bn AUKUS defence project is also expected to support substantial long-term infrastructure investment into the Osborne Naval Precinct, which will contribute to significant real asset demand and outperformance.

“South Australia’s economy has demonstrated remarkable resilience, with steady long-term growth averaging 2.5% over the past 30 years. This economic stability is further supported by the state’s favourable investment environment, which includes the absence of land tax, making real estate investments particularly attractive,” Mr O’Brien explained.

The state’s steady population growth of 0.8% per annum indicates robust demographic growth that drives demand for industrial and logistics real estate. Additionally, the South Australian Government has committed to a record $20.8 billion in general government expenditure towards infrastructure investment over the next four financial years. This ambitious infrastructure program includes significant allocations for transport, social infrastructure, health, water, and energy, ensuring the state’s continued economic prosperity and liveability.

“Port Adelaide, with its strategic location and exceptional infrastructure, is set to benefit immensely from these economic and infrastructural developments. The region’s transformation promises substantial returns for investors, making it a prime opportunity for those looking to capitalise on South Australia’s growth and prosperity,” Mr Bell confirmed.

Port Adelaide Distribution Centre is being offered for sale via an International Expressions of Interest campaign, closing at 3:00 PM (AEST) on Thursday, 29th May 2025.