This article is from the Australian Property Journal archive
A St Clair Adelaide industrial site has been offloaded for $18.8 million by a Value Partners Asia Pacific real estate fund.
The 29,707sqm site, located at 589-599 Torrens Road, just 10km from the Adelaide CBD and 6km from Port Adelaide was sold to Ascot Capital on an initial sale yield of 5.64%.
“The sale price reflects a significant premium to the book value of the property, which is an excellent outcome for investors in the fund,” said Rachel Tong, managing director and head of real estate private equity for Value Partners Group Limited.
Additionally, the site boasts 141 metres of Torrens Road frontage and is adjacent to the St Clair residential estate.
The property, which includes a 15,000sqm warehouse leased by Trident Plastics, a local plastic manufacturer, which installed the largest plastic injection moulding machine in the Southern Hemisphere back in 2017. Trident has a triple-net lease on the facility into 2028.
The Value Partners Asia Pacific fund purchased the property in 2018 and has since repositioned the asset, including rezoning the site from urban employment to medium density residential.
This rezoning follows recent reports that, in Melbourne at least, industrial land supply is shrinking, with thousands of hectares being rezone away from industrial and towards residential and mixed-use purposes.
“While we are exiting this asset, the fund continues to look for yield accreditive opportunities in Adelaide and elsewhere in Australia given demand from our investors for quality assets in a stable market,” added Tong.
Similarly, in January a 44,000sqm Port Adelaide industrial site was offloaded for a comparable $17.6 million by Quintessential Equity to Silverfin Capital on a 6.3% yield.
The off-market sale was managed by Jordan Kies, Chris O’Brien and David Reid of CBRE.
“Investor demand for industrial assets in South Australia has increased significantly in recent years, with the COVID-19 pandemic having further bolstered buyer interest given the resilience of the industrial & logistics sector,” said Kies.
