This article is from the Australian Property Journal archive
CENTENNIAL’S new $30 million distribution centre redevelopment in Adelaide has been fully leased prior to completion, after securing the signature of global air-conditioning Daikin Australia in a decade-long deal.
Royal Park Distribution Centre in Adelaide’s north west will total 12,830 sqm of gross lettable area, with Daikin taking 7,580 sqm of office, showroom and warehouse space.
Allied Express has leased the remaining 5,250 sqm warehouse and office on a five-year term.
The respective leases were brokered by Savills’ Darren Curry and Steve Bobridge, and JLL’s Martin James.
Unlisted property funds manager Centennial bought the long-vacant 31,120 sqm site for $5.4 million in May of 2021.
At the time of purchase, Paul Ford, the group’s executive director and CEO industrial and logistics, said the site held enormous potential for value-adding due to its unrivalled location, generic design and flexibility that would appeal to a broad range of industry sectors and usages and was acquired well below land value.
“Royal Park DC and its soon-to-be-finished warehouse and hardstand areas is a prime example of our national strategy of sourcing mid-space and functional assets that offer strong connectivity to major distribution networks in often land-constrained, inner-ring/urban locations at scale,” he said.
“It also supports our key focus of working with high quality occupiers that are often starved of institutional service in their ‘mid space’ requirements.”
Michael Trad, Daikin Australia’s general manager of supply chain and IT, said the company was drawn to Royal Park due to factors including geographical location, size and distribution capabilities.
“The proximity to ports and Daikin customers presented us with a solution that would improve our effectiveness in the market.”
Daikin will consolidate its Adelaide operations to the site, including state sales and service offices; a new state-of-the-art training academy; trade and spare parts outlet, together with a Daikin operated warehouse housing its full product range.
Adelaide’s industrial and logistics vacancy rate was sitting at just 1.3.% in the December quarter, and Curry said very little new supply coming onstream in 2023.
National construction group, FDC Construction & Fitout was appointed to redevelop the site.
Centennial portfolio of niche “mid-space” holdings within the industrial and logistics sector now comprises 63 assets throughout Australia valued at approximately $1 billion, together with an additional development pipeline in excess of $350 million.
