This article is from the Australian Property Journal archive
ANOTHER Thebarton industrial property has sold for $20 million-plus, with a local investor snapping up the true inner ring island site with long-term plans for a future mixed-use development.
The new owner from KM Property Funds paid $22 million for Thebarton Square, a 14,510sqm site that was the former Thebarton campus of the University of Adelaide, located just 2.5km west of the CBD.
The island site is bordered by Stirling, Anderson, Holland and Windwood Streets, with 11 titles across 19 allotments comprising a corporate style industrial estate with 14 commercial and warehouse buildings across 10,714sqm.
Ryan Mills and Max Frohlich from Knight Frank negotiated the off-market deal, with the sale price reflecting an initial yield of circa 5.58% and core market yield of circa 6.69%.
“The property has a net passing income of approximately $1.23 million per annum with strong growth potential, and currently 1,171sq m of NLA is vacant, providing significant upside,” said Mills.
“However, in the future the site has potential for a major redevelopment as it is zoned Urban Corridor, allowing a mixed-use development, including residential up to six levels.”
The site is 90% occupied with a WALE of 1.9 years by income, with current tenants including corporate occupiers Coca-Cola, Nokia and Viterra.
“The buyer has a long-term investment horizon and intends to implement value enhancement initiatives including future mixed-use development. It is a true inner ring island site, so there is the potential to create something very special on the property in time,” said Frohlich.
“This site will benefit from significant mooted development in the area, including the proposed 1,000- home residential urban renewal project set to transform the historic 8.4-hectare former West End Brewery site into a thriving mixed-use community directly adjacent to Thebarton Square.”
The transaction further underscores the demand for large industrial assets in Adelaide and comes after the July sale of the former Coca-Cola Amatil site in Thebarton, which sold for $23.625 million.
