This article is from the Australian Property Journal archive
FOLLOWING a $25.5 million acquisition by Merlino Development Group, a former DHL facility in northern Adelaide’s Pennington is set to be transformed into a new industrial and logistics estate.
The 21,000sqm facility at 102-110 Glenroy Street, sold with short-term leases still remaining to DHL, Pickles Auctions and Macro Meats.
Andrew Wilson from McGees Property managed the off-market sale of the site, which market one of Adelaide’s largest industrial transaction in 2024 so far.
With the redevelopment by Merlino to eventually see a brand-new, state-of-the-art office/warehouses, starting from 2,100sqm up to 3,200sqm.
“This project is poised to become a benchmark for industrial developments in the region,” said Wilson.
“We’ve already received a wave of interest, with logistics, defence and engineering groups notably prominent in the enquiry. There are several proposals already under consideration.”
The redevelopment will also see two pre-cast structures constructed on the site in addition to the redevelopment of the existing facility, with a smaller warehouse development at the southern end of the site in planning.
The facilities will include high-clearance warehousing equipped with gantry cranes, secure yards and full drive-around access.
Wilson and Marco Onorato, alongside Anthony De Palma and Jamie Forwood from Leedwell, will lead the leasing campaign for the future estate.
“There’s clearly still really strong demand from groups to be centrally located between the Port, Airport and CBD,” added Wilson.
“Well-located and well-connected sites such as this are become rarer and rarer and we expect to see ongoing demand momentum at this site.”
The property sits within close range of major transport routes such as the Port River Expressway, Northern Connector and Outer Harbor and also offers direct access off Grand Junction Road.
“We continue to see a high number of tenants seek high-grade office/warehouse spaces at rates lower than the cost of new builds,” added Wilson.
