This article is from the Australian Property Journal archive
A PRIVATE NSW investor has spent $13 million on a large warehouse in Netley, as the Adelaide industrial market maintains strong demand from interstate buyers.
The warehouse at 7 Hudson Court, around 6.2km west from the Adelaide CBD, was constructed in 1989 and comprises 1,677sqm of offices and 3,737sqm of warehousing on a 1.57-hectare Strategic Employment zoned site.
Kym Hutchins and Martin James from JLL managed the transaction, with the sale price reflecting an initial yield of 5.57%.
The property is leased to the Commonwealth of Australia for three years with two one-year options, starting at 1 June 2023, with initial rent $700,000 with 3.5% annual increases and the tenant paying all outgoings.
“The property is a leased investment with future development potential (STCA),” said Hutchins.
Located in the western industrial precinct on a designated Heavy Transport route, the property sits adjacent to the Adelaide International Airport and boasts easy access to the greater metropolitan area.
It is also surrounded by major occupiers including Australia Post, FedEx, DHL, Ikea and SAPOL.
According to Hutchins, the property drew in strong levels of interest from local and interstate investors alike, thanks to the demand for well-located last mile properties in Adelaide.
The Adelaide industrial sector has increasingly been attracting attention from interstate investors who are limited by more constrained markets.
Increased demand has included UK drug giant Noumed Pharmaceuticals’ choosing Adelaide’s north-east for its $100 million manufacturing plant, after receiving approval after four years of negotiations.
While JLL managed a $7.25 million transaction of a property across two titles has set a new record sale price for Adelaide’s inner eastern suburb of Kent Town in more than two years.
