Centuria Industrial REIT (CIP) has settled on the $19.5 million purchase of an Adelaide logistics facility.
The 6.5 hectare property at 32-54 Karuna Avenue, Edinburgh, sold following an off-market campaign managed by CBRE’s Jordan Kies, Craig Klemich and Chris O’Brien.
Centuria Property Funds No 2 Limited (CPF2L) – CIP’s responsible entity, announced the deal in September.
The investment includes a six year old, high quality, 13,007 sqm factory and expansive hardstand area.
It is tenanted for 10 years to SA Structural – one of the country’s largest privately owned steel manufacturers.
The improvements take up a low 20 per cent of the site area.
Edinburgh is about 21 kilometres north of the city.
With access to Salisbury Highway, Port Wakefield Road, Northern Expressway and (the new) Northern Connector, the suburb contains an established industrial precinct.
BAE Systems, Carlton & United Breweries, CEVA Logistics, Coles and Inghams are amongst the other occupiers in the pocket.
“We are pleased to be acquiring another quality industrial asset that has good connectivity to key infrastructure, is well located in the Edinburgh industrial precinct and utilises CIP’s existing balance sheet capability, continuing to position CIP as Australia’s largest domestic pure play industrial REIT,” CIP head of Funds Management, Ross Lees, said.
Mr Kies added that there is a lot of off-market industrial investment activity “which the general market may not necessarily be privy to”.
He said Edinburgh is “an attractive location for investors due to the availability of functional high clearance and modern facilities, which were less frequently available in South Australia’s traditional industrial locations.
The Northern Connector would further enhance the precinct by reducing transit times, the executive added.