Ensign divests major Adelaide laundromat with a leaseback

Ensign last month sold neighbouring Northcote sites (shaded) to Citinova.

Ensign Services has sold a major Dudley Park industrial investment with a 30 year leaseback.

The laundry service provider is banking $20.075 million for 2-4 Oxenham Street, following an off-market campaign.

On 2.78 hectares at the north west corner of Exeter Terrace, and also fronting Pedder Crescent, near Islington station and Prospect, the holding contains 12,390 square metres of gross lettable area, with offices, laundry processing areas, distribution facilities and storage.

There is also significant hardstand and car parking.

Ensign, an arm of Spotless, which is now controlled by Downer, built two five year options into the sale agreement.

The purchaser is a private investor; Colliers’ Paul Tierney, Gavin Bishop and Sean Thomson were the agents (story continues below).

Peak Equities paid $16 million for 6-14 Oxenham Street in mid-2020.

The sale comes two years since Peak Equities paid $16m for a neighbouring modern office/warehouse, 6-14 Oxenham St, a 9000 sqm block, which has a head lease until 2035 to Spotless, which recently sub-let it to the Department of Defence.

Last month, the laundry service provider offloaded neighbouring sites in Melbourne’s inner north Northcote, all up covering 1.18ha, to residential developer Citinova, for nearly $20m.

Colliers’ Joe Kairouz and Robert Papaleo brokered that deal.

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Marc Pallisco

A former property analyst and print journalist, Marc is the publisher of realestatesource.com.au.