Fund managers trade major Adelaide distribution centre
EXCLUSIVE
ESR has quietly sold another major industrial investment, this time at Dry Creek, 10 kilometres north of Adelaide.
The 9.4 hectare Paramount Distribution Centre at 8-16 Vater Street, is collecting $50.5 million from Melbourne based Harmony Property Investments, an arm of MRS Property.
With c25,000 square metres, the block, predominantly hardstand, is occupied by logistics group Team Global Express.
The property was previously reported as selling in mid-2017 for $20.5m.
Knight Frank’s Max Frohlich and Ryan Mills were the agents.
Dry Creek is about 10 kms east of Port Adelaide.
Also this quarter, ESR has entered negotiations to sell west a site in Sydney’s Lockwood Road, Erskine Park, to Stack Infrastructure for a data centre.
Shedding sheds again
The off-market Dry Creek deal comes less than two weeks since we reported Hong Kong listed JD.com was seeking to buy ESR’s 18.2 hectare Wacol Logistics Hub, in Brisbane, for $240m – a 5.2 per cent yield.
In March meanwhile, ESR divested the Canning Vale Industrial Estate – on four hectares – in Perth.
Centuria was that buyer, for $38.6m – Perth’s priciest industrial transaction since December, 2023.
Last year ESR sold a Mount Kuring-gai warehouse investment to Arrow Capital Partners for nearly $102m.
On four hectares with two warehouses, it is the fourth asset for the Select Opportunities Fund, which launched in late 2023 with a c$100m mandate.
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