Adelaide manufacturing plant trades for c$30m
A north Adelaide manufacturing plant leased to Bianco Walling, owner of Bianco Precast, has found favour with a private investor.
Based on the speculated $30 million result, the yield for 535 Grand Junction Road, Gepps Cross, circles five per cent.
The vendor paid Consolidated Pre-Stressed Industries $2.31m in 2006.
McGees Simon Lambert and Andrew Wilson were the agents.
Offered with a development clause allowing the lease to be terminated – on land zoned Strategic Employment by the City of Port Adelaide Enfield, their campaign was also targeted to developers.
“Together with its substantial facilities and low site coverage, [the property] offered large scope for expansion of facilities, or development, from a value-add play to a new logistics estate,” they said.
The deal comes two months since we reported global hire company Porter Group outlaid $5.9m for a smaller industrial site at nearby 19 and 21 Opala Rd, Regency Park.
535 Grand Junction Road
The Gepps Cross block spreads 4.52 hectares, also exposed to Cavan Rd.
A mix of old and new high clearance warehouses with offices and amenities is contained in 18,788 square metres; on two titles, it is used as a precast concrete manufacturing facility.
There is also extensive parking, sheds and perimeter fencing.
Bianco, established in 1994 as Bianco Bricklayers, but nowadays focusing on concrete walls, is on a lease expiring next year when it will be presented with one of its five year options. Present rent is $1.48m ex-outgoings and GST.
“The outstanding outcome of this campaign is another show of strength of Adelaide’s industrial market,” Mr Lambert said.
“We received local and national interest from developers, investors, and manufacturing owner-occupiers, given this was a truly generational opportunity to secure one of Adelaide’s last remaining large-scale development sites,” he added.
“Investors were attracted to the property for its excellent lease covenant, backed by an A-grade tenant with secure options, and were joined in the pursuit by developers for its irreplaceable, substantial footprint in the heart of Adelaide’s tightly-held northern industrial and commercial precinct, at a time in which Adelaide is experiencing the most significant industrial land shortage in Australia,” according to the executive.
“We continue to see investors show heavy interest in Adelaide industrial assets with existing improvements and value-add potential”.
Mr Wilson said tens of thousands of vehicles pass the property daily.
“The prime industrial precinct is home to some of the nation’s largest occupants, including Mainfreight, Linfox, Aldi’s distribution centre, Costco, Coopers, and Gepps X Home HQ, which is occupied by JB Hi-Fi, The Good Guys, Harvey Norman, Hungry Jack’s Ampol, Bianco Construction, Wattyl Paint and Coles,” he added.
Gepps Cross is about nine kilometres from town.
Also today we are reporting a manufacturing plant investment in Melbourne’s west Truganina sold for $25.1m – a 5.6pc net passing yield.
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