NZ syndicator flips Port Adelaide warehouse
Auckland based asset manager Silverfin Capital has sold an industrial investment purchased from Quintessential four and a half years ago.
The 4.4 hectare manufacturing plant and storage facility, occupied by Infrabuild, formerly One Liberty Steel at 13-43 Webb Street, Port Adelaide, is trading for $25 million.
It paid $17.6m – a 6.3 per cent net passing yield.
The onsale – to a private investor – reflects a 5.81pc return.
Port Adelaide is about 14 kilometres north of town.
Land rich investment
With 15,520 square metres of improvements – offices and a warehouse with gantry cranes – Infrabuild is committed to 13-43 Webb St, at the V-intersection of Old Port Road, until 2030.
Quintessential undertook a major renovation just before selling to Silverfin; it paid $10.3m in 2013.
“The purchaser is a local private investor who will hold the property long-term as a leased investment and will explore value-add opportunities in line with tenant and market requirements,” McGees Andrew Wilson, who brokered the latest sale, off-market, with Daniel Scinto, said.
“The deal demonstrates the strength of the South Australian industrial sector and the ongoing demand for leased investments with value-add potential,” according to the executive.
“We’re seeing an undersupply of quality leased stock driving competition,” he added.
“This property offered the rare opportunity to acquire a substantial industrial asset with a secure income stream backed by an established tenant in a well-connected prime industrial precinct.
“Sites that are land-rich with exiting improvements that can be repositioned, upgraded or redeveloped to maximise value over time continue to be particularly sought after”.
Mr Scinto added “tenants are focusing on well located facilities in established industrial hubs that offer good access, quality warehousing and flexibility”.
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