Port Adelaide business park trades for $216m
Quintessential has sold the landmark Port Adelaide Distribution Centre after six years, saying “knowing when to exit is just as critical as knowing when to invest”, to Centuria, which boasted it picked up the asset 70 per cent below replacement cost.
In separate statements today, both buyer and seller bragged about the $216 million Gillman deal.
On 31.95 hectares at 25-91 Bedford Street, the property contains 174,600 square metres in 13 buildings – 93 per cent of which is occupied.
The weighted average lease expiry is 3.4 years.
The price is a record for a South Australian industrial asset.
CBRE’s Chris O’Brien, Andrew Bell and Paul Mackay with Colliers’ Gavin Bishop, Sean Thomson, Tom Barrett and Paul Tierney were the agents.
Profitable exit
Quintessential paid Stockland $80m for Port Adelaide Distribution Centre then spent $19m adding two warehouses.
The landlord also secured new tenants, including with Visy for 44,000 sqm in 2021 – at the time, the asset manager’s biggest industrial lease deal.
Last year the Environmental Protection Authority signed up for 10 years.
Toll and Spendless Shoes are amongst other high-profile occupiers in the estate, on nine titles, with tenancies between 1700-21,000 sqm.
“The asset [also] underwent strategic capital upgrades that drove strong tenant attraction and retention,” Quintessential co-founder, Shane Quinn, said.
“Our ability to read the market and deliver timely liquidity events is what sets us apart as a leader in asset regeneration so that we get our investors the best risk mitigated returns,” he added.
“Knowing when to exit is just as critical as knowing when to invest,” according to the executive.
Chief executive officer Justin Mills said “from identifying the opportunity to repositioning the asset and executing the sale, this reflects the strength of our team and the consistency of our approach”.
The deal comes two months since we reported Quintessential banked a major profit selling a Brisbane industrial investment held five years.
Centuria makes it $6b
Centuria will hold the Gillman property in a single asset trust – the Centuria Port Adelaide Industrial Fund – set to call on investors next month, for c$116m.
Over an initial five year term, anticipated distribution is 7.5pc, per annum this financial year, rising to 8.5pc, pa the following, in both cases paid monthly.
Settlement is scheduled October.
The manager will then control over $6 billion of Australian industrial product.
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