Adelaide industrial market attracting strong interest from interstate buyers
News release
01 July 2024
NSW private investor secures large warehouse in South Australia
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A private investor from NSW has made their first foray into the South Australian industrial market by purchasing a large warehouse for $13 million at an initial yield of 5.57%.
JLL’s Kym Hutchins and Martin James negotiated the sale of 7 Hudson Court, Netley on behalf of a local private investor.
The facility, constructed in 1989, comprises 1677 sqm of offices and 3737 sqm of warehouse space on a 1.57 hectare site.
Mr Hutchins said the property received strong interest from local and interstate investors, demonstrating the demand for well-located industrial “last mile” properties in Adelaide.
He said the Adelaide industrial sector, traditionally the domain of local purchasers, had been attracting good interest from interstate investors seeking opportunities outside constrained markets.
Mr Hutchins said the property is leased to the Commonwealth of Australia from 1st June 2023 for three years with two one-year options. Commencing rent was $700,000 with annual increases to 3.5% and the tenant paying all outgoings.
“The property is a leased investment with future development potential (STCA),” Mr Hutchins said.
The property is in Adelaide's western industrial precinct, adjacent to the Adelaide International Airport. Surrounding occupiers include Australia Post, FedEx, DHL, Ikea, and SAPOL.
It is strategically positioned for easy access to the greater metropolitan area of Adelaide and is located on a designated heavy transport route.
About JLL
For over 200 years, JLL (NYSE: JLL), a leading global commercial real estate and investment management company, has helped clients buy, build, occupy, manage and invest in a variety of commercial, industrial, hotel, residential and retail properties. A Fortune 500® company with annual revenue of $20.8 billion and operations in over 80 countries around the world, our more than 108,000 employees bring the power of a global platform combined with local expertise. Driven by our purpose to shape the future of real estate for a better world, we help our clients, people and communities SEE A BRIGHTER WAYSM. JLL is the brand name, and a registered trademark, of Jones Lang LaSalle Incorporated. For further information, visit jll.com.