Quintessential Equity offloads Port Adelaide warehouse

An industrial property in Port Adelaide has changed hands for $17.6m as investor demand for industrial property ramps up in the wake of COVID-19.

Quintessential Equity has offloaded an industrial property in Port Adelaide for $17.6m after securing a long-term lease at the site.

InfraBuild Steel Centre will remain at the Webb Street site until at least 2030 following a new 10-year lease and a $1m investment in property upgrades.

The purchase of the 44,000sq m site, by Auckland syndicator Silverfin Capital, represents a 6.3 per cent yield.

Quintessential Equity chief executive Russell Bullen said the new lease and the property’s location - close to sea, rail and road networks - had attracted strong interest from investors.

“The Webb Street property received strong appeal amongst investors with the addition of the newly extended lease agreement and a great tenant,” he said.

“The combination of location and the long-term lease helped to strengthen the property’s value in the midst of an industry boom, delivering strong and stable returns for our investors.

“As our last settlement of the year, we are looking forward to a promising 2021 as we expand our portfolio in South Australia and interstate.”

The Port Adelaide industrial property sold at a 6.3 per cent yield.

Earlier this month Quintessential secured its biggest ever industrial lease at its nearby Port Adelaide Distribution Centre, with Visy Logistics leasing more than 44,000sq m of warehouse space.

The 32ha estate, which comprises 12 warehouses and a gross lettable area of close to 167,000sq m is now fully occupied, with Quintessential seeking pre-commitment for a new 7400sq m warehouse being planned for the site.

The Port Adelaide Distribution Centre, which is one of South Australia’s biggest industrial parks, has recently undergone a multi-million dollar refurbishment including upgrades to the facade cladding, lighting system, landscapes, wayfinding and sprinklers.

Quintessential executive chairman Shane Quinn said the expansion and refurbishment would support the strong demand for industrial property in the wake of COVID-19.

“The expansion allows us to leverage this land rich site by creating additional warehouse space in a location that is serviced well by amenity and infrastructure networks,” he said.

“Industrial property has long been the darling child of property, which has only heightened since the pandemic.

“We expect demand for this asset class to remain strong. As we grow our portfolio, we’ll be focusing on land rich rather than improvement rich industrial assets, looking for opportunities to increase warehouse space in premium locations so businesses can enhance their last-mile logistics.”

In recent months several new tenants have secured space at the Port Adelaide Distribution Centre, including Aramex (formerly Fastway Couriers) and local SA company Paramount Browns, which has established a new warehouse distribution facility at the site.

Quintessential acquired the estate for $80m from Stockland last year.