AM alpha acquires Treasury Wine logistics facility in Penfield

A German investment group has paid close to $100m for Treasury Wine Estates’ distribution facility in Adelaide’s north.

Inside the Treasury Wine Estates intermodal facility at Penfield. Supplied by Savills

German family office AM alpha has paid $98m for Treasury Wine Estates’ intermodal distribution facility in Penfield.

The deal represents the group’s maiden investment in South Australia after it was introduced to the property by Sydney-based investment manager Realmont Property Partners, which will provide ongoing local management.

Stretching across 10.95ha, the site comprises 45,000sq m of warehousing and logistics building space as well as excess development land.

It is fully-leased to Treasury, with the sale price reflecting an equated market yield of 5.1 per cent. The off-market deal was brokered by Ryan Mills and Rino Carpinelli from Savills.

Munich-based AM alpha oversees a global real estate portfolio, and has previously invested in office and retail assets in Sydney and Brisbane.

Aerial view of the distribution facility. Supplied by Savills

AM alpha managing director Martin Lemke said the firm was attracted to South Australia’s stable property market, and continued to seek office, industrial, retail and alternative investment opportunities across the country.

“The key reasons behind our investment into South Australia are resilience of the South Australian economy during times of economic volatility, due to diverse composition of economy and relatively attractive yield spread to Sydney and Melbourne,” he said.

“Moving forward, AM alpha is focused on growing its portfolio further across the Asia-Pacific region as well as in Europe. Australia will continue to be one of AM alpha’s focus countries given its strong long-term economic fundamentals.”

Mr Mills said the sale of the Penfield site was the largest industrial sale in South Australia so far this year, and reflected the ongoing strength of the industrial market following the Covid-19 pandemic.

He said the Penfield intermodal site was strategically located in Adelaide’s north, adjacent to the Adelaide to Port Augusta rail line.

“The site acts as a centre for freight consolidation and distribution, making it an attractive location for organisations as an anchor point into northern Adelaide, the surrounding region, the interstate rail network and with direct access to Port Adelaide,” he said.

“Within a short space of time, it has become one of Australia’s busiest rail hubs.”

The Treasury distribution centre has been in operation at Penfield since 2014, starting with a 22,000sq m footprint before a $30m expansion completed in 2018.

The complex is used for both domestic and export distribution.

Mr Mills said there were several other off-market industrial deals in the pipeline.

“The South Australian industrial sector has been a hive of activity during the last 12 months, with strong interest in securely leased industrial investment opportunities,” he said.

“The growing tenant demand for quality logistics assets and no stamp duty on commercial transactions will continue to strengthen investment in the Adelaide market.”