Centuria Capital Group acquires Port Adelaide Distribution Centre for $216m
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The news: Centuria Capital Group has acquired Port Adelaide Distribution Centre for the new unlisted Centuria Port Adelaide Industrial Fund, which the investment group claims will be Australia’s largest single-asset industrial fund.
The numbers: The 32 hectare estate was acquired for $216 million, which Centuria said was a 70% discount on the replacement cost.
The estate has 93% occupancy and 3.4 year weighted average lease expiry. The industrial estate is located at the tightly held northwest industrial precinct where current vacancy is 1.5%, below the national average of 2.8%.
The Centuria Port Adelaide Industrial Fund will provide an initial five-year term and will be offered to retail, wholesale and institutional investors from September 2025. Distributions for FY26 are expected to be 7.5% and 8.5% for FY27.
The fund is targeting an equity raise of $116 million with investments starting from $50,000. Settlement of the property is expected in October 2025.
The context: Centuria flagged macroeconomic tailwinds in South Australia such as strong population growth and 17% of the state’s expenditure being allocated to significant infrastructure projects over the next four years.
Projects that could influence occupier demand include the AUKUS-related work at the Osborne Naval Precinct, the Port Adelaide (Gillman) Renewal Project and Henderson Defence Precinct.
What they said: “This was a rare opportunity to secure a trophy Adelaide asset at a time when the local market benefits from cyclical tailwinds credited to low vacancy, strong leasing demand and limited new supply,” Centuria joint chief executive officer Jason Huljich said.
The source: ASX
