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News release

Adelaide

2013 is shaping as another active year in industrial sales with recent investment activity adding to the $76m of industrial property sold to Q3: Jones Lang LaSalle

Reflecting the tightness in the broader investment market, Adelaide-based private investors have been active in purchasing industrial property in recent weeks.


ADELAIDE, 25 October, 2013 – The Adelaide industrial market has remained tightly held with investors actively pursuing quality opportunities when they are presented to the market.

According to Jones Lang LaSalle’s Managing Director, SA, Jamie Guerra, activity is picking up in the Adelaide market. 

“2012 experienced one of the largest volumes of transactions in recent years and we expect the strong activity to Q3 being continued in the last quarter of 2013. There is still significant demand for industrial investments driven by the attractive spread between yield and cost of funds,” said Mr Guerra.

Jones Lang LaSalle has been involved in two industrial investment transactions in October, totalling $13.1m, to private investors – and market appetite remains strong.

Lot 105 Tappa Road Edinburgh was a design and construct transport facility purpose built for Cameron Interstate. Commercial & General completed the facility in July 2013 and Jones Lang LaSalle managed an off-market campaign which secured the sale for $6.5m. Offering a 10 year lease over the brand new facility, the yield of 8.1% reflected the prime quality of the investment.

519 Cross Keys Road, Cavan was an 8,019 sqm workshop leased to Arrium Group until November 2019. Jones Lang LaSalle and CBRE were appointed to take the property to market however identified and secured a buyer prior to marketing. 

“The private investor had recently missed out on another industrial investment with similar characteristics, so when the opportunity at Cavan was presented they were keen to secure the investment for $7.1m representing 9.35% prior to going to market,” said Mr Guerra. 

“We are continuing to see strong levels of interest on all investment and the property being offered at 579 South Road, Regency Park is no exception,” concluded Mr Guerra.