NSW private investor secures large warehouse in South Australia

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.