SA property records tumble in multimillion-dollar deals
Two massive property deals have been inked in South Australia this week, setting new records for the state.
The Port Adelaide Distribution Centre (PADC) has been sold by property firm Quintessential to listed real estate giant Centuria for more than $216 million, believed to be the largest industrial transaction ever recorded in the state.
Quintessential first acquired the 319,500 sqm site in 2019 for $80 million, before embarking on a $19 million capital works program, including the build of two new warehouses.
It means Quintessential, co-founded by executive director Shane Quinn, made more than $100 million in profit overall.
The PADC is one of Adelaide’s largest single-ownership industrial estates and includes 174,600sqm of gross lettable area across 13 warehouses.
Quinn said his company’s management strategy for PADC focused on driving tenant demand and long-term value creation.
“Quintessential recognised the potential of PADC in 2019 when no one else did,” he said.
“Knowing when to exit is just as critical as knowing when to invest. Our ability to read the market and deliver timely liquidity events is what sets us apart as a leader in asset regeneration so that we get our investors the best risk-mitigated returns.”
Over the past six years, Quintessential attracted new tenants including Visy Logistics, San Miguel, Toll Logistics, SET Logistics and Paramount Browns. Existing tenants included agriculture product supplier Ameropa Australia and retailer Spendless Shoes.
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“We’re proud of the outcome delivered at PADC,” newly appointed CEO Justin Mills said.
“From identifying the opportunity to repositioning the asset and executing the sale, this reflects the strength of our team and the consistency of our approach.
“Achieving a strong return and returning a significant amount of capital to investors through a well-timed transaction is a pleasing result.”
The property joins a new unlisted fund for Centuria, which said it acquired the site at approximately a 70 per cent discount to its replacement cost.
The new fund will be Australia’s largest single-asset industrial fund to date, and will be called the Centuria Port Adelaide Industrial Fund.
Centuria chief investment officer Andrew Essey said the acquisition 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”.
“Adelaide has one of Australia’s strongest leasing markets with materially lower rents in comparison to other capital cities,” Essey said.
“We are very excited to secure this asset at a substantial discount to replacement cost.
“With 60 per cent of Adelaide’s industrial pipeline already pre-committed, we believe supply constraints will continue to drive opportunities for positive rental reversions within the park. The estate has a long history of low vacancy due to occupiers’ preference to be within close proximity to the port and road and rail infrastructure.”
Centuria said the AUKUS defence project at the nearby Osborne Naval Precinct as well as the Port Adelaide (Gillman) Renewal Project and the Henderson Defence Precinct would all be boons for the PADC.
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“The acquisition is a strong start to FY26 and we expect significant investor interest due to the decreasing interest rate environment,” Essey said.
“We anticipate further, attractive investment opportunities for both domestic and international capital over the year.
“We continue to see improving conditions within the transactional market with failing debt costs, strong international investor interest for well-priced and well-located property, and healthy retail/wholesale investor appetite.”
Centuria will open the unlisted fund in September to retail, wholesale and institutional investors, with a $116 million equity raise target.
“Centuria Port Adelaide Industrial Fund is an attractive opportunity for investors to gain exposure to an industrial investment that provides potential for strong income yield and capital and income growth from anticipated rental rates and value-add potential,” Centuria head of funds management Jesse Curtis said.
“It houses quality national and international tenants, providing a diversified income profile and potential to generate income growth from capturing higher market rents.
“Additionally, given the size of the estate, future value-add potential is available through subdivision, repositioning or redevelopment options.”
CBD tower sells for $50.5m
Meanwhile in the CBD, Colliers and CBRE have landed Adelaide’s largest office sale of 2025.
The 11-level office tower at 63 Pirie Street sold for $50.5 million to Centennial.
Colliers head of investment services for South Australia Jordan Schmidt said the transaction reflected “the continued demand for well-located, high-quality office assets in Adelaide”.
“The strong leasing profile and recent upgrades made 63 Pirie Street a compelling opportunity.”
The building is currently 86 per cent leased with tenants including Lockheed Martin, Macquarie Bank, Cowell Clarke, Bentleys and Tank Stream Labs.
Centennial indicated it planned to further upgrade the building to capitalise on tightening vacancy rates and the ongoing return-to-office trend.
