Centuria Capital, one of Australia's leading listed funds managers, is set to make a major move in the South Australian industrial property market with the acquisition of the Port Adelaide Distribution Centre for approximately $220 million.
This significant purchase will not only expand Centuria's already robust industrial portfolio but also highlight the ongoing strength of demand for prime industrial real estate in Adelaide and across the country. Despite recent market adjustments, top-tier industrial assets continue to attract keen buyer interest.
Strategic Location Linked to AUKUS Defence Activity
The Port Adelaide Distribution Centre's location is a key driver of its appeal. Positioned near the Osborne shipbuilding precinct, the site is expected to benefit from the increased defence sector activity driven by the AUKUS alliance. While vacancy rates have risen in some parts of the industrial sector, properties with strong defence, logistics, and infrastructure connections remain highly sought-after.
For investors and businesses, this kind of location offers long-term strategic value — something the Century 21 Commercial Real Estate Adelaide team has seen consistently in high-demand South Australian industrial hubs.
Centuria's Broader Industrial Growth Strategy
Centuria has been actively expanding its industrial holdings this year. In May, the company partnered with US investment giant BGO to purchase $200 million worth of warehouse assets in Sydney from Goodman Group. These properties, totalling 45,000 square metres, are located in tightly held urban infill markets with a vacancy rate of just 2.7 per cent.
According to Centuria's joint CEO Jason Huljich, the company is focused on seizing opportunities in premium industrial markets where demand continues to outstrip supply. While he did not comment on the Port Adelaide deal directly, Huljich noted that both domestic and international investors are eager to tap into Australia's strong industrial market fundamentals, especially in infill locations close to households and major businesses.
Quintessential's Profitable Exit
The Port Adelaide property is being sold by Melbourne-based developer and investor Quintessential, which purchased the 32-hectare site from Stockland for $80 million in 2019. Since then, the company has expanded and upgraded the facilities, including a recent $19 million investment into two new warehouses.
These improvements — combined with rent increases from approximately $55 per square metre to $90 per square metre on existing stock — have significantly boosted the asset's value. The site now features over 175,000 square metres of built space across 13 free-standing warehouse facilities.
Investor Interest Remains Strong
Marketing of the property, handled by Colliers and CBRE, attracted strong interest from both Australian institutional investors and international buyers. Quintessential's chief executive Justin Mills anticipated this level of attention, citing the property's size, prime positioning, and proximity to the AUKUS defence hub.
The industrial property sector in Adelaide, particularly in strategically important areas like Port Adelaide, continues to prove its resilience — a trend that smart investors are closely watching.
If you're exploring opportunities in Adelaide's thriving industrial and commercial property market, the team of experts at Century 21 Commercial Real Estate Adelaide is here to help.
We provide:
- Commercial property sales
- Leasing and property management
- Buyer and tenant advocacy services
- Business brokerage
For tailored advice and a results-driven approach to your commercial real estate needs in South Australia, visit c21commercial.com.au today. Disclaimer: This article contains information and market insights first published by realcommercial.com.au The content has been independently rewritten and adapted by Century 21 Commercial Real Estate Adelaide to provide relevant and updated context for our audience.