Trilogy Reaps Windfall with $20m SA Warehouse Sale

Trilogy Funds has reaped a windfall in Adelaide, selling an industrial site it paid $14 million for in 2018 for $20 million.

The two warehouses at 113-117 Bedford Street in the north-western suburb of Gillman are 11.5km from the CBD on a 1.49ha site.

Adelaide property syndicate Harmony Property Investments acquired the site in an off-market deal, negotiated by Max Frohlich and Ryan Mills of Knight Frank.

National packaging distributor Plasdene Glass Pak and national tyre wholesaler Tyremax leases one of the warehouses, which offer 6400sq m of net lettable area (NLA), while the other has 2450sq m of NLA and is leased to Plasdene Glass Pak. 

Collectively they provide a WALE of 4.64 years.

Trilogy Funds Manager Property Funds Laurence Parisi said the sale price represented a 13 per cent premium to the latest external valuation of June 30, 2023.

▲ Despite a rise in vacancy, industrial rents in Adelaide rose in the second quarter with prime net face rents increasing 3.7 per cent.

“The sale of the Gillman property is demonstrative of strong market conditions in the industrial property sector, and a testament to our selection criteria” Parisi said.

“It is a high-quality asset, in a recognised location with great connectivity—and we identify these characteristics as big drivers of demand for properties.”

Trilogy Funds recently acquired a 3.8ha multi-warehouse property leased to surf brand Quiksilver. 

As at September 30, Trilogy’s Property Trust included 15 assets with a total value of $279.5 million.

According to Knight Frank’s Australian Industrial Review for the second quarter of this year, Adelaide’s industrial market is picking up steam and there was significant improvement over first quarter sales—in the period just nine transactions were recorded for a value of $93.3 million. 

Vacancies, however, continued an upward trend despite increased takeup.