Wine Warehouse Sale Biggest Industrial Transaction of 2021


The bar has been set for South Australia’s industrial and logistics market after Munich-based fund AM alpha spent $98 million on Treasury Wine’s warehouse facility at Penfield.

It is the largest industrial transaction in South Australia this year, according to Savills' associate director of capital transactions Ryan Mills, who helped facilitate the sale for Singaporean logistics company SCT Logistics.

Mills said the property, at 123-145 Pellew Road, was about 28km north of the Adelaide CBD and comprised a purpose-built temperature-controlled and ambient distribution facility together with further development land.

Treasury Wines is Australia’s largest winemaker, best known for its premium Penfolds brand.

The warehousing facility of about 45,000sq m is on a site of close to 11ha and is fully leased to ASX-listed tenant Treasury Wine Estates (TWE) with a weighted average lease expiry (WALE) of around 9.5 years.

The facility is a domestic and international distribution centre with immediate access via the SCT Penfield Rail Freight Centre to the rail freight line providing direct access to Port Adelaide and further to Melbourne, Perth and Darwin.

“Within a short space of time, it has become one of Australia’s busiest rail hubs,” Mills said.

“The site acts as a centre for freight consolidation and distribution, making it an attractive location for organisations as an anchor point into northern Adelaide, the surrounding region, the interstate rail network and with direct access to Port Adelaide.”

Savills managing director for South Australia Rino Carpinelli said there had been a number of off-market industrial transactions this year.

“The South Australian Industrial sector has been a hive of activity during the past 12 months with strong interest in securely leased industrial investment opportunities,” Carpinelli said.

“The growing tenant demand for quality logistics assets and no stamp duty on commercial transactions will continue to strengthen investment in the Adelaide market.”

The $98-million acquisition will have an equated market yield of 5.1 per cent.

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