Key Takeaways
- • Centuria Industrial REIT (CIP) has completed a A$19.5 million acquisition of a 6.5-hectare logistics facility at 32-54 Karuna Avenue, Edinburgh, South Australia, settling an off-market transaction announced in September 2019.
- • The asset comprises a 13,007 square meter factory constructed six years prior with extensive hardstand area, tenanted for 10 years to SA Structural, one of Australia's largest privately owned steel manufacturers, on a sale-leaseback basis.
- • Edinburgh's industrial precinct benefits from established infrastructure connectivity including Salisbury Highway, Port Wakefield Road, Northern Expressway, and the newly constructed Northern Connector, positioning the site as functionally superior to traditional South Australian industrial locations.
- • The acquisition reinforces CIP's market position as Australia's largest domestic pure-play industrial REIT, leveraging existing balance sheet capacity to deploy capital into quality assets with institutional-grade tenancy and 10-year lease security.
- • Off-market industrial deal flow in the sector remains substantial, with CBRE's transaction team noting significant investment activity not visible to the broader market, particularly for high-clearance modern facilities in emerging logistics precincts.
Summary
Centuria Industrial REIT has settled on the acquisition of a logistics facility in Adelaide's northern Edinburgh suburb for A$19.5 million, completing an off-market transaction managed by CBRE's Jordan Kies, Craig Klemich, and Chris O'Brien. The deal, initially announced by Centuria Property Funds No. 2 Limited (CPF2L), CIP's responsible entity, in September 2019, consolidates the REIT's position in South Australia's industrial market.
The 6.5-hectare property represents institutional-grade logistics infrastructure, featuring a recently constructed 13,007 square meter factory with modern specifications and substantial hardstand area. Critically, the asset carries a 10-year lease to SA Structural, one of Australia's largest privately owned steel manufacturers, providing long-duration, credit-quality income visibility. The improvements occupy only 20 percent of the total site area, indicating significant land value and potential for future intensification.
Edinburgh's strategic location within an established industrial precinct provides competitive logistics advantages. The suburb sits 21 kilometers north of Adelaide's CBD and benefits from proximity to major transport corridors including Salisbury Highway, Port Wakefield Road, and the Northern Expressway. The recently completed Northern Connector will further reduce transit times and enhance logistical efficiency. The precinct hosts established occupiers including BAE Systems, Carlton & United Breweries, CEVA Logistics, Coles, and Inghams, demonstrating institutional tenant depth and infrastructure maturity.
Ross Lees, CIP's Head of Funds Management, emphasized the acquisition's strategic alignment with the REIT's capital deployment strategy and market positioning, noting the transaction as consistent with CIP's stated objective as Australia's largest domestic pure-play industrial REIT. Jordan Kies highlighted that Edinburgh represents an emerging hub for investors seeking modern, high-clearance facilities—a product category increasingly unavailable in South Australia's traditional industrial precincts—underscoring structural supply constraints driving institutional capital flows into the market.
The 6.5-hectare property represents institutional-grade logistics infrastructure, featuring a recently constructed 13,007 square meter factory with modern specifications and substantial hardstand area. Critically, the asset carries a 10-year lease to SA Structural, one of Australia's largest privately owned steel manufacturers, providing long-duration, credit-quality income visibility. The improvements occupy only 20 percent of the total site area, indicating significant land value and potential for future intensification.
Edinburgh's strategic location within an established industrial precinct provides competitive logistics advantages. The suburb sits 21 kilometers north of Adelaide's CBD and benefits from proximity to major transport corridors including Salisbury Highway, Port Wakefield Road, and the Northern Expressway. The recently completed Northern Connector will further reduce transit times and enhance logistical efficiency. The precinct hosts established occupiers including BAE Systems, Carlton & United Breweries, CEVA Logistics, Coles, and Inghams, demonstrating institutional tenant depth and infrastructure maturity.
Ross Lees, CIP's Head of Funds Management, emphasized the acquisition's strategic alignment with the REIT's capital deployment strategy and market positioning, noting the transaction as consistent with CIP's stated objective as Australia's largest domestic pure-play industrial REIT. Jordan Kies highlighted that Edinburgh represents an emerging hub for investors seeking modern, high-clearance facilities—a product category increasingly unavailable in South Australia's traditional industrial precincts—underscoring structural supply constraints driving institutional capital flows into the market.
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