A Value Partners Asia Pacific real estate fund has announced the disposal of a 100% interest in a St Clair industrial site sold in Adelaide’s north west for $18.8 million following a major repositioning program. CBRE Jordan Kies Chris O’Brien and David Reid managed the off-market sale of the 29,707sqm site on behalf of the Value Partners Asia Pacific fund.

A Value Partners Asia Pacific real estate fund has announced the disposal of a 100% interest in a St Clair industrial site sold in Adelaide’s north west for $18.8 million following a major repositioning program.

Ascot Capital has acquired the 589-599 Torrens Road property, which features a 15,000sqm (GLA) warehouse occupied by long-term tenant Trident Plastics, a local firm that manufactures residential rubbish bins, water tanks and automotive components.

Trident made a name for itself in 2017 after installing the largest plastic injection moulding machine in the Southern Hemisphere. It has a triple-net lease over the facility though to 2028, which, based on the $18.8 million sale price, translates to an initial sale yield of 5.64%.

CBRE’s Jordan Kies, Chris O’Brien and David Reid managed the off-market sale of the 29,707sqm site on behalf of the Value Partners Asia Pacific fund.

“The sale price reflects a significant premium to the book value of the property, which is an excellent outcome for investors in the Fund,” said Rachel Tong, Managing Director & Head of Real Estate Private Equity for Value Partners Group Limited. “While we are exiting this asset, the fund continues to look for yield accreditive opportunities in Adelaide and elsewhere in Australia given demand from our investors for quality assets in a stable market.”

The fund has invested in logistic centres, offices and student accommodation in Asia Pacific. It bought the St Claire property in September 2018 and has repositioned the asset over the past 1½ years, including facilitating the site’s rezoning from Urban Employment to Residential (Medium Density.)

“Investor demand for industrial assets in South Australia has increased significantly in recent years, with the COVID-19 pandemic having further bolstered buyer interest given the resilience of the industrial & logistics sector,” Mr Kies said.

The St Clair property is situated 10km from the Adelaide CBD, 6km from Port Adelaide and offers 141 metres of frontage on Torrens Road. The site is bordered by the St Clair residential estate and represents an infill opportunity.

To request a detailed sales analysis please email either of the marketing agents from CBRE Jordan Kies Chris O’Brien or David Reid via the contact forms below.