Centuria-developed Direk SA industrial facility sold before paint dries

$50m Mirage Road warehouse snapped up in off-market transaction

Following a 14-month construction period, Centuria’s Development team has delivered an A-Grade c.21,000 sqm, modern warehouse within Direk SA, north Adelaide’s industrial heartland, with the greenfield project immediately selling via an off-market approach within days of receiving Practical Completion (PC).

Centuria developed the facility on a speculative basis for the Centuria Industrial REIT (ASX: CIP), which intended to lease the warehouse from completion. However, CIP was approached by a local owner-occupier, who required an immediate, turnkey solution to facilitate its expanding operations.

Sales contracts were exchanged for $50 million, providing CIP a 33% premium on total development costs and achieving a 25% Internal Rate of Return (IRR).

Andre Bali, Centuria’s Head of Development said, “When the greenfield site was acquired in 2023, we saw significant potential to deliver a multiunit facility that could meet rising demand from the Adelaide industrial occupier market. We hadn’t anticipated just how strong the operator market had become within a year and the immediate sale is testimony to the cutting-edge design and quality of the facility we delivered, its location and modern warehouse facilities.”

Located at 50-64 Mirage Road, the development is part of the Adelaide’s largest master-planned industrial estate with B-triple capable road networks and strategically located in proximity to the Northern Connector (3 km), Port Adelaide (15 km) and Adelaide Airport (30 km). Over the past few years Centuria has developed several industrial assets in this location and has a deep knowledge of this sub-market.

Construction commenced in February 2025. Sagle was appointed to construct the facility. The warehouse was designed to allow flexible multi-use (three units) or single-occupier use. Features include:

• Hardstands ranging between c.26-30m
• Minimum internal clearances of c.11m
• Dual-sided cantilevered awnings spanning 15m
• 19 roller doors
• Three recessed docks
• Translucent skylight roof sheeting enabling natural light, reducing reliance on artificial lighting
• Dual-site access
• 1,830sqm of office accommodation
• End-of-trip facilities.

The Mirage Road development was built to a 5 Star Green Star rating and incorporates sustainability features including:

• LED lighting with daylight harvesting
• Rainwater harvesting system for toilets and irrigation
• 6 EV charges
• Low-VOC materials
• Water-efficient fixtures
• 297 kW solar system.

In recent years, Centuria’s Development team has delivered $150 million worth of industrial and office projects within South Australian including Apex Steel’s new office/industrial HQ (FY23), 57 Wyatt Street boutique office building (FY23), 16-19 Caribou Drive industrial facility (FY25) and 13-16 Caribou Drive, Direk warehouse (2026).

Centuria’s Development team continues to work closely with CIP, helping to maximise the development potential across its substantial urban infill portfolio located across Australia.