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Centuria & Samaras break ground on $38m Apex industrial development

  • City of Salisbury Mayor joins developers and tenant for construction milestone
  • New Apex SA HQ to be home to 100+ employees;400-500 new jobs created throughout construction
  • Development adds to burgeoning Northern Adelaide industrial precinct; delivering A-Grade real estate
  • Asset will be owned by the Centuria Diversified Property Fund (CDPF) on completion

Joint development partners, ASX-200 listed Centuria Capital Group (ASX:CNI) and Samaras Group, were joined by City of Salisbury Mayor, Gillian Aldridge OAM, and steel manufacturing operator, Apex Group, to celebrate breaking ground on the new $38.25 million industrial development in Direk, South Australia.

The groundbreaking event signified a construction milestone in the development of the 22,000sqm industrial facility, which sits within a 5.4 hectare site at 36 Caribou Drive, Direk. The property will be constructed by experienced, local Adelaide builder, Sagle Constructions.

Upon completion in early 2023, Apex Group, one of Australia’s largest privately-owned steel distributors and manufacturers, will lease the property on a 15 year term1 and relocate more than 100 employees to the new premise.

The development will provide a 21,160 sqm warehouse, 820 sqm office space, heavy duty hardstand, full drive around B-Double truck access, and multiple on-grade roller doors with canopies for undercover loading. It is custom-built for Apex and will serve as its new South Australian headquarters. The 40% site coverage also enables future expansion in the current supply constrained Northern Adelaide industrial market.

City Of Salisbury Mayor, Gillian Aldridge OAM, said, “Local investment within the industrial real estate market is benefiting the Salisbury community, boosting economic growth and employment. We warmly welcome the development of this new industrial facility.”

Andre Bali, Centuria Head of Development, commented, “Industrial real estate has benefited from strong tailwinds due to high tenant demand for quality spaces that can accommodate current and future operational requirements. Centuria is a significant investor within the Direk community but this is our first development fund-through project in the area. We have a strong track investing in South Australia for more than 20 years, and for developing industrial assets throughout Australia.

“In partnership with Samaras, we aim to deliver a sustainable development to the benefit of Apex and its employees while continuing Centuria’s commitment to environmental initiatives, reducing energy, water and waste where possible.”

Chris Samaras, Samaras Managing Director, said, “We are excited about this project and the opportunity to commence working with Centuria and Sagle Constructions to deliver a new custom-built facility for Apex. Following a successful design phase with our key partners, construction is scheduled to commence immediately and will generate many new job opportunities within our local business and many other businesses in the area. We are committed to local construction in South Australia and look forward to future opportunities within this space.”

John Konstandopoulos, Apex Steel Supplies Managing Director, said, “This is a significant event and marks a milestone in Apex’s evolution. Our company was fast outgrowing space in our current facility and required a bespoke new home that’s fit for purpose for our specialised equipment. The new Direk property will help future-proof our rapidly expanding operations as the business continues to evolve.”

Direk is one of Adelaide’s major northern industrial precincts, benefiting from close proximity to Highway 1 and the recently completed Northern Connector, which improves connectivity to the broader major transport network.

Upon completion, the development will be owned by the Centuria Diversified Property Fund (CDPF). The five year old open-ended unlisted fund recently reported a 12 month total return of c.12.2%. CDPF provides a 5.17 year2 portfolio Weighted Average Lease Expiry (WALE) and 99% portfolio occupancy. The Fund’s portfolio now includes six1 direct assets, nine indirect investments via Centuria’s unlisted funds, investment in listed A-REITs, and cash-like products, collectively worth $242 million3.

The Apex development is within the same estate as Centuria Industrial REIT’s 9-13 Caribou Drive, leased to Fisher & Paykel. Other neighbouring occupiers include Rand, Lindsay Transport, Cahill Transport, Hentschke Transport, SCF Containers and Nick Scali.

Centuria’s industrial portfolio encompasses 167 assets worth more than $5.1 billion across its ASX and NZX-listed funds and Australia and New Zealand unlisted funds, which attribute to c.30% of the Group’s entire real estate platform4.

1. As at January 2023, upon development completion
2. As at 30 September 2021, including 36 Caribou Drive, Direk SA as if complete
3. CDPF’s portfolio assets under management of $242.1million includes the value of the completed Direk development.
4. As at 27 September 2021