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Centuria secures $216m trophy Port Adelaide industrial estate for new unlisted fund
Acquired at c.70% below replacement cost1
- Australia’s largest single-asset unlisted industrial fund and South Australia’s largest industrial transaction
- 13-building estate is diversified by tenant profile, income, and unit sizes
- Adelaide’s northwest industrial vacancy of 1.5%2 provides near-term income-growth and value-add opportunities
- Expands Centuria’s industrial platform to over $6 billion; one of Australia’s largest industrial property funds managers
- Unlisted investor demand expected to increase due to falling interest rate environment
Australasian real estate funds manager, Centuria Capital Group (ASX: CNI), has secured the Port Adelaide Distribution Centre for $216 million, at a c.70% discount to its replacement cost1, which will underpin Australia’s largest single-asset industrial fund to date, known as Centuria Port Adelaide Industrial Fund (CPAIF or ‘Fund’).
Located at 25 – 91 Bedford Street, Gillman, South Australia, the 32-hectare3 industrial estate is within the tightly held northwest industrial precinct where current vacancy is 1.5%2. Adelaide’s industrial market, in general, has one of Australia’s lowest vacancy rates of 1.6%2, which is considerably below the national average of 2.8%4.
The asset spans thirteen buildings, nine titles and is leased to seventeen high-quality national and international tenants including Visy Logistics, agricultural product supplier Ameropa Australia, Toll Transport and Spendless Shoes. It benefits from industrial units ranging 1,700sqm – 21,000sqm warehouses.
Port Adelaide Distribution Centre provides exceptional connectivity to major road arterials and infrastructure including the Port River Expressway, Grand Junction Road, Northern Connector, Port Adelaide and Osborne Shipyards.
It provides a 3.4-year WALE5 and 93% occupancy6, enabling an opportunity for near-term rental revisions.
Andrew Essey, Centuria Chief Investment Officer, said, “This was a rare opportunity to secure a trophy Adelaide asset at a time when the local market benefits from cyclical tailwinds credited to low vacancy, strong leasing demand and limited new supply. Adelaide has one of Australia’s strongest leasing markets with materially lower rents in comparison to other capital cities. We are very excited to secure this asset at a substantial discount to replacement cost.
“With 60% of Adelaide’s industrial pipeline already pre-committed7, we believe supply constraints will continue to drive opportunities for positive rental reversions within the industrial park. The estate has a long history of low vacancy due to occupiers’ preference to be within close proximity to the port and road and rail infrastructure.”
South Australia’s macroeconomic tailwinds further support Centuria’s investment rationale, underpinned by strong local population growth and 17% of the State’s expenditure allocated to significant infrastructure projects throughout the next four years8.
Several high-profile infrastructure projects could potentially influence occupier demand, including the $368 billion AUKUS defence project within the Osborne Naval Precinct, the Port Adelaide (Gillman) Renewal Project, and Henderson Defence Precinct.
Mr Essey continued, “The acquisition is a strong start to FY26 and we expect significant investor interest due to the decreasing interest rate environment. We anticipate further, attractive investment opportunities for both domestic and international capital over the year. We continue to see improving conditions within the transactional market with falling debt costs, strong international investor interest for well-priced and well-located property, and healthy retail/wholesale investor appetite.”
The Centuria Port Adelaide Industrial Fund is anticipated to open in September 2025 for investment from retail, wholesale and institutional investors.
Jesse Curtis, Centuria Head of Funds Management, said “Centuria Port Adelaide Industrial Fund is an attractive opportunity for investors to gain exposure to an industrial investment that provides potential for strong income yield and capital and income growth from anticipated rising rental rates and value-add potential. At c.175,000sqm of building area, the estate is more than 10 times the size of the Adelaide Oval9.
“It houses quality national and international tenants, providing a diversified income profile and potential to generate income growth from capturing higher market rents. Additionally, given the size of the estate, future value-add potential is available through subdivision10, repositioning or redevelopment options. Investment in the Fund will be open to national and international retail and wholesale investors as well as institutional capital.
“Centuria has a strong track record in delivering returns to investor within the industrial sector with our active management team. Across Australia and New Zealand, Centuria manages Australia’s largest-listed industrial REIT, Centuria Industrial REIT (ASX: CIP), three industrial mandates on behalf of institutional capital as well as managing numerous industrial-specific unlisted funds. This acquisition increases our industrial assets under management to over $6 billion and expands on our strong track record within the sector.”
Centuria Port Adelaide Industrial Fund will provide an initial five-year term11 and is expected to be offered to retail, wholesale and institutional investors from September 2025, with a forecast distribution of 7.50% p.a. for FY26 and 8.50% p.a. in FY27, paid monthly12. The Fund has a targeted equity raise of $116 million with investments starting from $50,000. Settlement of the property is anticipated in October 2025.
This latest raising follows the recent, successful raising for the Centuria Logan Super Centre Fund, which acquired the Logan Super Centre in Queensland for $115 million and was oversubscribed. Centuria is one of Australia’s largest real estate funds managers with more than $20 billion in AUM.
Colliers’ Gavin Bishop, Sean Thomson, Tom Barrett and Paul Tierney, and CBRE’s Chris O’Brien, Andrew Bell and Paul McKay acted on behalf of the vendor.
1. Property Insurance Reinstatement Cost Assessment (excl. GST) provided by CDC as at 28 March 2025. Inclusive of land estimated at $450 per sqm.
2. Vacancy as at 1H25 according to CBRE research
3. Size by Gross Lettable Area (GLA)
4. Property Council of Australia, July 2025
5. By net income as at 1 November 2025 inclusive of rental guarantee over one vacant tenancy and a tenancy with pending lease approval
6. By gross lettable area as at 1 November 2025, inclusive of a tenancy with pending lease approval
7. CBRE: Adelaide Industrial & Logistics Q2 2025
8. Source: SA Budget Papers, Deloitte, CBRE Research
9. Adelaide Oval measures 16,133sqm
10. Subject to council approval
11. The Fund term may be extended – refer to the terms in the PDS and IM
12. Forecast distribution for FY26 is for 1 Nov 2025 – 30 Jun 2026 and are based on the assumption that settlement of the asset will occur on or around 1 November 2025. Forecast distributions shown are annualised and pre-tax. Distribution will be paid if declared by the responsible entity and will be subject to the terms, assumptions and risks set out in the PDS and IM. The forecast distribution rate is predictive in nature and is subject to assumptions, risks and circumstances (both known and unknown) outside of the control of the Fund. These assumptions include that all tenants will satisfy their contractual obligations under their respective leases within a timely manner, there are no significant unforeseen capital costs or material changes to the Fund’s financial obligations. The actual returns may differ from the target/forecast return. The Responsible Entity does not guarantee the performance of the Fund, the repayment of capital or any income or capital return. Past performance is not reliable indicator of future performance.