Centuria's newly completed Direk SA warehouse achieves 20% rental premium

Centuria Development has completed a newly constructed, A-Grade 6,720sqm warehouse in Adelaide’s northern industrial precinct of Direk, which has already secured 100% occupancy and delivered a 20% rental premium to the project’s underwritten rental values.

The greenfield industrial facility, located at 15-19 Caribou Drive, was built by CIP Constructions during an 11-month period on a fixed-price design-and-construct contract. The property was speculatively developed for the listed Centuria Industrial REIT (ASX: CIP), which is also the landlord for the warehouse at 9-13 Caribou Drive, which neighbours this new development.

The new industrial facility provides a 6,720sqm warehouse, 300sqm office, 36.7m hardstand suitable for B-double access and turning, 10m cantilever awning, two recessed docks, five on-grade roller doors, separate light vehicle and heavy vehicle access, end of trip facilities and 54% site coverage.

The asset has achieved a 5-Star Green Star v1 rating with sustainable features including:

• 10% translucent roof sheeting (reducing reliance on artificial electrical lighting)
• EV chargers
• LED lighting
• Water-efficient fixtures
• Rainwater and recycled water systems
• 99kW solar system.

Andre Bali, Centuria’s Head of Development said, “This is the second modern industrial facility the Centuria Development team has delivered in Direk, South Australia, for CIP within the past six months. Both speculative developments received favourable market attention with Caribou Drive securing a five-year lease and full occupancy and the 50-64 Mirage Road development securing an unsolicited purchaser within days of receiving completion.

“The leasing and capital transactions reflect the strong demand for Australian industrial developments in well-located precincts that benefit from excellent road, rail and seaport connectivity. These projects exemplify how Centuria Development works closely with Centuria’s property funds management team, in identifying and executing market opportunities, and in designing and delivering highly desirable assets in a supply constrained market.”

The Direk developments are in proximity to the Northern Connector road arterial (3km), Port Adelaide (20km), and Adelaide Airport (30km).

According to Cushman & Wakefield, Adelaide’s Outer North industrial market has a tight 2.2% vacancy rate.

In recent years, Centuria’s Development team has initiated and delivered more than $150 million worth of industrial and office development projects within South Australia including Apex Steel’s new office/industrial HQ (FY23), 57 Wyatt Street boutique CBD office building (FY23), 15-19 Caribou Drive industrial facility (FY26) and 50-64 Mirage Road warehouse (FY26).