SA Renewal industrial projects underway in Adelaide: HTW

SA Renewal industrial projects underway in Adelaide: HTW
SA Renewal industrial projects underway in Adelaide: HTW

Renewal SA has a number of industrial projects predominantly situated to the north and south of the Adelaide CBD, according to the latest report from Herron Todd White.

SA Renewal works to promote investment in the state through private sector access to government land holdings.

Projects include the Grand Trunkway Estate and Port Direct developments to the north-west of the CBD and close to Port Adelaide, Edinburgh North to the outer north, Tonsley to the south and Seaford to the outer south. 

The Grand Trunkway Estate is a General Industry zoned development of 15 hectares and has strong transport links to the Outer Harbour, Interstate Main Rail Line and the Port River Expressway.

The valuers noted that Renewal SA has also retained land for further stages and to accommodate occupiers with larger land requirements such as. 

Further north-west is the Port Direct development of 27 hectares which has access to the Outer Harbor import/export facilities and to the facilities within the Naval Shipbuilding Precinct which is within 1.2 kilometres. 

The Northern Adelaide Food Park at Edinburgh North is proposed to be the state’s premier food manufacturing precinct.

The site was previously earmarked for the Parafield Airport, however concerns from tenants and purchasers relating to the ownership of the land have caused the government to reconsider.

The Seaford Industry Park project commenced in 2004 with the aim to support food and wine businesses with links to McLaren Vale.

The development is zoned General Industry and aims to support the fast-growing suburbs south of the Adelaide CBD. 

Tonsley, the former Mitsubishi Motors assembly plant, is in the process of being completely re-developed into a mixed-use district with residential, high-value manufacturing and commercial allotments.

The Main Assembly Hub, an 80,000 square metre warehouse, has been adapted for re-use as the centre of Tonsley’s social activity and features shops, cafes, services and facilities.

The General Motors Holden site of approximately 122 hectares at Elizabeth (north of the Adelaide CBD) is reportedly under contract to an interstate developer with a large portion of the site to be transformed into an innovative business park.

The report indicates that Holden will retain a significant portion of the site as a spare parts operation and the history of the site will also be recognised with a proposed heritage and hospitality centre.

However the above developments are not considered to be situated within prime industrial locations the valuers noted.

The premier industrial precinct within Adelaide is Regency Park, which is partly due to its proximity and ease of access to major transport routes.

"The North-South Corridor is integral to the delivery of the 30-Year Plan for Greater Adelaide," it said.

"At present, there are a number of stages and ongoing works underway for the project, spanning some 78 kilometres between Old Noarlunga and Gawler which include a series of strategic non-stop links to connect the expanding industrial and residential growth areas."

Herron Todd White Research and M3 Property Research have seen yields within well located, prime industrial locations tighten.

Their research indicates prime industrial yields across all precincts are typically between 7.75% and 8.75%, whilst secondary yields are between 9% and 9.75%.

Market reports indicate that owner-occupiers have become a prominent purchaser group since the progressive phase-out of stamp duty in South Australia from 1 July 2016.

This, as well as the relatively low and competitive interest rates, has benefited purchasers and the valuers forecast it will continue to do so in the near future after the full abolishment at the end of the 2017/18 financial year.

Tags: 
Adelaide Commercial Property

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