Quintessential Equity has sold an industrial property in Port Adelaide for $17.6 million.
Purchased in 2013, Quintessential Equity has managed the Webb Street property for seven years, with long-term tenant InfraBuild (formerly LIBERTY OneSteel) occupying the site.
Located 14 kilometres northwest of the Adelaide CBD, the site was sold to Silverfin Capital on a 6.3 per cent purchase yield.
The Webb Street property totals 44,000 square metres, converging at the corner of Old Port Road, with excellent access to sea, rail and road networks.
The asset has been sold with a 10-year lease, which has been secured by Quintessential Equity, and will see InfraBuild stay at the facility until at least 2030.
Last year, Quintessential Equity spent over $1 million regenerating the property, including concrete remediation works.
Quintessential Equity Chief Executive Officer, Russell Bullen, said the property is located in one of Adelaide’s premier industrial destinations, and the recently renewed lease agreement had ensured very strong market interest in the site.
“Located in South Australia’s industrial heart, the Webb Street property received strong appeal amongst investors with the addition of the newly extended lease agreement and a great tenant,” commented Mr Bullen.
“The combination of location and the long-term lease helped to strengthen the property’s value in the midst of an industry boom, delivering strong and stable returns for our investors.”
“As our last settlement of the year, we are looking forward to a promising 2021 as we expand our portfolio in South Australia and interstate,” he shared.
The deal was brokered by CBRE’s Director of Capital Markets, Industrial & Logistics, Ben Hegerty.
“This sale demonstrates Quintessential Equity’s investment in the future of their properties, and their ability to build good rapport with tenants. It also reflects the strong position of the industrial market off the back of the pandemic,” Mr Hegerty said.