AM alpha acquires Treasury Wine’s Adelaide warehouse for $98M

Munich-based investment manager AM alpha has completed the largest industrial transaction to date in Australia this year after purchasing the Treasury Wine Estate Intermodal Facility from SCT Logistics for $98 million.

The acquisition from SCT for the full leased warehouse at Pellew Road, Penfield SA represents an equated market yield of 5.1%.

The modern property is approximately 28km north of the Adelaide CBD and comprises a purpose-built temperature-controlled and ambient distribution facility together with further development land.

Spanning about 45,000sqm on a site of 10.95 hectares, the property is full leased to ASX-listed tenant Treasury Wine Estates (TWE) with a weighted average lease expiry of around 9.5 years.

The facility is a domestic and international distribution centre with immediate access through the SCT Penfield Rail Freight Centre to the rail freight line providing direct access to Port Adelaide and further to Melbourne, Perth and Darwin.

Savills Australia Associate Director, Capital Transactions, Ryan Mills, the freight centre is strategically located in Penfield to the North of Adelaide adjacent to the ARTC Adelaide to Port Augusta mainline and has seen significant growth since inception.

“Within a short space of time, it has become one of Australia’s busiest rail hubs,” Mills said.

“The site acts as a centre for freight consolidation and distribution, making it an attractive location for organisations as an anchor point into northern Adelaide, the surrounding region, the interstate rail network and with direct access to Port Adelaide,” he said.

Savills Australia Managing Director – SA, Rino Carpinelli, this is just one of a number of off market Industrial transactions that Savills has been working on this year.

“The South Australian Industrial sector has been a hive of activity during the last 12 months with strong interest in securely leased industrial investment opportunities,” Carpinelli revealed.

“The growing tenant demand for quality logistics assets and no stamp duty on commercial transactions will continue to strengthen investment in the Adelaide market,” he said.

The industrial deal was negotiated off market by Ryan Mills and Rino Carpinelli of Savills Australia on behalf of SCT.

Source: Savills Australia