Centuria Launches Australia’s Largest Single-Asset Industrial Fund with 93% Occupancy

A Rare Industrial Acquisition in Adelaide

Centuria Capital Group has made a strategic move into South Australia's industrial property market with the acquisition of the Port Adelaide Distribution Centre for $216 million. This 32-hectare estate, located in the tightly held northwest industrial precinct of Gillman, was secured at roughly 70% below its replacement cost, a rare opportunity in today's competitive real estate landscape.

The estate comprises thirteen buildings across nine titles, leased to seventeen national and international tenants including logistics giant Visy, agricultural supplier Ameropa Australia, and Toll Transport. With a 93% occupancy rate and a weighted average lease expiry (WALE) of 3.4 years, the asset offers both stable income and potential for near-term rental growth.

Building Australia’s Largest Single-Asset Unlisted Industrial Fund

This acquisition forms the cornerstone of the newly established Centuria Port Adelaide Industrial Fund (CPAIF), which will be Australia's largest single-asset unlisted industrial fund to date. Centuria plans to raise $116 million in equity, targeting retail, wholesale, and institutional investors, with minimum investments starting at $50,000.

The fund forecasts distributions of 7.5% per annum for the partial FY26 period and 8.5% for FY27, paid monthly. Settlement of the property is anticipated in October 2025, with the fund offering an initial five-year term and potential for extension.

Favourable Market Dynamics and Growth Catalysts

Adelaide’s industrial market fundamentals underpin Centuria’s confidence in the investment. The northwest precinct’s vacancy rate stands at a tight 1.5%, well below the national average of 2.8%, supporting rental growth prospects. Additionally, the estate’s size and configuration provide optionality for subdivision, repositioning, or redevelopment, enhancing long-term value.

South Australia’s macroeconomic tailwinds further bolster the investment thesis. The state is experiencing strong population growth and significant infrastructure spending, including the $368 billion AUKUS defence project at Osborne Naval Precinct, the Port Adelaide Renewal Project, and the Henderson Defence Precinct. These projects are expected to stimulate occupier demand and industrial activity in the region.

Strategic Expansion Amid Falling Interest Rates

Jason Huljich, Centuria’s Joint CEO, highlighted the timing of the acquisition as particularly advantageous given the cyclical tailwinds in the Adelaide market and the broader decline in interest rates. He anticipates robust investor demand for the fund, driven by attractive pricing and strong fundamentals. This deal expands Centuria’s industrial platform to over $6 billion, reinforcing its position as one of Australia’s largest real estate fund managers.

Following the success of the Centuria Logan Super Centre Fund, which was oversubscribed, the Port Adelaide fund launch is poised to attract significant capital from both domestic and international investors seeking exposure to well-located industrial assets with growth potential.