Harmony Property Investments has paid $50.5 million for a 9.4ha industrial holding in Adelaide’s inner north.
The property, the Paramount Distribution Centre at 8-16 Vater Street, Dry Creek, was acquired from ESR Australia.
The fully leased property that covers 20 per cent of the site includes a 18,108sq m main warehouse with workshop and a licence agreement for a 14,488sq m hardstand.
ESR acquired the asset as part of the Milestone Portfolio from Blackstone in one of the largest logistics and property transactions in the country.
The $3.8-billion deal in June of 2021 encompassed 45 assets across Australia.
Harmony Property Investments acquisitions manager Tom Isaksson said they were focusing on high-quality, land-rich institutional-grade assets.
He said they would “preserve and enhance the current income streams while simultaneously exploring ways to increase the income on the asset”.
“With the site being underutilised, we will investigate value-add opportunities to maximise the medium to long-term capital value potential of the asset.”
The volume of industrial transactions above $5 million in South Australia for the 2025 financial year now sits at $214 million, including this sale, which was negotiated by Max Frohlich and Ryan Mills of Knight Frank.
Mills said connectivity had been a key part of the sale as Dry Creek was home to well-regarded industrial occupiers, including Amazon, Lineage and Collins Transport.
“There is a shortage of industrial land, so sites of this size that offer the potential for further development are highly sought after,” Mills said.
“The location is also highly sought after by industrial users [as it has] excellent connectivity to key transport routes including the Northern Connector, Port Wakefield Road, Port River Expressway, Salisbury Highway and Main North Road.”
Dry Creek is to the west of Mawson Lakes, one of SA’s three dedicated defence industry precincts. Tenants there include Lockheed Martin, Saab, Raytheon and Codan.
