COMMERCIAL PROPERTY, SALES & LEASINGREAL ESTATE INVESTMENT TRUSTS & FUNDS

Big industrial opportunity in Monarto South

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THE country’s largest vacant distribution facility is up for lease after the Lendlease-managed Australian Prime Property Fund Industrial (APPF Industrial) sold the South Australian warehouse to Sydney property group VIMG for $21.45 million.

Located in Monarto South, 65 kilometres south east of Adelaide, the 64,459 sqm facility was purpose-built for Big W in 1999 before the discount department chain announced its closure in 2019, with the last workers finishing up at the site last year.

APPF Industrial paid $40 million for the property in 2006.

The fresh sale of 93 Ferries McDonald Road was transacted by Knight Frank in conjunction with One Commercial, with the buyer introduced by Knight Frank.

Now, it is being offered for lease through Knight Frank agents David Ludlow, Marco Onorato and Darren Benson, in conjunction with David Reid, Jon Nitschke and Shaun Timbrell of CBRE.

The facility is ready to occupy, with tenants able to take up the whole lot or split into smaller tenancies from 10,000 sqm. Leasing rates are about half that of comparable properties close to the Adelaide CBD.

It incorporates a two-level office, cool room and warehouse accommodation, mostly with existing racking, reducing time and cost for an occupier to commence operations.

Ludlow said the magnificent large-scale distribution centre was not only the biggest available in South Australia but offered the best value warehousing in the state.

“Infill availability in Adelaide is very scarce and the rental cost has increased significantly, putting this option firmly in the minds of budget-conscious occupiers requiring high-grade under-roof storage space combined with vast outdoor storage.

He said interest had come from local and interstate occupiers, including businesses from the renewables sector, food production, transportation and logistics and manufacturing, especially those sectors benefitting from the re-shoring of production including pharmaceuticals.

The facility is located within the Monarto transport hub, connecting to the federally funded Auslink national highway and rail network. The M1 is less than two kilometres away and transport connectivity has attracted major occupiers including Scotts Transport, APC, Adelaide Mushrooms, Inghams Enterprises and Viterra to the area.

“With Big W vacating the premises the importance of a successful introduction of a replacement occupier is of great interest to the local community, to draw in new investment and create employment opportunities,” Ludlow said.

Murray Bridge Mayor Brenton Lewis said council would be very supportive of any potential business wanting to relocate or open in the area.

“We will do anything in our power to assist business, as this will directly benefit the residents of the growing Murray Bridge area in terms of jobs particularly,” he said.

“This facility is a once-in-a-lifetime opportunity for the right business to take advantage of it. It’s quite unique in both its size and location, being in an extremely strategic location for South Australia.”

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