Quintessential's Webb Street property in Port Adelaide.

Quintessential strikes industrial deal in Port Adelaide

Nick Lenaghan|Jan 20, 2021

Boutique fund manager Quintessential Equity has sold an industrial property in Port Adelaide for $17.6 million to property syndicator Silverfin Capital.

The deal was struck on a 6.3 per cent yield. Quintessential took control of the property seven years ago with long-term tenant InfraBuild occupying the site. It was sold on a 10-year lease and InfraBuild will occupy the facility until at least 2030.

“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,” said Quintessential’s chief executive, Russell 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.”

Located some 14 kilometres north-west of the Adelaide CBD, the Webb Street property comprises 44,000 square metres and converges at the corner of Old Port Road, with good access to sea, rail and road networks.

Quintessential spent over $1 million regenerating the property, including concrete remediation works last year.

The deal was brokered by CBRE’s Ben Hegerty who said the transaction was a testament to “the strong position of the industrial market off the back of the pandemic”.

Quintessential has considerable exposure to the Adelaide market including, not far from the Webb Street property, the 32-hectare Port Adelaide Distribution Centre, where it is pursuing plans to expand the site and last year struck a major lease with Visy.

Quintessential has also completed the regeneration of an Adelaide CBD office tower at 431 King William Street, which it bought from Con Makris two years ago.