 Asset Class: | Industrial |
 Price: | $ 2565000 |
 Net Yield: | 6.00 % |
Net Yield - including solar strategy: | % |
 Property Market Status: | On Market |
<span style="color:rgb(51, 51, 51);">Ultra Rare 6% Net Yielding South Australian Warehouse With Huge Value Add!</span><br><br><span style="color:rgb(51, 51, 51);">This prime industrial investment in Edwardstown offers a rare opportunity to secure a freehold industrial facility in one of Adelaide’s most sought-after inner-south locations. Positioned on a 1,301sqm* corner site across two titles and zoned Employment, the property features a combined 1,181sqm* of office and warehouse space, dual street frontages, and essential industrial upgrades, including three-phase power and solar panels. Currently leased to long-standing tenant Norbar Torque Tools, with an immediate rental uplift available through CPI increases in July 2025 and future potential to boost rent by circa $17,715 p.a. being under rent in the market, this property presents both strong cash flow and significant value-add potential of circa $350,000+. The property also has zero stamp duty saving circa $130,000 on the purchase — an exceptional industrial asset in a high-demand location. Properties like this normally trade well below 6% net yield, this property comes across once a year.</span>
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<b>Edwardstown</b> is a dynamic suburb located just 6 km south of Adelaide’s CBD, offering a strategic mix of commercial and industrial activity. With its prime position along major transport routes like South Road and Cross Road, Edwardstown serves as a key business hub, attracting a wide range of industries, from manufacturing and warehousing to retail and professional services.<br><br>The suburb has experienced steady growth, supported by ongoing infrastructure upgrades and strong demand for industrial spaces. Edwardstown’s commercial vacancy rates are exceptionally low, sitting at just <b>1–2%</b>, highlighting the area's strong appeal for businesses seeking well-connected and affordable premises. The area also benefits from proximity to affluent suburbs like Cumberland Park and Ascot Park, further boosting its economic strength.<br><br>South Australia’s broader commercial property market continues to show resilience, with high demand for industrial assets and sustained government investment in infrastructure projects. Edwardstown stands out as a reliable choice for investors seeking stable returns and long-term growth opportunities.
Additional Location Information FileNorbar Australia is a leading provider of premium torque tools, calibration services, and bolting equipment solutions. Serving a diverse range of industries—including mining, oil and gas, transport, construction, wind energy, and defence—Norbar offers an extensive product lineup. This includes hand torque tools, powered torque equipment, tensioning equipment, and torque measurement devices. Their commitment to precision and reliability ensures that clients receive tools that meet the highest standards of accuracy and safety. <br><br>In addition to their comprehensive product range, Norbar provides a suite of services designed to support clients' operational needs. These services encompass tool lifecycle management, engineered-to-order solutions, on-site testing, accredited training, and project management. With five state-of-the-art workshops across Australia and New Zealand, including a NATA-accredited laboratory, Norbar ensures that all torque equipment is maintained and calibrated to the highest standards.<br><br>For more information about their products, services, and industry-specific solutions, visit their official website at <a style="color:rgb(44, 123, 208);display:inline;" target="_blank" href="https://norbaraustralia.com.au/"><u>https://norbaraustralia.com.au/</u></a>.<br><br>Norbar Torque Tools was established in Banbury, UK, in 1942, becoming the first company in Britain to commercially manufacture torque wrenches. The initial demand for their products was driven by the need to accurately tighten the gasket-less cylinder heads of Rolls Royce Merlin engines during World War II. <br><br>In 1969, the company officially changed its name from 'The North Bar Tool Company' to 'Norbar' and relocated to new premises on Swan Close, Banbury. <br><br>Norbar Australia operates as a subsidiary of Norbar Torque Tools, providing premium torque tools, calibration services, and bolting equipment solutions across various industries.
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Currently no CPI has been applied over the past two increases due to the vendor not implementing which can be done immediately at settlement, increasing rent to circa $158,000 (from $141,885 with 8.6% CPI and 6% CPI increases)<br><br>The only outgoings paid by the landlord is land tax of $4,000pa for a net rent of $154,000.<br><br>With another CPI increase in July 2025 (circa 3%) bringing income up to circa $162,740 (less land tax circa $4,000 making net income circa $158,740) <br><br>Uplift of circa $80,000 within 3 months from settlement.<br><br>The property would still be under rented by circa $15/sqm. This would increase rent by $17,715 pa or circa $300,000 at circa 6% cap rate.
Additional Financial Information FileInitial Term:
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Subject Property: 45-47 Raglan Avenue Edwardstown - 1,181sqm - $130/sqm (With current CPI increases executed) 52 Dunorlan Rd Edwardstown - 295sqm - $183/sqm 2 Rose Street Melrose Park - 200sqm - $150/sqm 1080 South Road, Edwardstown - 400sqm - $150/sqm 6 Coongie Avenue, Edwardstown - 299sqm - $192/sqm
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Negotiated Price $2,565,000<br>Net Yield: 6%<br>Trust Net Yield with Zero Stamp Duty: 6.3%<br>Zero Stamp Duty: Buyer saves circa $130,000<br>Value Add: Under rented which will generate equity of circa $350,000+<br><br>Prime Industrial Investment Opportunity:<br><ul style="list-style-type:disc;list-style-position:inside;padding-inline-start:20px;"><li style="list-style-image:none;color:rgb(51, 51, 51);"><p style="display:inline;"><span style="color:rgb(51, 51, 51);font-weight:normal;font-style:normal;">Freehold industrial facility in Edwardstown — one of Adelaide’s most sought-after industrial locations.</span></p></li><li style="list-style-image:none;color:rgb(51, 51, 51);"><p style="display:inline;"><span style="color:rgb(51, 51, 51);font-weight:normal;font-style:normal;">Total land area: 1,301sqm*, set across two (2) titles.</span></p></li><li style="list-style-image:none;color:rgb(51, 51, 51);"><p style="display:inline;"><span style="color:rgb(51, 51, 51);font-weight:normal;font-style:normal;">Zoned Employment — supporting a range of industrial and commercial uses.</span></p></li></ul><br>Building Features:<br><ul style="list-style-type:disc;list-style-position:inside;padding-inline-start:20px;"><li style="list-style-image:none;color:rgb(51, 51, 51);"><p style="display:inline;"><span style="color:rgb(51, 51, 51);font-weight:normal;font-style:normal;">Total building area: 1,181sqm*.</span></p></li><li style="list-style-image:none;color:rgb(51, 51, 51);"><p style="display:inline;"><span style="color:rgb(51, 51, 51);font-weight:normal;font-style:normal;">Office space: 593sqm*.</span></p></li><li style="list-style-image:none;color:rgb(51, 51, 51);"><p style="display:inline;"><span style="color:rgb(51, 51, 51);font-weight:normal;font-style:normal;">Warehouse: 588sqm*.</span></p></li><li style="list-style-image:none;color:rgb(51, 51, 51);"><p style="display:inline;"><span style="color:rgb(51, 51, 51);font-weight:normal;font-style:normal;">Equipped with three (3) phase power.</span></p></li><li style="list-style-image:none;color:rgb(51, 51, 51);"><p style="display:inline;"><span style="color:rgb(51, 51, 51);font-weight:normal;font-style:normal;">Solar panels installed.</span></p></li><li style="list-style-image:none;color:rgb(51, 51, 51);"><p style="display:inline;"><span style="color:rgb(51, 51, 51);font-weight:normal;font-style:normal;">Modifications combining warehouse, office, and amenities into one building.</span></p></li></ul><br>Prime corner site with dual street frontages:<br><ul style="list-style-type:disc;list-style-position:inside;padding-inline-start:20px;"><li style="list-style-image:none;color:rgb(51, 51, 51);"><p style="display:inline;"><span style="color:rgb(51, 51, 51);font-weight:normal;font-style:normal;">Raglan Avenue: 31m*.</span></p></li><li style="list-style-image:none;color:rgb(51, 51, 51);"><p style="display:inline;"><span style="color:rgb(51, 51, 51);font-weight:normal;font-style:normal;">Wilfred Street: 42m*.</span></p></li></ul><br>Location Highlights:<br><ul style="list-style-type:disc;list-style-position:inside;padding-inline-start:20px;"><li style="list-style-image:none;color:rgb(51, 51, 51);"><p style="display:inline;"><span style="color:rgb(51, 51, 51);font-weight:normal;font-style:normal;">Tightly held inner south location — Edwardstown.</span></p></li><li style="list-style-image:none;color:rgb(51, 51, 51);"><p style="display:inline;"><span style="color:rgb(51, 51, 51);font-weight:normal;font-style:normal;">Exceptional access to major transport routes: South Road, Cross Road, and Marion Road</span></p></li><li style="list-style-image:none;color:rgb(51, 51, 51);"><p style="display:inline;"><span style="color:rgb(51, 51, 51);font-weight:normal;font-style:normal;">7km to Adelaide CBD.</span></p></li><li style="list-style-image:none;color:rgb(51, 51, 51);"><p style="display:inline;"><span style="color:rgb(51, 51, 51);font-weight:normal;font-style:normal;">8km to Adelaide Airport.</span></p></li></ul><br>Lease & Income Details:<br><ul style="list-style-type:disc;list-style-position:inside;padding-inline-start:20px;"><li style="list-style-image:none;color:rgb(51, 51, 51);"><p style="display:inline;"><span style="color:rgb(51, 51, 51);font-weight:normal;font-style:normal;">Long-standing tenant: Norbar Torque Tools.</span></p></li><li style="list-style-image:none;color:rgb(51, 51, 51);"><p style="display:inline;"><span style="color:rgb(51, 51, 51);font-weight:normal;font-style:normal;">Net passing income: approx. $154,000 p.a. (Currently $141,885 with 8.6% CPI and 6% CPI increases which can be implemented immediately at settlement - tenants have already been made aware of this by the agent)</span></p></li><li style="list-style-image:none;color:rgb(51, 51, 51);font-style:normal;"><p style="display:inline;"><span style="color:rgb(51, 51, 51);font-weight:normal;font-style:normal;">Uplift of circa $50,000 - $100,000 within 3 months from settlement with another CPI increase</span></p></li><li style="list-style-image:none;color:rgb(51, 51, 51);"><p style="display:inline;"><span style="color:rgb(51, 51, 51);font-weight:normal;font-style:normal;">Lease expiry: August 2027 with a 5-year option.</span></p></li></ul><br>Value Add:<br><ul style="list-style-type:disc;list-style-position:inside;padding-inline-start:20px;"><li style="list-style-image:none;color:rgb(51, 51, 51);"><p style="display:inline;"><span style="color:rgb(51, 51, 51);font-weight:normal;font-style:normal;">Under-rented by ~$15/sqm — future potential to increase rent by circa $17,715 p.a. to align with market.</span></p></li><li style="list-style-image:none;color:rgb(51, 51, 51);"><p style="display:inline;"><span style="color:rgb(51, 51, 51);font-weight:normal;font-style:normal;">At a 6% cap rate, this uplift could boost the property's value by $290,000.</span></p></li></ul><br>Stamp Duty Savings:<br><ul style="list-style-type:disc;list-style-position:inside;padding-inline-start:20px;"><li style="list-style-image:none;color:rgb(51, 51, 51);"><p style="display:inline;"><span style="color:rgb(51, 51, 51);font-weight:normal;font-style:normal;">With zero stamp duty in SA on commercial properties, the purchaser will save circa $130,000.</span></p></li><li style="list-style-image:none;color:rgb(51, 51, 51);"><p style="display:inline;"><span style="color:rgb(51, 51, 51);font-weight:normal;font-style:normal;">This savings boosting yields by circa 0.3% bring the true net yield of this property to 6.3%.</span></p></li></ul>
