 Asset Class: | Industrial |
 Price: | $ 3575000 |
 Net Yield: | 4.85 % |
Net Yield - including solar strategy: | % |
 Property Market Status: | Off Market |
This premium industrial asset at <b>50-52 Purling Avenue, Edinburgh</b> offers <b>sensational value-add potential</b> with significant rental upside. Purchased for <b>$3,575,000</b>, it is <b>highly under-rented</b>, with market rent projections at <b>$130/sqm</b>, pushing potential value to <b>$4,250,000</b>—an <b> equity uplift of $675,000 in 12 months</b>. With <b>Adelaide’s industrial vacancy at just 1.6%</b>, rental rates are expected to rise, positioning the asset to achieve <b>$255,000 p.a. in rent</b> within 12 months. Spanning <b>6,184 sqm with a 1,961 sqm GLA</b>, the site boasts <b>low 35% coverage</b>, a <b>modern high-clearance warehouse</b>, and <b>prime positioning in the Edinburgh industrial hub</b>, just minutes from <b>major transport links</b>. This is a <b>high-growth investment</b> with strong tenant demand, capital appreciation potential, and minimal long term downside risk.
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Edinburgh, located in northern Adelaide, is a key industrial and defence precinct, home to the RAAF Base Edinburgh and Defence Science and Technology Group (DSTG). It plays a vital role in South Australia’s defence, aerospace, and advanced manufacturing industries. The area is known for its strategic infrastructure, strong employment base, and excellent transport connectivity.<br><br><br><b>Economic Strength</b>:<br><br>A major defence and aerospace hub, supporting key industries such as defence technology, logistics, and advanced manufacturing.<br><br>Home to BAE Systems Australia, Lockheed Martin, and Raytheon, supporting the Australian Defence Force (ADF).<br><br>The Edinburgh Parks industrial precinct is one of South Australia’s largest industrial estates, housing logistics, food production, and advanced manufacturing companies.<br><br>Strong government investment in defence projects ensures long-term economic stability.<br><br><br><b>Population & Workforce</b>:<br><br>A workforce-driven suburb with high employment in defence, engineering, and logistics.<br><br>Nearby suburbs such as Salisbury and Elizabeth provide a strong labour force for industrial and commercial operations.<br><br><br><b>Commercial Property Market</b>:<br><br>High demand for industrial and logistics properties, driven by defence contracts and infrastructure projects.<br><br>Low vacancy rates in industrial properties due to strong leasing demand from defence and manufacturing companies.<br><br>Strategic transport links, including Port Wakefield Road, Northern Expressway, and rail access, support logistics and distribution businesses.<br><br><br><b>State Strength</b>:<br><br>South Australia continues to position itself as a defence and technology powerhouse, benefiting from government-backed projects, a skilled workforce, and a strong industrial sector. With continued growth in defence and logistics, Edinburgh remains a prime location for industrial investment and long-term capital growth.<br>
Additional Location Information FileTSS Freight has sub-let from EWE Group Pty Ltd. Ewe Group has been in occupation from 2021 and has outgrown the space and have sub-let from May 2024 to TSS Freight. TSS Freight is the operating tenant.<br><br><b>TSS Freight:</b><br><br>TSS Sensitive Freight is a leading provider of specialised transport, warehousing, and logistics solutions across Australia and New Zealand, focusing on high-value, fragile, and delicate cargo. Established in 2010 and headquartered in Moorebank, New South Wales, the company has built a reputation for delivering secure and efficient sensitive freight services. <br><br><b>Services Offered:</b><br><br><ul style="list-style-type:disc;list-style-position:inside;padding-inline-start:20px;"><li style="list-style-image:none;"><p style="display:inline;"><span style="color:rgb(51, 51, 51);font-style:normal;"><b>Transportation:</b></span><span style="color:rgb(51, 51, 51);font-weight:normal;font-style:normal;"><br> Utilising a modern fleet of purpose-built vehicles equipped with air-ride suspension, hydraulic tailgates, aviation load locking systems, non-skid flooring, padded internal rub rails, and GPS monitoring to ensure the safe<br> transport of sensitive goods.</span></p></li></ul><br><ul style="list-style-type:disc;list-style-position:inside;padding-inline-start:20px;"><li style="list-style-image:none;"><p style="display:inline;"><span style="color:rgb(51, 51, 51);font-style:normal;"><b>Warehousing:</b></span><span style="color:rgb(51, 51, 51);font-weight:normal;font-style:normal;"><br> Providing secure storage solutions tailored to sensitive freight requirements.</span></p></li></ul><br><ul style="list-style-type:disc;list-style-position:inside;padding-inline-start:20px;"><li style="list-style-image:none;"><p style="display:inline;"><span style="color:rgb(51, 51, 51);font-style:normal;"><b>Logistics:</b></span><span style="color:rgb(51, 51, 51);font-weight:normal;font-style:normal;"><br> Offering end-to-end project management, including packing, unpacking final positioning, and, when necessary, installation services.</span></p></li></ul><br><b>Industries Served:</b> TSS Sensitive Freight caters to various sectors, including medical, dental, IT, power, telecommunications, printing, conferences and exhibitions, and fashion. Their expertise in handling sensitive equipment makes them a trusted partner for organisations requiring meticulous care in freight management.<br><br><b>Locations:</b> In Australia, TSS Sensitive Freight operates from multiple locations, including:<br><br><ul style="list-style-type:disc;list-style-position:inside;padding-inline-start:20px;"><li style="list-style-image:none;"><p style="display:inline;"><span style="color:rgb(51, 51, 51);font-style:normal;"><b>South Australia:</b></span><span style="color:rgb(51, 51, 51);font-weight:normal;font-style:normal;"> Unit 3, 2 Belfree Drive, Greenfields, SA 5107.</span></p></li></ul><br><ul style="list-style-type:disc;list-style-position:inside;padding-inline-start:20px;"><li style="list-style-image:none;"><p style="display:inline;"><span style="color:rgb(51, 51, 51);font-style:normal;"><b>Western Australia:</b></span><span style="color:rgb(51, 51, 51);font-weight:normal;font-style:normal;"> 4 Meares Way, Canning Vale, WA 6155.</span></p></li></ul><br>In New Zealand, they have facilities in Auckland, Christchurch, and Wellington. <br><br>TSS Sensitive Freight's dedication to specialised services and customer satisfaction has established them as a trusted name in sensitive freight transportation and logistics across the region.<br><br><br><br><b>EWE Group Pty Ltd:</b><span style="font-weight:normal;"> (For background purposes only)</span><br><br><b>EWE Group Pty Ltd</b> is an Australian-owned company specializing in multi-modal logistics, offering seamless, scalable, and cost-effective solutions across the supply chain. Founded in 2010 by Chinese-Australian businessman Sam Shan, EWE aims to bridge Eastern and Western markets through digital innovation and efficient international trade facilitation. <br><br><b>Services Offered:</b><br><br><ul style="list-style-type:disc;list-style-position:inside;padding-inline-start:20px;"><li style="list-style-image:none;"><p style="display:inline;"><span style="color:rgb(51, 51, 51);font-style:normal;"><b>International and Domestic Delivery:</b></span><span style="color:rgb(51, 51, 51);font-weight:normal;font-style:normal;"> Comprehensive shipping solutions for parcels and freight.</span></p></li></ul><br><ul style="list-style-type:disc;list-style-position:inside;padding-inline-start:20px;"><li style="list-style-image:none;"><p style="display:inline;"><span style="color:rgb(51, 51, 51);font-style:normal;"><b>eCommerce Solutions:</b></span><span style="color:rgb(51, 51, 51);font-weight:normal;font-style:normal;"> Tailored logistics support for online retailers.</span></p></li></ul><br><ul style="list-style-type:disc;list-style-position:inside;padding-inline-start:20px;"><li style="list-style-image:none;"><p style="display:inline;"><span style="color:rgb(51, 51, 51);font-style:normal;"><b>Third-Party Logistics (3PL):</b></span><span style="color:rgb(51, 51, 51);font-weight:normal;font-style:normal;"> Warehousing, distribution, and fulfillment services.</span></p></li></ul><br><ul style="list-style-type:disc;list-style-position:inside;padding-inline-start:20px;"><li style="list-style-image:none;"><p style="display:inline;"><span style="color:rgb(51, 51, 51);font-style:normal;"><b>Global Forwarding:</b></span><span style="color:rgb(51, 51, 51);font-weight:normal;font-style:normal;"> Air and sea freight services facilitating international trade. </span></p></li></ul><br><br><b>Technological Innovation:</b> EWE leverages proprietary IT systems to enhance logistics operations, providing clients with real-time tracking and data-driven insights to optimize supply chain performance. <br><br><b>Client Portfolio:</b> EWE has established partnerships with prominent brands, including Alibaba Group, NetEase/Koala, Chemist Warehouse, and Woolworths, reflecting its capacity to manage complex logistics requirements for major enterprises.<br><br><br><br>
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Subject Property: 50-52 Purling Avenue Edinburgh - 1,961sqm - $88/sqm Market rent from recent valuation of this property: $125/sqm 1/32-42 Mirage Road, Direk - 1,730sqm - $120/sqm Units 4-5/32-42 Mirage Road, Direk, - 3,540sqm - $120/sqm 22-24 Hercules Drive, Direk - 1,620sqm - $137sqm
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Recent Market Value - $3,800,000<br>Negotiated Price: $3,575,000<br>Net Yield: 4.85%<br>True Net Yield: 5.15% (no stamp duty)<br>Value Add: Highly under rented<br><br>Value Add - valuation:<br><br>A recent valuation of this property has market rent at $125/sqm with market yield of 6.23%.<br><br>Therefore, this would make the assets annual rent of (1,961 x 125) $245,125pa and a market value of ($245,125/6.23%) $3,935,000. Equity uplift of $360,000.<br><br>Valuations are based of past evidence and therefore current market rates could out strip what has been valued. Due to the Adelaide market being the second tightest in Australia with only 1.6% vacancy in industrial, we expect rental rates to continue to rise and yield prices to condense further. <br><br>With another year of growth in rental rates and condensing yields this property could produce $255,000pa of rent with a 6% net yield, the asset would be worth<b> $4,250,000, or uplift of $675,000. </b><span style="color:rgb(51, 51, 51);">Due to the ideal short lease, this can be achieved in circa 12 months time.</span><br><br><br>Property Details:<br><br>Significant Site Area – Large landholding, total site 6,184sqm and GLA 1,961sqm, suitable for various industrial and logistics operations.<br><br>Low Site Coverage - 35%<br><br>No stamp duty: $175,000 savings <br><br>High-Quality Improvements – Modern industrial facility built to high specifications.<br><br>Strategic Industrial Location – Situated in the well-established Edinburgh industrial precinct, a key logistics hub.<br><br>Proximity to Key Transport Infrastructure – Close to major arterial roads, including Port Wakefield Road and Northern Expressway, ensuring easy connectivity.<br><br>Strong Industrial Market Demand – Edinburgh is a high-demand area with low vacancy rates for industrial properties.<br><br>Functional Layout – Purpose-built for efficiency, including large warehouse space and office areas.<br><br>High Clearance & Access – Designed to accommodate heavy vehicle movements and large-scale operations.<br><br>Secure Onsite Parking & Yard Space – Ample space for truck maneuvering and employee parking.<br><br>Future Value Growth – Strategic location and quality build contribute to long-term capital appreciation.<br><br>Zoning & Flexibility – Industrial zoning allows for a range of logistics, manufacturing, and warehousing uses.<br><br>
