The 'unicorn' property offering investors a target 7.5% yield

Within the property sector, industrial property has been one of the strongest-performing segments in recent years. But the question many investors are now asking is: how much growth is left? 

According to Stuart Wilton, Co-Head – Unlisted Funds at Centuria Capital, the answer lies in targeting tightly held infill markets with limited supply and high demand. Adelaide’s northwest, and specifically Port Adelaide, is a prime example of this dynamic.

Centuria's newly launched Port Adelaide Industrial Fund centres on a sprawling 32-hectare estate in Gillman, just minutes from the port and adjacent to the Osborne Naval Shipyard, home to the nation’s $40 billion frigate program and associated with AUKUS. 

The property offers scale, diversity of tenants, and direct links to critical infrastructure. With 13 buildings and 17 tenants spread across 21 tenancies, it generates stable and diversified income, while also offering multiple avenues for future value creation through subdivision, rental uplift, and infrastructure investment.

As Wilton explains, the acquisition metrics make the opportunity truly rare: 

“We consider it a bit of a unicorn because it ticks that many boxes that would be hard to find anywhere else in Australia; an industrial site like this in a market which has the second lowest vacancy rate in Australia. 

You're buying it at $1,200 a metre on a yield of 7.6%. So we think this is a fantastic opportunity.”

I sat down with Wilton to discuss the details of the opportunity.

The state of industrial property

Wilton began by setting the scene for the broader industrial property market. After a multi-year run of strong growth, many investors are wondering whether conditions are peaking. 

His view is that opportunities remain, particularly in infill markets where vacancy rates are much tighter than the national average. 

“The vacancy rates in infill markets across the country are around 2.4%, whereas the rest of the market in the urban areas is close to 4%,” he explained. 

With construction costs high and land constrained, new supply remains difficult to deliver, meaning rental growth should continue in both the short and medium term.

A unique Adelaide opportunity

The Port Adelaide Industrial Fund is acquiring one of the city’s largest industrial estates. Located in Gillman, the site spans 32 hectares and sits next to critical defence infrastructure at the Osborne Naval Shipyard. 

With $40 billion of federal investment underway in the frigate program, Wilton highlighted that long-term demand for defence-related logistics and industrial space is expected to persist. 

“It's very difficult to build that sort of infrastructure anywhere else,” he noted, adding that the site’s location provides inherent strategic value.

The property includes 13 buildings, 21 leases, and 17 tenants, giving it the character of a “multi-asset fund” in a single asset. This mix reduces reliance on any one tenant while providing exposure to multiple industries.

Infrastructure tailwinds

Beyond defence spending, Wilton pointed to other infrastructure projects that strengthen the case for the location. 

Chief among them is the $15 billion North-South Corridor upgrade, a 78-kilometre arterial road that will link Adelaide’s south and north without traffic lights. 

“It will run straight past this site. So it'll provide even better access than it already has,” he said. 

Proximity to the port and a dedicated fertiliser berth also attract logistics and agricultural tenants who are tied to the location.

Value, rents, and tenant dynamics

One of the most compelling aspects is the acquisition price. The estate has been secured at around $1,200 per square metre, a 70% discount to replacement cost. Wilton estimates it would cost $3,500–$4,000 per square metre, or more, to build the site today. 

“Clearly there's a huge amount of value that's contained in the land and it would be extremely costly in order to replicate or rebuild this asset,” he said.

Tenants are committed due to the site’s functional relevance. Many rely on direct port access, and current rents are attractive relative to broader markets. 

What's in it for investors? Distribution yield and future upside

From an investor’s perspective, the yield on offer is a major drawcard. Centuria is seeking minimum investments of $50,000 from retail investors, with the fund targeting a 7.5% distribution in the first year, rising to 8.5% in year two. 

“I just don’t see anywhere in the market across Australia that you can buy an asset of this quality in this location in the industrial sector that's providing such a good yield,” Wilton emphasised.

Optionality also exists to subdivide the estate into smaller parcels, subject to council approval, creating greater liquidity and unlocking potential value uplift. 

Coupled with long-term infrastructure development, defensive tenant demand, and the prospect of cap rate compression as interest rates ease, Wilton sees the Port Adelaide estate as a standout.

Find out more about investing in the Centuria Port Adelaide Industrial Fund.