281-301 Grand Junction Road
Ottoway, South Australia
The third asset acquired by the Fund presents a significant industrial landholding of some 4.57ha comprising three warehouse/workshop buildings apportioned for four tenancies. The asset offers potential for multiple value-add strategies including: the sale of surplus land parcels, redevelopment options along Grand Junction Road, driving rental uplift through an active leasing strategy, and completing selective refurbishments to enhance the property’s visual appeal. The Fund is acquiring a 50% stake in this property.
PURCHASE DATE
March 2026
ADDRESS
281-301 Grand Junction Road, Ottoway, South Australia
LAND AREA
47,777 sqm
GROSS LETTABLE AREA
26,682 sqm
OCCUPANCY
100%
KEY TENANTS
SA Group Enterprises, Shape Australia (ASX: SHA), Orrcon Steel & Master Butchers Co-operative
Asset Highlights
- Positive Reversion Potential: The asset offers significant positive rental reversion within the cash flow with both near and medium-term market reviews or lease renewals. It is estimated that the passing rent is currently 24% under market.
- Flexible Value-add Strategies: There are several further value-add strategies to be explored including divesting select surplus land parcels to unlock potential special distributions, exploring redevelopment opportunities to intensify the land use along Grand Junction Road, and minor capital refurbishment to improve overall property presentation.
- Prime Industrial Location: Ottoway is a core industrial precinct in Adelaide’s inner-north, situated just 9km from the Adelaide CBD with immediate access to the Port River Expressway and proximity to the North-South Motorway. The property boasts 370 metres frontage to Grand Junction Road, a high-profile arterial road enjoying significant vehicular exposure and thoroughfare.
- Significant Discount to Replacement Cost: The property will be purchased at a significant discount to replacement cost and is underpinned by a high underlying land component of 89%.
- Strengthening Adelaide Industrial Market: According to CBRE Research, the Adelaide industrial market is the second tightest by vacancy rate (1.8%) across a range of select prominent global logistics markets.
- Proximity to the AUKUS Defence Project: The site is 8km from the Osborne Naval Shipyard and is set to benefit from additional occupier demand from the AUKUS defence project, a $268bn – $368bn project to construct and operate nuclear powered submarines. CBRE Research predict an additional 850,000sqm of industrial space will be required, equivalent to 10-years of historic supply.
Property & Location
Ottoway benefits from immediate access to the Port River Expressway and direct connectivity to the Northern Connector, the underway North-South Corridor Project and Port Wakefield Road.
The suburb lies approximately 4km east of Port Adelaide and 9km from the Adelaide CBD and is bounded by Grand Junction Road to the south and the Port Adelaide freight rail line, providing multi-modal access for manufacturing, logistics and last-mile operators. Ottoway also enjoys strategic proximity to the Flinders Adelaide Container Terminal at Outer Harbour (South Australia’s only container terminal, now undergoing a major capacity upgrade) which underpins export/import supply chains and reduces truck turnaround times.
