Gibb Group sells Adelaide CHEP facility at Direk for $31m

A purpose-built pallet repair and crate/bin wash facility in Adelaide’s north has changed hands in a $31m deal.

Developer and fund manager Gibb Group, which developed the state-of-the-art industrial logistics facility for supply chain leader CHEP, sold it to private investor Viv Padman.

While under new ownership, the current lease to CHEP is in place until 2038.

The 11,890sqm facility at 37 Caribou Drive is CHEP’s major SA service centre.

It was completed in April 2023 and officially opened by Premier Peter Malinauskas in September that same year after Gibb Group secured the long-term pre-lease to CHEP in 2021.

Leedwell’s Andrew Zammit, who sold the property with Steve Smith, said Adelaide’s industrial market was outperforming on the national state.

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Developer and fund manager Gibb Group has sold its Direk industrial logistics facility for $31m.

“This asset generated significant interest from large institutions, private syndicators and private investors, which delivered a fantastic result for all stakeholders,” he said.

“There is a real appetite among investors for industrial property in Adelaide in the current environment on the back of low vacancy rates, a shortage in supply of quality stock, rental growth and declining interest rates.

“Institutional demand for industrial investments is robust, while private investment interest from within South Australia as well as other states is strong.”

He said adelaide’s industrial sector had distinct advantages.

“The state’s tax regime supports a favourable investment environment in a national context and with no stamp duty payable on commercial transactions, we are seeing a significant improvement in cap rates.

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The current lease to CHEP is in place until 2038.

Gibb Group founder and chief executive Matthew Gibb said while it had sold the facility, SA remained an important growth market.

“Specifically, we are actively seeking infill industrial opportunities in which we can acquire existing assets and undertake a coordinated refurbishment, repositioning and re-leasing program, as well as greenfield opportunities in which we can utilise our traditional development expertise,” Mr Gibb says.

Buyer Viv Padman said they were excited to add the industrial asset to its holdings.