Centuria Sells Newly Completed Direk Warehouse for $50M in Off-Market Industrial Real Estate Deal

Centuria's development team has sold a newly completed industrial warehouse in Direk, South Australia for $50 million in an off-market transaction, with the sale closing within days of the facility reaching practical completion — before the asset could be leased as originally planned.

The sale of the approximately 21,000 sqm A-grade warehouse at 50-64 Mirage Road was executed on behalf of Centuria Industrial REIT (ASX: CIP), which had developed the facility on a speculative basis with the intention of leasing it upon completion. Instead, a local owner-occupier approached CIP seeking a turnkey solution to support its expanding operations, prompting an off-market sale.

Sales contracts were exchanged at $50 million, representing a 33% premium to total development costs and generating a 25% Internal Rate of Return, according to Centuria.

Development Background

The Mirage Road warehouse development began when Centuria acquired the greenfield site in 2023 for CIP. Construction commenced in February 2025, with builder Sagle appointed to deliver the facility. The project reached practical completion following a 14-month construction period, with the off-market sale following within days.

Andre Bali, Centuria's Head of Development, commented on the transaction: "When the greenfield site was acquired in 2023, we saw significant potential to deliver a multiunit facility that could meet rising demand from the Adelaide industrial occupier market. We hadn't anticipated just how strong the operator market had become within a year and the immediate sale is testimony to the cutting-edge design and quality of the facility we delivered, its location and modern warehouse facilities."

The warehouse was designed to accommodate flexible use — either as three separate units or as a single-occupier facility.

Asset Specifications and Sustainability Features

The Direk warehouse spans approximately 21,000 sqm of warehouse space and includes 1,830 sqm of office accommodation. Key building specifications include hardstands ranging between approximately 26 and 30 metres, minimum internal clearances of approximately 11 metres, dual-sided cantilevered awnings spanning 15 metres, 19 roller doors, three recessed docks, dual-site access, and end-of-trip facilities. Translucent skylight roof sheeting was incorporated to enable natural light and reduce reliance on artificial lighting.

The facility was built to a 5 Star Green Star rating and incorporates a 297 kW rooftop solar system, LED lighting with daylight harvesting, a rainwater harvesting system for toilets and irrigation, six EV chargers, low-VOC materials, and water-efficient fixtures.

Located at 50-64 Mirage Road within what Centuria describes as Adelaide's largest master-planned industrial estate, the property sits approximately three kilometres from the Northern Connector, 15 kilometres from Port Adelaide, and 30 kilometres from Adelaide Airport. The estate features B-triple capable road networks.

Centuria's South Australian Industrial and Office Portfolio

The Mirage Road transaction is the latest in a series of industrial and office developments Centuria has delivered in South Australia. The firm states it has completed approximately $150 million worth of industrial and office projects in the state in recent years, including Apex Steel's office and industrial headquarters in FY23, the 57 Wyatt Street boutique office building in FY23, a 16-19 Caribou Drive industrial facility in FY25, and a 13-16 Caribou Drive warehouse in Direk programmed for 2026 completion.

Centuria's development team noted it continues to work closely with CIP to maximise development potential across CIP's urban infill portfolio across Australia.