From Tokyo to Adelaide

SINGAPORE, Nov 19, 2025 - Singapore-based real estate consultancy, Kara Capital, has successfully facilitated a landmark Japanese investment in Adelaide through Centuria Capital Group’ s Port Adelaide Distribution Centre (“PADC”), a 32-hectare prime industrial asset valued at AUD 216 million. The transaction represents a significant milestone for cross-border capital flows into Australia’s logistics sector.

PADC is the underlying property within the single-asset Centuria Port Adelaide Industrial Fund (CPAIF or ‘Fund’). The acquisition represents the largest industrial deal in the history of South Australia and highlights the growing appetite from Japanese investors for quality industrial assets beyond Sydney, Melbourne and Brisbane. Located in one of South Australia’s most significant logistics precincts, PADC is 12km north west of Adelaide’s CBD and comprises large-format warehousing and distribution facilities with direct connectivity to the Outer Harbor rail network and Port River Expressway.

This investment is forecasted to generate an average cash distribution of 8.5% per annum and the purchase price reflects approximately a 70% discount to replacement cost - both underscoring the rarity value of this deal. The transaction was settled in October 2025.

“The primary challenge of this deal was securing allocation due to overwhelming demand. Secondly, the timeline was extremely ambitious from the very beginning for any foreign investor so we applaud our investor for moving decisively to complete the deal on time. Interest from other Japanese investors was strong, with several other parties indicating their intent to participate if the schedule had allowed. We had strong confidence in partnering with Centuria given their deep understanding of the Adelaide industrial market where they already manage a substantial portfolio of 14 assets. We look forward to working together for future core+ industrial opportunities across Australia” - Nazmi Camalxaman, Founder and Managing Director of Kara Capital. 

The ASX-200 listed Centuria Capital Group is one of the largest industrial landlords in Australia and New Zealand with AUD 6.3 billion of industrial assets. Investment across the domestic market and offshore institutional investors, particularly within Singapore, was overwhelming with Centuria attracting more than double its AUD 116 million targeted equity raise, resulting in significant oversubscription within five weeks and the offer closing early due to the strong demand.

Andrew Essey, Centuria Chief Investment Officer, notes: “ This was a rare opportunity to secure a trophy Adelaide asset at a time when the local market benefits from cyclical tailwinds credited to low vacancy, strong leasing demand and limited new supply. Adelaide has one of Australia’s strongest leasing markets with materially lower rents in comparison to other capital cities. We are very excited to secure this asset at a substantial discount to replacement cost. The acquisition is a strong start to FY26 and we anticipate further, attractive investment opportunities for both domestic and international capital over the year. We continue to see improving conditions within the transactional market with falling debt costs, strong international investor interest for well-priced and located property, and healthy retail/wholesale investor appetite.”

Supply Constraints Supporting Market Fundamentals

Australia’s logistics real estate market continues to experience structural undersupply, driven by higher construction costs, capital constraints, and ongoing planning delays that have slowed new development activity. From 2025 to 2027, new logistics completions are expected to average just 1.9 million sqm per year, falling short of the estimated structural demand of 2.1 million sqm annually—demand that is being fuelled by e-commerce growth, population expansion, and the food & beverage sector. 

With national vacancy rates already at just 2.8%, this shortage is set to persist over the medium term, providing further support for rental growth and long-term capital appreciation in the logistics and industrial sectors. Adelaide in particular has an industrial vacancy rate of 1.6% which is the second lowest in the country.

The transaction comes amid a significant rise in Japanese capital flows into Australia’s industrial and logistics sectors. According to PwC Australia’s “Bridging Continents: Inbound Investment from Japan to Australia” report, Japanese firms have completed over 100 industrial and logistics M&A deals in Australia since 2014, with a combined value exceeding AUD 20.6 billion. 

Outbound Investment

Nazmi Camalxaman, Founder and Managing Director of Kara Capital:“We have invested considerable time building relationships with Japanese corporate investors, and it is increasingly clear that Japan’s demographic trends, particularly declining population growth , are reshaping corporate strategies across sectors. This structural shift is driving sustained outbound real estate investment. Australia remains a key destination for Japanese capital for office, logistics, build to rent and private credit real estate assets.

Japan’s outbound investors have limited access to intermediaries who truly understand cross-border deployment in developed markets — that’s the gap Kara Capital is helping to fil. Our competitive advantage lies in the intelligence of Singapore’ s real estate investor ecosystem, anchored by sophisticated real estate families, allowing us to identify and connect Japanese capital with exceptional real estate investment managers worldwide. In our view, quality managers lead to quality deals”

About Centuria Capital Group

• Centuria Capital Group (ASX: CNI) is an Australasian listed specialist real-estate funds manager.

• As of 30thJune 2025, Centuria reported assets under management (AUM) of around AUD $20.6 billion.

• The company has over 370 properties and more than 2,300 tenants across its portfolio.

• Centuria operates across a broad spectrum of commercial real-estate sectors: industrial/logistics, office, retail, healthcare, agriculture and real-estate debt funds.

• Headquartered in Sydney, Australia, Centuria has built its business over more than 25 years.

About Kara Capital 21 Pte Ltd

Kara Capital is a Singapore-based real estate consultancy that connects global real estate investors with best-in-class mid-market real estate investment managers. The firm maintains a broad network of investors across Southeast Asia, including institutional investors, family offices, pension funds, sovereign wealth funds, insurance companies, and large corporates. Kara Capital meets more than 90 investment managers annually, focusing on sector specialists with a proven competitive edge in logistics, office, living, essential retail, data centres, healthcare, and private credit real estate strategies. Operating strictly on a reverse-enquiry model. Kara Capital identifies the most relevant and high-quality managers to meet the specific needs and mandates of its investors, ensuring that capital is matched with the right opportunities globally.

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