The Australian Financial Review and NT News report that a German investment group has paid nearly $100m for Treasury Wine Estates’ (TWE) distribution facility in Adelaide’s north.

AM Alpha has paid $98m for TWE’s intermodal distribution facility in Penfield which comprises warehousing and logistics building space as well as excess development land.

It is the group’s first investment in South Australia after it was introduced to the property by Sydney-based investment manager Realmont Property Partners, which will provide its ongoing local management.

Munich-based AM Alpha oversees a global real estate portfolio and has previously invested in office and retail assets in Sydney and Brisbane.

AM Alpha managing director Martin Lemke said the firm was attracted to South Australia’s stable property market and continued to seek office, industrial, retail and alternative investment opportunities across the country.

The TWE distribution centre, used for both domestic and export distribution, has been in operation at Penfield since 2014 and received a $30m expansion in 2018.

It prime location, being in direct access to rail freight to Port Adelaide and further to Melbourne, Perth and Darwin, was crucial in AM Alpha’s purchase.