Cadence Property Group has paid $10.5 million for a south west Brisbane industrial property it plans to upgrade while offering for lease.
The 8.6 hectare Redbank factory at 36-48 River Road will be held by the new CPG FM02 Property Trust.
It is located within an e-commerce hub, walking distance to the train station, about 25 kilometres from the city.
“The asset presents a strong value-add opportunity having been purchased well below replacement cost and located in Brisbane’s emerging e-commerce precinct,” Cadence managing director, Charlie Buxton, said.
“We plan to rejuvenate…by way of capital upgrades, including a new ring road around the building and upgraded office and bathroom amenity to attract good quality, long term tenants”.
About 6.1ha of the holding is developable.
Colliers International’s Matthew Frazer-Ryan, Levi Maxwell and Simon Byrne represented the vendor, a private investment group.
The agency is also managing the leasing campaign for Cadence, which will rent it in configurations from 500 sqm.
Asahi Beverages, Australia Post, DB Schenker, Northline, TNT and Rheinmetall occupy warehouses within a kilometre of 36 River Rd, the brokers said (story continues below).
An automated Coles distribution centre is under construction at a Goodman owned site next door.
“At close proximity to Redbank Motorway Estate, directly off the Ipswich Highway, the property is situated in Brisbane’s newest e-commerce industrial and logistics hub,” according to Mr Frazer-Ryan.
Mr Maxwell added “with over 14,500 sqm of warehouse space and 30,500 sqm of dedicated hardstand areas, 36 River Rd is the most affordable warehouse and external hardstand storage accommodation in this location”.
Second industrial syndicate venture for Cadence
“The acquisition of the Redbank asset marks our second industrial syndicate venture and we’re excited to strengthen our investment holdings nationally,” Mr Buxton said.
Cadence has purchased two properties – both in Melbourne – in COVID-19 conditions, including the recently vacated 3.8ha Spotswood Animal Quarantine Station, which cost $14m, and Sunshine North’s City West Plaza shopping centre ($39m, with co-buyer Assembly Funds Management).
It is also completing construction of a c$88m distribution centre in Sydney’s west Penrith, for Visy.