Cadence sells down Mill Park industrial site for $15.25 million

Cadence Property Group, on behalf of a group of private investors, has flipped a three-hectare Mill Park commercial property, for a substantial short-term capital gain.

After buying 20-30 Heaths Court in April, 2018, for $7.1 million, Cadence subdivided the property in two, selling both properties last month, for a total of $15.25 million.

In the biggest deal, an industrial processing and manufacturing plant at 20 Heaths Court is trading for $12.75 million.

An aerial image showing 20 Heaths Court (outlined) relative to Plenty Road.

Cadence offered the investment with a new 15-year lease to sitting tenant, ASX-listed juice company Food Revolution Group.

The landlord agreed to undertake a $2.5 million renovation of the building as part of the rental agreement.

Based on the annual rent FRC is paying (approximately $764,569) the asset is selling on a 6.21 per cent initial yield.

The factory occupies a 2.4 hectares parcel of land zoned Commercial 2 with long-term development potential.

JLL’s Adrian Rowse and Tony Iuliano marketed the office-warehouse via an expressions of interest campaign which closed in March.

Cadence sold the neighbouring block (outlined) for $2.5 million in a separate deal.

In a separate deal, Cadence offloaded the subdivided neighbouring property as a 6377 square metre Commercial 2 zoned building block.

Knight Frank’s Brent Glassford and Marco Sandrin with Ray White’s John Kalpakis sold 30 Heaths Court for $2.5 million to a local developer.

Cadence is directed by Charlie Buxton. His father, Andrew, and uncle, Michael established development group MAB Corp.

In April, 2017, Andrew made headlines paying New York stockbroker Alex Ripe $18.1 million for historic Sorrento estate, Nee Morna.

Cadence is also seeking to replace an Abbotsford site with an office complex. It paid $10.5 million for the former Spotless Cleaning warehouse at 18 Victoria Crescent, in mid-2017.

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Marc Pallisco

A former property analyst and journalist, Marc is the publisher of realestatesource.com.au.

Marc Pallisco