Cadence, Stockland trade $170m industrial portfolio
Stockland has sold a portfolio of east coast industrial investments.
The Keywest Distribution Centre and Altona Distribution Centre in Melbourne and 89 Quarry Road, Erskine Park, Sydney, collected $170.5 million.
Charlie Buxton’s Cadence Property Group is the buyer.
With a short weighted average lease expiry – 1.4 years when the properties hit the market last October – an upgrade of the buildings is planned, improving the ESG credentials, with a view to renewing tenants.
All up covering 15.9 hectares, new product might also be added.
Three Melbourne assets
The priciest property – the Keywest Distribution Centre in Melbourne’s west Truganina, is speculated to be selling for c$57m.
On 5.2h at 14-30 Agar Drive, it contains 30,488 square metres, completed five years ago.
BrandLink is a key occupier.
Stockland operates the balance as a logistics hub.
The speculated result would reflect a capitalisation rate of c5.75pc based on the income last June.
Meanwhile two Altona North properties which form the Altona Distribution Hub, again in Melbourne’s west, have also sold.

The largest, 32-54 Toll Drive, contains 18,727 sqm on 4.78ha.
The neighbouring asset, 56-60 Toll Dve, is smaller – 3.8ha – with 17,218 sqm.
Offered separately, these two investments are speculated to be selling for a combined $73m.
Sydney warehouse fetches c$40m
The fourth portfolio asset – 89 Quarry Road, Erskine Park – is believed to be trading for c$41m.
On 2.195ha, it contains 11,724 sqm completed in 2016 with three recessed docks and six entry points.
“This acquisition aligns strongly with our investment conviction around location, tenant quality and the ability to unlock value through active asset management,” Mr Buxton, who is supported for the purchase with VFMC, said.
“These are well located assets that offer scale, resilience and flexibility – and with the right investment, will deliver long-term value to our capital partners,” he added.
Colliers’ Gavin Bishop and Sean Thomson with JLL’s Ben Hegerty and Joel Scully represented Stockland.
Last month we reported Cadence and PGIM acquired a St Marys industrial property for the PGIM Real Estate Asia Core Strategy.
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