A land rich pipe manufacturing plant and distribution centre in Melbourne’s north has sold for $48.25 million to Charlie Buxton’s Cadence Property Group.
The deal for 125-175 Patullos Lane, Somerton, is a boon for the seller, Acure Asset Management Limited, which picked up the 12.25 hectare asset for $25.25m in mid-2015 with a 10 year initial leaseback.
Following a relet in 2017, it was offered this time with a 6.8 year weighted average lease expiry; Steel Mains is the occupier.
Twelve hectares, 20 km from town
Containing 32,923 square metres of warehousing – covering 27 per cent of the block – 125-175 Patullos Ln was marketed for its development upside – which could be shorter than expected if Mr Buxton can negotiate to build on part of the site before lease expiry.
In July, Cadence and private investor Bo Gao banked $87m – a 163pc rise on the prices they paid in stages for two years earlier – selling a 40.85ha Craigieburn site permit-ready for 170,000 sqm of product to Frasers Property Industrial (story continues below).
In 2019 meanwhile, Mr Buxton, on behalf of a consortium, reaped $15.25m selling down a three hectare Mill Park industrial property purchased for $7.1m a year earlier.
West of town, last year, Cadence offloaded a West Footscray factory to US-based Greystar for $23.1m – a significant rise on the $10m outlaid two years before.
“The property is strategically located in the growth corridor of Melbourne’s north, immediately adjacent to the Hume Highway…approximately 20 radial kilometres from the Melbourne CBD with seamless connectivity to the broader arterial network,” Mr Jones said of 125-175 Patullos Ln.
“The location offers links to key infrastructure in the Melbourne Airport (12km away) and the Port of Melbourne (26km), most notably via direct rail link and connection with the Port Rail Shuttle Network,” he added.
“One of the key investment highlights was the ability to acquire an asset significantly underpinned by land value,” according to the executive.
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