This article is from the Australian Property Journal archive
CADENCE Property Group has acquired a Hawthorn East site for $6.5 million, which will become its new headquarters.
Fitzroys agents Chris James, Jordan Ceppi and David Bourke negotiated the sale of 1-5 Hall St following an expressions of interest campaign on behalf of a private investor who had held the property for more than 20 years.
The 1,650sqm site boasts three frontages and comprises two adjoining office and warehouse facilities with a combined building area of 1,625 sqm.
Timber exporter Aushang International has 3.5 years remaining on its lease over 1 Hall Street, while tech firm SXiQ has a short-term lease over 3-5 Hall Street.
Cadence currently intends to move in to part of the premises following expiration of the short-term lease with plans to develop the asset over the long term.
“We received very strong interest throughout the campaign, with more than 100 enquiries coming from investors, owner occupiers, developers and land bankers, reflecting the property’s versatility and the pent-up demand for property in this tightly-held, blue-chip precinct,” James said.
Bourke said the attractive site offered strong development potential, with three street
frontages and a Commercial 2 zoning offering a 19-metre height allowance, while investors and owner occupiers were drawn to the property’s high site utilisation, accessibility and 18 on-site parking spaces.
Six offers were received, and the sale price reflected a sharp yield of 5%.
From its new site, Cadence will neighbour the offices of Coles, Kookai, Bunnings Warehouse, Gazman, and Kennards Self Storage.
Cadence Property Group, headed by Charlie Buxton of the prominent property family, has a commercial and industrial development pipeline worth more than $600 million, including a $250 million master-planned mixed-use business park in Truganina, and last year launched a syndicated funds management arm with the aim of holding up to $300 million of assets.
Ceppi said the inner eastern suburbs continues to attract commercial and industrial tenants given its excellent accessibility and residential development growth.
Australian Property Journal
