This article is from the Australian Property Journal archive
CADENCE Property Group has sold its 1 Broadfield Road industrial asset in Broadmeadows to Elanor Investors Group for $28.8 million.
The sale of the 4.4-hectare site in Melbourne’s north represents a 27% increase for Cadence since settling the site in April this year.
Cadence unconditionally contracted to purchase site at the end of 2023 for $22.75 million.
1 Broadfield Road is one of the last remaining scalable industrial development opportunities in the Broadmeadows precinct. Sitting around 20km out of the CBD, the site includes excellent access to major transport links such as the Metropolitan Ring Road, Hume Highway, and Sydney Road.
According to Colliers, Melbourne’s North has recorded a 29.9% increase in prime rents year-on-year, thanks to low vacancy rates and ongoing limited land supply.
“The successful sale of 1 Broadfield Road is testament to our ability to continue to perform for our investors through active value creation and considered execution,” said Charlie Buxton, CEO at Cadence Property Group.
“While others in our industry have experienced asset write-downs in their portfolios, we have been able to continue to outperform for our investors in both good and, perhaps more importantly, challenging markets.”
The purchaser, Elanor Investors Group, plan to develop the site into multi-unit logistics estate to meet demand in this undersupplied market.
“The Property is one of the last remaining scalable development opportunities in Broadmeadow’s Northcorp Industrial Park precinct, in a market with the lowest prime grade vacancy rate in Melbourne,” said Myron Poobalasingam, co-head of industrial & logistics at Eleanor.
“On practical completion, the project will deliver 28,000m2 of Industrial floorspace with an on-completion value of approximately $90 million.”
For Cadence, the sales increases its gross transactions since its inception in 2014 to over $2 billion.
The group also holds land with the potential to develop around $1.5 billion in end product.
