Cadence Property Group Secure Largest Pre-lease Deal in Melbourne’s South East in a Decade with Future Keylink Tenant

Cadence Property Group has secured the largest pre-leasing deal in the past 10 years in Melbourne’s south east with furniture and homewares retailer Early Settler set to occupy over half of the future Keylink industrial estate in Keysborough.

The 10-year pre-lease agreement sees Early Settler take up 37,890 square metres, including 1,580 square metres of office space, at Keylink, Cadence and The GPT Group’s joint industrial development.

Cadence negotiated the deal with Early Settler at $100 per square metre net rent, clear evidence of the rental growth being experienced in Melbourne’s south eastern industrial market.

The deal was brokered by David Black of Salinger DC&W and it’s understood to be the largest pre-lease agreement in the south eastern industrial market since a site close to 40,000 square metres was leased by Bunnings in 2012.

Located 30 kilometres south-east of the Melbourne CBD and less than two kilometres from the Greens Road/Eastlink diamond interchange, Keylink offers unparalleled access to the south-east and greater Melbourne, with the Eastlink providing a direct connection to all of Melbourne’s major freeways.

“Keylink is set to be a first-class industrial estate, ideally located adjacent to the Eastlink freeway and featuring environmentally sustainable elements, along with façade’s designed by noted architecture firm Cera Stribley,” said Cadence Property Group Director, Charlie Buxton.

“We are extremely excited to be working with Early Settler and welcoming them as the first occupier of this exciting new development.

“The deal is a clear indication of the demand for warehousing space, particularly in this location, so we’re thrilled to be able to work with Early Settler on this significant pre-lease transaction.”

Early Settler opened their first store in 1985, since then, Early Settler has grown to become a 56-strong network of stores operating throughout Australia and New Zealand.

Chief Operating Officer at Early Settler Simon O’Mahoney said the move to Keylink is a sign of strong growth for the retailer.

“We’re very much looking forward to moving into the Keylink facility after experiencing our own growth in the industry,” said O’Mahoney.

“It signals a step forward for Early Settler and we’re happy to have secured our space for the coming years.”

Keylink is being created in partnership between Cadence and The GPT Group who is the owner of the estate within its GPT QuadReal Logistics Trust.

GPT Head of Logistics, Chris Davis, said, “The leasing success is a testament to the quality of the estate that is being delivered in partnership with Cadence. GPT is excited by the strong progress being made on this prime facility and we look forward to introducing Early Settler to our portfolio.”

The facility for Early Settler is expected to be completed in Q3 of 2022 with Texco Construction already underway with work on-site.

The Early Settler deal leaves only three warehouses available to lease at the northern end of the Keylink North with areas of 6,660 square metres, 7,430 square metres and 8,666 square metres respectively with all due completion in Q4 2022.