The acquisition which included a combination of vacant sites and stabilised assets comes on the back of securing a pre-lease with Visa Global Logistics on one of the five properties on an initial 10 year term.
The portfolio, to be known as the Altona Logistics Park, has the capacity for an additional $75m in development works and a total end value of $125m.
Mitchell Kent of Cadence Property Group commented that “with our previous experience within Toll Drive with the Arrow Logistics pre-lease and a growing track record in the area we are very confident in the ability of the location to attract major transport and logistics operators.
Altona North is one of the last core industrial locations within the inner western industrial market that can accommodate the construction of new transport facilities, and with Melbourne’s increasing reliance on Port related activities it makes sense for us to be here to accommodate that demand.”
As with Cadence’s other acquisitions within the Altona and Altona North area, the case for attracting occupiers is further supported by the site’s proximity to the Altona Township and the amenity this provides.
Cadence Property Group director Charlie Buxton said that “It is no secret that the greater western market is somewhat starved of quality amenity for occupants. It might be a cup of coffee in the morning or a place to take clients or staff out to lunch. While the primary case for setting up a business in an industrial location like Altona North are the logistical benefits it provides, we believe that the ability to access inner city style amenity as is provided in Altona is certainly a contributing factor.”
The Altona Logistics Park will be marketed by CBRE and Savills with opportunities for land sales, pre-leases and land and building packages.