Cadence Nabs Logistics Portfolio for $170.5m

Victoria-based development and investment group Cadence has acquired the Eastern Edge portfolio for $170.5 million from Stockland, below most recent book values. 

The four institutional-grade logistics assets within the portfolio are across Melbourne and Sydney in the strategic locations of Altona North and Truganina in Victoria and Erskine Park in NSW. 

Combined, the portfolio comprises 78,246sq m of gross lettable area and land-rich assets, and offers development upside and connectivity to arterial infrastructure.

Cadence Property Group chief executive Charlie Buxton said the acquisition aligned with the business’s strategic focus on industrial markets with embedded reversionary potential. 

They also provided opportunities for value creation through leasing, repositioning and redevelopment initiatives. 

Buxton said it was a “significant milestone in the evolution of Cadence’s logistics platform”.

“This acquisition aligns strongly with our investment conviction around location, tenant quality and the ability to unlock value through active asset management,” Buxton said. 

“Our team has moved quickly to secure four high-quality logistics facilities at an attractive entry point.

“These are well-located assets that offer scale, resilience and flexibility–and with the right investment, will deliver long-term value to our capital partners.”

▲ Cadence Property Group chief executive Charlie Buxton says the deal aligns with the company’s focus on assets with embedded reversionary potential.

Buxton said it also demonstrated the value of the integrated model, which enabled the investor to “confidently reposition assets, navigate leasing risk and capitalise on supply-constrained conditions in core markets”.

The Eastern Edge portfolio comprised 32-54 Toll Drive and 56-60 Toll Drive, both at Altona North; 30 Agar Drive, Truganina and 89 Quarry Road at Erskine Park. 

Buxton said Cadence would focus on upgrading the assets with a focus on modernisation, ESG upgrades and tenant engagement to maximise value and return. 

The transaction was brokered by Gavin Bishop and Sean Thomson from Colliers, alongside Ben Hegerty and Joel Scully from JLL. The portfolio was listed about eight months ago. 

According to Stockland’s property portfolio report at the end of the 2024 financial year, the latest combined valuation for the assets within the Eastern Edge portfolio was $173 million. 

The Altona Distribution Centre, which comprises the two warehouse assets, was valued at $73.5 million, the KeyWest Distribution Centre at Truganina at $57.5 million, and the Quarry Road asset at Erskine Park at $42 million. 

Stockland this year inked deals with capital partners M&G Real Estate and KKR to create logistics partnerships.

The Stockland M&G Asia Partnership Trust is a 50-50 open-ended core partnership with M&G Real Estate, which is seeded with Ingleburn Logistics Park in Sydney. 

The Stockland Logistics Partnership Trust is a 70-30 open-ended core-plus partnership with KKR, with the private equity firm holding a 70 per cent stake. 

That partnership is seeded with three Sydney assets with an initial value of $388 million.