95 Gilmore Road, also known as 2-56 Australand Drive (Image: Cadence Property Group)
CapitaLand Ascendas REIT has agreed to sell a warehouse complex in suburban Brisbane to Australia’s Cadence Property Group for S$90 million ($69 million), as the Singapore-listed trust continues to reshuffle its portfolio.
The property at 95 Gilmore Road, 22 kilometres (13.7 miles) south of central Brisbane in Berrinba, consists of two single-storey sheds with a total gross floor area of 41,318 square metres (444,743 square feet), CLAR’s manager said Tuesday in a release.
The pending disposal is part of S$396 million worth of CLAR divestments expected to be completed in the fourth quarter of 2025, said William Tay, CEO and executive director of the manager, which is owned by Temasek-controlled CapitaLand Investment. The aggregate sale consideration represents a 6.6 percent premium to the independent market valuation of S$371.5 million and a 20.4 percent premium to the original purchase price of S$329 million.
“Together with the three divestments completed earlier, these transactions amount to S$498 million in FY 2025 and underscore our disciplined capital recycling strategy to maintain financial flexibility and liquidity for accretive investment opportunities,” Tay said.
Value-Add Bet
Also known as 2-56 Australand Drive, the Brisbane complex sits along the Logan Motorway corridor near the Port of Brisbane, Brisbane Airport and the central business district. The deal marks Cadence’s first Brisbane buy since 2020 and the inaugural investment for the firm’s CAREP II value-add fund.
Cadence Property Group CEO Charlie Buxton
The purchase price for the asset equates to A$2,464 ($1,609) per square metre of gross lettable area, or 32 percent below Cadence’s assessed replacement cost of A$3,630 per square metre, providing significant downside protection and strong entry fundamentals, the Melbourne-based firm said in a separate announcement.
“This is a strategic acquisition that aligns perfectly with our value-add mandate,” said Cadence CEO Charlie Buxton. “We’re acquiring a high-quality asset in an excellent location, with low site coverage, strong underlying land value and compelling design features. Importantly, we’re buying well below replacement cost in a submarket supported by continued rental growth and constrained supply.”
The transaction comes six months after Cadence partnered with US fund manager PGIM Real Estate to acquire a logistics and infrastructure asset in western Sydney from rail freight operator Pacific National for A$145 million ($93.5 million).
St Mary’s Intermodal Terminal comprises 157,669 square metres of land with a gross lettable area of 95,940 square metres and a 1.5 kilometre rail spur providing access to Port Botany on Sydney’s Botany Bay. The partners have secured a 20-year lease with existing tenant ACFS Port Logistics, and a 20,000 square metre expansion of the paved hardstand is also planned.
Portfolio Fine-Tuning
CLAR expects net proceeds of S$83.4 million from the Brisbane divestment. Upon completion, the trust will own 228 properties including 97 in Singapore, 33 in Australia, 49 in the US and 49 in Europe.
The REIT has fine-tuned its portfolio with a string of recent deals, agreeing last month to buy a set of three industrial properties in Singapore for S$565.8 million ($438.2 million) from Vita Partners, a life sciences and R&D real estate joint venture of fund manager Warburg Pincus and Australian builder Lendlease.
The Vita buy aligns with CLAR’s strategy to anchor its portfolio in Singapore, coming on the heels of the REIT’s acquisition of 9 Tai Seng Drive, a co-location data centre, and 5 Science Park Drive, the headquarters building of e-commerce player Shopee, in a S$724.6 million deal completed in August.
That same month, the trust announced the sale of four light industrial facilities in Singapore for S$329 million. Sources familiar with the transaction identified the buyer as EZA Hill, a portfolio company of Hillhouse Investment’s Rava Partners.
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