Cadence Property Group and PGIM Real Estate have agreed to acquire the St Mary’s Intermodal Terminal, a strategically located last-mile logistics and infrastructure asset in Western Sydney.
The acquisition marks the first partnership between Cadence and PGIM Real Estate and highlights the capability of both parties to execute on complex industrial transactions.
The property, to be acquired from Pacific National for AU$145 million, is located at 2 Forrester Road, St Marys.
It spans 157,669 sqm of land with a Gross Lettable Area (GLA) of 95,940 sqm including a 1.5 km rail spur and a planned 20,000 sqm hardstand expansion.
In conjunction with the planned acquisition, the partners have also entered a new 20-year lease with existing tenant ACFS Port Logistics, securing long-term income and providing a strong foundation for future value creation.
“This was a unique infrastructure-aligned asset that presented an opportunity to work with the sitting tenant to expand the asset and create value for all parties,” said Charlie Buxton, CEO of Cadence Property Group.
“Managing the purchase, lease and planned expansion works simultaneously required creativity and a high level of execution — both of which play to the strengths of our team and integrated business model.
We’re also delighted to welcome PGIM Real Estate as a new partner and look forward to building on this relationship.”
The St Marys Intermodal Terminal is a rare, strategically located asset with direct freight rail access to Port Botany.
It offers a sustainable alternative to congested road freight routes, with the potential to eliminate up to 3,000 truck movements per day.
Located approximately 47 km west of Sydney’s CBD, the terminal sits within the core western industrial precinct, a key logistics corridor.
The asset is Cadence’s fourth low site coverage investment in the last two years, reinforcing the Group’s focus on land-rich, infrastructure-aligned industrial assets with long-term value-add potential.
Construction works will commence shortly, with the 20,000 sqm hardstand expansion forming part of the new lease with ACFS.
The PGIM investment was made on behalf of PGIM Real Estate’s Asia Core strategy. Steve Bulloch, Managing Director and Head of Australia at PGIM Real Estate said,
“The opportunity to acquire a unique asset like this, with strong real estate and infrastructure characteristics, was attractive to us and the ability to substantially de-risk it by having a long-term tenant in place prior to acquisition added to the appeal.
We are pleased to work with the Cadence team on what is an exciting investment for us.
“PGIM Real Estate has been very active this year across a range of real estate asset classes, but we have also been very selective in pursuing strategies with a strong underlying thematic and assets that will be well positioned for the heightened market volatility in the near term.
This acquisition is another good example of that.”
“ACFS are excited to have secured a long-term lease, ensuring that we can provide an excellent base to service our customers in Western Sydney,” said Arthur Tzaneros, CEO, ACFS Port Logistics.
“There are enormous opportunities to unlock the full potential of St Marys Freight Hub beginning with an immediate expansion of the facility as part of the new lease,” he added.
“We look forward to working with both Cadence and PGIM Real Estate”.
CBRE managed the transaction on behalf of the vendor, with Jason Edge, Cameron Grier, and John Micallef acting as the exclusive sales agents.
Jason Edge, National Director Capital Markets Industrial & Logistics, stated “A site of this nature almost never is offered to market in Sydney, something that the Purchaser recognised early on in the campaign.”
About Cadence Property Group
Cadence Property Group is a real estate development and investment business focused on the Australian market.
Cadence focus’ on key areas of the market where it has high conviction and passion and invest its own capital alongside private and institutional Capital Partners, aiming to provide market-leading investment opportunities and generate excellent outcomes for our Customers.
Established in 2014 by Charlie Buxton, Cadence has transacted over $2b of real estate covering core+, value-add and development strategies across Melbourne, Brisbane and Sydney.
About PGIM Real Estate
PGIM Real Estate is the world’s third-largest real estate investment manager, with US$206 billion in gross assets under management and administration1 and real estate professionals located in 35 cities worldwide. Built on our belief that strong performance is fuelled by dynamic expertise, our global network of on-the-ground specialists is dedicated to opportunity creation, optimization, and timely capital deployment amid shifting market conditions.
Through our full suite of real estate equity and debt solutions, we aim to achieve exceptional outcomes on behalf of investors and borrowers. Our uncompromising commitment to building lasting relationships with our clients is founded on trust, transparency, and mutual respect. We strive to integrate sustainable best practices throughout our investment, asset management, risk and talent management processes for the benefit of our clients, employees, and the communities in which we operate. PGIM Real Estate is a business of PGIM, the global asset management business of Prudential Financial, Inc. (NYSE: PRU). For more information visit pgimrealestate.com.
About PGIM
PGIM is the global asset management business of Prudential Financial, Inc. (NYSE: PRU). In 41 offices across 19 countries, our more than 1,450 investment professionals serve both retail and institutional clients around the world.
As a leading global asset manager with US$1.39 trillion in assets under management, 2 PGIM is built on a foundation of strength, stability, and disciplined risk management. Our multi-affiliate model allows us to deliver specialized expertise across key asset classes with a focused investment approach. This gives our clients a diversified suite of investment strategies and solutions with global depth and scale across public and private asset classes, including fixed income, equities, real estate, private credit, and other alternatives. For more information visit pgim.com.
Prudential Financial, Inc. (PFI) of the United States is not affiliated in any manner with Prudential plc, incorporated in the United Kingdom, or with Prudential Assurance Company, a subsidiary of M&G plc, incorporated in the United Kingdom.
For more information please visit news.prudential.com.
