Charter Hall’s Direct Industrial Fund No.4 Enhances Portfolio With $141 Million Industrial Acquisition
April 20, 2021 – Charter Hall Direct’s industrial fund has announced the acquisition of two food manufacturing facilities on a 30 year sale and leaseback to leading food business Patties Foods for $141 million.
The sale and leaseback arrangement with Patties Foods provides for a 30 year triple net lease with fixed 3% annual reviews. The Portfolio consists of two properties including the world class bakery in Bairnsdale and fast growing ready meals facility in Pakenham, Victoria, with a combined site area of 27.2 hectares. The improvements comprise 46,175sqm of GLA (17% site coverage) including 41,478sqm of warehouse and total office area of 4,697sqm (10.2%) across both sites.
Patties Foods Group is one of the largest pie manufacturers in the world, producing some of Australia’s most iconic, market leading brands, including Four’N Twenty, Patties, Herbert Adams, Boscastle, Nanna’s, Ruffie Rustic Foods and Fitness Outcomes, for domestic and global export.
Patties Foods Chief Executive Office, Paul Hitchcock said “the sale and leaseback is part of the business’s future growth strategy.”
“Both facilities are critical to Patties Foods’ operations and this arrangement enables the company to invest in additional growth opportunities to support our people, business and brands. The business has recently entered new categories via acquisition, and we are now in a position to continue this expansion” said Mr Hitchcock.
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