Bega offloading 99 year old Vegemite factory

Bega listed the underutilised Port Melbourne block in May. Images: Google.

Bega is believed to be selling the prominent inner-city factory where Vegemite has come from since 1923 to US based investment house Hines.

The 6.34 hectare Port Melbourne property, 1 Vegemite Way – also bound by Douglas, Salmon and Turner streets, and the Cook St onramp of the West Gate Freeway – is speculated to be trading for nearly $150 million, according to The Australian.

The vendor offered it with a flexible leaseback, giving agents the chance to market the holding’s substantial medium term development upside.

The land forms part of the 480ha Fishermans Bend urban renewal precinct, set for significant residential, office and hospitality product over the next two decades.

Last year, we reported the state government tipped in $179.4m to kick start a high-tech industrial/innovation precinct within part of the ex-GMH block it purchased from the car maker in 2016.

The University of Melbourne will also control a campus on a corner of that 32ha holding.

Hines boosts Oz industrial portfolio

Bega acquired 1 Vegemite Wy, with 36,915 square metres, as part of a $460m buy-out of Mondelez brands also including Kraft sliced cheese and Zoosh salad dressing, in early 2017 (story continues below).

It is represented for the property sale by Colliers’ Gavin Bishop, Sean Thomson and Jack Kelliher.

Addisons is the vendor’s legal advisor.

Any deal comes five months since Hines, for the Asia Property Partners (HAPP) fund, made its maiden Australian industrial investment – a $211.5m portfolio of four assets, three in Sydney with the other in Brisbane, from Pipeclay Lawson.

More recently, the manager paid Honda c$83m for two soon-to-be-vacated Melbourne properties, including the car maker’s headquarters of four decades at 85 Sharps Road, Tullamarine.

Outside of Australia, HAPP holds logistics investments in China, Japan, Singapore and South Korea.

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Marc Pallisco

A former property analyst and print journalist, Marc is the publisher of