Charter Hall snaps up Vegemite factory

The 6.34 hectare Vegemite facility, in Fishermans Bends’ employment zone. Image: Google Street View.

Charter Hall has snapped up Port Melbourne’s prominent Vegemite factory after a speculated deal last September to US-based Hines didn’t proceed.

An innovation precinct (centre) set for the ex-General Motors Holden site.

Vendor Bega Cheese is banking $114.6 million – a 6.5 per cent plus yield, according to sources – for the 6.43 hectare facility at 1 Vegemite Way, abutting the West Gate Freeway.

The property traded with a 15 year leaseback – potentially extending to 2048 with (two five-year) options, limiting any immediate development upside; the site is also in the employment zone of Fishermans Bend, the country’s largest urban renewal project, covering 480ha.

Last year, in the pocket, the state government invested $179.4m to develop infrastructure and the first buildings, part of a technology and innovation precinct, on part of a 32ha ex-General Motors Holden site it acquired from the car maker for $130m in 2016.

Site sold after a century

Bega, already a Charter Hall tenant-client, acquired Vegemite in 2017 from Mondelez – formerly Kraft Foods (story continues below).

The Port Melbourne property, with 36,915 sqm in numerous buildings developed by Vegemite from 1923 – includes a yeast factory completed in the early 1950s.

Colliers’ Gavin Bishop, Sean Thomson and Jack Kelliher – the latter who recently moved to JLL – represented Bega.

The Hines deal was speculated to have been worth c$150m.

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Marc Pallisco

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