Charter Hall has snapped up Port Melbourne’s prominent Vegemite factory after a speculated deal last September to US-based Hines didn’t proceed.
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.
The Hines deal was speculated to have been worth c$150m.
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