Luv-a-Duck manufacturing plant sold with a leaseback
Collective Capital Investments has paid bought a cold storage and food processing facility with a leaseback.
The Ballarat property, 13 Nettles Road, Mitchell Park, is costing $21.25 million.
Luv-a-Duck offered it with a 12-year leaseback with fixed 3.5pc annual rent rises.
It constructed the 8604 square metre complex in 2021.
The site spans 2.705 hectares at the north-west corner of Soho Road, in the Ballarat West Employment Zone.
About 8000 sqm – the north portion of the rectangle-shaped block – is undeveloped.
Modern industrial investment
Luv-a-Duck moved to 13 Nettles Road after outgrowing operations in Nhill and Port Melbourne, the latter where it has office headquarters.
The land cost $1.1m in 2018.
About 4000 sqm is for production. The temperature-controlled storage space spans 3300 sqm. There are also 1300 sqm of offices (continues below).
Collective Capital director Nick Thompson said the transaction suited the group’s investment strategy.
“A well-built facility that matters to a serious operator, on a lease that works for both sides, is exactly the kind of asset we look for,” according to the executive.
“Luv-a-Duck gets certainty over a site it has invested heavily in, and we get a tenant with every reason to stay,” he added.
“This sale demonstrates the depth of demand for high-quality cold storage and food processing facilities that offer secure, long-term income backed by strong operating businesses.
“Purpose-built cold chain assets remain exceptionally scarce, particularly those that are operationally critical to their occupiers and offer institutional-grade specifications”.
Knight Frank brokered the off-market deal.
Mitchell Park is about eight kilometres north-west of the Ballarat CBD.
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