Nestle has sold its redundant Shepparton food processing plant to Sydney fund manager VIMG.
The 78.2 hectare property covering 1-85 Bosse Road, at the south west corner of Henderson, Tongala (pictured, top), is believed to be trading for around $18 million.
VIMG is now seeking a tenant for all or part of the facility, which contains 23,009 square metres in numerous structures.
It is targeting other food makers – the asset offered fully equipped, ready for immediate production.
The deal comes hot on the heels of the group paying Lendlease’s Australian Prime Property Fund Industrial $21.45m for a land-rich, vacant Monarto distribution centre, developed in 1999 for Big W.
VIMG diversifies in Victoria
In the Goulburn Valley, marketed as Victoria’s ‘fruit bowl’ – where Fonterra, Bega, Murray Goulburn, Unilever and Snow Brand have a presence – Tongala is c50 kilometres north west of Shepparton.
The acquisition marks a diversification for VIMG which in the state only held Melbourne high density development sites, at Blackburn, Box Hill, Glen Iris, Prahran and Southbank.
Last year, it sold an Oakleigh South block earmarked for townhouses to New Zealand aged care provider Summerset Group.
Production moved offshore
Nestle listed the Tongala tinned milk factory almost two years ago – as a whole or in two parts, the biggest spreading 48.28ha, for which it paid $600,000 in 2006.
For much of this century, the greater holding manufactured Nestle Health Science and Milo Ready to Drink, both which are now produced offshore.
Maggi products were also made there.
Nestle was represented by CBRE’s Rory Hilton and Chris O’Brien.
Elsewhere in Shepparton, SPC Ardmona recently sold a 23.4ha manufacturing plant with a leaseback to Charter Hall’s Direct Industrial Fund No 1.
Last year, Mawsons Constructions outlaid $5.25m for the 6.9ha The Shepparton News headquarters as a commercial development play.
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