Patties lists Four’N Twenty, Nanna’s factories
Patties Foods has listed two Victorian properties with 30-year leasebacks.
The offering includes the 15.83 hectare factory where Four’N Twenty meat pies, sausage rolls and pasties are manufactured – 169 Princes Highway, Bairnsdale.
The second facility, in Melbourne’s outer south east Pakenham, creates Nanna’s products and sauces.
On 2.3ha at 28-46 Bald Hill Road, it also acts as a distribution centre and has offices.
If both properties sell, the food maker’s parent Pacific Equity Partners (PEP), could be set for a c$130 million payday.
Bocastle and Herbert Adams products are other Patties brands.
Fourn’N Twenty pies were also once manufactured at Kensington; that site is now a business park.
Sale and leaseback deal
Sale and leaseback deals were common last year – with O-I (now part of the Visy Group) and Telstra some of the vendors.
Charter Hall spent $929.5m on six Aldi assets in two tranches (story continues below).
Patties is offering the two factories with a combined starting annual net income of $6.25m; based on the guide then, it is seeking a sub 4.8 per cent yield.
The vendor has also incorporated fix rent rises as part of the agreement (three per cent a year).
The lease is triple net.
JLL’s Tony Iuliano and Adrian Rowse are representing PEP which acquired the food maker in 2016.
Since that time, $37m has been invested into the two properties including creating a production line at Bairnsdale (capital works which offer depreciation benefits).
Patties was founded in 1966 at Lakes Entrance.
It is now one of the world’s biggest pie manufacturers.
The food company employs over 1000 in Australia and New Zealand.
