Council wealth fund buys major Melbourne pasta factory
EXCLUSIVE
A significant antipasto goods, breadstick and pasta manufacturing plant and distribution centre in Melbourne’s north has sold to the City of Brisbane Investment Corporation.
The 14,208 square metre facility on 2.28 hectares, zoned Industrial 3, 48A Radford Road, Reservoir, is trading for c$24 million, according to sources, reflecting a 6.8 per cent yield.
Gourmet Saba signed a five year lease before the property was listed via an expressions of interest closing in August.
With options, it can stay until 2034.
Usually, its rental agreement has uncapped market reviews.
Cameron’s Ben Cooper and Angus Clark were the agents.
Their deal comes a month since the Dandenong South property which outputs Chobani yoghurt sold for $17.5m – a 4.7pc yield.
In March meanwhile, ethical food brand Kinrise, controlled by Raphael Geminder, the husband of Fiona – the daughter of Richard and Jeanne Pratt – leased a Keysborough property from Frasers, also for manufacturing and distribution.
Income, upside
Fully fenced behind motorised gates, 48A Radford Rd contains a high-quality manufacturing plant, a food prep area, refurbished offices, a cafe and warehousing including five cold storage facilities, accessed via seven roller shutter doors (story continues below)
Also facing Cobham Street, the block has four crossovers.
Gourmet Saba, which owns brands Eat Pasta, sauce maker Tenuta Fragrassi and Valledoro, which manufactures breadsticks, and also produces pizzas, picks up the GST and outgoings.
Reservoir is 12 kilometres from the CBD.
CBIC invests again
CBIC is an urban wealth fund with proceeds contributed to paying council’s amenity needs.
In 2021, it banked an impressive profit offloading Brisbane’s historic former Gordon & Gotch building for more than twice what it outlaid four years earlier.
“The acquisition of the Reservoir industrial site aligns with CBIC’s strategic investment objectives and provides growth to its portfolio of assets under management,” chief executive officer, Lachlan Dyson, said.
“The…site fits our financial metrics and will deliver to the business the opportunity to operate within a strong industrial and transport hub located in Melbourne,” he added.
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