SPC has sold its landmark Shepparton food processing plant and distribution centre with a 30 year leaseback.
The $66 million off-market deal is with Charter Hall which will hold the 23.4 hectare asset in its Direct Industrial Fund No 4 (DIF4).
Shepparton Partners Collective acquired the property in 2019 when it paid Coca Cola Amatil $40m for the SPC (Shepparton Preserving Company) business.
Elsewhere in the area, at Tongala, Nestle listed a redundant tinned milk factory in late 2020.
New tenant customer for Charter Hall
On the corner of Andrew Fairley Avenue and Railway Parade, the Shepparton investment contains c126,000 square metres in buildings covering 54pc of the land.
As part of the sale, SPC has agreed to fixed annual rent rises of CPI plus 0.75pc (story continues below).
Following settlement, DIF4’s Weighted Average Lease Expiry rises to 11.2 years.
“DIF4 continues to meet investor demand for high quality exposure to the resilient and growing industrial and logistics property market,” Charter Hall Direct chief executive officer, Steven Bennett said.
“The SPC acquisition…introduces a new tenant customer to the fund’s portfolio and enhances DIF4’s exposure to the non-discretionary food industry,” he added.
The purchase comes eight months since the industrial and logistics focused trust paid $141m for two manufacturing plants – at Bairnsdale and Pakenham – offered by Patties Foods, also with a 30 year leaseback.
DIF4 delivered a total return of 21.1pc for the year ended December 31, 2021; unit-holders received a five pc distribution.
Shepparton is about 190 kilometres north of Melbourne.
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