Two food manufacturing facilities in Melbourne’s south eastern suburb of Braeside will test the strength of the growing agri-logistics sector market.
The sector recorded $1.5 billion worth of assets transacting in the past two years, boosted by Australia’s industrial, logistics and agricultural markets.
CBRE director of agri-logistics Stephen Caffery says the Braeside properties are leased to food developer and manufacturer Flavour Makers for 12 years.
“Agri-logistics has all the ingredients to become the standout investment class in Australia over the next decade,” he said.
Caffery said the sector supports Australia’s $60 billion farm gate production industry each year.
“All of Australia’s agricultural products, at some point, will need to be processed, value-added, stored and transported for either domestic consumption or export markets.”
The properties comprise a lettable area of 15,450sq m, with a triple net annual income of $1,830,000 with fixed yearly increases of 3 per cent.
The listing follows transactions in the sector, including Charter Hall’s $207 million acquisition of the Ingham’s portfolio in December, and Qualitas’ $388 million sale and leaseback of Allied Pinnacle’s portfolio of 10 processing facilities in 2018.