A freestanding facility at Murarrie in Brisbane has been leased to a family owned and operated Australian wholefoods production business at a rate of $499,000 per annum.
Kehoe’s Kitchen, a growing Australian organic food company, has secured 2,212 square metres of building area, including chiller and cold room production space, through a deal negotiated by Savills.
Savills Associate Director Shaw Harrison said the food company leased the property located at the 12 Goodman Place facility because it required more space to cater for their national retail distribution expansion.
“Kehoe’s were hunting around the market for quite a while and had inspected most cold storage facilities that came to market,” Mr Harrison said.
“Savills were appointed on an EOI sales and lease campaign and upon appointment approached Kehoe’s and suggested that they look at the facility as it would allow for their upscale production and future growth plans,
“We received interest from a number of parties during the campaign, including investors who recognised the tight supply and attractive returns as well as a number of owner occupiers,” Mr Harrison said.
Previously occupied by Lynch Flowers since its initial construction, the building had to undergo some modifications to suit Kehoe’s food production and processing requirements.
Mr Harrison said that Savills have seen an increase in requirements for food production and cold chain logistics throughout Brisbane, particularly within the TradeCoast precinct due to its proximity to the port for exports and the CBD restaurant trade.
"It would be great to see developers start considering building more cold storage throughout the precinct as some of the existing buildings are nudging 40 years of age with some plant and equipment now heading towards redundancy,” he said.
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