Patties Foods are offering two of their Victorian properties for sale by JLL’s Tony Iuliano and Adrian Rowse on behalf of Australian food manufacturer, Patties Foods – which has the world’s largest pie manufacturing facility.

The properties, located at 169 Princes Highway, Bairnsdale and 28 – 46 Bald Hill Road, Pakenham are being offered for sale in-one-line or individually. The properties will be leased back to Patties Foods under a 30-year triple net sale and leaseback agreement, demonstrating Patties long term commitment to continue manufacturing at both sites.

JLL’s Head of Capital Markets Industrial & Logistics – Australia, Tony Iuliano said, “We expect this notable offering to attract a wide range of investors due to the long term income stream which is secured by an iconic tenant in Patties Foods. Throughout 2020, we saw $2.23 billion of industrial investment sales as sale and leaseback transactions and we expect this trend to continue into 2021 and beyond.”

Patties Foods Chief Financial Officer, Siobhan Hammer said, “Patties has a long term commitment to both these sites, which is why we are taking on 30 year leases. This represents our commitment to the local communities we support, our workforce and our suppliers.”

Located in Pakenham within close proximity to Pakenham Railway Station, 28 – 46 Bald Hill Road comprises a 22,384 sqm purpose-built food production facility, combining food grade manufacturing and meal preparation, packing, warehouse, cold storage and office facilities.

Sitting on a 158,316 sqm parcel of land, 169 Princes Highway, Bairnsdale is Patties Foods’ main production facility and the world’s largest pie manufacturing facility, utilised specifically to produce pies, sausage rolls and pastries. The property is split into three main sections including food manufacturing, meal preparation and packaging areas. The building also includes associated offices, general warehouse and administration areas.

Originally established in 1966, Patties Foods are the largest pie manufacturer in the world, producing some of Australia’s most famous household and market leading brands, including Four’N Twenty, Patties, Herbert Adams, Boscastle and Nanna’s. The company now employs over 1,000 staff across Australia and New Zealand.

Siobhan Hammer said, “Bairnsdale and Pakenham are 2 key strategic sites within the Patties Australia portfolio. Bairnsdale is the engine room for Patties running 24/7 on its key lines, and Pakenham provides the company with the platform for accelerated growth in the near term.

“The company recently invested +$15m in a 4th production line at Bairnsdale to keep up with year on year demand. This investment is critical for the strategic growth expansion into export markets with Australia’s favourite meat pie, Four’N Twenty.

“Over the last 5 years, Patties have invested more than $37m in growth capital into these 2 sites for capacity expansion, automation and to deliver an improved quality environment. Patties will continue to invest in growth capital to further expand, enhance and automate. These investments have successfully enabled the company to grow and expand sales as well as creating hundreds of jobs,” said Mrs Hammer.

JLL Senior Director, Capital Markets Industrial and Logistics, Adrian Rowse said, “These premium manufacturing facilities will attract significant interest, not only due to the iconic Australian brand, but also due to the current resilience of the food retailing sector.  Consumer retail spend on food has jumped from 41% in 2019 to 44% in 2020.  The defensive nature of these assets, the substantial landholding and further development potential will all be key factors for investors.”

To request a copy of the Information Memorandum email the marketing agents Tony Iuliano or Adrian Rowse of JLL Capital Markets Industrial and Logistics via the contact forms below. 

The International Expressions-of-Interest campaign for 169 Princes Highway, Bairnsdale and 28 – 46 Bald Hill Road, Pakenham closes at 4pm AEDT on Wednesday 24th March.