Home of Four’N Twenty pies sells for $141M

A $141 million dollar deal has seen land change hands between the world’s largest pie manufacturer and property funds group Charter Hall.

Patties Foods, producer of leading brands like Four’N Twenty, Patties, and Nanna’s, has sold two of its Victorian manufacturing facilities to Charter Hall’s unlisted industrial fund, in a move aimed to boost investment in its other factories.

The 30-year sale and leaseback arrangement with Patties Foods will give the Charter Hall fund fixed 3 per cent annual reviews, while providing the food manufacturer the means to invest.

Patties Food Chief Executive Office Paul Hitchcock says the company, which employs more than 1,000 staff across Australia and New Zealand, will continue to manufacture out of those plants.

“Both facilities are critical to Patties Foods’ operations and this arrangement enables the company to invest in additional growth opportunities to support our people, business and brands,” he says. “The business has recently entered new categories via acquisition, and we are now in a position to continue this expansion.”

The factory in Bairnsdale, three hours east of Melbourne, is the home of Four’N Twenty, Herbert Adams and Boscastle, while the Pakenham facility in Melbourne manufactures other brands and sauces.

Charter Hall Direct CEO Steven Bennett says the $141 million deal is great news for investors in the company’s Direct Industrial Fund No. 4 (DIF4).

“DIF4 continues to grow and meet investor demand for high-quality exposure to the resilient Australian industrial property market,” he says. “The acquisition will see DIF4’s WALE extend to a market-leading 12.3 years, and DIF4 also benefits from the annual 3 per cent rent reviews under the Patties Foods lease. 

“The acquisition is consistent with DIF4’s strategy to acquire industrial properties leased to quality tenants on long term leases,” says Mr Bennett.

Charter Hall has been one of the biggest industrial buyers this financial year, acquiring more than $2.3 billion in industrial and logistics facilities, bringing their total industrial portfolio to $12.4 billion. 

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