Auction: Petrol and cold storage assets lead Tas opportunities
A PORTFOLIO of cold storage and distribution facilities leased to Woolworths’ subsidiary, PFD Foods are set to be sold under the hammer.
The portfolio comprises 13 properties situated across several states, including one in a northwest Tasmanian agricultural hub, No.68 Goldie St, Smithton.
The property is described as an “entry level Woolworths investment” located in a high profile 998sq m highway site with a net income of $27,756 per annum plus GST.
No.68 Goldie has a landlord-favourable net lease structure where PFD Foods pays the rates, land tax, building insurance, public liability insurance, management fees and repairs and maintenance.
There is guaranteed rental growth with fixed annual rent increases for this 334sq m cold storage facility incorporating offices and warehousing.
Burgess Rawson’s Yosh Mendis, Neville Smith, Beau Coulter and Chris Carcione say the strategically located facilities present affordable investment opportunities with the majority of the properties located in core and prime regional locations.
Mr Mendis said that investment demand for Woolworths-anchored assets extends to the Group’s distribution centres due to their continuity and strong performance.
“In an announcement to the Australian Stock Exchange on November 3, this year, Woolworths posted that their Australian B2B, Q1 financial year sales had increased by 26 per cent compared to the prior year primarily due to strong growth from PFD,” he said.
“Essential services assets remain an investor favourite due to their stability and resilience, particularly those under the Woolworths umbrella.”
The properties in the portfolio are located in New South Wales, Queensland, Victoria, Western Australia and Tasmania and have simple, set-and-forget net lease structures.
No.68 Goldie is positioned in Tasmania’s largest dairy area, with over 30 per cent of the state’s dairy farms situated in the Circular Head Council.
Smithton is the capital township of the area, accounting for 12 per cent of Tasmania’s annual agricultural production.
The largest employer in Smithton is McCains Foods Australia, which recently underwent a $37m factory upgrade.
The PFD properties are being offered for sale as part of the Burgess Rawson Investment Portfolio Auctions next week.
Two more Tasmanian assets are due to be sold at auctions, a Devonport Salvos store and a United Petroleum service station on George Town Rd, Launceston.
A United Petroleum property in Devonport was sold in October for a multimillion-dollar sum.
Knight Frank and Burgess Rawson are selling the Newnham United Petroleum with
Burgess partner and principal Jamie Perlinger describing it as having a top tier tenant that is one of Australia’s largest and fastest growing independent fuel retailers.
“The property is being offered with a rare 20-year triple net lease to 2036, plus options to 2056. The net annual income is $295,021 with the property providing strong and certain rental growth with fixed annual, compounding 3.5 per cent increases,” he said.
“The tenant is responsible for rates, building insurance, public liability insurance and single holding land tax.”
United Petroleum owns, maintains, repairs and replaces all fuel tanks, equipment plus site remediation with the tenant responsible for all structural maintenance, repairs, and replacement.
Located at No.7 George Town Rd, the high-profile 1998sq m site was recently developed and offers modern infrastructure and substantial taxation saving depreciation benefits.
It has 55m of street frontage and exposure to over 88,000 vehicles per week.
The Tasmanian assets will be sold by Investment Portfolio Auction next week.