Four’N Twenty factory deal to help pie-maker Patties expand

The home of Four’N Twenty pies has been plated up to the commercial market.
The home of Four’N Twenty pies has been plated up to the commercial market.

Property funds group Charter Hall has snapped up the home of the Four’N Twenty meat pie from Patties Foods, in a $141m deal that will see the pie maker pour capital back into its factories.

Charter Hall’s unlisted industrial fund has bought two food manufacturing facilities in Victoria from Patties in a 30-year sale and leaseback deal, with the purchase also covering the site where its meals range is produced.

Originally set up in 1966, Patties Foods has grown to become the largest pie manufacturer in the world, producing some of the country’s most famous household and market-leading brands, including Four’N Twenty, Patties, Herbert Adams, Boscastle and Nanna’s.

Patties Foods chief executive Paul Hitchcock said “the sale and leaseback is part of the business’s future growth strategy”.

The company, which now employs over 1000 staff across Australia and NZ, emphasised its commitment to keeping up manufacturing at its 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. The business has recently entered new categories via acquisition, and we are now in a position to continue this expansion,” Mr Hitchcock said.

Patties Bairnsdale factory makes Four’N Twenty pies. Picture:

One property in the regional city of Bairnsdale is the world’s largest pie manufacturing facility and is the home of Four’N Twenty, Herbert Adams and Boscastle. The other, in the Melbourne suburb of Pakenham, is where other brands and sauces are made.

The Pakenham facility comprises a 22,384sqm purpose-built food production facility, combining food grade manufacturing and meal preparation, packing, warehouse, cold storage and office facilities.

Sitting on a 158,316sqm parcel of land, the Bairnsdale site is Patties Foods’ main production facility and the world’s largest pie manufacturing facility, used to produce pies, sausage rolls and pastries.

The property is split into three main sections including food manufacturing, meal preparation and packaging areas. Patties Foods has already invested more than $15m in a fourth production line at Bairnsdale to keep up with year-on-year demand, saying it was critical to back expansion into export markets for the Four’N Twenty meat pie.

The transaction was brokered by Tony Iuliano and Adrian Rowse of JLL and Andrew Grant of Charter Keck Cramer.

The sale and leaseback arrangement with Patties Foods will give the Charter Hall fund fixed 3% annual reviews.

“The Patties Food portfolio acquisition continues our successful sale and leaseback strategy which has resulted in more than $10 billion of sale and leaseback transactions in the past six years,” Charter Hall chief investment officer Sean McMahon, said.

“Charter Hall through its strong relationships with leading corporate tenants in Australia continues to be dominant in the sale and lease back segment, unlocking exclusive opportunities for our investors. The Patties Foods acquisition also increases Charter Hall’s substantial portfolio in the food logistics sector joining groups including Coles, Woolworths, Metcash, ALDI, Inghams, Coca-Cola Amatil, Arnotts, and Marley Spoon,” he said.

“We actively seek out properties leased to tenants in the consumer staples and food logistics sector because our investors consistently tell us that they value the defensive and stable cashflows these properties generate over the long term,” Mr McMahon said.

Charter Hall has been one of the biggest industrial buyers, acquiring more than $2.3bn in industrial and logistics facilities so far in this financial year and $6bn in the past three years. Charter Hall’s total industrial portfolio now stands at $12.4bn with a $2.3bn development pipeline.


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