Home of Four’N Twenty pies for sale: Patties Foods puts Bairnsdale, Pakenham sites on market
Wanna be Lord of the Pies?
The home of Four’N Twenty (the world’s largest pie manufacturing facility, no less) is for sale, with Patties Foods putting their Bairnsdale base and Pakenham production facility on the market as a leaseback opportunity.
The properties, at 169 Princes Highway in the northeastern Victorian town and 28-46 Bald Hill Road on Melbourne’s southeastern fringe, are up for grabs together or individually.
Both will be rented to Patties under a 30-year triple net sale and leaseback agreement.
JLL agent Adrian Rowse said the Bairnsdale site was the home of Australia’s famous — and now globetrotting — pie, and the company had been there “forever”.
“They’ve been there since the 1970s; that’s been their major manufacturing facility,” he said.
“Pakenham is more a strategic site, where they do frozen pies like Nannas, pasta and pasta sauces, which will really drive growth for them in the ready meals sector — which is one of the biggest growth sectors in supermarkets.”
The agency is expecting the sites to attract a combined $130m via an international expressions of interest campaign closing March 24 at 4pm.
“We’re seeing a lot of corporations realise the underlying value in the real estate at the moment and plugging that money back into the business,” Mr Rowse said.
“We had about $2.3bn worth of sale and leaseback transactions last calendar year, which was about 50 per cent of industrial sales; it’s been a common theme over the previous couple of years and it’s continuing.”
The 15.83ha Bairnsdale site is used 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.
The Pakenham site comprises a 2.23ha purpose-built food production facility, combining food-grade manufacturing and meal preparation, packing, warehouse, cold storage and office facilities.
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.”