Property funds manager Charter Hall has bought the factories of the world's biggest pie maker, home of the iconic Four'N Twenty brand.
Charter Hall Direct's industrial fund has bought two food manufacturing facilities on a 30 year sale and leaseback to Patties Foods for $141 million.
The factories are in Bairnsdale and Pakenham in Victoria with a combined site area of 27.2ha.
Patties Foods is owned by Sydney-based funds manager Pacific Equity Partners.
The bakery business produces Four'N Twenty, Patties, Herbert Adams, Boscastle, Nanna's, Ruffie Rustic Foods and Fitness Outcomes, for domestic and global export.
The sale and leaseback arrangement with Patties Foods provides a 30 year triple net lease with fixed three per cent annual reviews.
Patties Foods chief executive officer Paul Hitchcock said the sale and leaseback was part of the business's future growth strategy.
"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," Mr Hitchcock said.
"The business has recently entered new categories via acquisition, and we are now in a position to continue this expansion."
Charter Hall chief investment officer Sean McMahon said the Patties Food portfolio acquisition continued a successful sale and leaseback strategy which has resulted in more than $10 billion of sale and leaseback transactions in the past six years.
"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.
"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.
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