COCA-Cola Amatil is again looking to release capital from its property holdings, putting its new Richlands facility in Brisbane to the market as a sale and leaseback opportunity.
The offering comes three years after the beverage giant sold its nearly 25 hectare main manufacturing site next door for $156 million, with a leaseback agreement to Charter Hall’s Prime Industrial Fund.
Charter Hall looms as a likely suitor for the latest offering, having also picked up Coca-Cola Amatil’s main Western Australia production facility in Kewdale for $45.25 million in 2018 with a 15 year leaseback arrangement, and been an active buyer in similar deals of late.
Savills agents Michael Fenton, Michael Wall and Callum Stenson have been appointed to market the 3.42 hectare property at 262 Orchard Rd, in the south western suburbs, which will accommodate a new 12,000 sqm logistics facility.
Coca-Cola Amatil will lease 7,400 sqm on an eight year term. Once complete, the development will generate net annual rental of over $1.4 million.
The facility will operate as a storage, distribution and repair facility for refrigeration units, vending machines, beverage dispensing equipment and promotional material.
Stenson said the offering will attract broad institutional and private investor interest.
“The opportunity to acquire a new logistics facility with a long lease to such a quality covenant in one of Brisbane’s primary logistics locations will see participation from both domestic and offshore groups.”
The sale process will commence shortly with first round bids due in mid-September.
In October last year, Coca-Cola Amatil sold its former Adelaide bottling plant, together with two smaller assets, for more than $37 million. Production at Thebarton ended late last year. The company had announced early in 2017 it would close the sell off the plant as part of a $90 million, three year plan to remodel its supply chain and increase production in Queensland and Western Australia.
The property at 220-260 Orchard Rd is the company’s main manufacturing plant and has over 81,000 sqm of space across two facilities.
Well over $1 billion of sale and leaseback deals and offerings have been active recently. Supermarket Aldi sold four distribution centres along the east coast for $648 million, also to Charter Hall, in partnership with Allianz, and Telstra is shopping around a $400 million data centre in Melbourne’s Clayton.
Charter Hall has just entered into a $214 million portfolio sale and leaseback agreement with Owens-Illinois Australia, and last year took a 49% share in a portfolio of 37 Telstra properties for $700 million before buying a 49% interest in a $1.7 billion portfolio of 225 BP-branded petrol stations.