- APN funds will acquire a Queensland warehouse for approximately $18 million which represents an initial yield of 8 per cent
- Vesco Foods is currently in the warehouse and will be for the next 9.4 years
- Vesco’s brands include: Lean Cuisine, On the Menu, Super Natural and Annabel Karmel
APN Industria Reit will buy a Queensland warehouse for approximately $18 million, representing an initial yield of 8 per cent.
APN funds is a real estate investment trust which owns interests in office and
industrial properties that provide functional and affordable workspaces for business.
The property is currently occupied by Vesco Foods and will be for the next 9.4 years.
The company will benefit from annual reviews of 3.5 per cent or consumer price index (depending on which is higher) and a triple-net lease structure (excluding land tax).
Vesco was founded in 1974 and is a leading manufacture of ready-made meals. Its brands include: Lean Cuisine, On the Menu, Super Natural and Annabel Karmel.
Vesco clients are some of the biggest supermarkets in Australia, which includes Woolworths, Coles, IGA and Aldi. It also sells to a variety of restaurant chains and food service companies.
The property is on Grindle Road in Wacol and near the Centenary Highway and Ipswich Motorway. The warehouse covers 9000 square meters and is situated on 45,000 square metres of land.
“We’re excited to secure another opportunity to deploy capital at a strong and growing initial yield of 8%, underpinned by a tenant that’s a category leader in
frozen ready-made meals in the supermarket aisles,” APN Fund Manager Alex Abell said.
“As a result of the capital deployment, FY20 FFO guidance has been upgraded to 3.5%, as we continue to build on our track record of outperforming our initial guidance throughout the year,” Alex added.
Settlement of the warehouse is expected to be completed by late September 2019.