Ultra-Rare Land-Rich Rare Agri-Industrial Portfolio Hits The Market

Posted on 16th February 2023

One of the most significant, land-rich agri-industrial portfolios to become available in recent times has hit the market.

The Gibsons Groundspread Portfolio comprises four sites in Victoria’s south east region, each with 10-year leasebacks to leading agricultural group Gibsons Groundspread, with a total underlying land component of 81.945 hectares.

Fitzroys’ Marco Sandrin and Brent Glassford have been appointed to manage the Expressions of Interest campaign, closing Wednesday, March 1st at 2pm. The four properties are being offered for sale in-one-line or separately.

The properties, located in Rosedale, Dutson, Yarram and Bayles, return a combined $1.394 million in annual income from their respective 10+5+5-year, rare triple net leases,

The properties include:

  • 2194 Princes Highway, Rosedale - the 2.506-hectare site returns $569,000 per annum and 3,098sqm of buildings across a storage and blending warehouse, heavy vehicle workshop and lime shed, and has a 20,000L diesel fuel storage area.
  • 980 Longford-Loch Sport Road, Dutson - at 62.64 hectares, the Dutson site is the largest of the portfolio. It has a 30,000-tonne blending facility, 406sqm office and workshop and multiple sheds with 5,000-tonne undercover storage capacity, a compost screening plant, 60,000L diesel fuel storage and composting ares with 30,000-tonne product storage capacity. It returns $210,000 per annum.
  • 33 Pound Road West, Yarram - the 9.095-hectare site has 1,142sqm office and blending facility as well as a workshop and storage shed, and 10,000L diesel fuel storage area. It returns $395,000 per annum.
  • 100 School Road, Bayles - located within the Shire of Cardinia, the 7.704-hectare site has 1,064sqm of buildings across office, fertiliser bunkers and sheds with 30,000L diesel fuel storage area.

“Agribusiness-tenanted investments have proven to be highly sought-after while we experience a sustained period of strong growing conditions and heightened commodity prices,” Sandrin said.

“There remains a severe shortage of warehousing assets available to the market. Industrial real estate is still in strong demand with warehousing and logistics capabilities at a premium.

“Private investors and syndicates will no doubt recognise the very rare opportunity to acquire agri-industrial investments leased to a quality tenant that has a proven 70-year track record of industry-leading practice in Victoria.”

Gibsons Groundspread was originally founded by Bill Gibson in 1953 and today is a leading agricultural distributor and spreader of organic, commercial and custom blended bulk fertiliser and soil amendment solutions, operating locally from strategically placed state-of-the-art production and distribution sites.

Combining the latest technology and science with a 70-year history, Gibsons has developed a wide range of innovative crop and soil solutions and services to provide farmers and growers with the tools and resources to achieve a profitable return on investment.

The Rosedale, Dutson and Yarram sites are all in the Shire of Wellington, which has a population growth forecast of 25% over the next two decades. The Bayles property is within the Shire of Cardinia, one of Victoria’s fastest-growing municipalities, within neighbouring suburb Koo Wee Rup having seen an annual population growth of 4.0% over the last decade.

The Gibsons Groundspread portfolio campaign follows’ Fitzroys’ Glassford and Sandrin selling a land-rich Koo Wee Rup site with a lease to an international agribusiness conglomerate late last year for $5.75 million in just seven days. The 4.06-hectare site comprises 5,457sqm of warehouses and sheds and is leased to Ameropa Australia, part of Switzerland-based international agribusiness conglomerate Ameropa AG until April 2029.

The Koo Wee Rup property sold on a circa 6.2% yield. The Gibsons Groundspread portfolio is expected to sell on a higher return.