Centuria Industrial REIT has struck the biggest industrial deal in Brisbane for the year with the $211.8m purchase on Arnott’s Virginia factory

The Queensland home of one of Australia’s best-known food brands has been sold to an industrial property trust for a whopping $211.8 million, making it the biggest deal of it kind for the year.

A SYDNEY-based investment trust has secured the largest industrial property deal in Queensland this year.

Centuria Property’s Industrial REIT (CIP) will settle this month on the $211.8 million purchase of Arnott’s Biscuits owned factory at 46 Robinson Rd East, Virginia, in a deal negotiated by CBRE and UBS.In the leaseback arrangement Arnott’s has signed a 30-year lease. The deal realised an initial yield of 5.8 per cent.

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The REIT also paid $24.4 million for a South Australian industrial property in another Arnott’s leaseback deal.

The acquisitions boost CIP’s portfolio to more than $1.5 billion cementing its position as Australia’s largest pure play industrial REIT. It also increases CIP’s near-term prospects for inclusion in the S & P/ASX200 index.

It is the largest deal of the year, beating Charter Hall’s $183.6 million purchase of the Crestmead Distribution Centre.

The Arnott’s factory at 46 Robinson Rd, East, Virginia.

CIP fund manager Jesse Curtis said the acquisitions were 100 per cent leased to Arnott’s.

“The assets contain significant ‘mission critical’ infrastructure that is core to the tenants ongoing operations,” he said.

“Both assets feature long term, triple net leases with a combined WALE (weighted average lease expiry of 27.7 years and fixed annual reviews supporting CIP’s future income streams.

“The acquisitions are consistent with CIP’s focus on identifying quality real estate located within infill markets with proximity to major infrastructure.”

Earlier this year private equity giant Kohlberg Kravis Roberts paid $3.15 billion to the Campbell Soup Company for Arnott’s Biscuits.

On a 7.18ha site the Virginia factory has a gross lettable area of 44,785sq m and is Arnott’s main base in Queensland.