Hidden Valley Harvest liquidation: Keppel Brand buys partially completed warehouse for their own processing

The site was meant to be home to a pineapple processing plant that had received $5.6 million in Australian Government funding - but the company filed for liquidation in March. Find out who purchased the property.

A Yeppoon commercial warehouse facility at the centre of a liquidation has sold at an on-site auction for $4.6 million.

Hidden Valley Harvest (Facility) went into liquidation on March 8 and had owned the site at lot 23 Pineapple Drive, Hidden Valley.

The company had plans to build a $13.8 million, 2,000 sqm pineapple processing plant on the site that would have “cutting edge food processing technologies”.

In April 2018, the company was awarded a $5.8 million grant from the Australian Government for the construction of the factory through the Regional Jobs and Investment Packages Fund.

At the time, the project was estimated to support 46 jobs during construction and create 26 ongoing jobs after completion.

Rockhampton-based small business ASM Builders was awarded the contract for the construction and had completed 85 per cent of the build.

It is understood construction ceased around February 2021 and by its March 8 liquidation, Hidden Valley Harvest only had $1200 in its bank account.

At the time of the auction, the site had about 2,216 sqm of combined space with a high clearance, clear span warehouse facility including a modern office and amenities and bitumen sealed internal roads and concrete driveways with landscaping and pathways.

A small crowd gathered at the site on Wednesday afternoon as Pat O’Driscoll of Knight Frank Rockhampton led the public auction.

The auction had seven registered bidders, some of whom were bidding over the phone.

The opening bid began at $2.2 million and bids steadily flowed to more than $3 million.

Bids were held for some time at $4.1 million until another bidder stepped in at the last minute.

Two bidders fought it out for the final offer of $4.6 million.

After a quick meeting with the real estate agents and Michael Beck of Worrells Solvency and Forensic Accountants, the offer was accepted.

The successful bidder was Tony Newton of the Keppel Brand, a second generation Yeppoon family business of more than 35 years.

From its site at Tanby Road, the company produces food like crumbed sausages, battered savs and dagwood dogs.

The food is sold to more than 18,000 outlets including Caltex and Puma service stations and has been a staple at the Brisbane EKKA for years.

Company directors Mark Davey and Kelly Newton spoke to this publication on site after the success of the auction.

They said their current site was “bursting at the seams” and they had been looking to expand for some time, having purchased the block next door on Pineapple Drive at the end of 2021.

“The Pineapple Drive area is where the local council is hoping manufacturing and other businesses would move to,” Ms Newton said.

As it currently stands, the building is more or so a “shell” and they would have to do some major work to tweak it to their needs, including sealing it and installing refrigeration.

“We would have to extend the warehouse, do a complete fit out, the ceiling… it’s effectively a shed right now,” Mr Davie said.

The Coalition Government pledged a $11 million grant to the Keppel Brand in April if it was successful in the federal election.

The money was for a $20 million plant for the production of beef products including nuggets and schnitzels, sustainably using secondary cuts of beef.

The plant was expected to create 85 new jobs in the region.

“Our aim is to be able to expand our business within Yeppoon and regional Queensland,” Mr Davie said.

“It would create good local jobs and manufacturing and help address underemployment in the area.”

Liquidator Michael Beck welcomed the sale of the site to a local business.

“It’s great to see jobs staying within the region, while one processing plant has fallen through, the Keppel Brand have been able to purchase the site and now have plans of their own,” Mr Beck said.

The liquidation of Hidden Valley Harvest is ongoing.