The business has secured 2,212sq m of building area, which includes chiller and cold room production space within the 12 Goodman Place facility.
Savills Associate Director, Shaw Harrison struck a deal with incoming tenant, Kehoe’s Kitchen at a rate of $449,000 per annum over a 5 x 5 year term.
“Previously located in a building around the corner in 750sq m of space, Kehoe’s required more space to cater for their retail distribution expansion throughout supermarkets nationally.
“Kehoe’s were hunting around the market for quite a while and had inspected most cold storage facilities that came to market,” Mr Harrison said.
They are Australia’s first producer of certified organic raw fermented sauerkrauts, vegetable ferments and probiotic vegan cashew cheese, prior to the move products to date had only been available from independent retailers.
“Savills was appointed on an EOI sales and lease campaign and upon appointment approached Kehoe’s and suggested that they look at the facility as it would allow for their upscale production and future growth plans,
“We received interest from a number of parties during the campaign, including investors who recognised the tight supply and attractive returns as well as a number of owner occupiers,” Mr Harrison said.
Previously occupied by Lynch Flowers since its initial construction, the building had to undergo some modifications to suit Kehoe’s food production and processing requirements.
Savills has seen an increase in requirements for food production and cold chain logistics throughout Brisbane, but in particularly within the TradeCoast due to the proximity to the Port for exports and the CBD for restaurant trade.
“With exceptionally tight stock we are seeing strong tenant demand, particularly for facilities that provide opportunities with flexible ambient, chilled and frozen space.
"It would be great to see developers start considering building more cold storage throughout the precinct as some of the existing buildings are nudging 40 years of age with some plant and equipment now heading towards redundancy,” Mr Harrison said.
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