Ballarat Cold Storage Facility Changes Hands in $21.25M Sale-and-Leaseback Transaction

A purpose-built cold storage and food processing facility in Ballarat has been acquired by Collective Capital Investments in a $21.25 million transaction, highlighting growing investor demand for specialised cold chain infrastructure assets.

Located at 13 Nettles Road in Mitchell Park, the institutional-grade facility comprises an 8,604sq m multi-temperature cold storage, freezer and food production facility situated on a 27,015sq m site.

The asset was developed in 2021 and serves as the primary manufacturing and cold storage hub for leading Australian duck producer Luv-a-Duck.

The property was acquired by Melbourne-based Collective Capital Investments through a sale-and-leaseback arrangement, with Luv-a-Duck entering into a 12-year triple-net lease featuring fixed annual rental increases of 3.5%.

The transaction was negotiated by Knight Frank agents Harley Bowen, Nathan Edgar and Elliot Ryan.

Positioned within Ballarat’s established industrial precinct, the asset benefits from direct access to major arterial road networks including Ballarat Ring Road and Learmonth Road and includes approximately 8,000sq m of surplus land providing future development potential.

Collective Capital Director Nick Thompson said: “A well-built facility that matters to a serious operator, on a lease that works for both sides, is exactly the kind of asset we look for.

“Luv-a-Duck gets certainty over a site it has invested heavily in, and we get a tenant with every reason to stay. Harley and Nathan brought us a well-prepared opportunity, and we were able to move quickly.”

Mr Bowen said the transaction reflected increasing investor appetite for specialised industrial assets underpinned by long-term tenant covenants and critical supply chain infrastructure.

“This sale demonstrates the depth of demand for high-quality cold storage and food processing facilities that offer secure, long-term income backed by strong operating businesses,” he said.

“Purpose-built cold chain assets remain exceptionally scarce, particularly those that are operationally critical to their occupiers and offer institutional-grade specifications.

“The property was attractive to the buyer due to its combination of modern infrastructure, long lease and its role as an essential facility within Australia’s food production and distribution network.

“Investors continue to be attracted to assets that provide income certainty while also benefiting from the broader growth drivers supporting Australia’s cold storage and logistics sectors.”

Mr Edgar said the transaction highlighted the growing prominence of regional Victorian industrial markets among private and institutional investors.

“Ballarat continues to attract significant investment due to its strategic location, improving infrastructure and growing importance as a logistics and manufacturing hub,” he said.

“Specialised assets such as cold storage facilities have become increasingly sought after as investors look to gain exposure to sectors benefiting from structural demand drivers and limited supply.

“The replacement cost of facilities of this nature has increased significantly in recent years, creating strong barriers to entry and enhancing the appeal of existing, high-quality assets.

“This result underscores the strength of investor demand for well-located industrial assets that combine secure income streams with long-term value creation potential.”