Property Income Fund acquires first property asset at 484 Nayland Road

The Property Income Fund has acquired 484 Nayland Road, Nelson from T&G Global in a Sale and Leaseback arrangement.

The 8.0382 hectare site purchased for over $50 million, accomodates the majority of T&G's post-harvest operations in the Nelson region, including its packhouse and most of its associated cool stores. T&G Fresh's domestic Nelson operations are also based at the site.

T&G Global’s Chief Executive, Gareth Edgecombe, says the transaction will help T&G maximise its capital and fuel its future growth.

“By entering into a sale-leaseback agreement with Property Income Fund Limited, we’ll be able to use the funds to reinvest back into our business and new growth activities, such as building out our global markets, new genetics, and investing in our physical assets and technology,” says Gareth.

“Nelson is a key region for T&G. We have a great team and strong grower partnerships, and we’re committed to the region. Our decision to sell the site and enter into a long-term 15-year leaseback arrangement for the property, enables us to continue to operate our pivotal post-harvest facilities.”

The 15-year leaseback has a commencing annual rental of $2,600,000 plus GST, with annual fixed rent reviews of 2.25%, with an adjustment to market on the seventh anniversary of the lease commencement date.

The unconditional acquisition, which reflects a yield of 5.16% (based on the lease and a small income stream from an existing telecommunications lease) is expected to settle this calendar year.