Stonebridge: Investors tipped to ‘dip’ into blue-chip Heidelberg investment

March 10th, 2021

The headquarters of award winning ‘Chunky Dips’ manufacturer ‘Simply Delish’ has hit the market and is expected to receive strong interest from investors given the food manufacturing nature of the tenant and very sort after 12 year net lease.

The property at 38-40 Sheehan Road, Heidelberg West has been the home of ‘Simply Delish’ since 2009 after they moved from their smaller Fulham Road, Heidelberg operation to expand their production and meet soaring demand.

Simply Delish are the producer of the Chunky Dips brand which rub shoulders with ‘Black Swan’ and ‘Chris’s’ dips on the shelves of Coles, Woolworths, Aldi & IGA’s across Australia.

Simply Delish have signed a new 12 year net lease for the building which has been purpose fitted for their operations and includes cool rooms, sealed flooring, personal sub-station, inground waste disposal, temperature controlled production area a freezer rooms.

Stonebridge Property Group’s Rorey James, Dylan Kilner, Kevin Tong and NSL Property Group’s Guy Naselli have been appointed to market the property.

The 3,800sqm building rests on a sprawling 4,850sqm landholding only 14km from the Melbourne CBD and within close proximity to LaTrobe university, Northland Shopping Centre and the Austin Hospital.

“This is a very tightly held pocket of Melbourne, with very little turnover in assets and tenants. 38-40 Sheehan Road offers one of the largest landholdings in Heidelberg West.”

“This location coupled with a 12 year net lease where the tenant pays all outgoings including land tax is extremely rare, and we expect strong interest from investors who have previously looked at supermarkets and other non-discretionary investments, together with traditional industrial buyers” Said Stonebridge Director Rorey James

“Yields have continued to compress for tenants who are ‘essential’ such as Simply Delish, as investors continue to hunt for assets with a resilient and low risk tenant profile” Mr Kilner

The property is for sale via Expressions of Interest closing next month.