Property developer Stockland has acquired a major WA dairy processor's head office for $53.5 million.
The shopping centre owner has bought the 12-hectare Brownes Dairy site in the northern Perth suburb of Balcatta as it expands its industrial real estate portfolio.
Stockland says this is its third major industrial acquisition for 2013/14 financial year, following purchases of warehouses and industrial land at St Marys and Ingleburn, both in Sydney.
Brownes will lease the land off Stocklands which is expected to generate an initial funds from operations yield of 7.5 per cent and an initial underlying profit yield of 9.7 per cent per annum.
Stockland group executive and commercial property chief executive John Schroder says Brownes is a highly reputable and stable tenant and is committed to the site for at least the next 20 years which will provide the company with secure income.