The closure of the Smith’s Snackfood Company’s factory in Canning Vale next year may deliver a rare piece of real estate to Perth’s industrial property market.
The 3.3ha site on Bannister Road contains a manufacturing plant and is one of the bigger sites in Canning Vale, prized for its central location and transport links.
The company last week told the factory’s 300 staff it would close mid to late next year after more than 30 years in operation.
Raine & Horne Commercial director Anthony Vulinovich said it was possible a developer or another manufacturer would buy the site but the best outcome for Smith’s would be a sale to an adjoining property owner.
Charter Hall and Australian Unity funds own the 110,000sqm Canning Vale Distribution Facility next to the Smith’s facility.
‘With a food-based manufacturing business, the technology is very specific and may not be suitable for another user,” said Mr Vulinovich, who is selling the subdivided industrial land at the former Swan Brewery site in Canning Vale.
On a land only basis, Mr Vulinovich said the Smith’s site could be worth $10 million. “The size of this site makes it very rare… We are trending towards a more logistic driven storage and distribution market and I think there will be more opportunities like this going forward.”
The Smith’s Snackfood Company said it was working with staff and growers to ensure a smooth transition. “Given the closure is not likely to take place until later next year, no decision has yet been made about the future of the Canning Vale property,” a spokeswoman said.
Marissa Lague / The West Australian – Property