CGH to close after selling facility

Continental Grain Handling to close after selling facility

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Continental Grain Handling Pty Ltd has listed its first and only Western Australian asset for sale its facility at Bibra Lake. Photos by Elders Real Estate.

Continental Grain Handling Pty Ltd has listed its first and only Western Australian asset for sale its facility at Bibra Lake. Photos by Elders Real Estate.

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Priced at $2.2m, the site is for sale through Elders Real Estate.

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CHINESE-owned Continental Grain Handling Pty Ltd (CGH) has listed its Bibra Lake facility for sale.

Only two-years-old, the facility was CGH's first and only investment in Western Australia.

Company manager Tianru Gao said CGH was selling the facility as a strategic divestment after it lost one of its major clients.

"We used to supply the majority of our oats to China and one of our big customers was PepsiCo China, but they changed their company structure and no longer needed our product," Mr Goa said.

"So the CGH directors have decided to move the company's investments back to China."

As a result, the eventual sale of the Bibra Lake facility will lead to the close of CGH.

Elders Real Estate rural specialist Will Morris has been appointed to market the listing, which is offered as a business sale on a long-term leasehold site.

Priced at $2.2 million, Mr Morris said the offering represented exceptional value.

"This purpose-built facility is priced well below replacement value of about $4m and there is an additional $1m of plant and equipment," Mr Morris said.

"It's certainly a rare opportunity - I haven't seen anything like this come onto the market before, especially of this scale in grain handling."

Mr Gao said the price point was to entice a quick sale, ideally within the next two months.

"It is a good opportunity to sell in time for harvest for the new owner and for them to get ready for the new season," he said.

"We also have signed a forward contract for some oats, so it suits us well too."

Mr Gao said the facility had handled a variety of grains and legumes, including wheat, oats, lupins, field peas, chickpeas, faba beans as well as canola, but hadn't dealt with barley as "the market was pretty narrow".

The site measures 16,582 square metres, with Mr Morris advising there is room for expansion and further development.

"This site would appeal to existing grain handlers or larger farmers and co-ops looking for a larger facility to expand their grain storage and handling capacity," Mr Morris said.

The Chinese company plans to redirect its investments and funds back to its home country.

The Chinese company plans to redirect its investments and funds back to its home country.

"It would also be great for those targeting niche markets such as legumes, chia etc."

It is marketed as being well-located to the Fremantle port for sea container shipping.

The facility includes a 28 metre weighbridge and overhead sampling walkway.

There's a sealed hardstand area and open access for road train trucks to the delivery pit and loading conveyor, as well as six silos and conveyors with a full dust extraction set-up.

The infrastructure allows for easy delivery and loading into 20 foot and 40ft sea containers.

  • More information: contact Will Morris on 0448 415 537.
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