Property improves profitability for FFI

WA-based food company FFI Holdings has agreed to lease part of its 50,000 square metre Jandakot investment property, which is expected to provide annual revenue of $740,000 to the company.

FFI said it had leased 18,000 square metres of the land at the industrial and commercial precinct in Jandakot to an unnamed tenant effective April 15.

The company recently completed works to the land as part of the leasing agreement which included improvements to office and factory buildings.

FFI said the lease was an important development for the company and would improve materially the company’s future profitability.

FFI, which manufactures, processes and packages food from smallgoods to popcorn, reported a net profit of $2.9 million for the financial year ending June 2013, from revenues of $30 million.

The company has sold about 17,000 square metres of its land holdings in recent years as part of its strategy to generate cash flow from the asset.

Last financial year the sales generated proceeds of $3.1 million for the company.