RFG gains in deal
LISTED food franchisor Retail Food Group has offloaded one of its properties for $2.075 million – representing a 8.7 per cent yield for the Gold Coast buyer.
The 18 Commercial Drive property was one of three RFG properties to go under the hammer yesterday at the Gold Coast Turf Club with the other two, 24 Octal St, Yatala, and 1-3 Olympic Circuit, failing to sell.
Yesterday, Ray White Industrial Gold Coast’s Steve Macgregor, who is marketing the three sites with colleague Martin Trautmann, said they were in negotiations with interested parties regarding the latter two properties.
Mr MacGregor said there was competitive bidding at the auction for 18 Commercial Drive with bids starting at $1 million.
“The buyer is going to keep the tenant in the property (RFG has a 12-month leaseback arrangement with two six-month options) and then he will decide whether he wants to use it himself or modify it,” he said.
The yield reflects a net annual rent of $182,000.
RFG acquired the three properties for a total outlay of $7.1 million between 2010 and 2013.
Commercial Drive, which offers a mixture of office and warehouse space, is located on a 3510sq m site and offers 1185sq m of lettable space.
It last sold to RFG for $2.02 million in 2013.
Mr Macgregor said the price reflected the value of the land and the location.
“It is in a very central estate,” he said.
The Octal St property offers cold and refrigerated storage and is being sold as a vacant possession while 1-3 Olympic Circuit is being used as the company’s current headquarters. The sale of the latter property involves the same leaseback arrangement as Commercial Drive.
The food retailer is selling the properties as it slowly centralises operations at its next headquarters at the former headquarters of the Gold Coast Bulletin at 385 Southport-Nerang Rd, Molendinar.
The multibrand food franchisor, which counts Donut King, Brumby’s Bakery, Michel’s Patisserie, Crust Gourmet Pizza, and Pizza Capers among its brands, bought the site following rapid growth and outgrowing its premises.
The former Bulletin property has a land area of 24,000sq m with 9500sq m under roof.