RFG site tasty deal
SYDNEY investors have snapped up the headquarters of listed Gold Coast food franchisor Retail Food Group in a $3.8 million deal.
The sale of 1-3 Olympic Circuit, Southport, means RFG has divested two of the three properties that formerly made up its Gold Coast commercial property footprint.
RFG sold 18 Commercial Drive, Ashmore, last month at auction for $2.075 million as it consolidates its operations at the former headquarters of the Gold Coast Bulletin in Molendinar.
A vacant cold and refrigerated storage property at 24 Octal St, Yatala, remains on the market after it failed to sell at auction last month.
Ray White Industrial Gold Coast’s Steve Macgregor, who marketed the property at Olympic Circuit with colleague Martin Trautmann, said the deal was closed in little more than one week after the buyers flew from Sydney to inspect the property.
“They loved that it is a tenanted investment and in a prime position close to the light rail route,” he said.
“They were looking for assets outside of the Sydney market and see real value on the Gold Coast.”
Under the terms of the deal RFG will lease back the Olympic Circuit premises from the new owners for one year at $345,000 per year plus GST and outgoings. The company has another two six-month options so could extend its stay until the end of 2019.
Mr Trautmann said the buyers were unconcerned with RFG’s planned exit from the site.
The property at 1-3 Olympic Circuit offers office space and has a net lettable area of 2300sq m across two levels. The three properties at Commercial Drive, Octal St and Olympic Circuit were acquired for a total outlay of $7.1 million between 2010 and 2013.
The food retailer is selling the properties as it slowly centralises operations 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.