Welcome news for RFG
RETAIL Food Group has made a sweet return on its property investments following six bitter weeks of controversy surrounding the treatment of its franchisees.
The Southport-based listed company has sold its Yatala site at 24 Octal St to a Gold Coast investor for $2.31 million.
The property is the last to sell of a three-site portfolio that RFG took to market in September last year. The three properties, which included 1-3 Olympic Cct, Southport, and 18 Commercial Drive, Ashmore, realised a combined sale price of $8.18 million.
RFG purchased the properties for a total of $7.1 million between 2010 and 2013.
Their divestment is part of RFG’s plan to centralise its operations on the Gold Coast at the former Gold Coast Bulletin site at 385 Southport-Nerang Rd, Molendinar.
Ray White Industrial Gold Coast’s Steve Macgregor, who marketed the properties with colleague Martin Trautmann, said the Yatala site that sold last week was a vacant cold storage property.
He said there was strong demand on the Gold Coast for such properties.
“The buyer has snapped it up on a 90-day settlement. We are going to find a tenant and lease the property out as an investment for him,” he said.’
The Yatala property has 1646sq m of space including a freezer room with a 450-pallet capacity on a 5372sq m block.
The Olympic Cct property sold last November to an interstate investor for $3.8 million.
The property offers office space and has a net lettable area of 2300sq m across two levels. Under the terms of the deal RFG will lease back the 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.
The Commercial Drive property sold for $2.075 million to a Gold Coast investor, reflecting a yield of 8.7 per cent. RFG has a 12-month leaseback arrangement with two sixmonth options at the property.
The company has received criticism in recent weeks from franchisees who allege that its business model has led to the breakdown of marriages, bankruptcy, and the loss of retirement savings.