RF Corval buys Cordina poultry investments with leasebacks
RF Corval has bought two New South Wales industrial investments from Cordina Group with leasebacks.
At Girraween, the asset manager is paying $103.5 million – a 5.7 per cent initial passing yield – for a 5.5 hectare poultry farm covering 53-63 Mandoon Road and 100-112 Magowar.
Cordina has occupied the west Sydney property since 1945.
It contains 17,158 square metres of improvements – a temperature-controlled chicken processing plant, distribution centre, offices and a shop.
There is also extensive parking.
The second property – a 100pc interest in 3 London Drive, Wyong, Cordina’s headquarters – traded to RF Corval for $33.5m, settling March.
RF Corval boosts industrial book
RF Corval will own the properties via its interest in the Critical Assets Fund.
A new entity – the RF Corval Industrial Infill Trust 2, which aims to emulate Infill Trust 1, launched four years ago now with18 properties in five capital cities, worth a total $250m – will control the Girraween investment after calling for backers earlier this year.
That leaseback is for an initial 25 years with two 15 year options.
It is triple net too with the business to pick up outgoings and capital expenditure obligations.
“An exercise of this option is likely to deliver a return to investors towards the top end of the trust’s investment objective range,” an RF Corval statement said.
Wyong is about 100 kilometres north of Sydney.
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