This article is from the Australian Property Journal archive
A MELBOURNE-based investor has looked to the other side of the country to whet their appetite for a fast food asset, acquiring KFC site in Perth’s Kelmscott.
The 2,096 sqm site in the southern suburbs attracted 98 enquiries and competition between eight bidders, before passing in at $3.105 million. The purchaser, one of two bidding from selling agents Burgess Rawson’s Melbourne boardroom, snapped up the property for $3,343,700 after the auction, at a 5.1% yield.
It had recently been upgraded to KFC’s latest corporate standard at a cost of around $1.3 million.
Burgess Rawson agents Jamie Perlinger, Billy Holderhead and Rob Selid said the experienced investors picked up the property for their SMSF, with a modest margin in return compared to fast food freehold capitalisation rates on the eastern seaboard, where the average yield was 4.94% across 6 sales in the 12 months from May 2017.
Lower stamp duty rates in Western Australia mean they will also save around $18,000 on acquisition costs compared to investing the same amount in a local Victorian freehold asset.
Australian Property Journal
