This article is from the Australian Property Journal archive
BRISBANE-based property developer Byron Griffith is looking to offload the largest fast food portfolio to hit the Australian commercial real estate market in years.
Located in the newly completed Bayview Centre in Warrawong, in the Illawarra region of NSW, the Griffith Group portfolio includes secure leases to major national and global operators including McDonald’s, Hungry Jack’s, Starbucks, Oporto, Domino’s and Liquorland.
Yosh Mendis from Burgess Rawson has been exclusively appointed to manage the sale of the portfolio via auction.
“We expect the portfolio to generated incredible interest and receive a strong level of enquiry from investors across Australia,” said Mendis.
“Fast food assets remain the crown jewels of the commercial property market, achieving record low yields as insatiable demand far outstrips supply.”
The listing comes hot off the heels of Burgess Rawson’s Fast Food Industry Insights report, with commercial property investors splashing more than $136 million on fast food assets in FY24,
With McDonald’s KFC, Hungry Jack’s and Red Rooster outlets consistently achieving some of the lowest yields of commercial properties on offer.
Bayview Centre was developed by Griffith group in 2023 and spans 36,049sqm with 100% occupancy and benefits from more than 77,000 cars passing the site each day.
In addition to the fast food tenants, Bayview Centre is occupied by other national retailers including Beacon Lighting, Super Cheap Auto, JB Hi-Fi, Trek, Autobarn, RTM, and Amart Furniture.
The listed assets will sell at a diverse range of price points with annual returns from $244,710 to $554,707 for the freestanding McDonald’s with leases ranging up to 20 years and each lot spanning up to 3,304sqm.
“These properties are among the most tightly-held investments and are typically snapped up quickly when offered to the market,” added Mendis.
“The inherent appeal of fast food properties lies in their long-term landlord friendly leases, guaranteed rental growth, low-risk income profiles, minimal management requirement while delivering consistent, reliable growing returns.”
The offering will also benefit from the surrounding development pipeline including Elanor Investors Group’s proposed plan to rezone the seven-hectare site sitting directly opposite, which would allow for the delivery of 1,300 new homes including 10% affordable housing.
Warrawong, which sits 74km out from the Sydney CBD, has recently seen $800 million in infrastructure delivered over the last five years.
While Fraser’s Property Group has recently opened the new $180 million Marina at Shellharbour, just 12km out from Warrawong.
The portfolio will be sold individually at a Burgess Rawson portfolio auction event on 6 August 2024.
