This article is from the Australian Property Journal archive
TWO major commercial tenanted investments sold at auction for a combined $13 million, after competitive bidding from both developers and owner-occupiers.
Both the sale of KFC Hervey Bay and an Ashfield mixed-use investment were handled by Harry Bui, Head of Asia Markets, Australia at Colliers.
Selling for $7.9 million and located at 161 Boat Harbour Drive, KFC Hervey Bay includes a drive-thru and adjoining freestanding Pizza Hut on a 3,392sqm site with 472sqm of building area.
The secure income also includes strong annual rental increases of 3.5% and 4%.
Bui, alongside Nick Dowling and Mark Wollin, managed the sale on behalf of vendor GIA HOA Australia to a private investor based in Melbourne, fielding 19 bids and setting a record for Hervey Bay with a 4.47% yield.
“The sale demonstrates the underlying demand for high profile, fast food assets in regions experiencing strong population growth. Enquiries were received from all over Australia with the ultimate buyer hailing from Melbourne,” said Nick Dowling, managing director at Colliers Sunshine Coast.
Meanwhile, the Ashfield property in NSW, sold for $5.015 million at auction by Harry and Andrew Bui from Colliers on behalf of a private vendor to one of the property’s current tenants.
Located at 267 Liverpool Road, around 8km out from the Sydney CBD, the prime double-storey mixed-use investment property comprises three strata lots, which are fully leased to New Shanghai Night and Forza Jiu Jitsu.
The 269sqm site is occupied by a 511sqm building and received 57 bids throughout the auction and achieved a rent yield of 3.23%.
“Over the past 12 months, these areas have prospered from inter and intra-state migration of buyers chasing affordable quality retail investments. This growth has had a big impact on retail in the area with essential food and beverage sectors playing a crucial role in daily life,” said Bui.
“These sorts of assets are more resilient to economic conditions, making them a less risky investment with a reliable income source and capital growth potential – and making them a popular choice among investors. There is a resurgence of capital from Asian investors who are looking to take advantage of the strong performing, both in the Sydney and Hervey Bay retail markets.”
