This article is from the Australian Property Journal archive
INVESTORS snapped up more fast-food properties at the Brisbane leg of a three-day portfolio auction, which saw $85 million worth of commercial assets sold.
The Brisbane edition followed the Sydney event on Tuesday, at which nearly $32 million of properties sold, and Wednesday’s Melbourne event, which saw $45 million knocked down.
Yesterday, a brand new Banjo’s Bakert Café in Bupengary sold for $4.51 million, on a 5.54% yield. It was offered with a brand new 15-year head office lease with a pair of 10-year options bringing $250,000 per year plus GST.
The Red Rooster drive-through restaurant in Warwick, south west of Brisbane, sold for $1.705 million, at 5.49%. A Red Rooster franchisee occupies the 1,363 sqm corner site with a four-year lease plus options to 2031.
Those sales followed Sydney event sales that included a McDonald’s outlet on the Princess Highway in Unanderra selling for $5.75 million, on a strong yield of just 3.51%, and two Guzman Y Gomez restaurants also selling, with one next to the McDonald’s trading for $5.73 million, at 4.45%, while the asset in Plunkett Street, Nowra sold for $6.03 million reflecting a yield of 4.55%.
Ingrid Filmer, CEO of Burgess Rawson said many buyers had sold out of the residential investment market and were paying with cash for commercial assets generating much higher returns on long leases.
“We know they are cash buyers because they are settling within 30 days and some were buying through self-managed super funds,” Filmer said.
At the Melbourne event, a laundromat in Cobblebank, a new Melton suburb, was offered with a 10-year lease to the Blue Hippo chain, which has 24 stores across Victoria. It eventually sold to a local investor for $741,000, on a yield of 4.7% and 16% above its reserve price, after eight parties registered to bid.
Two other properties in the same Cobblebank complex – a face, skin and hair treatment lounge and a café – sold under the hammer on yields below 5.5%.
