This article is from the Australian Property Journal archive
FAST food outlets were on the menu for commercial property investors at a portfolio auction yesterday, with $17.5 million worth of regional McDonald’s and Guzman Y Gomez restaurants selling under the hammer.
Nearly $32 million worth of properties were sold at the Burgess Rawson event held in Sydney, steered by Auctionworks auctioneer David Scholes.
The day’s opener – a McDonald’s in Unanderra, Wollongong – landed one of the day’s strongest results, with the $5.75 million sale price representing a 3.51% yield. The 2,414 sqm Princes Highway corner landholding has a 20-year triple net ground lease to 2041 plus a 20-year option.
That was followed by the sale of a pair of Guzman Y Gomez outlets, both brand-new builds. The first, adjacent to the McDonald’s, sold for $5.73 million at 4.45%, while the Nowra outlet fetched $6.03 million on a 4.55% yield. The Mexican food chain has a 20-year lease with two further 10-year options over both outlets.
Childcare centres in affluent Sydney locations were also sought-after. A northern Sydney childcare investment, in Putney, also sold on a sharp 3.51% yield, fetching $5.71 million. The 53-place centre is leased to 2034 with a pair of 10-year options to a national education provider. An Only About Children centre in the eastern suburb of Maroubra sold for $6.35 million, on a net yield of 6.97%, with 10+10+10-year lease extending to 2046.
Also selling were a Kincumber medical clinic occupied by The Ortho Practice on a new 10-year lease with options for $1.305 million, at 4.60%, and a building occupied by NDIS provider Castle in Newcastle’s Toronto for $905,000, at 6.04%. Castle has been in occupation for 15 years and has a renewed lease to June 2025 plus an option to 2028.
