This article is from the Australian Property Journal archive
FAST food has again played a leading role at a portfolio auction, with a Toowoomba KFC fetching $5 million at the last Burgess Rawson event of the year.
The KFC in Wilsonton is on a 1,549 sqm corner site at 393 Bridge Street, from which it has been trading from since 1979. The building underwent an upgrade in 2021 and has a 15-year lease to major KFC franchisee Collins Foods to 2025 plus two further five-year options. It sold on a 5.49% yield.
Also selling at the agency’s final 2023 auction yesterday in Brisbane was a brand-new Bridgestone retailer and service centre in Ipswich’s Chuwar, for $2.135 million, on a 4.46%. The 4,427 sqm site is next to the Karalee Village Shopping Centre and has a new 10-year lease with options to 2053.
Another Wilsonton property, the Ampol service station, sold for $1,230,000 at 5.18%. EG Group has a five-year ground lease to 2026 with two five-year options.
A medical centre investment in the South Burnett region occupied by a national medical group with a 15-year lease sold for $2.15 million, on a 6.05% return. Selling prior to auction was a Queensland Health clinic near Mount Isa Hospital for $1.12 million, with a net income of $97,134 per year.
Fast food flurry
On Wednesday’s Burgess Rawson event in Melbourne a McDonald’s outer Perth’s Yanchep with a 20-year triple-net ground lease sold for just over $4.75 million on a 3.91% yield, while adjoining pizza and fish and chip shops with brand new five-year leases in Rye, on the Mornington Peninsula, traded on similarly tight respective yields of 3.70% and 3.77%.
The Oporto in Carlton, on the Melbourne CBD fringe, sold with a brand-new 10-year head office lease for $2.77 million at 5.05%, while another pizza shop in Doreen sold for $955,000, on a 5.50% return.
Isaac Property Developments has also just offloaded a Bligh Park property home to Hungry Jack’s, Guzman y Gomez, Subway and Oporto for $22.211 million, in another Burgess Rawson deal that showed a 4.98% yield.
Other recent fast food investment sales have included the McDonald’s in Unanderra on a benchmark 3.51% yield, the adjacent Guzman y Gomez for a 4.45% yield, brand-new neighbouring Red Rooster and Guzman y Gomez outlets in the Ipswich suburb of Ripley on respective yields of 5.03% and 4.76%, and another Red Rooster in the Mackay region’s Mount Pleasant, for $2.867 million, on a 6.00% yield. All sold through Burgess Rawson.
