This article is from the Australian Property Journal archive
ISAAC Property Developments has offloaded a fast food and childcare investment property in the outer north west Sydney suburb of Bligh Park for $22.211 million.
Located at 752 George Street, the 1.07-hectare site is strategically positioned on the major Northern and Richmond roads roundabout intersection. It is home to Hungry Jack’s, Guzman y Gomez, Subway, Oporto, and Kiddiwinks. It has weighted average lease expiry of over 13 years and sold on a a solid yield of 4.98%. Yearly rent income is $1,108,169.
The expressions of interest campaign was facilitated by Burgess Rawson’s Yosh Mendis, Darren Beehag and Geoff Sinclair.
Mendis said there was strong interest in the asset from investors across Australia with the campaign attracting over 160 enquiries and resulting in a sale to a Sydney based investor.
“The successful sale of this high-performing asset underscores the strength and desirability of prime commercial investment properties within the market.
“These properties continue to see strong demand from investors given the scarcity of blue ribbon investment opportunities, their long-term secure income streams, landlord-friendly net lease structures and tax depreciation benefits.”
Ben Isaac of Isaac Property said, “we have always had strong appetite for the development of premium fast food and convenience retail investments and our Bligh Park/South Windsor fast food and childcare centre is a great reflection of this.
“Convenience retail continues to outperform other sectors due to its long-term leases and fixed increases underpinned by A-grade national retailers.
“Fast food and childcare have been incredibly resilient from both a yield perspective and tenant demand as operators continue to trade well despite recent interest rates rises.”
This takes advantage of all major traffic to and from Penrith, Parramatta and Sydney CBD out to the Hawkesbury regions and major towns including Lithgow and Singleton.
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.
