Simon Staddon, director at Burgess Rawson, stated the extremely sought-after assets have a low-risk profile with an upside and proceed to develop in reputation, notably with buyers who personal Self-Managed Super Funds.
”They supply long-term listed revenue streams, underpinned by robust land values,” Mr Staddon stated.
He stated Burgess Rawson has bought over 78 per cent of main drive via free-standing fast-food assets Australia-wide over the previous 5 years.
”Sales complete greater than $310 million with an public sale clearance price averaging over 90 per cent, which is among the highest throughout the nation for business property assets. Major manufacturers embrace Hungry Jacks, KFC, McDonalds and Red Rooster,” Mr Staddon stated.
Mr Gilbert can also be promoting two premium grade fast-food investments in Sydney, that are being provided for the primary time since they have been constructed 20 years in the past.
The investments embrace a McDonalds, which is the primary Sydney McDonalds to be provided in greater than 5 years, in addition to a KFC ground-lease funding. The properties shall be auctioned by Burgess Rawson.
Mr Gilbert stated the properties are a part of 4 separate funding tons situated on Briens Road in Northmead, adjoining to Sydney’s latest Bunnings warehouse outlet, which is about to open in August.
The properties have been owned by the identical household since development, however a current dying signifies that they should be, reluctantly, bought.
The drive-through McDonald’s comes with a Shell service station and a Coles comfort store on a big three,293-square-metre block of land and a internet revenue of $732,346.
The KFC occupies a outstanding nook location on a 2,155-square-metre block and has a internet revenue of $228,644.
Also being provided are two adjoining properties: a 2,118-square-metre website improved with a contemporary restaurant, leased by nationwide chain Pancakes on the Rocks, with a internet revenue $187,195 every year; and Bangkon Snap Thai restaurant with a internet revenue of $91,500 every year.
Mr Gilbert stated that the scarce nature of the properties ought to guarantee a ”heat reception to them from the market”.
Mr Gilbert stated that there has not been a KFC floor lease provided in the Sydney space in almost seven years and that there has not been a McDonalds funding in Sydney provided on the market in greater than 5 years.
“These are two globally recognised manufacturers with direct leases to the dad or mum corporations; buyers will certainly chase these two, however the intelligent ones may also take a look at Pancakes on the Rocks and Bangkok Snap, each of which share a boundary with the brand new Bunnings Warehouse,” Mr Gilbert stated.
Rhys Parker, who’s advertising the property together with Mr Gilbert, stated the current sale of Caltex in Thornleigh for $11.02 million and Shell in Smithfield for $5.45 million – each of which confirmed sub 5 per cent capitalisation charges – ”demonstrates the depth of demand for these type of premium assets”.
Carolyn Cummins is Commercial Property Editor for The Sydney Morning Herald.
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