Colliers sell upsized portfolio
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Lachlan Hibbert-Wells |
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| Colliers International has sold four Hungry Jack’s leased investments, as well two other properties, at auction on behalf of Westpac Funds Management Limited. | |
The sites were sold on Thursday, 23 July, 2009, and all the properties are located in Victoria.
The properties formed part of Colliers International’s Victorian Auction Week, and, according to the agents, were sold after intense and competitive bidding.
The first property, at 19-21 Springvale Road, Springvale, was sold for $2.305 million on a 5.75% yield.
The property is located in a prime position at the major junction of Springvale Road, Princes Highway and Police Roads in south-east Melbourne. The subject property forms part of a development comprising a number of fast food outlets including Red Rooster and Subway within a larger shopping centre development at the rear.
The 228 sqm building sits on a 2313 sqm site, which includes 48 car parking spaces. The lease to Hungry Jack’s commenced on the 30 June 2002 and is for 12 years with two five year options.
The second property, located at 1447 Hume Highway, Campbellfield, sold for $2.2 million on a yield of 6.04%.
This property is located north of the Melbourne CBD along the gateway of the Hume Highway. The Hume Highway is a major thoroughfare for interstate travellers into New South Wales and Victoria with Campbellfield Plaza located directly opposite, anchored by K-Mart and Coles. 1447
The 329 sqm building sits on a 2409 sqm site, which includes 57 car parking spaces. The lease to Hungry Jack’s commenced on the 30 June 2002 and is for 12 years with two five year options.
The third property sold is located at 427 Ballarat Road, Sunshine, and was sold for $1.66 million on a 7.0% yield.
The site is located on the highly frequented Ballarat Road as part of a retail fast-food strip, with Victoria University opposite.
The 288 sqm building sits on a 3137 sqm site, which includes 52 car parking spaces. The lease to Hungry Jack’s commenced on the 30 June 2002 and is for 12 years with two five year options.The last Hungry Jack’s sold at auction is located at 452-456 Melbourne Road, Geelong North, and achieved a 7.1% yield on a sale price of $1.761 million.
This property enjoys a prime corner location on the busy highway into Victoria's largest regional hub of Geelong. Adjoining neighbours include Shell service station, Godfrey's and Red Rooster.
The 282 sqm purpose built building sits on a 2179 sqm site, which includes 34 car parking spaces. The lease to Hungry Jack’s commenced on the 30 June 2002 and is for 12 years with two five year options.
In addition to the Hungry Jack’s restaurants, a a former Red Rooster site, located at 1389 Ferntree Gully Road, Scoresby, and now trading as The Pie Shed, also sold for $765,000 on a 8.0% yield.
The sale comprises of a free-standing main road retail property which has recently undergone a refurbishment as The Pie Shed with building area 216 sqm. The site is situated in close proximity to the Stud Road intersection and forms part of a small retail strip anchored by Safeway Supermarket and other retail premises.
The building sits on a site area of 2048 sqm, which also includes 20 on grade carparking spaces and the current rent is approximately $63,306 p.a. net plus GST (as of November 2008).
The lease to the Pie Shed commenced on the 15 November, 2002, and is for a 10 years period with four five year options.
A fifth Hungry Jack’s property located at 128-140 Watton Street, Werribee, was also sold prior to auction, for $1.75 million on a yield of 6.9%.
The property forms part of a small retail strip centre in Werribee’s Watton Street precinct, close to other retail neighbours such as Safeway and KFC and a short distance from Werribee Station
The 311 sqm purpose built building sits on a 1696 sqm site, which includes 34 car parking spaces. The lease to Hungry Jack’s commenced on the 30 June 2002 and is for 12 years with two five year options.
Lachlan MacGillivray, director of retail at Colliers International, said he received in excess of 300 enquiries throughout the sales campaign from a strong mixture of local and interstate private investors.
“Of the hundreds of enquires received during the campaign, more than 150 were from new purchasers into the property market looking for secure investments,” Mr MacGillivray said.
“These sales results are reflective to prices seen during the height of the market in 2007. This demonstrates the strength of the Hungry Jack’s covenant and also that confidence is returning to the investment market, as these properties have the potential to provide more security and cash flow in the current economic climate.”
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