17 bidders vie for piece of $5.6m Melbourne KFC

There was no secret recipe to the sale of a popular fast food outlet at Mentone. 

Seventeen eager investors bid for the KFC outlet which sold for $5.6 million in what was a heated contest for the fried chicken franchise. 

The premium 2362sqm commercial site at 157-159 Nepean Hwy was sold by Savills agents Benson Zhou, Julian Heatherich and Yvonne Zhou via a competitive expressions of interest campaign that attracted more than 230 local and overseas inquiries. 

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Zhou says demand exceeded expectation.

 “The level of interest in the property and attraction to the KFC brand caused the whole agency team to spend late nights and weekends answering enquiries,” Zhou says. 

The property is surrounded by other major tenants.

 “Our expressions of interest campaign was especially strong, and the property received over 90,000 views online.”

 Zhou says investors were also attracted to the security, scarcity, and prominence of the KFC investment.

 “KFCs really don’t come up for sale very often,” he notes. “The last comparable sale was at Altona North in 2016.”

 The Nepean Hwy property has invaluable vehicle access onto two of Melbourne’s busiest roads – with 57,000 cars estimated to pass the site daily.

 The site currently provides an income stream of more than $262,000 and is leased on a 12-year term with options to extend until 2043.

 The KFC has been operating successfully since 2000, and was refurbished in 2013.