Chicken-loving investors licking their lips over Mentone KFC
Fried chicken-loving landlords could well be salivating over this juicy opportunity.
Investors have the chance to be the colonel of their very own KFC, with the building rented to the Mentone franchise fresh on the market with price hopes of $5-$5.5 million.
Savills agent Benson Zhou says “more than 10 groups” are waiting on contracts for the 2362sqm property at 157-159 Nepean Hwy, where it meets Lower Dandenong Rd.
Commercial Insights: Subscribe to receive the latest news and updates
“We’ve got interest from everywhere, local, Melbourne and offshore investors, as well as interstate from Sydney, Perth and Brisbane, all making inquiries,” he says.
The 240sqm building was built in about 2000 and refurbished in 2013, with the current lease to 2023, returning about $263,000 annually, and four or five-year options extending to 2043.
Zhou says buyers attracted to a spicy deal such as a building leased to a KFC franchise will be attracted to the security, scarcity and prominence of the investment.
“This is a very longstanding KFC … you don’t see KFC’s for sale very often, the last comparable sale of one was in 2016 in Altona North,” he says.
“People recognise the brand, which is very important, so people think it’s a secure investment, decent-sized land, commercial one, and a very good development site when the lease expires.”
And as for the all important question of free chicken?
“I’m sure,” Zhou says.
“I’ve spoken to the operator, his name is Rowan, and he seems like a very nice guy so it’s very likely — or I can personally throw some in.”
Expressions of interest close Tuesday, August 27 at 2pm.
This article from the Herald Sun originally appeared as “KFC Mentone for sale: finger lickin’ opportunity for chicken lovers”.