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.

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“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.

What came first?

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.

The property is surrounded by other major tenants.

“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?

The Mentone KFC occupies a large site on Nepean Highway.

“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.”