Fast food hunger continues as Subway comes to market

Here’s a chance to own a property leased to the world’s largest fast food chain.

The Subway outlet at Leongatha in Victoria’s Gippsland region presents a rare opportunity to secure a freehold  property leased to the takeaway giant, and at a notably affordable price point.

Positioned on a prime and strategic South Gippsland Highway site central amongst a McDonald’s and KFC, the property at 7B Anderson St features a renewed five-year lease to Subway’s head office, returning $40,480 per annum plus GST.

Burgess Rawson director Raoul Holderhead says that with the lease running until 2025, it presents significant potential for the buyer to increase their returns in the coming years.

“When the lease ends it will be up for negotiation, and I’m confident of Subway’s desire to remain in the property considering they would have been there 20 years (in 2025), so there is some upside for the buyer to increase their rental returns in the medium term,” Holderhead says.

“It’s a nice, safe, entry-level investment in an outstanding location.”

Subway has operated from the freestanding highway property since 2005.

Price expectations are between $650,000 and $700,000.

Holderhead says Leongatha represents an exceptional investment proposition for investors.

“It’s the commercial hub of south Gippsland. It’s a very safe little town for commercial property, and particularly with a super highway location like this, on a busy major corner,” he says.

“Testament to the location’s booming customer base and popularity, the adjacent McDonald’s restaurant recently expanded its drive-through facilities from one lane to two.”

The 606sqm site includes on-site parking, along with outdoor dining spaces.

Burgess Rawson’s Investment Portfolio Auction will be held from 11am AEDT on Wednesday, October 28.