Finger lickin’ results as investors develop taste for KFCs
A pair of KFC fast food outlets were an early Christmas treat for buyers at Burgess Rawson’s final investment auctions of the year, where $109 million worth of commercial property sold in two days.
Buyers came hard for a KFC at Artarmon in Sydney, which sold under the hammer for $8.76 million on a slender 3.96% yield at the agency’s Sydney auction on Tuesday. The Pacific Highway property, which has been occupied by the fast food giant for almost 50 years, is leased until 2034, with options to 2044.
Commercial Insights: Subscribe to receive the latest news and updates
And 24 hours later a KFC at Bacchus Marsh, west of Melbourne, was picked off at the Melbourne auction for $2.82 million on a 4.35% yield.
The auctions continued a familiar theme from recent portfolio sales, with United petrol stations figuring prominently and a number of childcare centres also attracting considerable competition.
United Petroleum has now offloaded more than 10 of its stations across Australia in recent months, after selling one at Yagoona in New South Wales for $3.67 million on a sub-5% yield, and another at Mitcham in Victoria for $3.505 million.
A Melton property leased to childcare behemoth G8 Education was the pick of the childcare offerings, selling for $2.65 million on a 4.9% yield.
Chemists also enjoyed solid interest, with a Priceline Pharmacy in Concord picked up for $6.61 million on a 4.8% yield, a Chemist Warehouse in Launceston, Tasmania, selling for $1.26 million and a Chemist Warehouse and associated retail outlets at Sunbury in Victoria going for $8.25 million.
Burgess Rawson sold 16 of the 27 properties on offer at its Melbourne auction.