Queensland Hungry Jack’s flirts with low-yield record

The Hungry Jack’s outlet at Albany Creek achieved a very sharp yield.

A funeral home and a popular Queensland Hungry Jack’s were among about $50 million worth of commercial property sold over two days of Burgess Rawson investment auctions this week.

Nine of 12 properties on offer in Sydney fetched almost $29 million combined on Tuesday, while a somewhat subdued Melbourne auction the following day seeing almost $22 million worth of property change hands.

Banks were big in Sydney, with a NAB in Rockdale selling for $5.5 million on a 4.33% yield, while a Westpac-leased property at Kogarah achieved $3.5 million on a yield of 4.58%.

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But it was a Hungry Jack’s burger outlet at Albany Creek that got investors’ tastebuds tingling.

It’s $4.2 million sale price represented a yield of just 4.33% – the second-lowest yield ever recorded for a Queensland fast food outlet.

It’s not every day you see a funeral home up for sale, and the unique nature of those assets saw one leased to Peter Murray Funerals in Bairnsdale in regional Victoria sell for $1.36 million on a 6.31% yield.

Peter Murray Funerals Bairnsdale

Peter Murray Funerals in Bairnsdale.

“Fast food, vet clinics, a funeral home and liquor asset are considered market proof investments as people always require these types of essential services, regardless of the economic climate,” Burgess Rawson director Shaun Venables says.

A Liquorland store at Hallam in Melbourne’s south-east flirted with a 5% yield, trading for $1.555 million as investors chased a leasing covenant backed by Coles.

The Liquorland store at Hallam in Victoria sold at a Burgess Rawson auction.

Investors who grabbed a pair of properties leased to National Veterinary Care did so on big yields, with a Mooroopna, Victoria, facility selling for $730,000 on a 8.76% yield, while another in Tatura went for $1.025 million on a yield of 9.49%.

“The Liquorland in Hallam was an easy property to talk to investors about, having previously sold the adjacent Coles supermarket,” Venables says.

“Being privy to how well the supermarket is trading and knowing it couldn’t be extended, we knew that the Liquorland was almost certainly assured of staying in the location for the long term.”