Ringwood KFC site attracts $8m sale
The Ringwood KFC site drew almost 400 enquiries during the fast-food bidding frenzy.
A fight for a fried chicken drive-through in Ringwood has erupted into an $8m bidding war, with almost 400 buyers chasing the block on one of Melbourne’s busiest roads.
The KFC site on Maroondah Hwy drew 397 enquiries and eight formal bids, making it one of the most contested fast-food sales of the year.
An institutional buyer secured the property on a sharp 3.34 per cent yield, the strongest price for a stand-alone fast-food site sold anywhere in Australia in 2025.
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Buyers were chasing the mix of a short lease, a major national tenant and a high-traffic position in the heart of Ringwood.
The 3991sq m block at 387 Maroondah Hwy is leased to a KFC franchisee until October 2027 with no further options.
The large landholding near Eastland and Costco was a major drawcard for investors looking ahead to future plans for the site.
JLL senior director Dominic McGrath said the blend of land size, brand recognition and flexibility drove intense competition.
“The combination of a short weighted average lease expiry, an iconic tenant and almost four thousand square metres of future-flexible land created a very high level of interest from a wide array of investor types,” Mr McGrath said.
The new owner is expected to explore redevelopment options when the lease ends in 2027.
“Buyers recognised the long-term potential of the zoning and the significant rear land parcel.
“The site lends itself to a range of outcomes including a new quick-service restaurant automotive retail large format retail or a broader mixed-use scheme, subject to approvals.”
“We saw interest from passive investors wanting to extend the existing lease, national fast-food operators and owner-occupiers wanting to take control of the site, and developers exploring alternative-use outcomes.”
The property includes indoor and outdoor dining, a drive-through lane and eighteen on-site car parks.
The high-traffic Ringwood site attracted one of Victoria’s most competitive campaigns of 2025. Picture: Marie Nirme
More than forty thousand vehicles pass the frontage each day.
JLL director Romanor Falconer said fast-food investments had remained one of the strongest-performing asset classes this year.
“The fast-food sector continues to demonstrate resilience, with limited stock coming to market and strong investor appetite driving values,” Mr Falconer said.
“Nationally we’ve seen around $74.7m in transaction volume across fourteen sales this year, achieving an average yield of four point two per cent and the sharpest yield of two point seven eight per cent.”
Investors swarmed the KFC-occupied block, pushing the price to a sharp 3.34 per cent yield close to nearby Eastland Shopping Centre. Picture: Wayne Taylor
“The sale of KFC Ringwood reflects the highest price for a stand-alone fast-food investment achieved this year at eight million dollars.”
Commercial agents say Melbourne’s east has become one of the toughest battlegrounds for land-rich retail and food sites, with high-traffic corridors drawing fierce competition as large blocks become harder to find.
Shorter lease terms have also become more attractive for investors who want control over future redevelopment rather than being locked into long passive arrangements.
The new owner is expected to assess options for the site closer to the 2027 lease expiry, with zoning that allows for new food brands, automotive showrooms, large format retail or mixed-use plans.
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