Sizzling Hungry Jacks site sells after whopping 700 enquiries
A record 700-plus investors lined up for a chance at a flaming hot deal with Australia’s second largest fast food franchise, Hungry Jack’s – driving up a whopping sale price.
A Queensland investor had put her coveted Hungry Jack’s freehold location up for sale for the first time in almost 17 years – backed with a rock solid five years of tenancy signed with the fast food giant founded by Canadian-Aussie billionaire Jack Cowin, plus an option for a further five year renewal to set it up past the Brisbane Olympics.
RWC Retail agents Michael Feltoe and Lachlan O’Keeffe, saw it as not just a one-of-a-kind investment opportunity, but “Queensland’s best fast food investment in years” – which played out with solid interest from over 700 investors – many of whom were first time commercial shoppers, cashed up off the property boom.
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The deal was being marketed as “Queensland’s best fast food investment in years”.
The popular Hungry Jack’s Coopers Plains site is set to be auctioned on Friday August 23 at 9.45am AEST at Level 26, 111 Eagle Street, Brisbane City.
The property, located in a busy Coopers Plains intersection with Hungry Jacks as anchor tenant for 17 years off a popular drive-through, sold for $7.53m with more than 720 enquiries, a yield of 5.27 per cent.
“This auction campaign is believed to have set 722 as the new record number of enquiries for any campaign across Australia,” Mr Feltoe said.
“The vast majority of these enquiries were private investors, with a significant portion being first-time entrants to commercial property including the successful buyer.”
The site also has four other tenants underpinning income including national brands Pizza Hut, Subway and Zambrero, with the seller previously seeing net income of $397,027 plus GST a year off the 3,054sq m block.
It is co-located with a longstanding Aldi Supermarket. Aldi were the original owners of the site, selling it at the end of 2005 to Riawena Road Developments for $1.43m, which passed it on to the current seller about two years later in 2008 for $4.337m.
Around 485,000 vehicles were estimated to pass the site weekly.
Hungry Jack’s is locked in until 2029 as a tenant with a further five years option to 2034.
Around 485,000 vehicles were estimated to pass by the site weekly – located just 9km south of Brisbane CBD, close to Griffith University, QE2 Jubilee Hospital and QSAC Stadium where the 2032 Brisbane Olympics athletics program is expected to be held.
“The fast-food sector remains highly contested by investors,” Mr O’Keefe said. “We expect strong interest to continue here, with an ultra-rare passive investment created by five fast food tenants.”
Mr Feltoe said “when investing in fast food, buyers seek two key factors: traffic flow and income security. Hungry Jack’s Coopers Plains excels in both”.
“The property is on a prime corner location alongside an Aldi supermarket, and has 90 per cent of income backed by national tenants.”
The site sees significant traffic from the nearby university, hospital and five schools in the area.
The site also has 27 car park spots.
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Fast food freehold properties are tightly held by investors given its ability to set and forget in top performing locations, with this Hungry Jacks being no different, located “on the corner of one of Brisbane’s highest traffic count intersections” at 19 Kessels Road, Coopers Plain.
“A true set and forget investment, with a long WALE (4.88 years) and all tenants on fixed rental reviews between 3 per cent and 4 per cent,” is how the agents described the opportunity ahead for the new owner.
