Investors can get a taste of KFC, McDonald’s or Hungry Jack’s
Investors hungry for a taste of the fast food market will have their choice of McDonald’s, Hungry Jack’s or KFC when a $60 million portfolio of commercial properties goes under the hammer.
Cushman & Wakefield expects strong interest in the 15 alternative investment properties, given fast food, childcare, and fuel and convenience retail assets have been popular during the coronavirus pandemic.
The portfolio includes properties with long-term leases with Hungry Jack’s, KFC and McDonald’s, seven childcare centres, a National Australia Bank branch in Wagga Wagga, NSW, and a Mitre 10 in Queensland’s Airlie Beach.
This Mitre 10 in Airlie Beach forms part of Cushman & Wakefield’s latest auction of alternative investment assets. Picture: realcommercial.com.au/sale
Cushman & Wakefield said the portfolio was expected to sell for about $60 million in total in the 10 December auction in Sydney.
“We anticipate a huge level of interest in the upcoming auction, particularly as fast food properties have continued to be one of the best performing assets during the pandemic,” Cushman & Wakefield associate director Tom Moreland said.
“Childcare centres also remain high on investors’ wish lists due to the strong government support provided at the start of COVID-19, with many investors viewing the sector as highly resilient.”
In its November portfolio auction, Cushman & Wakefield sold 12 assets for more than $60 million. The portfolio included Woolworths Caltex-branded fuel and convenience assets sold amid strong demand from investors, as well as retail, childcare and medical assets.
“We continue to see the market for private investment strengthen, given the sheer weight of capital targeting defensive assets and yield,” Cushman & Wakefield head of national investment sales Michael Collins said on Monday.
“The results of our recent portfolio auction show that the appetite among high-net-worth investors for properties with long-term leases and blue-chip tenants continues to grow.”
The firm said the December auction was expected to be led by a Gold Coast fast food and convenience retail investment jointly leased by United Petroleum and KFC franchisee Collins Foods, with a price guide upwards of $8.5 million.
The Gold Coast fast food and convenience retail investment has a price guide of more than $8.5 million. Picture: realcommercial.com.au/sale
A property occupied by KFC for 30 years in Dee Why in northern Sydney was expected to sell for more than $6 million.
The December portfolio covers freestanding investments in NSW, Queensland and Victoria.
The childcare centres include a new Brisbane facility with a 20-year initial lease term.
There has been strong demand for service stations and convenience retail assets during the pandemic, with unfulfilled pre-coronavirus demand continuing to fuel the sector.
Six of the 21 properties listed for sale at Burgess Rawson’s final portfolio auction event of the year on 9 December are service stations, with the asset class continuing to experience significant turnover as both vendors and buyers take advantage of strong trading conditions.
