Retail investors hungry for Brisbane fast-food outlets

A piece of Brisbane retail real estate royalty in Bulimba has fetched $4.2 million at auction.

The 339sqm holding in the coveted Oxford Street precinct has been leased by fast food giant Grill’d since 2007 and held by a local investor since 1994.

A retail space leased by Grill’d in Oxford Street Bulimba has sold for $4.2m.

The investor retains a swathe of prime inner city commercial real estate across Lutwyche, Ashgrove and Camp Hill, but offloaded the Bulimba site at 124 Oxford Street to a Victorian buyer.

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RWC Retail agent Michael Feltoe said the sales campaign generated 258 Australia-wide enquiries and Grill’d had another three years remaining on its lease.

The Oxford Street investment attracted 258 enquiries nationally.

Mr Feltoe said many potential buyers were “onshore private investors” seeking defensive retail investments leased to national tenants, which co-agent Lachlan O’Keefe attributed to a strong appetite for fast food investments across the country.

“Despite cost-of-living pressures, Australia’s fast-food industry is thriving, with record-breaking sales,” Mr O’Keefe said.

A fast-food property in the heart of one of Brisbane’s most popular suburbs has sold.

“There has been a limited supply of fast-food properties brought to market in Queensland in 2024, which is further fuelling demand.

“Grill’d Bulimba was no different, resulting in spirited bidding from six parties at the auction.”

The investment is generating an annual return of 5.43 per cent based on its new purchase price, with each sqm of the building now valued at $21,538.

The Woolworths site next door sold for $11.5m 16 years ago.

“It’s therefore no surprise the sector has been one of the most sought-after from private investors,” Mr O’Keefe said.

But the sale of 124 is far from a street record.

Oxford Street has long been a prime retail hotspot, with the current Woolworths site on three quarters of an acre at 114 selling for a whopping $11.5 million more than 16 years ago – also to a Victorian investor.

The re-built commercial site at 142 on 908sqm last changed hands in 2018 for $3.85 million.

Next door at 140, just 636sqm netted $7.88 million in July 2021.