KFC adds spice to Queensland market with $2.2m sale
January 30, 2020
A fast food investor has scored a zinger of a deal, snapping up one of Queensland’s top performing KFC restaurant sites for $2.2 million.
The popular eatery at 51-57 Hospital Rd in Emerald proved to be a tasty opportunity for bidders.
The site’s prime position was a major drawcard, but with a 15-year lease also on the menu – to ASX-listed company Collins Foods – the deal was too finger lickin’ good to pass up, according to Sentinel Property Group Managing Director Warren Ebert.
“The offering was a high profile, freestanding restaurant on an expansive 1263sqm site with 20 car parks and directly next door to our The Village @ Emerald shopping centre, which generates significant foot traffic,” Ebert says.
“Sentinel acquired The Village along with The Plaza at Emerald – which is anchored by Coles supermarket – in December, 2014.
“We had an opportunity to subdivide and created the retail outlet, which has now become one of KFC’s top performing restaurants and offered an excellent investment opportunity.”
The Emerald region is considered “one of the most productive areas in the country”, according to Ebert, with infrastructure, resource and agriculture products fuelling a strong gross regional product of $140,322 per capita.
The KFC property was bought on a yield of 4.94% by Gokani-Robins Pty Ltd, a trustee for the Vishram Trust.
Prior to its auction – managed by Glenn Conridge and Raoul Holderhead of Burgess Rawson – the property was offered with a passing income of $108,638 per annum and a lease expiring August 2033.
Fast food assets have been hot property in recent years with investors gobbling up opportunities across the country.
Burgess Rawson’s Fast Food Property Investment Report 2018 found demand was far outstripping supply with investors vying for properties housing iconic brands such as Hungry Jacks, KFC, McDonalds and Red Rooster.
There is also plenty of appetite for new-age players including Oliver’s and Zambrero.