Victorian council sells KFC restaurant
EXCLUSIVE
A Victorian council has sold a recently renovated high-profile fast-food investment for $4.875 million.
The result for the KFC at 200 Princes Highway, Corio, was sealed at a low 3.63 per cent for the City of Greater Geelong.
On 1557 square metres with 10 car parks, the single level restaurant with a drive through is leased to the region’s largest privately owned franchisee, with 20 other restaurants.
With 23 metres frontage, passed by some 48,000 vehicles a day, opposite a McDonald’s, it is also one of the busiest in wider Geelong.
Also today we are reporting Whitehorse City Council bought three neighbouring residential properties to repurpose for a park.
200 Princes Highway
Part of Stead Park, KFC Corio is surrounded by a major recreation and sporting venue currently being redeveloped to incorporate a state level hockey centre.
The lease includes annual rent rises to CPI. It has just been adjusted to the market rate (continues below).
After this 10 year term, the tenant has two five year options.
The recent renovation was recently completed by the franchisee.
Another low yielding QSR deal
Council held 200 Princes Hwy as part of a broader municipal landholding.
The on sale was managed by Savills’ Stephen Bolton and James Latos.
The buyer is a local private investor.
It continues a string of recent Melbourne-area QSR transactions including KFC Thornbury (which traded at a 4.2pc yield), KFC Niddrie (4pc), Red Rooster Gladstone Park (c4.5pc), Red Rooster Pascoe Vale at the Strathmore border (4.3pc), and Hungry Jack’s Mentone (c4pc).
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