Investors drop $12.5m for Hungry Jack’s restaurants
Investors dug deep to secure two regional Hungry Jack’s restaurants this month.
In the biggest deal, a 14 month old complex at Gracemere (pictured, top), a south west suburb of Rockhampton, sold for $6.4 million – a 4.79 per cent net passing yield.
The fast food chain is on a lease expiring 2037 but with options can stay 20 years beyond that.
At 6 Lawrie Street, the 2223 square metre site also contains 14 car parks.
Meanwhile, a Hungry Jack’s at Harristown, Toowoomba, traded for $6.1m – a 4.45pc yield.
On 2987 sqm, 163-173 Anzac Avenue is leased until 2035.
Sub 5 per cent yields
CBRE’s Harrison Coburn and Mikeala O’Farrell brokered the Harristown deal off-market.
The agents also sold 6 Lawrie St but following an expressions of interest campaign closing August.
“Investor appetite for new quick service retail assets remains robust driven by limited new supply and elevated construction costs,” they said.
The incoming owners will be able to claim depreciation benefits for tax, they added.
Hungry Jack’s opened in Australia, at Perth’s Innaloo, in 1971.
It now trades from c450 restaurants here.
Last month we reported a new Tamworth building leased to the group sold for $6.7m – a 4.64pc return.
Another Hungry Jack’s, at Haywards Bay, traded in August, for $4.725m – a much higher yield than the others (6.7pc).
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