Melbourne quick service restaurant trades on 2.3pc yield
A prominent Red Rooster in Melbourne’s north has sold for the first time in 40 years.
At 504 Pascoe Vale Road, Strathmore – but known as the Pascoe Vale store – the $5.3 million result reflects a low 2.3 per cent yield.
With options, the tenant can stay until 2031.
After that, the 4161 square metre parcel, zoned Mixed Use, with 150 metres of road frontage, passed by some 19,000 vehicles a day, holds high density development upside.
This pocket of Strathmore is about 11 kilometres from town (story continues below).
Lowest QSR yield since 2020: agent
Savills’ Rick Silberman, who marketed 504 Pascoe Vale Rd with Stephen Bolton, said the yield is the sharpest for an Australian quick service restaurant for five years.
It comes 18 months after a KFC in nearby Keilor Rd, Essendon (branded the Niddrie store), traded for $7m – a 2.4pc return, and a year since one in Thornbury collected $5.65m (a 2.8pc yield). Meanwhile last April, across town in Mentone, a Hungry Jack’s sold for $4m – a 3.6pc return, the agent added.
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