Sydney convenience retail investment sold after 30 years
A prominent convenience retail investment west of Sydney leased to KFC and the Salvos sold at auction last week for $7.12 million – a 3.18 per cent net passing yield.
It was the first time in 30 years 540-550 Hume Freeway, Yagoona, neighbouring Bankstown, was for sale.
KFC is on a lease expiring 2029 when it can exercise a 10 year option.
It has occupied the property, at the north east corner of Church Road, over 30 years.
The Salvos has just renewed its lease three years.
The total lettable area is 610 square metres.
Development upside
On 2260 sqm also exposed to Breasley Place, less than 200 metres to Yagoona train station, 540-55o Hume Fwy is passed by c425,824 vehicles a week, the agents said.
Lease agreements could be broken if the site were to be developed, they added.
Buildings up to 20 metres, or about eight storeys could be considered. The floor to space ratio is 2.5:1.
“The asset’s exceptionally rare format, a dual freestanding KFC and Salvos on one freehold title, paired with a longstanding net lease to KFC, delivered an investment of ultimate appeal,” Burgess Rawson for CBRE’s Yosh Mendis, who brokered the deal with Geoff Sinclair, said.
“The property has exceptional investment fundamentals and significant underlying land value in one of western Sydney’s busiest corridors,” he added.
Yagoona is about 20 kilometres south west of town.
The deal comes a month since we reported JY Group bought a half stake in Bankstown Central for $318 million.
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