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, reflects a low 3.63 per cent yield for the City of Greater Geelong.
On 1557 square metres with 10 car parks, the single level restaurant with a drive through is speculated to be selling to the tenant, the region’s largest privately owned franchisees, brothers Craig and Scott Hosking, with 20 other restaurants opened after over three decades.
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.
The deal comes weeks after the Whitehorse City Council bought three neighbouring residential properties to repurpose for a park.
Also this month the City of Greater Geelong sold ex-Geelong saleyards – on 4.3ha zoned Comprehensive Development at 125-135 Weddell Road, North Geelong – to a joint venture between Leaf Corporation and Justin Liberman, for $11m, with plans for a 600-lot subdivision.
CBRE agents Nathan Mufale, David Minty and JJ Heng declined to comment.
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 (continues below).
The lease includes annual rent rises to CPI. It has just been adjusted to the market rate.
After this 10 year term, the tenant has two five year options.
The recent renovation was completed by the Hosking family.
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.
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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