Mr Heng said the sale to a Sydney-based investor left over $80,000,000 in unsatisfied capital and highlighted an ongoing investor hunt for yield driven by record low interest rates and a volatile share market.
The sale price of $6,200,000 translates to a record yield for a Melbourne Hungry Jacks investment, based on the current income of $233,547 per annum. There is seven years remaining on the lease, which includes CPI increases.
Offers were received from Melbourne, Sydney and Brisbane based investors, including nine bids from locally based international investors.
“The depth of bidding highlights the current buyer appetite for blue chip investment properties. Fast food properties are generating particularly strong demand, given the relatively bullet-proof nature of this asset class,” Mr Heng said.
Mr Hawthorn added; “There is certainly greater scrutiny placed on retail investments as we navigate the pandemic, however, there remains a shortage of well-located properties available for sale amid an ongoing investor hunt for yield.”
The transaction follows CBRE’s May sale of the newly constructed 7-Eleven Doreen service station to a local investor following a competitive on market campaign. Other recent retail sales include the Mr Majestic Cafe and Removery outlets in Caydon’s Mason SQ development at Moonee Ponds, both of which achieved low 4% yields.
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About CBRE Group, Inc.
CBRE Group, Inc. (NYSE: CBRE), a Fortune 500 and S&P 500 company headquartered in Dallas, is the world’s largest commercial real estate services and investment firm (based on 2020 revenue). The company has more than 100,000 employees serving clients in more than 100 countries. CBRE serves a diverse range of clients with an integrated suite of services, including facilities, transaction and project management; property management; investment management; appraisal and valuation; property leasing; strategic consulting; property sales; mortgage services and development services. Please visit our website at www.cbre.com.