Arana Hills Red Rooster site changes hands for first time in 20 years

A local private investor has purchased the Arana Hills Red Rooster for $2,385,220 marking the first change of ownership of the property in nearly 20 years.

Located at 270 Dawson Parade, the site is strategically located within Patrick’s Place, a strata complex built in 1984 that adjoins the sub-regional Arana Hills Plaza.

The sale, negotiated by CBRE’s Harrison Coburn, achieved a yield of 5.5%.

Mr Coburn said the property attracted significant interest as this asset class is highly sought after by investors.

“The on-market Expressions of Interest (EOI) campaign fielded 125 enquiries and generated seven competitive offers at the close. The strata nature of the asset did discount some market interest, however the prime location, strong tenant covenant and resilience of the asset type were recognized by those who participated at the EOI close,” he said.

The 215sqm quick-service restaurant (QSR) facility is secured via a 10-year initial lease to Red Rooster, owned under the Australian franchisor brand, Craveable Brands Ltd which operates over 580 restaurants across the country.

“The campaign confirmed the continued appeal of this asset class among private investors. There remains a substantial amount of capital actively seeking both strata and freehold opportunities within this asset class.

“We expect demand to continue into 2025 with the market awaiting the anticipated interest rate cuts throughout the next 12-months and the lack of new supply coming to market given the high construction cost environment that we are in,” Mr Coburn added.

The transaction marks CBRE’s third QSR sale for the vendor in the past 12-months totalling circa $13.5 million.