Cairns KFC changes hands for $5.8 million

A first-time commercial investor has acquired a recently constructed KFC in the Cairns town of Gordonvale for $5.808 million, reflecting a 4.76% yield.

Located at 130 Fisher Road, Gordonvale, the property has a prominent position along the Bruce Highway, approximately 22km south of Cairns.

The sale was managed by CBRE’s Harrison Coburn via an on-market Expressions of Interest campaign, which generated 218 direct enquiries—with  the vast majority coming from new entrants to the market. Six competitive offers were received at the close of the campaign, with the asset ultimately secured by an interstate investor.

The asset is situated adjacent to the Woolworths Gordonvale Shopping Centre and sits directly alongside a future McDonalds drive-thru, forming a key part of a growing retail hub in the region.

Mr Coburn noted this transaction highlights continued investor demand for assets in the Quick Service Restaurant (QSR) sector, especially those tenanted by A-Grade covenants like KFC.

“This asset attracted significant interest due to its rare 15-year net lease, strong depreciation benefits and its strategic location within a town centre precinct. It reaffirms the strong demand for brand new QSR investments that are regionally located from the private investor sector,” Mr Coburn said.

“Investor appetite for new QSR assets remains robust, driven by limited new supply, elevated construction costs, and interest rates trending in the downwards direction. We expect demand to remain strong throughout the remainder of 2025, with investors continuing to target high-quality assets secured by tier 1 covenants in strategic growth corridors,” Mr Coburn added.