Investors snap up KFC, Caltex on Pacific Hwy

TWO interstate investors beat a pack of hungry bidders and snapped up two travel centre assets south of Brisbane.

Developed by Brisbanebased Capital Transactions, a KFC and a Caltex service station at 34 Travel Centre off the Pacific Highway at Eagleby sold for $3.725 million and $12.5 million respectively under the hammer.

CBRE’s Darren Collins, who marketed the properties with Joe Tynan and Sergio Demetrio, said Capital Transactions showed “tremendous vision” by securing the 2.5ha site with highway frontage, which was formerly a caravan park, and repositioning it into a travel centre.

He said there was strong interest in both assets despite poor market sentiment.

Bought by a Perth-based private investor the standalone KFC on a 2385/sq m site has a 15-year net lease to Collins Foods. The sale realised a 4.44 per cent yield, which is believed to be a record yield for a KFC in Queensland.

It was the first stand-alone KFC in southeast Queensland to go through a full campaign in three years and attracted more than 200 inquiries, 14 registered bidders and more than 30 bids.

The Caltex, situated on a 1.141ha site with a 15-year lease in place, was purchased by a Melbourne couple on a 5.73 per cent yield.

It attracted more than 70 inquires and five bidders on the day.

The fourth stage of the development is scheduled to open in October and features drive-through Carl’s Junior and Zarraffa’s Coffee outlets.