TASTY SALE TO BUYER
A BLOCK of land that’s home to three Townsville fast-food mainstays has sold at auction for $4.71m in Brisbane.
The site in Currajong, home to Red Rooster, Pizza Hut and Kalidad Kebabs, went up for auction on Thursday and is part of a wider turn back to commercial property investment, according to Burgess Rawson partner Campbell Bowers.
“The $4.7m is a really good result,” Mr Bowers said.
“What we’ve always found is that in times where there’s a bit of uncertainty about, people view commercial property as a bit of a safe haven.”
The three-restaraunt block, located on Woolcock St, was described as having 70,000 vehicles pass daily in an auction listing before the sale. The property has recently had all three tenants sign on to long-term leases that will see Pizza Hut and Kalidad Kebabs stay until at least 2027.
“Red Rooster has actually just signed a new 10-year lease in that spot,” Mr Bowers said.
“The buyer is an interstate private investor. They’re looking at this as a long-term passive investment.”
The property generates $231,280 in rent annually with “set-and-forget” net leases leaving the tenants responsible for all usual outgoing expenses such as rates, repairs and maintenance.
The sale of the 2002sq m property was hard to put into perspective, as it’s not normal for multiple fast-food properties to sell together, but Mr Bowers said the total price was a strong result for a rebounding sector.
“The thing it’s closest to would be the Taco Bell that we sold nearby, but that was obviously a brand-new building constructed and was a head company leasing it rather than franchisees that we have with these three businesses.”
The site was first constructed in 2006 and has remained occupied throughout that 16-year history.