CBRE Australia reports close to $14 million worth of fast-food investments sold in three months

The interest in freestanding quick-service restaurant (QRS) investments has ramped up, with the sale of three fast food assets within the space of the last three months. 

In December 2023, Yanchep's McDonald's and KFC sold for $4.75 million and $4.52 million respectively, while Hungry Jacks Yanchep sold in February 2024 for $4.55 million. 

The fast-food outlets were purchased by WA private investors, with the exception of McDonald’s being purchased by McDonald’s Australia, an average yield of 4.31% was achieved across the three properties.  

CBRE’s Chloe Mason was involved in the sale of all three properties and says it is a positive sign that local investors are willing to compete with East Coast investors vying for premium offerings within the Perth market. 

“Investors are willing to pay a premium for brand new assets of this nature, underpinned by long-term leases which provide secure cashflows and added depreciation benefits,” Ms Mason said. 

“National Property Fund, FRP Capital who developed the Hungry Jacks and KFC have been instrumental in creating a thriving retail precinct in Yanchep, also adding a new Coles anchored Shopping Centre with 14 specialty tenancies as well a 7-Eleven service station.”  

“The wide-ranging buyer interest has highlighted the strengthening appeal of investing in the West with WA’s economic growth outperforming the rest of the nation, driven in large part by strength in the mining sector. We expect to see this continuing to strengthen throughout 2024, fueled by an influx of new buyers entering the market locally, nationally and globally.”