Written by Navarone Farrell, Geelong Advertiser
With mum-and-dad investors on the rise, commercial rather than residential real estate investments are becoming popular, and some of the most profitable are fast-food franchises.
Fast food is hot property in Geelong, with several opportunities for commercial investors to sink their teeth into.
The freehold at 1/63 Bellarine Highway, Newcomb, which contains a Pizza Hut outlet, will go under the hammer through Burgess Rawson at the end of the month, with an estimated price range of $450,000-$500,000.
The bricks and mortar of the 20-year-old business is a solid investment, according to selling agent Scott Meighan. “This offering has been in the family for a number of years and it’s about time for them to get out — it’s a pretty good time considering the commercial moment,” he said.
“People are taking their money out of the banks and putting it into bricks and mortar because it’s a better investment.”
Mr Meighan believes the rise of home delivery-style takeaways will continue, and the low-maintenance freehold, offering little in the way of upkeep, will be a solid investment for the right investor.
Investors could watch their dough rise with an estimated 7.5 to 8 per cent yield, Mr Meighan said. “It’s right on the corner of that development so you’ve got that exposure to the Bellarine Highway and according to VicRoads that’s about 22,000 cars that drive past every day,” he said.
“You’re among a mini food precinct there. There’s a few fresh-food outlets, the Subway adjacent, and it’s right on the corner of Coppards Road, where you have McDonald’s, KFC and 7-Eleven across the road — they’re all complementary tenants.”
The building is leased to the Pizza Hut franchise for $36,265 per annum with the tenants paying outgoings on the 96 sqm premises, with very few ongoing maintenance costs. Mr Meighan is tipping small-time investors for the property when it goes under the hammer, though he would not be surprised if a bigger concern snapped it up.
“I’m probably going to tip a self-managed super fund, or mum-and-dad investors — are they going to be Geelong locals? Maybe,” he said. The property goes under the hammer on June 29 at 11am in the River Room at Melbourne’s Crown Casino.
Meanwhile, Nichols Crowder’s expressions of interest campaign on the five-in-one fast-food investment at 138 Colac Rd, Highton, pictured below left, has been completed, affixing the 4545 sqm property with a $3.1 million price tag. The shops are tenanted by Subway, Tasty Rooster, Bubba Pizza, 24 Hour Kebabs and Deccan Indian Kitchen.
The complex nets $208,127 per annum, with the five shops to be sold as one with varying lease terms and options providing flexibility. The block has a 71m frontage in a prime position, according to Nichols Crowder agent Matt Nichols.
“This specific location in Waurn Ponds is where everyone stops. Whether the consumer is looking for takeaway food, petrol, a car wash, supermarket, medical needs and full shopping facilities, this is the ideal retail location,” he said.