Written by Lisa Davis, Property Review Weekly
Burgess Rawson’s Raoul Holderhead is currently marketing a fast food restaurant at Murray Bridge, in South Australia.
The property, located at 20-22 Adelaide Road, will be offered by the agency in its next Portfolio Auction at Crown Casino on Wednesday 15 April from 11am.
Opened 10 years ago, the investment has a new 15-year lease plus options through to 2040 on a current net rental of $119,000 per annum, subject to annual CPI increases. The circa 1610-square-metre site is in a prime position in the town’s heart, close to McDonalds and KFC, opposite a Woolworths supermarket and a Target store. It is expected to sell for a little over $1.6 million, reflecting a yield of around 7.5 per cent.
“Red Rooster committing to a new 15-year lease is a testament to the success of the restaurant outlet and the tenant’s intention to protect its business,” Holderhead said.
“Compared to the Hungry Jack’s Taree NSW, sold by Burgess Rawson in February for $2 million on a 4.97 per cent yield, and the Hungry Jack’s in Mentone that sold last month for $2,560,000, on a 6.3 per cent yield, the Murray Bridge Red Rooster is certainly an affordable and high-yielding investment opportunity.”