Forster KFC site sells for $2.83m
The KFC restaurant at Forster was named the “hero sale of the day” when commercial property investment specialists Burgess Rawson Sydney conducted its 145th Flagship Portfolio auction.
The fast food and beverage tenanted asset received more than 350 enquires and 100 contract requests prior to auction and was fiercely bid on during the auction with the buyer snapping up the property for $2,830,000 on an extremely low yield of 2.93 per cent.
“Fast food and regional assets are highly sought-after right now, so it was no surprise that the Forster KFC site was enquired heavily, however receiving over 100 contract requests is unheard of,” selling agent Rhys Parker said.
Overall 16 properties out of 21 sold under the hammer, with the St George at Bega being snapped up prior to auction and a further four properties currently under negotiation.
According to Burgess Rawson NSW, selling agent Dean Venturato, interest in the fast food assets is historically strong, but COVID has added to their appeal as a solid investment opportunities.
“Interest in food and beverage assets is always high, the ‘essential service’ nature of convenient retail and fast food has resulted in significant price growth and capital gain across this sector over the past 12 months,” Mr Venturato said.
Mr Parker said the Forster KFC received a record 200 per cent increase in enquiries, from both experienced and green investors across Australia and overseas.