Yanchep fast food outlets in $14m sale

A McDonald’s, Hungry Jack’s and a KFC in Yanchep have all sold for a combined $13.8 million in the space of three months, reflecting a strong interest in fast food outlets.

Adelaide-based investment group FRP Capital sold the three assets to three separate entities for an average yield of 4.31 per cent.

McDonald’s Australia purchased the McDonald's building for $4.75 million, on a 3.91 per cent yield.

The asset, which has a 20-year ground lease to September 2034 plus three 10-year options to 2064, comprises of a 489 square metre building on a 2,676sqm site.

Burgess Rawson and CBRE negotiated the deal.

Burgess Rawson WA managing director Chris Wiese commented on the rarity of fast-food outlets transacting.

“We rarely see McDonald's [outlets] come to the market, but when we do we generally see huge demand. For this campaign we fielded over 240 enquires and had twenty registered bidders,” he said.

“The Burgess Rawson national auction platform continues to deliver superior results for our clients.

“Our clients are able to leverage our extensive reach and the detailed understanding our skilled selling and leasing agents have of the market.”

Yanchep Hungry Jack's sold for $4.55 million to a local investor, with CBRE and Burgess Rawson also on that deal.

CBRE brokered the deal for the KFC, which sold to a local private investor for $4.52 million.

CBRE’s Chloe Mason said the transactions were a positive sign local investors were 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 cash flows and added depreciation benefits,” she said.

“National Property Fund, FRP Capital who developed the Hungry Jack's 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 as a  7-Eleven service station.”

She added that the wide-ranging buyer interest had highlighted the strengthening appeal of investing in Western Australia, given its strong economic conditions.  

“We expect to see this [interest] continuing to strengthen throughout 2024, fuelled by an influx of new buyers entering the market locally, nationally and globally,” she said.

All three outlets are located at Peony Boulevard in Yanchep.