Whopper of a sale for Hungry Jacks site
THE BUYERS were out for a whopper of a sale, when the Hungry Jacks site at South Grafton selling at auction.
The property went under the hammer at Burgess Rawson's Flagship July Portfolio Auction for an impressive $2.8 million on a yield of 5.44%.
Burgess Rawson Director and selling agent Pat Kelly said the property attracted competitive bidding at auction, no doubt driven by its prominent location, strong global brand tenant and popular asset class.
"This property really is a rare commercial property gem, and with investor demand for fast food assets far outstripping supply and driving a market upswing, this property's strong sale was far from surprising," Mr Kelly said.
"Considering the property's high-profile tenant, attractive 3% annual rent increases, and significant depreciation benefits, the new investor will no doubt be celebrating this win," he said.
Mr Kelly said key regional locations are also proving to be commercial property hot-spots in recent months, attracting an array of investor interest nationally.
"Investors are increasingly looking outside the big smoke for their investment purchases, now often considering assets in strong regional locations like Grafton as prime commercial investment candidates to add to their portfolio," Mr Kelly said.
The Hungry Jacks property boasts a long 16-year lease to 2024, with options extending to 2039 and provides a net income of $152,303 pa + GST, positioning the site as a promising, long-term trophy investment.