705 Grand Junction Road, Northfield
At a time of volatility in other markets, investors continue to seek the safety of quality fast food, or quick-service restaurant (QSR) commercial real estate investments.
In the latest deal, McGees Property’s Andrew Wilson and Philip Joncheff negotiated the off-market sale of the KFC at 705 Grand Junction Road, Northfield.
The $4.9 million sale price showed a tight 4% yield.
“We’re seeing pretty volatile residential and share market conditions, and investors are continuing to seek the safety of commercial real estate assets with quality leases,” Wilson said.
“This particular asset offered a secure 15-year lease with multiple options to one of the QSR market’s dominant players.”
“Fast food continues to be one of the best-performing asset classes in South Australia and across the country, having proven to be ultra-resilient over the past several years.
“This deal sets the pace for the fast food asset class in the early running of 2025.”
The local private purchaser was sourced exclusively from McGees Property’s network of investors, Joncheff said, and had been seeking off-market opportunities for some time.
“This deal is another example of McGees Property being able to utilise our network and database of contacts and negotiate a strong outcome for our client,” he said.
Joncheff said the purchaser was also attracted to the property’s high exposure to traffic on Grand Junction Road, close to the T-intersection of Hampstead Road; its location just nine kilometres from the CBD; and proximity to the significant Oakden Rise residential development by Villawood, which will boost the local catchment and underpin the asset’s trade prospects.
Wilson and Joncheff managed the sale on behalf of vendor and developer Bella Build and Design.
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