Three New Fast Food Outlets in St Albans Listed for Sale Including Rare McDonald’s

Three newly built retail investments, leased to McDonald’s, El Jannah and Starbucks, are now for sale as standalone assets within Vernacular Property’s newly completed $48 million mixed-use development in St Albans.

Listed through Burgess Rawson’s Jamie Perlinger, the properties are expected to attract strong interest from investors seeking secure, high-profile tenants.

Mr Perlinger said this listing marks the first time since 2015 that a McDonald’s ground lease in Victoria has been offered to the market.

The McDonald’s asset features a 20-year ground lease to 2045 with options, fixed 3% compounding annual rent increases, and a triple net lease structure. (McDonald’s leases the land but owns the building). The state-of-the-art restaurant benefits from exposure to approximately 252,000 vehicles passing weekly and has an estimated net annual income of $175,000.

Starbucks holds a 12-year net lease to 2037 plus options to 2057, with fixed 3% annual rent increases. The 330sqm fast food facility is set on a 1,546sqm site and includes drive-thru and onsite parking and has a net income of $251,000 per annum.

El Jannah has a 20-year lease to 2045 plus options to 2075, with 3% annual rent increases. The 210sqm fast food restaurant features a major tenant-funded fit-out and dual lane drive-thru and delivers an estimated net income of $371,000 per annum.

Mr Perlinger added that the precinct’s excellent exposure and accessibility, close to major ring roads and transport links, ensure strong foot traffic and convenience.

“These factors combine with resilient tenant covenants and structural growth drivers to enhance the assets’ investment appeal.”

St Albans, located about 17 km north-west of Melbourne’s CBD in the City of Brimbank, is a well- established residential and commercial area. Its population is forecast to grow by over 27% to nearly 48,000 by 2046.

The suburb benefits from excellent transport links, including the St Albans railway station on the Sunbury Line with direct access to the CBD, and close proximity to the Western Ring Road, which sees heavy daily traffic. Significant infrastructure projects, such as the Melbourne Airport Rail and the upgrade of nearby Sunshine Station into a major transport hub, will further improve connectivity.

St Albans also offers key local amenities, including Sunshine Hospital, Victoria University, and 17 schools serving more than 6,000 full-time students within a 3 km radius, making it attractive to families, students, and professionals.

The assets will be auctioned separately at Burgess Rawson’s next Portfolio Auction event at Crown Casino, Melbourne, on June 25, 2025.