Strong Investor Appetite for Sydney Fast Food as Hungry Jack’s Trades to Private Investor for $7.4M

Stonebridge has negotiated the $7,400,000 sale of the Hungry Jack’s leased asset at 4/1 Renshaw Street, Cranebrook, to a private investor, on a net yield of 4.39%, as investor demand continues to build for blue-chip fast-food assets.

The brand new, state-of-the-art drive-thru asset sits on a 1,780sqm* site and is purpose-built to Hungry Jack’s latest dual-lane drive-thru format, with 13 car parks and 295sqm* of building area. The property is secured by a brand new 10-year net lease to 2036, with options to 2056 and fixed 3% annual rent increases, returning a net income of $325,000 per annum* plus GST, with the tenant responsible for all usual outgoings including land tax. The asset services a catchment of more than 32,000* residents, and forms part of a retail precinct alongside KFC, El Jannah and Guzman y Gomez.

Michael Collins, Partner at Stonebridge, said: “The transaction reinforces continued investor demand for blue-chip fast-food investments, with buyers placing significant value on the 10-year lease and fixed income growth. Brand new freehold opportunities of this calibre rarely come to market in Sydney, and we expect that scarcity to keep driving demand for fast food properties of this nature.”

Aike Sakeson, Executive at Stonebridge, added: “Cranebrook sits at the heart of one of Sydney’s fastest growing corridors, backed by more than $11.5 billion in committed infrastructure investment, including the new Western Sydney International Airport and Aerotropolis, with the region’s population forecast to reach 3 million by 2036. Assets anchored by national fast-food brands in these locations are increasingly sought after, and we expect that trend to continue as investors chase secure, growing income in Sydney’s growth areas, amongst other key growth areas across the country.”

The sale, brokered by Stonebridge’s Michael Collins, Tom Moreland, Aike Sakeson, Rory Alexander and Brett O’Neill, marks the team’s 20^th fast food transaction in the past 12 months, encompassing over $102M in value for developers, institutions and private investors they represent. Recent results include a record-breaking auction for McDonald’s Glendale at $12,645,000, and a KFC in Melbourne’s Burwood trading at a 3.34% yield, alongside the sale of premium retail assets leased to household name tenants Guzman y Gomez, Starbucks, Red Rooster and more.