Freestanding Red Rooster for sale, with exceptional scope to add value

8 July 2024

Savills Australia and New Zealand has been exclusively appointed to sell a high-performing, freestanding Red Rooster in Strathmore, located 9km north of Melbourne’s CBD. This property is being offered for sale for the first time in 40 years.

Situated at 504 Pascoe Vale Road, Strathmore, a major thoroughfare with a daily traffic count of 19,000 vehicles, the property features a single-tenant lease to one of Australia’s most recognised national brands, Red Rooster. The current lease has two years remaining, with an additional five-year option, and generates a current rent of $188,360 per annum.

The offering is expected to attract both passive investors and developers, presenting a unique opportunity to leverage this 4,161 square metre site for further QSR/Service Station/Car Wash uses or future mixed-use development, including residential, office, and retail.

Rick Silberman, Director of Retail Investments at Savills Australia and New Zealand, explains, “Red Rooster Pascoe Vale offers enormous potential to add value. We have received written expressions of interest from several major national retailers looking to co- locate and secure a restaurant and service station/carwash next to Red Rooster, which the site can easily accommodate.

“This property will appeal to a wide range of buyers, whether as a reliable income-producing investment, future owner-occupiers, or as a longer-term development proposition,” he concluded.

The site in its current configuration is substantially underutilised. The property has extremely low site coverage, and therefore, this significant 4,161 square metre landholding with corner position, favourable planning controls, and the increasing high-density development in the surrounding area is expected to appeal to developers.

Strathmore has evolved into a thriving inner metropolitan suburb of Melbourne. Nestled between Essendon and Moonee Ponds, Strathmore offers abundant lifestyle amenity, schools, green space, and excellent public transport services, making commuting to the CBD seamless.

Stephen Bolton, Director of Retail Investments at Savills Australia and New Zealand stated, “Red Rooster Strathmore is one of the few inner-metro fast-food investments offered to market in Victoria this year, highlighting the scarcity of this defensive and blue-chip asset class.

“The property, located close to Melbourne’s CBD, with excellent exposure to passing traffic and immediate proximity to major arterials, transport, schools, and shopping offers true versatility to any purchaser or developer looking for an inner-city investment or significant landholding. We also anticipate prospective investors will be attracted to the rental growth prospects of annual CPI escalations and potential rental reversion.”

Red Rooster has a rich history of success in Australia, dating back to 1972. Since opening its first restaurant in Kelmscott, Western Australia, 52 years ago, the quick service restaurant (QSR) chain has grown to become Australia’s largest roast chicken restaurants with 370 stores nationwide.

Red Rooster Strathmore is being offered for sale by Expressions of Interest (EOI), closing at 2 pm AEST on Wednesday, 31 July 2024.