Building leased to popular fast food chain will be sold to highest bidder

An auction date has been set for the sale of a building leased to a popular hot food chain

The Guzman y Gomez building at 5 Pine Street, North Ipswich, is set to go under the hammer on April 29.

AN opportunity to cash in on a popular food chain specialising in Mexican-inspired treats has arisen for investors looking to spend up big in Ipswich.

The Guzman y Gomez building at North Ipswich is set to go under the hammer in late April, just over a year since it underwent a massive renovation.

In February 2020, the property at 5 Pine St was transformed from a Brodies Chicken and Burgers into the Mexican-inspired fast food chain, complete with a drive-through.

The Guzman y Gomez building at 5 Pine Street, North Ipswich, is set to go under the hammer on April 29.

Leased by Australian chain best known as GYG, Cushman and Wakefield real estate agent Michael Collins said the building was already bringing in a positive cash flow for its current owner.

“The building was bought by a developer, who has then renovated and re-positioned the building,” Mr Collins said.

“Their business is buying these sorts of properties, refurbishing them and then repositioning them, leasing them out and selling them off.”

The property is already leased for 10 years, which is able to be extended for up to another 30 years.

“The rental income the property generates will go up by 3.5 per cent every year,” Mr Collins said.

He said the property would be popular due to the resilience of the fast food industry during Covid.

The Guzman y Gomez building at 5 Pine Street, North Ipswich, is set to go under the hammer on April 29.

“Most fast food operators have seen increases in their turnover,” he said.

“Particularly drive-throughs have become very popular during Covid.”

Mr Collins said, while the auction reserve was confidential, $4M was in the ballpark.

“It’s our price guide, you could say,” he said.

“The likely buyer will be a high net worth individual looking for a passive investment with a long-term lease.”
The auction will take place at 12pm, April 29 at Doltone House Hyde Park in Sydney.

Read more news by Ebony Graveur.

Originally published as Building leased to popular fast food chain will be sold to highest bidder