Hot Property: Investors swoop on Taco Bell and The Yiros Shop in Beenleigh; Compare Club expands to Brisbane CBD

Fast food millions, a major expansion to Brisbane’s CBD and high density plans for the city’s north – these are Qld’s hottest commercial property deals this week. WELCOME TO HOT PROPERTY

Investors scramble for fast food outlets, Compare Club expands with new CBD office space and rare high density development in Brisbane’s north – these are the hottest commercial property deals this week.

HIGH DEMAND FOR FAST FOOD OUTLETS

Two drive-through fast food outlets have been snapped up as quick-service restaurant investments remain one of the most highly sought after sectors for investors.

An offshore private investor, represented by Costello Group, paid $6m for Taco Bell and The Yiros Shop tenanted assets at 149 George St, Beenleigh, that was developed in 2020 by Enhanced Property Investments.

The Taco Bell and Yiros Shop at 149 George St, Beenleigh, has sold for $6m.

According to CoreLogic the vendor was Firefly Beenleigh Property which also recently sold a Hungry Jack’s next door for $5.12m for a 4.68 per cent yield.

CBRE’s Harrison Coburn, who also struck the Hungry Jack’s deal with Nick Kennedy, said the Taco Bell and The Yiros Shop had 10-year leases, with options to 2047 and 2050 respectively.

Mr Coburn said the campaign fielded 122 direct inquiries from local, interstate and international investors with eight formal competitive offers presented at the close of

the campaign. The sale price reflected a yield of 5.51 per cent.

“The pricing and yields achieved in this current environment reflect the depth of capital we are seeing in the market, more noticeably the uptick of groups reviewing opportunities based offshore, which is making up over 30 per cent of the total active buyer pool,” he said.

The property is on a 2596sqm site with direct frontage to George St and the buildings have a combined floor area of 366sqm. It is also next to BBC Chicken & Beer.

The asset has a combined net income of $331,000 a year plus GST.

Mr Coburn said there continued to be strong demand for quick service restaurant investments.

“They continue to remain highly sought-after in Queensland, which is evident through the consistent sale results being achieved, coupled with the constrained supply of future developments given the volatile construction industry,” he said.

TRIPLE EXPANSION INTO BRISBANE CBD

Personal finance comparison marketplace Compare Club has relocated to a new Brisbane CBD office more than three times larger than its previous premises.

Compare Club has signed a 3.5-year sublease for a 1503sqm fully fitted podium floor at Abacus Group’s 26-storey B-grade office tower at 324 Queen St.

The podium was previously occupied by German multinational financial services Allianz as a call centre.

CBRE’s’ Tom Theodore in the lobby at 324 Queen St in the Brisbane CBD.

Allianz is moving across the road to A-grade office tower at Central Plaza One into Suncorp’s former space on a 10-year lease. Suncorp relocated to Heritage Lanes at 80 Ann St in 2022.

CBRE’s Tom Theodore, who struck the deal, said Compare Club was previously in a 400sq m office on St Pauls Tce in Spring Hill.

“Compare Club was a health insurance broker and are now into a whole suite of different things,” he said,

“With the cost-of-living crisis impacting countless Australians, the Compare Club platform has been well received by customers, seeing staffing requirements grow exponentially.”

Mr Theodore refused to comment on the sublease details other than to say it was in line with current market face rental rates and incentives.

Brisbane CBD B-grade office rental rates are between $700/sqm and $800/sqm

The tower is on a prime corner of Queen and Creek streets and was extensively refurbished in 2016 including reconfigured ground floor lobby to provide high quality finishes as well as further refurbishment works to the lobby and End Of Trip facilities in 2018 and 2020.

Mr Theodore said with upcoming supply shortages, rental increases and increased competition for offices in Brisbane, running a represented process allowed Compare Club greater flexibility in securing the best deal available that matched their long-term growth objectives.

“This new location has the ease of access to Central Station and an abundance of food and beverage retail options which will benefit and attract Compare Club staff,” he said.

HIGH DENSITY PLANS IN CITY’S NORTH

A local private developer is planning a high density project after purchasing a rare large infill site in Brisbane’s northern suburbs.

Townhouse and apartment specialists Red & Co paid $5.85m for the 4018sqm site facing Theodore St, Lindley St and Webster Rd containing six houses, each with individual titles.

The property has development approvals for three apartment buildings with a total of 57 one, two and three-bedroom units or 25 three level townhouses.

CBRE’s Will Carman, who managed the managed the expressions of interest campaign with John Nucifora, said 155 inquiries were generated and eight formal offers.

Will Carman and John Nucifora at the development site in Stafford. Picture: Tertius Pickard

“The property presents a great infill development opportunity, with limited complications, which made it a competitive process,” he said.

“We had strong interest from local and interstate developers, as properties of this nature are seldomly available to the broader market.

“The new owners will do a minor change to the application and once they get that through council they will get on and start building it. In that location 4000sqm of land doesn’t come up very often and it’s the one thing that’s actually transacting at the moment in that development space.”

According to CoreLogic the properties at 1 and 5 Theodore St and 100-106 Wester Rd last changed hands in 2015 for $3.087m when they were purchased from the state government by Considered Property Pty Ltd.

Mr Carman said the vendor elected not to proceed with construction because of the surging costs of construction.

“Rising construction costs made it difficult, including anything higher density but developers were looking at projects in the suburbs,” he said.

Mr Nucifora said sites in the middle ring Brisbane suburbs continued to be sought by small to medium scale developers.

“The supply of new townhomes and houses remains extremely subdued,” he said.

FIRM’S SLICE OF $250M ‘ENTERTAINERY’

A growing Melbourne food and entertainment business has secured a large slice of the $250m Nicholas Street Precinct development in Ipswich, joining anchor tenant Hoyts Cinema and the Hotel Commonwealth.

Billed as an “entertainery”, General Public has secured almost 3000sqm of entertainment space – its fourth venue in Australia.

An artist's impression of the Nicholas Street precinct in Ipswich.

General Public chief executive and founder Harry Kourbeis said the company was excited to branch out from its southern base with a site in Ipswich.

“This will be a one-of-a-kind entertainment and eating option for Ipswich,” he said.

“We’re excited to be opening in the Nicholas Street Precinct. The region’s strong economic growth combined with the location, and the other businesses already in place, were all we needed to make the decision to expand from our Victorian base.”

Colliers retail leasing team Ishbel Jones, Chloe Lonergan, and Jack Thynne struck the deal which will see the venue offer state-of-the-art arcade games, a 14-lane bowling alley, golf simulators, electronic darts, pool tables, delicious food and fully licenced drink offerings.

Ms Jones said General Public will be a one-stop shop entertainment venue from the team behind Tunzafun.

“We’re witnessing a shift in the entertainment landscape, with a growing inclination towards physical activity. The inclusion of golf simulators is poised to draw a fresh wave of patrons to the precinct,” she said.

“The advent of General Public, expected to open later in 2024, will not only bolster the existing retail ecosystem but also entice a surge of new businesses to the precinct.”

Mr Thynne said General Public already has sites in Dingley, Frankston and Corio in Victoria and the Nicholas Street Precinct will be their first Queensland opening.

“Choosing Ipswich for their first Queensland venue shows the confidence in the rapidly growing Nicholas Street Precinct as the city’s leading entertainment and cultural destination,” he said.

“There is strong interest in the precinct due to the projected economic growth of the region, the nature of the offering, outdoor space and proximity to public transport, benefiting from connectivity to major train and bus networks.”

Originally published as Hot Property: Investors swoop on Taco Bell and The Yiros Shop in Beenleigh; Compare Club expands to Brisbane CBD