Drive-throughs delight as Geelong fast food outlets hit the market
Some of Australia’s biggest fast food brands are offering substantial incomes at a string of Geelong sites with leases lasting up to 50 years. See what’s on the menu.
The strength of Australia’s biggest fast-food brands to fatten the wallets of property owners is underlined in a string of Geelong sites on the market with leases lasting up to 50 years.
KFC, Hungry Jack’s, Guzman Y Gomez and Starbucks joined 7-Eleven to sign on to healthy new, long-term leases on sites at Grovedale and Ocean Grove, generating a combined net income of more than $1.3m a year, plus GST.
The properties could realise more than $20m combined, based on indicative price ranges.
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Four properties at Waurn Ponds Village Grovedale and two at Ocean Grove, including on leased to The Reject Shop, are on the market as tenanted investments, having recently been completed for their tenants.
Some of the outlets have been operating for a matter of weeks before the developer has put the properties up for sale.
They offer annual net incomes between $115,000 to $425,000, with fixed 3 per cent annual increases.
While The Reject Shop is on the shortest lease at 6.25 years, the five other outlets have signed on for between 10 and 20 year leases, with options taking their occupancy to between 2055 and 2075.
KFC, through the Hosking Group, has the cheapest net lease at $115,000 a year, but it’s a sought after and rarely offered “ground lease” structure where the tenant retains ownership of improvements and responsibility for all outgoings, including all structural repairs, maintenance and replacement plus land tax.
The properties are at 1 Enterprise Way, Grovedale and 6-10 Activity Drive, Ocean Grove, part of that town’s Kingston Village shopping centre off Grubb Rd.
Starbucks and KFC will be offered for auction on May 21.
Expressions of interest on The Reject Shop Ocean Grove closes on May 21, while campaigns for 7-Eleven and Guzman Y Gomez close May 22 and on May 29 for Hungry Jack’s Ocean Grove closes on May 29.
Underpinning the interest is the region’s position as the fastest growing regional city in Victoria, with 47 per cent growth forecast to 20-46
Stonebridge agents Tom Moreland, Kevin Tong, Michael Collins and Rorey James are handling the exclusive campaigns for the Waurn Ponds Village properties, and Mr Tong and Max Sinclair are acting in conjunction with Myles Snow and Lou Montalti from CRS Commercial for the Ocean Grove sites.
Originally published as Drive-throughs delight as Geelong fast food outlets hit the market