Bundaberg has been described as a “rapidly growing economy” in documents promoting the auction of the new East Bundaberg KFC restaurant.
The restaurant, which is Bundaberg’s third KFC, has proved popular since its July opening, with drive-through queues already a common sight.
As part of the sale, the successful bidder will secure a 15-year net lease to the ASX-listed fast-food giant Collins Foods which has more than 200 KFC restaurants throughout Australia.
An investment memorandum has been released detailing the benefits of purchasing the building within a “rapidly growing economy” not the least of which being a $182,530 net annual income.
“The location of KFC Bundaberg East was sourced for a requirement from Collins Restaurants who required a site in the Bundaberg region to satisfy demand and relieve congestion at their only other local drive-through site in Bundaberg,” the memorandum states.
“Local reviews believe there were 30-40 minute wait times and occasionally ran out of chicken!
“KFC have requested particular requirements in preparation for high levels of trade including 40 car bays plus a 13-stack drive-through lane.”
Other building features include KFC’s new ‘white box’ design and the famous KFC illuminated bucket.
Selling agent and CBRE Associate Director Darren Collins said the site was always intended to be sold after completion.
“The site was originally sourced by Brisbane developers RDF Developments who worked in with KFC on their local requirement for a new restaurant in Bundaberg,” Mr Collins said.
Set to be auctioned in Richmond on October 10, he said he expected a high level of interest in the property which represented an attractive investment opportunity.
“We have seen a consistent patter of private investors successfully acquiring these risk-averse passive investments,” he said.
“It’s a safe and low maintenance asset class that provides attractive returns to parties who are frustrated by having cash achieving minimal returns due to record low interest returns from term deposits.
“They can leverage off these record low rates to secure cheap debt on attractive terms for a boutique blue chip asset like this.”
Mr Collins said Bundaberg was a good area to invest.
“Bundaberg has a strong diversified economy that continues to grow.
“Bundaberg is a highly recognised brand name which has been fuelled by iconic brands such as Bundaberg Sugar, Bundaberg Rum and Bundaberg Drinks to name a few.”
Collins Food Group reportedly spent “a number of years” sourcing the ideal site for what has become a “rare” investment opportunity.
“The property has been designed to capture Bargara Road’s high level of traffic which provides direct access to 14,063 vehicles per day … which will ensure its success as a dominant food destination along this high traffic arterial road.”
KFC Bundaberg is being offered for sale in the CBRE Premium Property Portfolio X to be held at the Zagame Ferrari Automotive head office level 1, 430 Swan Street, Richmond on Thursday, 10 October 2019 from 6 pm.
To obtain more information on this investment opportunity contact Mr Collins on 0404 781 787 or darren.collins@cbre.com.au.
- Other news: Hungry Jacks is also proposing to build a restaurant in the East Bundaberg area.
