A Sydney based investor has paid a record yield of 3.75% for a Hungry Jacks in Melbourne inner west as private investors continue their hunt for yield amid locked-in record low interest rates and a volatile share market. CBRE David Minty, Nathan Mufale, Scott Hawthorne and JJ Heng undertook the campaign.

Leasing to Hungry Jacks with 7 years remaining, the offering at 155-159 Millers Road, Altona North returned $233,547 per annum with CPI increases.

CBRE’s David Minty, Nathan Mufale, Scott Hawthorne and JJ Heng undertook the campaign.

The Expressions of Interest campaign generated over 300 qualified enquiries and a staggering 15 offers representing over $80,000,000 in unsatisfied capital.

Offers were generated from aggressive Melbourne, Sydney and Brisbane based investors as well as 9 bids received from locally based international investors.

The sale price of $6,200,000 reflects a record yield paid for a Hungry Jacks investment at 3.75%.

“The depth of bidding is reflective of the current buyer appetite for blue chip investments at present. In particular fast-food assets with food seen as a bullet proof asset class not easily displaced by market disruptors.” JJ Heng stated.

“To receive a total of 8 offers from locally based international investors highlights the current depth in the market from this buyer profile at present.” JJ Heng continued.

“There is certainly greater scrutiny placed on retail investments in the post-COVID-19 market, however, there still remains a shortage of well-located properties on the market as investor’s hunt for yield continues.” Scott Hawthorne continued.

The sale follows CBRE’s transactions of the newly constructed 7-Eleven Doreen service station which transacted to a local investor in May following a competitive on market campaign. As well as two further transactions within Melbourne developer Caydons Mason Square development including Mr Majestic Café and the Removery both achieving strong low 4% yields.

To request a sales analysis please email the CBRE selling agents via the below contact forms.