Stonebridge Property Group has announced the sale of an El Jannah restaurant in Ferntree  Gully. This marks the successful sale of the only two El Jannah-leased assets presented to the Victorian market to date. 

The fast-food investment sold for $5,520,000, achieving a 5.34% yield. The property, leased to  the New South Wales-based quick-service restaurant (QSR) chain, is situated on a 1,600 sqm*  Industrial Zoned site. The sale price reflects building and land rates of $29,677* per square  metre and $3,450* per square metre respectively, significantly exceeding recent market  benchmarks. 

Commenting on the sale, Stonebridge National Portfolio Partner Rorey James said: “While the yield may be considered on the softer side, the building and land rates achieved are  more than double those recorded in the recent Red Rooster Ferntree Gully sale. This result  demonstrates the strength of the Victorian fast-food market.” 

The property was purchased by a first-time offshore Chinese investor, secured through  Stonebridge’s Asia Practice team. The buyer was particularly attracted to the asset’s long lease  term and fixed rental increases. 

Stonebridge Asia Practice Partner Kevin Tong commented on the transaction: “Following a competitive Expressions of Interest (EOI) campaign, the property was acquired by  an offshore Chinese investor sourced through our team’s international social media channels.  Our Asia Practice team has now facilitated the sale of the last four Victorian fast-food  investments, reflecting the ongoing demand from Asian capital for these assets—a trend we  expect will continue into 2025.” 

This sale adds to Stonebridge’s earlier transactions of high-profile fast-food assets, including El  Jannah Niddrie, Hungry Jack’s Bendigo, and KFC Chapel Street. 

Kevin Tong added: “Fast food remains one of the most resilient asset classes for investors. The tightly held nature of  the sector has kept the market buoyant, with yields and transaction volumes less impacted by  higher-for-longer interest rates compared to other sectors. Brands like El Jannah and GYG  continue to expand their networks aggressively, driving rental growth through their demand for  prime sites.” 

Throughout 2024, Stonebridge’s National Portfolio platform facilitated sales exceeding $600  million across nine different portfolios. With anticipated interest rate cuts and improving market  sentiment, there is strong confidence in increased activity within the real estate sector for 2025. 

Stonebridge’s February National Portfolio will launch on 28 January 2025, headlined by several fast food, childcare and retail investments. 

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