A private investor has paid $5.575 million for a KFC in Blakeview, South Australia reflecting a sharp 4.0  per cent return. The transaction was negotiated by Burgess Rawson’s Beau Coulter. 

Located at 14 Village Terrace, the property generates an income of $223,000 net per annum with 3.0  per cent annual increases and a secure 10-year lease with two 10-year options. 

Developed by Leyton Property’s Hamish Brown and Will Brown, the property was completed late last  year and sits strategically opposite Blakes Crossing Shopping Centre, which features a Woolworths  Supermarket and 14 specialty shops. 

Mr Coulter said the result underscores the strength of a global brand, with KFC remaining a premier  tenant for commercial investors due to its strong lease structures, high consumer demand, and  recession-resistant performance. 

“Fast food investments continue to be among the most sought-after assets in 2024, with this latest  transaction reinforcing the sector’s strength. 

“Over the past year, we’ve seen record-low yields achieved for fast food assets, reaffirming their  position as some of the most coveted investments in the market.” 

Related readings

Burgess Rawson agent transacts over $18million with 2 convenience retail sales

Burgess Rawson’s final Portfolio Auction Event for 2024 reaps almost $90million