A Melbourne Hungry Jacks has set a record yield following a highly competitive Expressions of Interest campaign with local and international buyers.

The $6,200,000 sale price of 155-159 Millers Road, Altona North, translates to a record yield of 3.75 per cent for a Melbourne Hungry Jacks investment, based on the current income of $233,547 per annum.

There was more than 300 qualified enquiries and 15 offers received from from Melbourne, Sydney and Brisbane based investors, including nine bids from locally based international investors.

The property, which has seven years remaining on the lease and includes CPI increases, was offered for sale through CBRE’s David Minty, Nathan Mufale, Scott Hawthorne and JJ Heng.

Mr Heng said the sale to a Sydney-based investor left over $80,000,000 in unsatisfied capital and highlighted an ongoing investor hunt for yield driven by record low interest rates and a volatile share market.

“The depth of bidding highlights the current buyer appetite for blue chip investment properties. Fast food properties are generating particularly strong demand, given the relatively bullet-proof nature of this asset class,” he said.

“There is certainly greater scrutiny placed on retail investments as we navigate the pandemic, however, there remains a shortage of well-located properties available for sale amid an ongoing investor hunt for yield.

The listing comes as freehold KFC property on The Lakes Way at Forster is going up for auction as part of the Burgess Rawson Flagship Portfolio

Located on a 1975 square metre site opposite the Stockland Shopping Centre. including Woolworths, Coles and Hungry Jacks, the KFC restaurant is secured on a 10-year lease to June 2026, plus 5+5-year options to extend.

The recently refurbished store has internal/external seating and a drive-thru facility, with the listing claiming the site to be a “desirable sea change lifestyle location and popular holiday destination”.

It’s very low rental also allows for significant future rental growth.