An investment freehold in Adelaide’s Everard Park, currently comprising a KFC, enjoyed a successful auction last month, reaching a favourable settlement of $3.175 million with a yield of 3.02%.
CBRE Selling Agent Harry Einarson said that the result “highlights the positivity we have seen in the South Australian commercial property sector over the past 18 months.
“With stamp duty concessions attracting interstate investors and a steady flow of positive economic stories, it looks like we are set for a big year in 2019.”
The property holds address at 16 Anzac Highway, and retains a lease to Festival State Foods Pty Ltd, trading as KFC.
The campaign garnered high levels of enquiry from both South Australia and the eastern seaboard states. At the time of auction, there were 10 registered bidders and strong competition through the proceedings, translating to 25 total bids with the final successful bid going to a private local investor.
Mitch Curnow, CBRE colleague to Mr Einarson and contributing agent for the sale, noted that the successful purchaser was drawn to the property by the strength of the retail brand and the underlying long term development potential.
“We hadn’t seen a fast food asset hit the market since the Marden KFC in 2015 and this was a big selling point for the purchaser,” Mr Curnow said.
“The lucky investor understood the long-term value of the location and the recent rezoning, allowing them to pay such a sharp yield.”
*image supplied CBRE