A new purpose-built Hungry Jacks property north of Adelaide has sold at auction for $3.5 million on a sharp 5.4 per cent yield.
The property in the Playford Alive Town Centre has a building area of 184 square metres on a 1,971 square metre corner site.
Hungry Jacks fully occupies the property, which also includes on-site parking for 21 vehicles, on a 10-year lease with three further five-year options.
The property was sold at auction by Peter Isaksson and Rino Carpinelli of Savills South Australia on behalf of Adelaide-based developer GIC Australia Pty Ltd.
Mr Isaksson said the strong sale result to a local private investor demonstrates the strong interest in food-based retail investments in high growth population areas such as Playford Alive.
He said the property boasted all of the necessary features private investors sought in the retail property market.
“It is a brand new building with a modern design and high-profile corner position in an emerging town centre location in one of the fastest-growing areas in all of South Australia,” he said.
“It also provides the security of a long-term lease to one of the most well-known and popular food brands in Australia.”
Playford Alive, approximately 30 kilometres north of the Adelaide CBD, is one of Australia’s most significant urban renewal projects.
The 10-15 year project has a total value of more than $1 billion, encompasses 1,000 hectares of land and will eventually be home to a population of more than 40,000.
Located on the corner of Curtis Road and Grand Road, Munno Para, the new Hungry Jacks building is prominently positioned in the Playford Alive Town Centre alongside On the Run, McDonalds and a GP Super Clinic.
A future Woolworths Discount Department Store and Supermarket, a proposed retirement village and onsite training for university students, will also anchor this maturing commercial hub for the Playford Alive community.
The land to the immediate north of the property is also earmarked for future medium density residential development.
Mr Carpinelli said the Auction of the new Hungry Jacks property at Playford Alive was hotly contested by a range of buyers attracted to the prominent location and strength of a multi-national food tenant.
“There is very strong demand for these type of properties which provide a perfect bite-sized and secure investment for private buyers and Self Managed Super Funds,” he said.