A prominent freestanding Hungry Jack’s on a major arterial Nepean Highway has sold for $4 million following a highly competitive Expressions of Interest campaign in the coveted bayside suburb of Mentone, 21km south-east of Melbourne’s Central Business District.
Hungry Jack’s Mentone represents the first freestanding fast-food investment to trade in Victoria in 2024, and given the strong interest received, serves as a good barometer for general market sentiment, signalling renewed confidence in the retail investment market.
The sale follows closely on the heels of Savills Retail Investments' recent sales of KFC Niddrie and KFC Thornbury, both of which achieved sub-3.00% yields, highlighting the continued appeal of Quick Service Restaurants (QSR) and fast-food investments as a highly sought-after category for investors.
The property was offered with a renewed 5-year lease plus additional options to an established operator. The Hungry Jacks is situated on 1,354 square metres of Commercial 1 Land, which also lends itself to future development opportunities as a longer-term proposition.
Savills Retail Investments Director Rick Silberman explains, “We are continuing to see vigorous demand for fast-food investments in the retail space, which is translating to strong results for vendors.”
Savills Retail Investments Director Stephen Bolton says, “We are seeing a notable shortage of quality stock currently on the market at present. This is driving a lot of pent-up demand from private investors, most especially in the sub-$10m range.”
