Located on the high exposure corner of St Georges Road and Normanby Avenue, which carries a combined 25,200 vehicles daily, the property at 379-381 St. Georges Road in Thornbury comprises a highly attractive single-tenanted net lease to one of Australia’s most recognised national brands, KFC.
The lease at KFC Thornbury has been renewed for what is the tenant’s last option period, committing to a further five-year term expiring 11 November 2028 at an estimated net rent of $156,763 per annum. The offering is expected to appeal to both passive investors and developers, presenting a unique opportunity to develop the site’s capabilities delivering a future mixed-use development with scope for residential, office and/or retail.
Rick Silberman, Director of Retail Investments at Savills said, “KFC Thornbury represents enormous potential for a purchaser, regardless of their specific requirements. This will suit a wide range of buyers – those looking for an income-producing, reliable investment, future owner-occupiers or those seeking a longer-term development proposition following the expiry of the current lease.
“Given the low site coverage of the existing improvements, the large size of the site, its corner position, favourable planning controls and increasing levels of high-density development within the surrounding area, the appeal to developers will no doubt be significant.”
Thornbury has evolved into one of the most popular suburbs in Melbourne. The thriving inner-city suburb wedged between Northcote and Preston in metropolitan Melbourne offers an abundance of green space and a majority of low-density housing. The area is well-serviced by public transport with several bus routes, arterial tram lines and a suburban train network.
Stephen Bolton, Director of Retail Investments at Savills, said, “KFC Thornbury represents the first city fringe fast-food investment offered to the market in Victoria this year, highlighting how tightly held and scarce this asset class has become, particularly post-COVID.
“Being a stone’s throw from the Melbourne CBD, a corner location providing the flexibility of Commercial 1 zoning and surrounded by all major amenities including public transport, schools, shopping centres and medical facilities, provides long to medium term scope and versatility for an investor or developer looking for an inner-city investment and, or, landholding. Press Release
KFC Thornbury is being offered for sale by Expressions of Interest (EOI) closing at 3 pm AEDT on Wednesday 25 October 2023.
