Three Brisbane Red Rooster sites gobbled up for $6.6 million

Three Red Rooster sites in Brisbane have been sold to private investors for a total of more than $6.6 million, with the freestanding drive-through sites attracting interest in the formal tender process.

Savills Retail Investment Sales’ Peter Tyson and Michael Harcourt took the sites to market, located in Cannon Hill, Deagon and Kelvin Grove (pictured above), which have sold for $2.5 million, just under $2 million and $2.2 million respectively.

Deagon’s Red Rooster is under contract, although not yet settled. Yields are around 5%.

Tyson said interest in the sites was strong, with a total of 230 enquiries, 65 contracts distributed and 18 formal tenders received. They are cash deals.

“Auction clearance rates in Queensland are currently lower than in the southern states. The formal tender process requires buyers to submit unconditional bids within a private forum whilst maintaining the competitive tension of an auction,” he said.

Harcourt said that the security of prime retail investments, anchored by a well-known fast food brand, was attractive to investors.

He also said that the success comes from their high profile locations, and said that the freestanding retail food sector is strong.

“These are ideal investments for private investors and Self-Managed Superannuation Funds given their prominent locations and strong lease covenants to major national retail groups,” he said.

“Demand for these types of properties is running hot among private investors as they offer strong investment fundamentals at attractive entry level prices and ease of management.”