THE rare and highly-desirable KFC investment in Muswellbrook sold under the hammer for $2.835 million on a 5.02 per cent yield at Burgess Rawson’s Flagship Portfolio Auction earlier this month.
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The 2024 square metre landholding, at 139-145 Maitland Street, boasts New England Highway exposure and is in a busy location adjoining the BP service station within minutes of the town’s CBD.
Burgess Rawson selling agent Rhys Parker said the high-profile asset on a ground lease attracted a number of bids on auction day.
“There was significant interest at the auction as local and interstate investors were eager to snap up their piece of Muswellbrook,” Mr Parker said.
“KFC needs no introduction.
“It’s a household name and the sought-after tenants are on a secure 15-year lease to 2025 with options to 2040.
“Returning a net income of $142,331 pa + GST from February 2019, there is also guaranteed rental growth in place through fixed 4 per cent annual rental increases, meaning this was a wonderful set and forget opportunity, which will continue as a KFC-tenanted site.”
