MEDIA RELEASE, 16 February 2023
Spectrum Retail Group has sold a fast-food investment in Orange, NSW for $6.3 million in an off-market deal brokered by Burgess Rawson’s Yosh Mendis.
Mr Mendis said that the property sold on a 3.81% yield showing that demand for fast food assets has remained strong due to continued strong turnover in the recession proof sector and secure long-term landlord friendly leases.
Located on the corner of 2-6 Bathurst Road, Mexican-inspired restaurant chain, Guzman Y Gomez occupies the property on a 20-year lease term with two ten-year options. The net annual rental is about $240,000 with rent reviews fixed at 3%.
Mr Mendis said the property was sold to a Sydney-based private investor.
Spectrum Retail Group completed the purpose-built project in December 2022, transforming an old car dealership into Orange’s first drive-through Guzman Y Gomez restaurant. The doors opened to the public in time for the holiday trade, and on the same day the site settled.
“We’re incredibly proud of this development which has been a transformative journey from identifying and securing this prime AAA corner property to building Orange’s first drive-through GYG, serving Central West NSW,” says Spectrum’s Managing Director, Julian Ackad.
“Pre-selling the asset during construction on a 3.81% yield shows the steadfast demand for high quality fast-food developments in prime locations with sought-after brands secured by long leases. This great result is possible due to these key factors, which Spectrum Retail Group ensures are the foundation for every project.”
“Another component of this successful sale is our strong partnership with Yosh Mendis and Burgess Rawson. Having the support of an industry leader such as Burgess Rawson, and the backing of Mr Mendis’s extensive network of owners and purchasers and knowledge of the quick-service restaurant (QSR) and convenience retail space, is formidable.
According to their website, GYG is an Australian success story having opened its first outlet in Newtown in 2006 to now operate over 170 restaurants across Australia, Singapore, Japan and the United States.
--ENDS--
For media enquiries, please contact: media@spectrumretail.com.au | +61 2 9046 8900 |
Comments