Already a subscriber?Adrian Fonseca, the high-profile businessman and deputy chairman of AFL side the Giants, was a big winner from a commercial property auction in Sydney on Tuesday, after selling a McDonald’s restaurant in Newcastle, NSW, for $5.53 million on a record low yield of 3.25 per cent.in Sydney and then sold a luxury equestrian property in Terrey Hills for a suburb record of $14.1 million, looks to have the midas touch when it comes to commercial property as well.
“It’s a big block of a land next to a childcare centre, so you are not just getting the annuity-style income stream, but it’s also a land play,” he said.Mr Fonseca said the plan was to sell the neighbouring childcare centre at the Burgess Rawson May portfolio auction, with a leaseback to Oxanda.Also delighted with the result were Mr Fonseca’s development partners, the Isaac brothers.
“They are relatively immune from interest rate hikes, where 13 consecutive rate rises hasn’t moved the dial at all in terms of cap rate. Fast food in general has also performed well and continues to be the primary focus of Isaac Property.”Burgess Rawson’s Yosh Mendis, who marketed the property, said it was a record low yield for a McDonald’s and one of the lowest for fast food outlets.A low yield or return on an income-producing asset reflects strong demand and high property value.4.
A combined Taco Bell and Subway restaurant offering in Albion Park Rail, south of Wollongong, failed to sell, as did a Guzman Y Gomez in Tamworth, despite offering rental income of more than $240,000 and $260,000 respectively.Mr Mendis said he was confident both properties would sell soon, with post-auction negotiations under way.