A Sydney based high net worth private investor has acquired a freehold site leased to Guzman Y Gomez ‘sight unseen’. The property, located in the Queensland suburb of North Ipswich, sold for $4,050,000 which represented a low yield of 4.47%.
The 1,610 sqm site is located in Ipswich’s major retail precinct enjoying strong exposure to dual street frontage and dual street access. The property, set on a 1,610 sqm site was fully refurbished in 2020, presenting ‘as-new’.
The property is secured by a Head Company lease to Guzman Y Gomez for 10 years to 2030 with options to 2050, returning $181,125 per annum with favourable 3.5% annual increases.
Cushman & Wakefield’s Head of National Investment Sales, Michael Collins said, “Fast food investments continue to be highly sought after and the market responded well to the relatively new Guzman Y Gomez covenant. This asset is the first freestanding Guzman Y Gomez to trade in Queensland”.
Cushman & Wakefield Director, Aaron Dahl said, “The rapid expansion and strong market presence of the Guzman Y Gomez brand presented an opportunity for investors to acquire an asset tenanted by a business that continues to trade strongly. Their national footprint, resilience amid the pandemic, plus the added benefit of a well-appointed main road drive-thru, supports investors’ perceptions that this is a secure investment.”
Cushman &Wakefield’s Tom Moreland added, “Freestanding, retail investments with long-term leases, particularly within the fast food sector, remain a crowd favourite among investors seeking passive cash flow and assets within defensive industries.”
View the SOLD property listing here.