The fast food and liquor portfolio at the Bayview Centre in Warrawong is on the market.

Just weeks after the sale of the centre’s retail component, the fast food and liquor portfolio at the Bayview Centre in Warrawong is on the market.

The portfolio features secure leases to major players including McDonald’s, Hungry Jack’s, Starbucks, Oporto, Domino’s and Liquorland.

Selling agent, Burgess Rawson’s Yosh Mendis said they expected the portfolio to generate “incredible interest’, and receive a strong level of inquiry from investors throughout Australia.

Long-term leases

It’s the leased sites that are for sale, not the businesses in question.

“Fast food assets remain the crown jewels of the commercial property market, achieving record low yields as insatiable demand far outstrips supply,’ Mr Mendis said.

“These properties are among the most tightly-held investments and are typically snapped up quickly when offered to the market.

“The inherent appeal of fast food properties lies in their long-term landlord friendly leases, guaranteed rental growth, low-risk income profiles, minimal management requirement while delivering consistent, reliable growing returns.’

The portfolio will be sold individually at Burgess Rawson’s auction event in Sydney on August 6.

Formerly the location of the Bunnings Warehouse, the site has been redeveloped in recent years.

The Bayview Centre was developed by the Griffith Group and completed in December 2023.

Spanning 36,049 square metres, the centre boasts a 100 per cent occupancy.

It’s home to renowned national retailers such as Beacon Lighting, Super Cheap Auto, JB Hi-Fi, Trek, Autobarn, RTM, and Amart Furniture.

Great returns

Regarding the fast food and liquor sites, Mr Mendis said the assets will suit all price-points with annual returns ranging from $244,710 to $554,707 for the freestanding McDonald’s, while lease terms range up to 20 years.

“The properties boast significant land sizes each lot of up to 3304 square metres and are strategically located in a fast-growing CBD precinct with solid economic activity,’ he said.

The fast food portfolio listing follows the recent $57 million sale of the large format retail component of the Bayview Centre, which was acquired by MLC Asset Management.

Colliers head of retail middle markets James Wilson and Ben Wilkinson previously secured the sale of the retail centre in an off-market process.

“Institutional and private investor appetite for large format retail centres continues to grow given the sector offers investors strong income growth from high-profile national retailers strategically located in growing catchments,’ Mr Wilson recently told the Mercury.

Meanwhile, Elanor Investors Group has submitted plans for a proposed rezoning of the seven-hectare site directly opposite the Bayview Centre, which will allow construction of 1300 new homes, including 10 per cent affordable housing.

Illawarra Mercury – Brendan Crabb