Sydney, NSW, Australia

A portfolio of 28 high profile Australian fast food retail sites is set to hit the market in mid September, following support by unitholders of a recommendation by Westpac Funds Management Limited to terminate Westpac Family Restaurants Property Trust Number 2, a property trust managed by Westpac Funds Management Limited. 

Keith Grayson, Head of Property Funds Management at Westpac Funds Management Limited said the intention when the Fund was established in 2002 was that it should run for a defined term.

“Our recommendation to unitholders was consistent with that original offer. The Trust has delivered strong performance for unitholders built off consistent income and capital growth. With the sites being leased to one of the industry leaders in this field we would expect that performance should continue and that this offering should attract strong interest from retail investors”.   

Colliers International and Savills have been appointed as conjunctional agents for the portfolio sale, which will see each of the sites go under the hammer in a series of auctions around the country in mid October.

The sites are operate under a range of brands, with the majority leased to the Australian Fast Foods brands Red Rooster and the Western Australian brand Chicken Treat.  Red Rooster is the tenant in 19 of the sites.  The remaining sites are tenanted by a mix of Dominoes, Subway and Chicken Treat. The one Victorian property is occupied by “Pieman”.

Eight of the properties are located in South Australia, six in New South Wales, five in Western Australia, four in Queensland, two in the Northern Territory and ACT and one in Victoria.

Colliers International National Director – Retail Agency Nathan Clark Robert Lowe, Divisional Director Sales & Investments – NSW said current conditions presented an ideal opportunity to take the properties to the market.

Mr Clark cited success of the recent ANZ retail portfolio sale as evidence of the ongoing interest and strength in the market for good quality retail with strong national tenants.

Mr Lowe pointed to the recent sale of a Red Rooster site on the Gold Coast which sold on a 5.7% yield.

“We expect strong interest from private investors in the sites, as well as selected franchisees,” Mr Lowe said.

Mr Clark said the covenant of the properties is incredibly strong; thanks to long secure leases with a high profile national retailer, solid annual capital growth and affordable yields.

“They are ideal for the active cashed-up private investors who are currently in the market.  ” he said.

“Some of the properties also offer possible development or redevelopment opportunities,” said Mr Lowe.

Mr Clark said the properties were expected to fetch yields of between 6.5% and 8%.

The 28 properties are being sold via a series of auctions in commencing on Tuesday 14 October to Friday 17 October in each state.

About WFML
Westpac Funds Management Limited (WFML) has approximately $3.1 billion of assets under management and is one of Westpac Banking Corporation’s specialist alternative asset managers.  WFML is the issuer of leading alternative investment products, both listed and unlisted, chiefly in property, which are available to both retail and institutional investors.

About AFF
Australian Fast Foods Pty Limited is the largest company-owned retailer of chicken fast food in Australia, through its Red Rooster and Chicken Treat restaurants.  The company has approximately 440 outlets, including more than 262 company-owned outlets. After a management buy out by Quadrant Private Equity in April 2007, the company has plans to grow the number of restaurants to 600 in the next four years.

About Colliers International

Colliers International is a global affiliation of independently owned commercial real estate firms. The organization's 10,092 employees span the world in 267 offices in 57 countries. On a worldwide basis, Colliers manages 672,945,918 square feet, and has revenue of $US 1,620,958,349.

Contact Information

Phoebe Miller
National Communications Manager
Tel:  02 9257 0276
Mob: 0402 547 484
Phoebe.Miller@colliers.com 

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