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QSR (Quick Service Retail) and fuel developments, supported by consistently firm yields and impressive ongoing growth, have a reputation as one of the most solid investments and sought-after assets in an increasingly competitive market.

FRP continues to recognise the potential and impressive market growth of these assets, with long leases for fast food investments providing impressive annual yields that hover around 4.25%.

The latest data from Burgess Rawson's Fast Food Industry Snapshot reinforces this belief revealing that 75% of Australians now dine out once a month, up from 63.7% in 2019, highlighting the allure of convenience and affordability.

FRP has met this growing demand with the recent subdivision, development and divestment of four sites in Yanchep, WA, comprising McDonald's, KFC, Hungry Jack’s and 7-Eleven.

Three of the four sites, which form part of the new Yanchep Village Shopping Centre were constructed to suit the unique needs of the growing catchment area, while the fourth site, McDonald's, was pre-existing and recently subdivided.

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FRP identified and acquired land in Yanchep in 2021, an area in which the population is anticipated to grow to 72,450 residents by 2035. The development sites form part of the new Yanchep District Centre (read more about the development here) and were successfully completed amidst an increasingly challenging construction climate.

The four assets attracted strong interest from investors both nationally and internationally, with the listings receiving over 350 enquiries during the sales campaign demonstrating the strong appetite for QSR & service station investments.

The successful sale, subdivision and development of the combined assets offered an impressive average yield of 4.99%, blended between the Fast Food and Fuel providers. The impressive result is a testament to the FRP Development team, the sales campaign run by CBRE and Burgess Rawson and the demand for securely leased assets with long leases.

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The development and divestments of the four assets mark a significant milestone for FRP and the development team. FRP will use proceeds of the sale to redeploy capital back into the Yanchep District Centre development, which will include a tavern, large-format retail, a childcare centre, health and wellness services, along with an extension of the existing Yanchep Central.

FRP Investment and Acquisition Manager, Anthony Del Borrello, said, "When we acquired the site in 2021 we recognised a significant demand for fuel and fast food services along Marmion Avenue as one of Yanchep's main arterial roads. The robust interest and strong sales results validate our development strategy. With this confidence, we look forward to progressing with the next phases of the Yanchep District Centre Development."

Referenced articles: 

Unveiling the Dynamics of the Fast Food Revolution - Burgess Rawson

URBIS Yanchep Central Retail Sustainability Assessment

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