KFC Mentone up for sale

The KFC in Mentone, south-east of Melbourne, has been listed for sale.

The property at 157-159 Nepean Highway, 21 kilometres from the Melbourne CBD, last sold under the hammer at an auction event at the Crown Casino in 2013.

It was pushed to $3,505,000 by two Asian investors after bidding opened at $2.8 million.

The rental income has increased since its sale six years ago when it sold on a gross yield of around 6.5% based on rent of around $227,167 per annum.

Now it is being offered, on a 12 year term with options extending to 2043, with a return of $262,836 per annum.

Over 57,000 cars pass the 2,360 sqm site daily that is zoned Commercial 1. There are 35 on site car parking spaces.

When it traded in 2013 it had had a $350,000 upgrade.

Savills agents Benson Zhou, Yvonne Zhou and Julian Heatherich are marketing the property that has been home to KFC for around 25 years.