Domino's premises in Ararat offers small investors 6% plus yield potential with long lease

Domino's premises in Ararat offers small investors 6% plus yield potential with long lease
Domino's premises in Ararat offers small investors 6% plus yield potential with long lease

The premises of a Domino’s Pizza outlet in the south west rural town of Ararat has been listed for August 7 auction with expectations that it will fetch around $475,000 under the hammer.

It will be auctioned as part of a Burgess Rawson portfolio auction.

In previous Burgess Rawson auction, fast food outlets have been snapped up by investors at attractive yields with the presence of a well-known brand name and a long lease proving enticing.

In June, McDonald’s Australia bought back its own Preston, Melbourne premises at auction for $6.45 million reflecting a yield of 5.65% on net income of $365,000 plus GST.

In April a KFC restaurant in Mentone in Melbourne’s southeast sold for $3.505 million equating to a gross yield of around 6.5% based on rent of around $227,167 per annum.

The Domino's Ararat premises measure 130 square metres and have recently undergone a $200,000 refurbishment undertaken by ASX-listed Domino’s.

The double-fronted shop on two titles is on Ingor Street as part of an established shopping centre with anchor retailers including Woolworths and Bakers Delight.

It is being marketed by Jamie Perlinger and Billy Holderhead of Burgess Rawson.

Domino’s Pizza has signed a new five year lease with 10 years’ worth of renewal options.

Domino’s pays annual rent of around $31,000 with fixed annual increases of 4%.

Larry Schlesinger

Larry Schlesinger

Larry Schlesinger was a property writer at Property Observer

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