Case Study: McDonald’s Bella Vista

McDonaldsBellaVistaCaseStudy

Colliers International’s Premium Investment expert Harry Bui partnered with Western Sydney industrial expert Paul McGlynn to sell McDonald’s Bella Vista to a private Asian investor from Melbourne for $6.65 million on a net yield of 3.1%.

The opportunity represented continued stability with a lower-risk threshold in a prime Western Sydney market. This was attractive to the purchaser, who became aware of the opportunity through Colliers International Premium Investment sales and marketing initiative.

The 2,885sqm asset features a long-term ground lease to McDonalds Australia, a brand-new single level restaurant with dine-in and drive-thru take-away facility, which has been open to the public since May 2019.

Sales Strategy

Understanding both the market conditions and highly rare nature of the asset, it was clear investors would be prepared to pay a premium to secure this blue-chip offering. The the long-term lease, attractive rental growth, McDonalds Australia covenant, record low interest rates and future development upside was attractive to investors.

Harry and Paul identified significate opportunity in the site, due to its proximity to major State and Federal Government projects.  Specifically, the North-West Metro which opened in May 2019, North-Connex due to open next month, the re-development of Parramatta CBD (11 kilometres South) and establishment of the new second Western Sydney Airport (43 kilometres West).

Result

Their success has resulted in an appointment on the adjoining Shell Service Centre which is currently for sale by International Expressions of Interest. They expect to receive high levels of interest from both local and international investors. The opportunity benefits from its premium location in Norwest Business Park, long WALE profile of 10 years by income, strong annual rental escalation, and head lease to Viva Energy Australia with a fully leased net passing income of approximately $604,544 per annum.

Colliers International Premium Investment Team

The Colliers International team have seen demand amplify from private high net worth investors seeking opportunities within the sub-$20million investment market. Both property syndicates and consortiums showed increased interest towards premium investment assets with longer WALE’s and company leases to national blue-chip corporate tenants.

The continued stability and lowered-risk of this asset class, places premium investments in a strong position for the future.

There have been several significant national portfolio sales for premium investments in the past year including; 33 7-Eleven petrol stations, which sold for $156 million in October 2019 and February 2020 with an average yield of 4.76% and; 25 Caltex petrol stations sold for $133 million in November 2019 with strong underlying land values for future development.

Charter Hall also took a 49% stake in a portfolio of 225 BP petrol stations in Australia, worth $1.7 billion with a weighted average lease expiry (WALE) of 20 years which was the biggest deal of 2019.

For more information on Colliers Premium Investment Practice group or to buy or list a property as part of our next portfolio contact your state based expert here.


Related Experts

Harry Bui

National Director | Metro Sales

Sydney CBD

I am one of the most respected real estate professionals with significant experience in both domestic and international commercial real estate transactions with expertise in Governments, Corporations, Private Clients, Public REIT and Institutional real estate sales & marketing.

I have a wide well-established referral network for connecting and accessing to both onshore and offshore capital, particularly from the Asian countries including China, Singapore and other South East Asia countries for commercial properties in Sydney, Australia.

I am a driving force for the national premium investment auctions at Colliers International as my national team is dedicated to achieving premium prices for vendors and the 'biggest bang for their buck' through our special premium auction strategies.

I am also responsible for outstanding team contribution, excellence in leading successful teams, strong presentation & communications and effective interaction with other business line leaders within the Colliers International Global network.

I am capable of working successfully under pressure with multi tasks in a fast paced environment and highly self-motivated with a hands-on attention to details that only personal experience can bring.

Specialities:

- Commercial real estate investment brokerage;
- Development site sales;
- Deal-sourcing;
- Acquisition and development;
- Investment underwriting;
- Market analysis;
- Structured transactions;
- Complicated partnership dispute disposal (section 66G);
- Government, corporation and Insolvency solutions;
- Due diligence and
- Leasing.

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Paul McGlynn

National Director

Sydney West

Paul is a National Director based in the Parramatta office in Western Sydney.  Paul has worked with Colliers International for over 20 years and has 30 years industry experience  across a range of property classes.

Paul specialises in the industrial and commercail  markets across broader North-Western Sydney with vast experience  in the  sale and leasing of existing facilities, development sites, subdivisions,  investments and the delivery of purpose built pre lease and turn key transactions.

Paul has an established portfolio of private, corporate and institutional clients and is highly recognised in the industry for  consistently maximising outcomes on both sale and lease transactions. His knowledge of the market, negotiation skills and competitive nature leads him to accelerate the success  for his highly valued clients. Paul has an unmatched track record in North Western Sydney and specifically Norwest Business Park and surrounding precincts.

 

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