'Busy' parcel of land next to Fyshwick markets sells for $20 million

A parcel of land next to Fyshwick markets totalling almost 2 ha, which includes the 7-Eleven service station and KFC takeaway on Canberra Avenue, has sold for $20.2 million.

The 19,228 square metre site bound by Canberra Avenue, Nyrang Street and Dalby Street comprises four separate blocks, with a development application lodged to reboot the KFC and build two new shops, including a new fast food restaurant on the 7-Eleven side of the property.

The two blocks next to the markets are home to a trucking company.

Marketed as one of Canberra’s busiest locations, the site generates about $1,066,927 in income.

The blocks could have been sold separately, and the site was pitched as a unique opportunity for investors to acquire a trophy asset or a significant landholding with excellent passive income and a future development play.

Ray White Commercial agent Frank Giorgi said the buyer was a local investor.

He said there were 15 expressions of interest applications, with most coming from the ACT.

The price was a good result and showed the strength of the local market.

“It’s probably good value for money,” Mr Giorgi said.

“It still shows that good tenant covenants are still in demand.”

He said buyers had the flexibility to buy all four in various combinations or separately.

“The best and final offer was for all four,” Mr Giorgi said.

While there is a DA submitted, it was probably a long-term play, with the buyer more a passive investor than a developer.

“So whether or not he goes down that path, it’s unknown at this stage. He’s not sure,” Mr Giorgi said.

There is nine years left on the service station lease and two on the KFC lease.

The vendor was a local consortium of private families, who prefer not to be named.

The DA was lodged in June by Spunlock Pty Ltd for the 7835 sqm site on Canberra Avenue that includes the 7-Eleven and KFC outlet (Block 6 and 7 Section 7).

The $6.2 million project involves demolishing the existing KFC building and the adjacent carwash and constructing three single-level buildings – a new 352 sqm KFC outlet, a new 252 sqm restaurant and three tenancies of 80 sqm each.

While the DA’s proposal outline only refers to a second restaurant, plans show the Taco Bell branding on a sign and refer to a Taco Bell waste enclosure.

The service station will remain as it is, although a new illuminated 7-Eleven pylon sign will show fuel prices.

Other works proposed include additional parking on Block 6 to cater for customers across the entire site, more signs, including another illuminated pylon on Nyrang Street, and landscaping, including replacement trees.

A total of 92 parking spaces are required, with 85 provided and seven to be found within 100 metres off-site.

The proposal must comply with a Development Control Plan because it is on Canberra Avenue, which falls under the National Capital Plan as an approach route.