By JOHN VAN KLAVEREN
GEELONG council has reaped a $3 million windfall from the sale of a North Geelong McDonald’s site.
Council rezoned the site, formerly part of Jack Deppler Park, known as Seagull Paddock, to a commercial zone earlier this year.
The Independent reported in July last year that council had to send the rezoning to an independent planning panel after receiving objections. The McDonald’s, at 400 Melbourne Road, is on council-owned land and the amendment proposed rezoning and subdividing the lot from the rest of the park and putting it up for sale.
Auctioneer Burgess Rawson said the site, leased to the fast-food giant, fetched $3.05 million late last month.
Twelve bidders went head to head for the property, pushing the yield down to 3.7 per cent after it was initially listed at offers over $2 million.
Burgess Rawson managing director Raoul Holderhead said the result reflected strong investor appetite for blue-chip assets on long leases.
“The low, affordable rental of $117,434 per annum reflects the property being subject to a ground lease with McDonald’s owning the building and all other above-ground improvements,” he said.
“With McDonald’s having rebuilt the building in 2003 and in recent years adding a McCafe, it is safe to say McDonald’s plan is to stay.
“The busy and proven location is evident by some 37,000 cars passing the property each day,“ Mr Holderhead said.
The site has been a McDonald’s since 1980.
