Commercial real estate agency Burgess Rawson recently revealed it sold the Armidale KFC for $2.6 million and the Gunnedah KFC for $2 million.

Tamworth Burke and Smyth commercial property principal Gavin Knee said there was an incredible amount of investor interest in the region’s fast food industry.

He said the South Tamworth KFC along Goonoo Goonoo Rd was about to undergo a new fit out, while another fast food outlet was due to set up shop on the vacant land next door.

“It’s a nationwide healthy food chain that does takeaway and dine-in,” Mr Knee said.

“I can’t say who it is just yet, but they’ve signed a Heads of Agreement, and it will involve the construction of a brand new building in the Longyard precinct, right next door to the KFC.”

Mr Knee said fast food franchises were appealing to buyers because they come with national tenants, who have a strong business profile.

“There is so much competition in the city for these assets that the yield has compressed, so investors are looking further afield to large regional cities,” he said.

“We’ve got a strong database of national, regional and local buyers.

“It’s always a good sign when outside money is coming in to the town.”

Burgess Rawson Sydney director Simon Staddon said fast food joints were highly-sought after assets because they had a low-risk profile with an upside and continued to grow in popularity, particularly with investors who own self-managed super funds.

“Demand continues to increase for these tightly held ‘set and forget’ assets, with many landlords holding multiple properties,” Mr Staddon said.

“While many think investors are only attracted to these assets in major cities, regional fast food outlets are some of the best performing in the country.

“The yield differential for fast food assets in metropolitan and regional areas has narrowed. There is now a minimal yield difference between the two.

“Investors are prepared to pay a premium to de-risk their property portfolios. They also offer long-term indexed income streams, underpinned by strong land values.”