Westpac Banking Corporation is likely to sell off 64 Australian fast food properties worth about $100 million because of tougher refinancing and retail conditions.
Westpac Banking Corporation is likely to sell off 64 Australian fast food properties worth about $100 million because of tougher refinancing and retail conditions.
The bank has called meetings of two of its unlisted property trusts, which owns properties occupied by Hungry Jack’s, KFC, Red Rooster Family Restaurants and others.
Westpac has warned that the trusts – the Westpac Family Restaurants Trust and the Westpac Family Restaurants Property Trust No.2 – will “face difficulties” if the restaurants are not sold. It cited increased refinancing costs and lower capital growth in future years, made possible by a softening retail property market.
Lessees of the properties have the first right of refusal to acquire the properties in the trust.
The first trust owns 36 Hungry Jack’s and KFC stores, which it bought in 2002. The second trust’s 28 properties comprise 19 Red Rooster restaurants, nine Chicken Treats, three Domino’s Family Restaurants, one Subway Family Restaurant and one delicatessen.
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