Oct. 23, 2002
SYDNEY -- Westpac Banking Corp Ltd is aiming for a second serving of the fast food restaurant market by launching a new property trust, the bank's second devoted to owning fast food and family restaurants.
According to a report in The Age, the Westpac Family Restaurants Property Trust No 2 will own 19 Red Rooster, nine Chicken Treat, three Domino's Pizza and one Subway sandwich restaurant spread in locations across Australia.
The new trust follows Westpac's launch in June of its first Family Restaurants Property Trust, which owns Hungry Jacks and KFC restaurants.
The trust is seeking to raise $33.2 million, of which $15 million will be in equity. Westpac Institutional Bank is the underwriter for the offer.
Arthur Psaltis, director at Westpac property advisory and equity, told The Age that the success of the bank's first restaurant property trust inspired the bank to launch another, this time focused on barbecue chicken, pizza and sub sandwich restaurants.
Psaltis said most of the properties would be leased to Australian Fast Foods Pty Ltd (AFF) -- Australia's fourth largest operator of family restaurants -- through triple net leases for periods of 10 years.