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 Macdonald wants to rent my land to build a MCD, enquiry on price, land tenure, etc

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edyek
post Oct 4 2019, 10:16 PM

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From: Land of the Hornbills & Land Below the Wind


QUOTE(infiniti123 @ Oct 1 2019, 11:46 AM)
Good morning all, i have a piece of land just beside the toll and beside petronas and petron. Past few months Macdonald recently showed interest in renting the area.

Not sure if anybody has the same experience but what rental am i looking at and the Rental tenure?

i was offered (rough estimation):
12k per month, increment of 7-20% every 3 years
Rental for 30 Years.

i'm kinda skeptical as the 30 years period is the downside for me. By then i'm already 55 years old, who knows maybe i got some plans to develop it.
Recently beside petronas just opened a starbucks, hence mcD became more aggressive and want to up their offer.
*
It's fix at 30 years. Same as KFC. The reason they lock you for 30 years its because they are the one forking out cost to build the drive through, so all cost and risk is taken into consideration hence the 30 years lease.

So, if you think 30 years is too long, then you put discuss an option for them, to sell the land on the 15th year back to the franchisee. Franchisee can buy the land and own it to run the outlet.

For rental amount, cant comment much as too limited info on your land. You can ask around for the rental market, or use valuer to access the rental value for you and negotiate with them, since they are the one approaching you.

If you have plans to develop it on your own, then just scrap off this plan.

BUT, if you can develop a commercial buildings on your own say a row (5 units) of 2 storey shops, you can negotiate and rent the building to them with much more higher rental AND without them locking you for 30 years. You can rent to them for say 10 years on 4+3+3.



edyek
post Oct 4 2019, 10:34 PM

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Joined: Jan 2009
From: Land of the Hornbills & Land Below the Wind


QUOTE(wayton @ Oct 2 2019, 03:26 PM)
meter or ft?

License for F&B means it is a commercial land.
Commercial land always fetch good price.

Current value of the land? or similar adjacent land price?
*
Most probably ft. around 20k sqft.

McD offers around RM 0.50-0.80 psf for vacant land.

So if its RM 12k, then its RM 0.60 psf.

If its meter, then its 5 acres. Then no need think, rent to them only. they only need half acre to 1 acre of vacant land to build drive through or outlet. Left 4 acres can build commercial which McD can bring traffic to commercial shop and vice versa. complement each other.

 

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