IT was once renowned as a place of romance and rendezvous but the former Palais Royale site in Newcastle West will now house a KFC restaurant after selling this week for a figure believed to be about $5 million.
Yum! Restaurants International, which also owns Long John Silvers, Pizza Hut and Taco Bell, bought the 2600-square metre Hunter Street property on Thursday night from owner Newcastle Palais Holdings, toppling the eight-storey residential and commercial building plan originally envisaged for the site.
The sale depended on Newcastle City Council's approval last week of the Yum! group's development application for a $2.5 million KFC restaurant with drive-through and 29 car parks and separate retail tenancy, which will be leased to an independent operator.
The application also stated that the restaurant would feature photographs of the old Palais Royale building.