A brand-new Popeyes Louisiana Chicken restaurant that sits on a high-profile corner site in Invercargill is being offered to the market for sale.
Located at 260 Dee Street, the property has a state-of-the-art fit-out that has been completed to an incredibly high standard. The building has approximately 300sq m of net lettable area.
This is the 10th Popeyes quick-service restaurant that has been opened in New Zealand by Premium Chicken Restaurants Limited, a subsidiary of national retail giant the Tahua Group. This Popeyes outlet set the global record for sales for the largest opening day and week, indicating the popularity of its famous chicken.
The tenant has a 20-year lease that began on 1 October and runs until 30 September 2045. The agreement includes three rights of renewal of 10 years each leading to a final expiry in 2075. The total net annual rental income from the property is $250,000 plus GST.
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There are attractive lease terms on offer for investors, including 2 per cent fixed annual increases for the first 10 years before market reviews take place every three years after that.
Benefitting from significant exposure to Invercargill's main arterial route and dual frontage, the 2,357sq m landholding is surrounded by a range of well-known brands. It also has convenient car parking for customers and a drive-thru.
Colliers Brokers Dean Collins, Shoneet Chand, Ryan Gibb, and Josh Coburn have been exclusively appointed to market the property for sale via deadline private treaty closing at 4pm on Wednesday 5 November, unless sold prior.
Collins, Director at Colliers Otago, says quick-service restaurants have grabbed the attention of investors this year due to the appealing underlying fundamentals.
"With a long-term lease in place to a well-established operator, backed by a prominent parent company, there is a strong tenant covenant attached to this offering," Collins says.
"Aside from the length of the lease term, the built-in rental growth will also catch the eye of discerning buyers who are seeking to acquire an asset with reliable cashflow."
Chand, Director of Investment Sales at Colliers, says Popeyes has quickly made a name for itself across New Zealand with its internationally acclaimed chicken.
"Popeyes Invercargill marks the first Popeyes restaurant in the South Island and reflects the growing demand for its food across the country with its record-setting opening week. The first Popeyes store opened in Auckland last year and there are more in the pipeline," Chand says.
"This leading global chicken chain has been in operation for more than 50 years and trades in over 40 countries, underscoring its worldwide presence."
Gibb, Investment Sales Broker at Colliers, says the Tahua Group is a fully Kiwi owned firm that operates some of the most well-known hospitality and retail stores in New Zealand.
"All told the Tahua Group has over 230 sites across Aotearoa and employs more than 3,500 people. Their stable of brands includes Burger King, Popeyes Louisiana Chicken, Starbucks, and Number One Shoes and Hannahs," Gibb says.
"New Zealanders interact with their brands on a daily basis which are some of the most recognisable around the country with a growing market share."
Coburn, Director of Site Sales and Capital Markets at Colliers, says all of the pieces are in place that make this an offering that will pique the interest of buyers.
"Having the chance to buy a property that is part of an asset class that has rapidly become coveted among investors is one that is not to be missed," Coburn says.
- Supplied by Colliers
