The property that is home to one of New Zealand's busiest KFC restaurants is being presented to the market for sale, offering investors the opportunity to acquire an asset with a long-term income stream underpinned by a strong tenant covenant.
Located at 12/400 Great South Road in Ōtāhuhu, the building sits in one of South Auckland’s most popular retail and hospitality zones. Comprising approximately 273sq m of net lettable area, the stand-alone restaurant is complemented by a drive-thru area and dedicated car parks.
Restaurant Brands New Zealand Limited, trading as KFC, has a 12-year lease at the property running until April 2038, returning $172,800 plus operating expenses and GST per annum. The tenancy includes market rent reviews every three years, offering potential rental growth for the new owner.
The asset is zoned Business – Mixed Use Zone under the Auckland Unitary Plan.
Start your property search
Colliers Brokers Ronal Prasad and Ryan Gibb have been exclusively appointed to market the property for sale via auction to be held at 11am on Tuesday 29 September at Colliers Highbrook, 52 Highbrook Drive, East T?maki.
Founded in 1952, KFC is one of the world's most recognisable quick-service restaurant (QSR) brands, operating in more than 145 countries. In New Zealand, Restaurant Brands holds the exclusive rights to operate and franchise KFC, with more than 100 stores nationwide.
Prasad, Associate Director of Investment Sales at Colliers, says the property warrants serious consideration from investors seeking a bottom-drawer, hands-off investment.
“QSRs continue to attract strong investor demand due to their convenience-based nature and broad customer appeal across varying economic conditions,” Prasad says.
“This property is regarded as one of the busiest KFC restaurants in New Zealand, benefiting from a proven trading location that draws customers from across South Auckland and the surrounding catchments.
“Combined with a new long-term lease to Restaurant Brands, investors are presented with the chance to secure an asset with a well-established operation and a steady rental stream.”
Great South Road is a tightly held commercial corridor and the subject property benefits from its prominent position on this main arterial that sees a high volume of passing traffic.
Gibb, Investment Sales Broker at Colliers, says the property has a number of enduring investment fundamentals that buyers are seeking.
“This asset provides investors with an opportunity to acquire a strategically positioned landholding in one of Auckland’s most established commercial corridors,” Gibb says.
“The combination of long-term income from an internationally renowned brand and favourable Business – Mixed Use zoning means the incoming purchaser will benefit from strong cashflow today alongside likely future land value growth.”
- Supplied by Colliers
