An eye-catching building on a major arterial route in South Auckland that is home to fried chicken outlet Popeyes is available for purchase, offering discerning investors the opportunity to acquire a high-quality property with a strong tenant covenant.
Sitting at 106 Great South Road in Takanini, the property has 291sq m of net lettable area on a 1,651sq m freehold site that is spread across two separate titles.
The current tenant is PLK Restaurants Limited trading as Popeyes Takanini and they recently began a 20-year lease with three rights of renewal for 10 years each leading to a final expiry of 31 May 2075.
On top of the length of the lease agreement, buyers will be drawn to the attractive terms that include 2 per cent annual increases through the first 10 years with future market reviews in place.
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The annual rental income from the lease is $297,500 plus GST and outgoings.
Occupying a high-profile corner site, the building was developed with a top-quality, multi-million-dollar fit-out and the subject location benefits from a high volume of passing traffic, providing it with significant exposure.
Colliers Brokers Shoneet Chand, Ryan Gibb, and Josh Coburn have been exclusively appointed by the Tahua Group, the parent company of PLK Restaurants Limited, to market the property for sale via auction to be held at Colliers, Level 23, HSBC Tower, 188 Quay Street in Auckland at 11am on Wednesday 30 April.
Popeyes was founded in New Orleans in 1972 and specialises in fried chicken. With more than 4,300 restaurants in over 40 countries around the world, their international expansion has accelerated recently.
In New Zealand, Popeyes was introduced by the Tahua Group in April 2024, with the subject store being the first to market. The restaurant was met with overwhelming demand and the opening day saw long queues after some customers had camped out overnight, eager to get a taste.
Chand, Director of Investment Sales at Colliers, says the Popeyes brand has rapidly become a staple of the local fast-food landscape buoyed by its offshore reputation that has seen them develop a presence in 13 new countries since 2021.
After starting in Takanini, Popeyes is now present in Wellington, Hastings, Papatoetoe, and Taupo with further locations on the horizon, Chand says.
Popeyes global expansion strategy, driven by strong franchise partnerships and growing consumer demand for their world-famous chicken sandwiches, has positioned it as a major player in the global fast-food industry.
Parent company the Tahua Group was formed in 2018 and is 100 per cent Kiwi owned. Under their umbrella they operate well-known brands in the hospitality, retail, and health sectors.
They employ more than 3,000 people in New Zealand across over 230 sites and their stable of brands includes Popeyes, Burger King, Starbucks, Number One Shoes and Hannahs, Torpedo7, and Resonate Health.
Gibb, Investment Sales Broker at Colliers, says the strength of the tenant covenant at the subject property will be highly appealing for investors.
"With a significant lease in place to a blue-chip tenant, passive investment opportunities do not come much more compelling than this," Gibb says.
"The lease terms provide built-in rental growth, which is another major selling point and this property would make an outstanding addition to the portfolio of any discerning investor."
Coburn, Director of Capital Markets and Site Sales at Colliers, says the property has ample on-site and street parking and a drive-thru for further convenience.
"Nestled in a prominent location and surrounded by an extensive array of amenities and commercial businesses in a rapidly growing area, this is a purchasing opportunity that is not to be missed," Coburn says.
- Supplied by Colliers
