A Popeyes Louisiana Chicken quick-service restaurant in Hastings is available for purchase offering investors the opportunity to acquire an asset with a blue-chip tenant on a long-term lease.
Located at 708-710 Heretaunga Street West, the property has been built to an exceptional standard and sits on a 1,675sq m freehold site.
The tenant, Premium Chicken Restaurants Limited trading as Popeyes, recently began a 20-year lease that runs until 30 September 2045. Premium Chicken Restaurants Limited is a subsidiary of New Zealand retail giant the Tahua Group.
The lease agreement has three rights of renewal of 10 years each leading to a final expiry in September 2075 and has favourable terms for investors, including 2 per cent annual increases for the first 10 years followed by market reviews every three years. The total net annual rental income is $240,000 plus GST.
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The property benefits from its highly accessible and prominent location on a key arterial route in Hastings. There is dedicated on-site parking and the added convenience of a drive-thru.
Colliers Brokers Danny Blair, Ryan Gibb, Shoneet Chand, and Josh Coburn have been exclusively appointed to market the property for sale via deadline private treaty closing at 4pm on Wednesday 27 November, unless sold prior.
Blair, Director at Colliers Hawke s Bay, says this purchasing opportunity gives prospective purchasers the chance to acquire an asset with a strong tenant covenant that is underpinned by a long-term lease agreement.
The built-in rental growth across the first 10 years of the lease will be coveted by buyers and adds to the stable cashflow that will be derived from the property, Blair says.
Quick-service restaurants have emerged this year as an attractive investment class among discerning buyers.
Gibb, Investment Sales Broker at Colliers, says Popeyes has quickly established itself as an in-demand food offering in New Zealand, building on its global popularity.
Popeyes opened its first New Zealand store in Takanini in April last year, which drew strong interest and saw customers camping out overnight ahead of the opening day, Gibb says.
The brand presence has quickly spread around the country with stores popping up in Auckland and other key markets such as Wellington, Palmerston North, Taup?, and Invercargill with more on the way.
Chand, Director of Investment Sales at Colliers, says the Tahua Group has considerable reach across the country through its operation of well-known brands Burger King, Starbucks, and Number One Shoes and Hannahs.
Formed in 2018, the Tahua Group is a 100 per cent Kiwi-owned and operated business that has more than 230 sites around New Zealand and employs over 3,500 people, underscoring their presence as a major player in the hospitality and retail sectors, Chand says.
Coburn, Director of Site Sales and Capital Markets at Colliers, says the high-calibre property has many of the key fundamentals investors are seeking.
This state-of-the-art asset has been developed with a multi-million-dollar fit-out that is purpose-built for the tenant who are committed to a long-term agreement, Coburn says. This has all the hallmarks of a premier investment opportunity.
- Supplied by Colliers
