A highly visible building in a prime location in the South Auckland suburb of Ōtāhuhu that is home to one of New Zealand's most popular fast food brands is for sale.
Unit 12, 400 Great South Road, Ōtāhuhu has approximately 300sq m of total floor area and is zoned Business – Mixed Use Zone under the Auckland Unitary Plan.
The property is occupied by KFC with the lease held by parent company Restaurant Brands Limited, an NZX-listed firm that represents a strong tenant covenant for prospective purchasers.
The current lease runs until April 2026 and there is one further right of renewal available for 12 years, leading to a final expiry of 8 April 2038. The net rental income from the property is $160,136 plus GST per annum with market reviews in place for every three years.
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Owing to its premium positioning on one of Ōtāhuhu’s major arterial routes, the property benefits from significant road exposure from passing traffic.
The surrounding area also includes multiple public transport options while the motorway network is accessible in less than 10 minutes.
Colliers Brokers Ryan Gibb, Matthew Barnes, and Ronal Prasad have been exclusively appointed to market the property for sale via deadline private treaty closing at 4pm on Wednesday 16 August, unless sold prior.
The property was recently refurbished and has been maintained to an excellent standard making it a desirable location for customers, while the drive-thru offers further convenience.
Gibb, Investment Sales Broker at Colliers, says discerning investors will be attracted to the opportunity to acquire a property with a nationally recognised tenant.
“KFC have occupied this current location for more than 20 years and have shown a long-term commitment through their existing lease and there is one further term available,” Gibb says.
“There is also rental growth on offer for buyers with the future market reviews that are in place.”
The Māngere/Ōtāhuhu precinct is one of Auckland’s most populous local board areas with a population that is forecast to increase to 103,100 by 2038, according to data from Auckland Council.
The suburb of Ōtāhuhu has a young demographic with a median age of approximately 30 and the area has benefitted from significant investment from the council during the past decade that has seen improvements made to public transport infrastructure and street upgrades.
Barnes, Director of Investment Sales at Colliers, says Ōtāhuhu serves a significant residential catchment within South Auckland.
“The area houses a large number of local and national retailers and trade outlets, along with public services near the subject site,” Barnes says.
“There is also easy access to surrounding suburbs Māngere, Papatoetoe, and Otara from the property, while Auckland Airport is less than 15 minutes away.”
Prasad, Investment Sales Broker at Colliers, says the opportunity to acquire a strategically positioned commercial asset with strong investment fundamentals is one not to be missed.
“With a strong tenant covenant from a blue-chip occupant, as well as future rental growth through impending market reviews, there are many appealing facets to this property, and we encourage all interested parties to contact us immediately.”
The Business – Mixed Use Zone is typically located around centres and along corridors served by public transport. The zone provides for residential activity as well as predominantly smaller scale commercial activity that does not cumulatively affect the function, role, and amenity of centres. The zone does not specifically require a mix of uses on individual sites or within areas.
- Article supplied by Colliers
