Landmark Gisborne chippie for sale

The Waikanae Beach property housing Captain Morgan's is now for sale.

The land and buildings housing one of New Zealand's most popular beachfront fish and chip shops are for sale in Gisborne. Bayleys Gisborne's Shelley Donaldson and Mike Florance are selling the property housing the popular Captain Morgan's fish and chip cafe.

Over the past three decades diners have sought out the venue's seafood and deep-fried options to either dine-in — enjoying panoramic views of the beach just 40m away — or take out.

Now the 459sq m freehold site, and its 409sq m building — but not the business — are to be sold by tender through Bayleys Gisborne.

Tenders are to close at 4pm, February 15 and the property will feature in Bayleys' next Total Property portfolio magazine.

Donaldson says the building, at 285 Grey St, Awapuni, dates from the 1950s. It comprises the foodservice business at street level, with the business operators living in the upper residential portion of the property. \

The business generates rental income of $53,500pa, with a lease running through till 2023.

The two-storey building has 137sq m of retail and dining space, plus 123 sq m of kitchen and foodservice space. Upstairs is a 149sq m spacious four-bedroom apartment with a deck offering spectacular and unimpeded views over Waikanae Beach.

Directly over the road from the site stand the Waikanae Beach Top 10 Holiday Park and the Waikanae Surf Life Saving Club. The location is zoned inner city residential under Gisborne Council's district plan.

Florance says key options will open up on expiry of the lease.

"The length of the lease is far enough out that, from a pure investment perspective, either a new occupancy could be negotiated with the existing tenant, or new business operators could be sourced over the intervening period," he points out.

"With commercial and residential aspects of the location are factored in, the property is under-rented, so potential exists to lift the yield substantially.

Alternatively, developers could buy the site with the intention of redeveloping it into a mixed-use venue.

"The existing tenancy provides at least four years' good holding income, while the necessary council planning consents are sought.

"Under this configuration, subject to council consents, there could be the option to build a replacement foodservice outlet — with upmarket apartments above."

The upper level residential components would have stunning views down Waikanae Beach across to Young Nick's Head.

Donaldson points to parking for up-to-50 vehicles directly outside its front doors.

Customer demographics are split between holidaymakers, local residents and workers at nearby light industry premises, she says.

"The address is one of a kind in Gisborne — there are no other fish and chip outlets offering this sort of vista on their front doorstep with some 31m of street frontage.

"It's one of the reasons the eatery has remained so popular over the decades."

Captain Morgan's location means residents heading home from work to Gisborne's southeast can conveniently pick up dinner en-route, says Donaldson.

"On the weekdays the business draws in a strong customer base from the scores of light industrial businesses which stretch south along and off the Awapuni Rd main arterial route."