Three properties linked to Masala restaurants up for auction

The property in Stanmore Bay is one of three linked to the embattled Masala restaurant chain going under the hammer. Photo / Supplied

Three properties linked to the embattled Masala restaurant group, which made an $8 million settlement with the Crown this year, are going under the hammer tomorrow.

The properties in Birkenhead, Mt Eden and Stanmore Bay were part of 34 that were seized and frozen by police in 2015 as part of a $34 million restraining order.

The properties are to be sold at a Bayleys auction tomorrow.

This year the High Court approved a settlement between the Masala group and the Crown for the forfeiture of $8m to be met by the sale of restrained frozen property.

The 34 properties, which housed restaurants and staff and were owned by several businesses and individuals, were in Auckland, Waikato and Bay of Plenty.

Bayleys North Shore Commercial agent John Algie said the properties were all in high-profile locations and offered opportunities for investors, developers and owner-operators.

"They are very attractive and well-maintained converted, character residential premises offering a mix of indoor and covered outdoor dining. They are currently operating as Indian restaurants but would suit a range of uses."

The Mt Eden and Birkenhead villas had favourable land zoning under the Unitary Plan offering potential for developers, Algie said.

The Mt Eden villa sits on a 554sq m site at 510 Mt Eden Rd with the ground floor trading as The Indian Lounge. There was also potential for the unused 206sq m basement.

The second villa, trading as Chutney Mary Fusion, is in the Highbury Town Centre at 188-189 Hinemoa St on a 835sq m section.

Algie said the freehold site offered significant longer-term development potential with holding income in the interim.

The third site, at 195 Brightside Rd in Stanmore Bay, is being used by Paprika Indian restaurant and zoned residential so offered potential to continue as a restaurant or be converted back to a house, Bayleys said. The 276sq m building sat on a 1783sq m site, offered elevated views over the bay and was just one block from the beach.

In 2012 the Masala chain was investigated and found guilty of widespread and systemic tax evasion and immigration-related offending.