Food for thought among a trio of investment properties

The proposed Burger King restaurant in Te Awamutu. Photo / Supplied

Three different investment properties tenanted to food industry clients are being marketed by Barfoot & Thompson Commercial, including two in the agency's latest InSite portfolio magazine,

At 337 Sloane Rd in Te Awamutu, 30km south of Hamilton, the newest outlet of the Burger King Restaurant chain, is being offered for sale by tender closing August 17 through Cam Paterson of Barfoot & Thompson Commercial and Alan Pracy of Colliers International.

Paterson says the 1516sq m general-zoned freehold site is strategically located on SH 3, bypassing the centre of Te Awamutu at the corner of Sloane Rd and Rickit Rd.

"The building is due to be completed in October," Paterson says. "Burger King has bold plans to grow their sales and this outlet typifies the type of location they have identified as having strong growth potential.

"The site is neighboured by liquor outlets and other eateries and is expected to be popular with the passing trade of over 10,000 cars per day."

Paterson says the town of 14,000 residents is underpinned by the surrounding community of dairy, beef and sheep farmers and the service industries to those industries, including a major Fonterra dairy factory.

"The location could not be better for a new Burger King. It's positioned to take advantage of local trade at the southern end of the main shopping precinct and to capture southbound traffic en route to Otorohanga and Te Kuiti; and northbound flow to Cambridge and Hamilton."

Paterson says Burger King, with more than 70 restaurants in New Zealand, has been targeting sites which offer drive-through capability.

"The confidence they have in this location is evidenced by the 15-year lease commitment Burger King is making to the site at an initial rate of $255,000 per annum on a net basis."

The lease is subject to annual Consumer Price Index increases and includes two 10-year rights of renewal.

The stand-alone timber framed and concrete building, features a range of modern claddings, like King Span, and has been specifically designed for Burger King New Zealand.

"The design focuses on differentiating Burger King from its competitors, creating the right ambience and maximising the internal space for both clientele and staff," Paterson says. "The restaurant will have an internal seating capacity of 54 diners with further seating outside and offers full drive-through service and parking on site."

Two other buildings tenanted to food related tenants being marketed by broker Greg Clarke are featured in Barfoot & Thompson Commercial's latest InSite portfolio and will be auctioned at 1pm on August 4 at the agency's 50 Kitchener St office if not sold previously.

The ground floor retail area of a freehold multi-tenanted property at 59 James Laurie St in Te Atatu is occupied by the Thirsty Rooster restaurant - a neighbourhood licensed premises operated by the Waitakere Licensing Trust with 18 gaming machines on site.

"With the change in 2009 to the local gambling venue rules, there is no opportunity for the trust to move these machines to another location, which provides excellent security for an investor," Clarke says.

The building, on an 811sq m corner site, also serves as an antenna site for telecommunication companies Telecom, Vodafone and 2degrees and is situated on a busy main arterial West Auckland route.

"With an annual rental of $150,268 per annum and room for rental growth, it is on the market for the first time in 12 years, creating a great opportunity to secure an impressive investment from an overseas-based vendor."

The second property being marketed by Clarke is on the other side of Auckland at 10 & 12 Miami Parade, Onehunga.

"The two separate buildings on two titles are leased to Freshpork Northern Limited at an annual rental of $136,000, plus GST, with room to increase the rental which belies the high-quality food grade fitout," Clarke says. The freehold Business 6 zoned property contains extensive refrigeration equipment that is the property of the landlord but which the tenant maintains.