The new building housing a cornerstone KFC outlet in one of the Wellington region’s fastest growing suburbs has gone up for sale.

The purpose-built property in the centre of Wainuiomata is anchored by the global fast-food giant, with an onsite cell tower providing further rental income.

The site will earn new owners a total net rental return of $163,777 plus outgoings and GST per annum.

Long leases to both tenants cap what is seen as a stellar offering for passive commercial property investors.

KFC will occupy its store premises on a new 10-year lease to Restaurant Brands Limited, with one further 10-year and two further five-year rights of renewal. The lease will provide for fixed three percent annual rent increases, replaced by market rent reviews every five years.

The lease to cell tower operator Fortysouth Group LP runs through to 2056, with three-yearly rent reviews to CPI.

Since launching its first New Zealand Store in the early 1970s, the world’s top chicken restaurant chain has rolled out the Colonel’s secret mix of 11 herbs and spices to over 110 KFC stores nationwide.

NZX and ASX-listed fast-food heavy hitter Restaurant Brands owns and operates 378 KFC, Taco Bell, Carl’s Jr. and Pizza Hut stores in New Zealand, Australia and the US, as well as being the master franchisee for all of KFC and Pizza Hut in New Zealand. It employs over 12,000 staff and serves hundreds of thousands of customers every day.

The freehold property housing KFC’s new store at 18 The Strand, Wainuiomata, is being marketed for sale by Oliver, Ethan and Mark Hourigan of Bayleys Capital Commercial.

It will be sold by deadline private treaty closing on Tuesday 5 November, unless sold prior.

Oliver Hourigan said the approximately 270-square-metre building sat on a prominent site of some 2,153 square metres with dual street access.

The land is zoned Suburban Mixed Use under Hutt City Council’s district plan.

“Completed this year, this property was purpose-built with restaurant and kitchen facilities, plus additional car parking and drive-through amenities. The restaurant is efficiently configured with a good functional split between food preparation and dining areas, and easy access from the carpark and bike stand.

“The kitchen fitout is supported by numerous walk-in chillers, optimising the functionality of the space. Rear internal access from the kitchen into a garage with a roller door is perfect for accommodating waste and recycling requirements, he said.

Ethan Hourigan said the property was immaculately presented, from the freshly minted building to the surrounding grounds.

“It sits on the west side of Wainuiomata’s central business district, which is the beating heart of the area. This precinct is already brimming with activity and has an even brighter future.

“Neighbours include a Woolworths supermarket, Wainuiomata Medical Centre, McDonald’s and a soon-to-be-added Mitre 10 MEGA, along with a recently completed residential development. Numerous other shops, cafes, restaurants, community facilities and a transport hub round out an impressive array of local amenities,” he said.

Mark Hourigan, managing director of Bayleys Capital Commercial, said future trading prospects were buoyed by Wainuiomata’s status as one of the region’s hotspots of suburban growth.

“Wainuiomata’s population swelled by 11 percent to an estimated 20,000 in the five years following the 2018 census, according to Stats NZ.

“This growth has been accompanied by a housing boom, including substantial residential subdivision and townhouse developments just to the north of the site for sale,” Mark Hourigan said.

Click here for more information on the listing.