Burger King's national distribution centre in South Auckland has been put on the market with a long lease in place to the multi-national fast food chain.
"A business like Burger King makes an ideal commercial tenant," says Andrew Hooper of Colliers International who, with colleague Hamish West, is marketing the property at 10-18 Alderman Place, Otahuhu, for sale by offers closing on October 13, unless it sells earlier by negotiation.
West says dry and frozen goods are stored and distributed to Burger King's 83 restaurants nationwide from the site which the chain has occupied for the past 15 years. "We expect investors to be attracted by the long term lease to Burger King, which has further rights of renewal built in, as well as by the strong tenant covenant provided by a global brand."
Hooper agrees in noting that Burger King is a well-established, large international corporation with plans for further expansion in New Zealand. "So this property will be seen as a very attractive long term, passive, income-generating holding," he says. "It offers a simple investment in a popular asset class. Industrial investment properties in good locations with strong tenants in place are continually sought after, so we think this property will be appeal to a range of local buyers. We also expect to receive interest from investors around New Zealand looking for solid long term income and capital growth opportunities."