Masterton Burger King ‘excellent opportunity’
The takeaway restaurant is on the main arterial route through town. Photo / Supplied
Burger King Masterton is for sale, offering investors a chance to secure a highly visible property on long-term lease to an established tenant.
Colliers International and Paul Hastings & Co are jointly marketing the freehold commercial investment at 49 Chapel St for sale by tender.
Tenders on the property — which is featured in the latest Colliers Portfolio — close on July 18, unless sold earlier.
Colliers International broker Mike Laven says it is an excellent opportunity to secure an investment property with excellent tenant covenant and locked-in rental growth.
“This property is superbly located on a high-profile site at the corner of Lincoln Rd and Chapel St (State Highway 2) — the main arterial route through Masterton,” he says.
“A roundabout at the intersection makes the restaurant convenient for both locals and travellers coming from either north or south.”
The property comprises a freehold site of approximately 2000sq m, subject to survey. The restaurant is housed on a corner building with street frontage to the intersection.
Carl Hastings, of Paul Hastings & Co, says investors can take comfort from the quality of the tenant and from Burger King’s proven trading history in New Zealand. Tenant Antares Restaurant Group Limited, which operates Burger King in NZ, is paying $236,809 net rent per annum.
“The 15-year lease offers locked-in rental growth pegged to the consumer price index,” Hastings says.
“Nine years remain on the current lease, after which the tenant has two rights of renewal of 10 and five years respectively, taking the lease out to July 2041.
Hastings says Burger King has grown rapidly since it was first established in New Zealand in 1993.
“The company now has 83 restaurants nationwide, employing more than 2600 people,” he says.
Burger King was first established in the United States in 1953 and now boasts almost 16,000 outlets in 100 countries around the world.
Masterton is the largest centre in the Wairarapa region, in New Zealand’s lower North Island.
The Masterton district has a population of more than 24,000 and its economy benefits from agricultural trade from the surrounding areas.
The wider region’s agricultural economy is driven by viticulture, horticulture, sheep and beef farming and forestry.
Wairarapa is a popular weekend getaway and lifestyle destination for residents of the Wellington region, which is just over the Rimutaka Hills to the south of Wairarapa.
The Martinborough area, south of Masterton, is well regarded for its wines and boutique hospitality offerings.