Fast food outlet is a ‘whopper’ of an investment
The corner site property housing the Blenheim branch of global fast-food chain Burger King, on the city’s busiest road, has been placed on the market for sale.
The 1770 sq m site at 34-36 Main Street contains the low-rise, fast food outlet industrial building, a drive through, and 24 car parks.
The land and buildings of the freehold property are being marketed for sale by Bayleys Marlborough at auction on March 15.
Bayleys Marlborough salesperson Grant Baxter said the property would benefit from its location on the fringe of the up-and-coming Blenheim CBD, currently the focus of major redevelopment.
Burger King’s location on the main road into and out of town will further drive customer numbers to the business.
“The Marlborough District Council is refreshing and revitalising the centre of the city, with plans in the works to create more open spaces, improve central footpaths, and upgrade bike paths,” he said.
“With a new Countdown set to open in April, and a multi-million dollar makeover at Springlands Shopping centre to be open in May, the neighbouring areas will benefit from consumers spending more time in the CBD.”
The council was also creating two pocket parks, which would be finished in mid-March, and there was a draft landscape plan for a marketplace, he said.
Mr Baxter said the Burger King site worked well for the tenant, being located on a major arterial route through Blenheim, and with a corner position giving dual road frontage. The tenant’s potential lease runs through until February 2031 – comprising the current term, with two, four-year rights of renewal.
The tenancy generates annual revenue of $176,800 plus GST, plus operating expenses. The property had an Initial Evaluation Process rating of 125 percent of New Build Standards.
“The site was purpose-built for Burger King, with construction completed early in 2011,” he said.
“Situated on Main Street, just 500 meters from the
chief post office and the main retail
centre, Burger
King is a highly visible landmark.”
Mr Baxter said the
street served as State Highway 1, carrying high volumes of
traffic from Christchurch through to Picton in the north, to
Nelson and to the West Coast.
“This high traffic count is one of the key locational factors fast food operators demand when looking at tenancy options,” he said.
“Truckers, tourists, and locals looking for a quick bite to eat in their increasingly time-poor, demanding lives, can access it easily in this handy locality.”
Mr Baxter said the state highway bought a large amount of passing trade into the town centre, benefiting the local economy.
Neighbouring and nearby properties are developed to a variety of light industrial workshop, vehicle servicing, warehousing, wholesale and fast food takeaway outlets.
“This site is surrounded by nationally-recognised brands, such as New World, Guthrie Bowron, Briscoes, and Blenheim Toyota, meaning there is substantial footfall around the area” said Mr Baxter.
“Add this to the 3.5 million traffic movements on the road per year, and you have an ideally situated fast-food outlet catering to a wide range of customers.”
Mr Baxter said the site would appeal to investors due to the internationally-branded burger chain tenant, with a strong foothold in New Zealand.
“Burger King has been in New Zealand since 1993, operating 83 restaurants nationwide and employing more than 2,600 staff.”
“Burger King has an existing 12-year lease on the site, which started in 2011, so this is a chance for a buyer to invest in a newly-built premises underpinned by a well-established convenience food operator,” he said.
Mr Baxter said interest in the site had been wide-ranging, with potential buyers in Christchurch, Canterbury, and Auckland already registering their interest.
He said the property could attract far-flung buyers because it was a ‘passive investment’, requiring very little time-on-site for the owner, as the Burger King Franchise always ensured it was clean and tidy at all times.
ENDS