New development serves up long-term certainty

A newly developed retail investment secured by one of New Zealand’s strongest retail operators is being brought to market, offering investors a passive income opportunity underpinned by a brand-new building, long-term lease security and a strategic position within one of Auckland’s largest urban regeneration precincts, Bayleys brokers say.

Bayleys Metro Markets senior director Alan Haydock, together with colleagues Damien Bullick and Michael Nees, is marketing the freehold property at 50 Northcote Road in Northcote for sale by tender, closing at 4:00 pm on Wednesday, 29th July 2026 (unless sold prior).

The property comprises a purpose-built dual-brand restaurant investment occupied by Restaurant Brands, operating as KFC and Taco Bell under a new 10 year lease returning $330,000 plus GST per annum. The lease provides for fixed annual rental increases of two percent together with five-yearly market rent reviews, while four further renewal rights provide the potential for a 30 year tenancy.

Situated on a prominent 1,849sqm (more or less) site zoned Business – Mixed Use, the asset occupies a high-profile position on Northcote Road, a major commercial corridor connecting the North Shore’s established residential catchments with State Highway 1, Takapuna and Auckland’s CBD.

Haydock says investor demand has increasingly focused on assets that combine income certainty with minimal management requirements, particularly as capital becomes more selective and long-term fundamentals take precedence over short-term market cycles.

“Quality has become the defining characteristic of the investment market. Investors are increasingly prioritising assets that offer secure income, modern building standards and tenants with proven operating performance, rather than opportunities requiring significant leasing or capital expenditure.

“Brand-new investments with institutional-quality covenants remain tightly held, given they provide immediate passive income while significantly reducing near-term maintenance and refurbishment requirements.”

Restaurant Brands operates more than 500 restaurants across New Zealand, Australia and the United States, with internationally recognised brands including KFC, Taco Bell, Pizza Hutt and Carl’s Jr. Its scale, operating history and market position underpin what Haydock describes as one of the strongest tenant covenants available within New Zealand’s large-format retail sector.

Purpose-built for contemporary quick-service restaurant operations, the building incorporates dedicated dine-in facilities alongside a drive-through, extensive customer parking and modern operational infrastructure designed to support long-term trading performance.

Bayleys Metro Markets director, Damien Bullick, says the investment proposition extends beyond the strength of the lease, with the surrounding location continuing to benefit from substantial public and private investment.
“Northcote is undergoing one of the country’s most significant urban renewal programmes, with circa 1,700 new apartments, terraced homes and standalone dwellings planned alongside upgraded transport infrastructure, public spaces and the Northcote-Te Ara Awataha Greenway; a local network of parks, shared cycling and walking trails.

“That ongoing residential intensification will strengthen customer demand, reinforcing the long-term appeal of well-positioned convenience retail assets that already occupy established locations.”

The property further benefits from convenient motorway access, proximity to major public transport connections including the Northern Busway at Smales Farm, and surrounding amenities such as the Northcote Shopping Centre, Takapuna Golf Course and a range of neighbourhood amenity.

Bayleys North Shore Commercial director, Michael Nees, says the combination of secure income, underlying land value and future flexibility has become increasingly important as investors seek assets capable of performing across multiple market cycles.

“Investors are looking for assets where tenant quality, demographic growth and land fundamentals reinforce one another over time. This offering brings those features together in a single venture, delivering immediate passive income from one of the country’s strongest retail operators while providing ownership of a strategic freehold site in a location benefiting from sustained population growth and ongoing public investment.”