Serving up security in Gisborne’s CBD

A brand-new long-term lease to one of New Zealand’s most recognisable food operators anchors the sale of a modern, purpose-built commercial property in central Gisborne, offering investors an opportunity to secure income strength in a climate where fundamentals are more important than ever, Bayleys brokers say.

Bayleys Gisborne’s Mike Florance, together with colleagues Damien Bullick and Alan Haydock, is marketing the freehold site at 320 Gladstone Road for sale by tender, closing at 4pm on Thursday, 30th October (unless sold prior).

The circa 246sqm building, operating as a Carl’s Jr quick service restaurant, is positioned on a substantial 2,023sqm (more or less) freehold landholding.

The property generates a net annual rental income of $139,000 plus GST and outgoings, from a new 10-year lease to Restaurant Brands – owner of popular takeaway outlets KFC, Pizza Hut, Taco Bell and Carl’s Jr.

The lease provides fixed annual growth built into the arrangement, and renewal rights extending the tenancy’s horizon to 30 years.

Florance says the combination of a household-name tenant, new long-term lease, and modern construction makes this the kind of investment that delivers both investor confidence and strong portfolio performance.

“Built in 2013, the modern, single-level property carries an A+ seismic rating, providing confidence in its passive, low-maintenance investment credentials. Coupled with the substantial underlying landholding, the asset is a compelling proposition for both institutional and private investors.

“In the current climate, we’re seeing investors actively rebalancing portfolios towards quality operators in growth locations. This property meets that criteria, its covenant with Restaurant Brands provides nationally recognised strength, and its position in the heart of Gisborne ensures enduring locational demand.”

Restaurant Brands operates 381 quick service restaurants across New Zealand, Australia and the USA, with Carl’s Jr a key brand within its international portfolio.

Prominently positioned on Gladstone Road – Gisborne’s primary commercial strip, the brokers say the property offers exceptional visibility, with constant exposure to high traffic flows and easy access in several directions.

The drive-through format is complemented by on-site car parking, catering to dine-in customers and the growing convenience economy.

Surrounding businesses include national supermarkets, service stations, and other large-format retail and hospitality operators, creating a proven commercial catchment that draws both local and passing trade, Bullick says.

“Gisborne’s CBD and wider town centre continue to perform as the region’s primary hub, with strong residential catchments and consistent demand for well-located service and retail offerings. The subject property’s scale, position, and presentation place it at the core of that activity.

“This commercial offering is a true passive investment opportunity - modern, fully leased, and backed by one of the country’s most recognisable operators. It provides confidence of long-term secure income in a market where investors are increasingly prioritising stability and quality.”