Colonel’s New Home Offers Reliable Returns

Investors seeking resilient income backed by a nationally recognised tenant are being presented with an opportunity to secure a brand-new retail investment in Hawke’s Bay, as demand continues to strengthen for modern assets offering long lease security and built-in rental growth, Bayleys brokers say.

Bayleys Metro Markets senior director Alan Haydock, together with colleagues Damien Bullick and Rollo Vavasour, is marketing the 1,324sqm (more or less) freehold site at 914-916 Heretaunga Street East in Hastings, for sale by tender, closing at 4:00 pm on Wednesday, 29th July 2026 (unless sold prior).

Currently under construction and due for completion in September 2026, the purpose-built 226sqm (more or less) restaurant will be occupied by fast-food chain KFC under a new 10 year lease to Restaurant Brands, returning $140,000 plus GST per annum net.

The lease provides annual fixed rental increases of 2.5 percent, together with five-yearly market reviews subject to cap and collar provisions, delivering both certainty and long-term rental growth.

Haydock says institutional-style fundamentals are increasingly attracting private investors seeking dependable long-term income without the management demands that can be associated with traditional retail ownership.

“Across the investment market, we’re seeing competitive interest in assets that offer certainty. Investors want quality tenants, modern buildings, predictable rental growth and limited capital expenditure, particularly as borrowing costs stabilise and confidence returns.”

“High profile retail investments leased to established national operators are perennially in-demand because they combine secure cashflow with long-term tenant commitment, while the new construction significantly reduces future maintenance requirements for incoming owners.”

Restaurant Brands is one of Australasia’s largest quick-service restaurant operators, with a portfolio of more than 520 restaurants across New Zealand, Australia and the United States. As a master franchisee for KFC and Pizza Hut in New Zealand, the company provides investors with the security of a well-established blue-chip covenant underpinned by the scale, operational strength and market leadership of a listed multinational business.

Bayleys Metro Markets director Damien Bullick says the combination of a new building and established tenant covenant elevates the investment profile.

“There’s an alignment between the new construction, long initial lease, fixed rental growth and tenant profile – that delivers a level of income visibility and asset quality that sets this opportunity apart in the current market.”

The property occupies a prominent site on Heretaunga Street East, one of Hastings’ principal arterial routes linking the city centre with Parkvale and Havelock North, benefiting from consistent commuter traffic, an established residential catchment and neighbouring service retail businesses.

Bullick says this location one of Hastings’ busiest arterial routes provides the type of exposure and catchment national retailers increasingly prioritise when expanding their networks.

“Hastings continues to experience steady residential growth, while Havelock North remains one of the region’s strongest-performing residential markets. That movement between two centres creates sustained traffic volumes and supports businesses positioned along key connecting corridors.

“Well-located retail investments with strong tenant covenants continue to attract diverse buyer interest because they offer predictable performance and genuine ease of ownership. For investors focused on preserving capital while generating reliable income, this is exactly the type of opportunity that market continues to reward.”