KFC build­ing sells in ‘crazy’ auc­tion


‘‘It's amaz­ing for the ven­dors, they are very happy.’’

The land and build­ing home to KFC in Porirua, north of Wellington has new own­ers fol­low­ing an ‘‘ab­so­lutely crazy’’ auc­tion.

The prop­erty, which was be­ing sold as part of a in­vest­ment re­jig by its orig­i­nal own­ers, was bought by a lo­cal in­vestor for $2.75 mil­lion, well above its rate­able value of $1.57m.

Bay­leys Wellington agent Mark Sher­lock said it was the big­gest auc­tion he had been in­volved in. There were 168 bids. An av­er­age auc­tion gen­er­ates be­tween 30 and 50 bids.

‘‘The place was chocka. It went crazy, ab­so­lutely crazy.’’

‘‘There was some re­ally, re­ally strong bid­ding, but from a bit over $2m there was only re­ally two in it and they just went on and on and on for about 40 min­utes … but we got there,’’ Sher­lock said.

‘‘It’s amaz­ing for the ven­dors, they are very happy.’’

KFC-oc­cu­pied prop­erty had al­ways been hotly-con­tested in­vest­ments, he said.

’’The fast food as­set class is sought-af­ter, es­pe­cially when the prop­er­ties are an­chored by well­backed op­er­a­tors with de­cent-term leases.’’

The prop­erty across the road from North City Shop­ping Cen­tre was built in 1998 and KFC, opened the fol­low­ing year.

The orig­i­nal own­ers were sell­ing as part of a re­assess­ment of their in­vest­ment port­fo­lio.

The site had ‘‘clearly been a suc­cess­ful one’’ for Restau­rant Brands which owns the KFC New Zealand fran­chise, af­ter it re­newed its lease last year for another six years, Sher­lock said.

The com­pany has right re­newal op­tions un­til 2035.

A re­cent seis­mic as­sess­ment showed the build­ing was an A grade, with a rat­ing of 95 per cent of the new build­ing stan­dard, Sher­lock said.

Porirua was ‘‘in pretty good heart, com­mer­cially’’, with a $5m up­grade to the coun­cil’s head­quar­ters on the cards, and a $21m ad­ven­ture park pro­posed for the hills west of the city, he said. of

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