Hands-off investment hot off the grill

The forthcoming auction for a fully-managed, hands-off commercial investment in one of Tauranga’s busiest retail destinations, will give buyers the chance to secure a passive asset occupied by global food service operator Burger King.

The standalone property at 255 Fraser Street sits within Tauranga’s popular Fraser Cove Shopping Centre precinct, which was developed in 2002 by the New Zealand Retail Property Group (NZRPG), boasting strong customer flows, excellent visibility and dependable income.

The freehold L-shaped site comprises 657sqm of land and a purpose-built 219sqm restaurant premises leased to Antares Restaurant Group Limited, trading as Burger King Fraser Cove. The building has recently undergone a makeover with fresh Burger King branding, external refurbishment, and an internal upgrade, presenting a modern quick service restaurant with dine-in, takeaway and drive-through capability.

The site also features outdoor seating, landscaped gardens, and generous on-site parking, with dual vehicle entry and exit points from Fraser Street.

The property leverages precinct exposure to a diverse mix of national and regional retailers, service providers, food operators and convenience-based businesses that collectively drive consistent patronage throughout the centre.

Burger King is one of New Zealand’s most recognised quick service restaurant brands, and it has an established and proven presence in Fraser Cove. The initial lease term commenced in 2004 with further rights of renewal extending through to 2039. The semi-gross lease structure requires the tenant to pay rates and insurance premium, contributing to a current annual net income of $117,607 plus GST. Rent review dates are scheduled for 2028, 2031, 2034 and 2037. The property is subject to a Property Management Agreement with NZRPG, ensuring professional centre management of the wider shopping precinct to protect the value of the asset, and making this a completely passive investment opportunity for a new owner.

Bayleys Tauranga brokers Brendon Bradley, Lynn Bradley, and Ryan Bradley are marketing the property for sale by auction on Wednesday 21st October, unless sold prior.

Brendon Bradley says the offering stands out for investors seeking simplicity and reliability, and the strength of the wider retail environment.

“Fraser Cove is a well-patronised shopping centre that draws on, and supports, a wide local catchment and provides a reliable trading environment for national brands like The Warehouse, Postie, Chemist Warehouse, Repco, and Woolworths.

“Recent refurbishments enhance the property’s presentation and strengthen its appeal for long-term ownership, giving buyers confidence in both the asset’s condition and its ongoing performance.”

The Western Bay of Plenty sub-region which includes Tauranga City is undergoing fast-paced growth with new housing initiatives, infrastructure investment, and ambitious regional development plans progressing.

“Fraser Cove Shopping Centre is positioned to remain a key retail and community anchor due to its central location and broad catchment reach,” says Bradley.

“This is a well-performing standalone commercial asset offering a strong tenant covenant, lease security, and commercial zoning that provides long-term flexibility and enduring land value in one of New Zealand’s fastest growing regional markets.”

Founded in Miami, Florida in 1954, Burger King has grown to become one of the world's largest quick service restaurant brands, operating thousands of restaurants across more than 100 countries.