Landmark Gisborne chippie

4:22 PM Friday February 1, 2019 True Commercial

The Waikanae Beach property housing Captain Morgan’s is now for sale. Photo / Supplied

The land and buildings housing one of New Zealand’s most popular beachfront fish and chip shops are for sale in Gisborne.

Bayleys Gisborne’s Shelley Donaldson and Mike Florance are selling the property occupied by the popular Captain Morgan’s fish and chip cafe.

Over the past three decades diners have sought out the venue’s seafood and deep-fried options to either dine-in — enjoying panoramic views of the beach just 40m away — or the take outs.

Now the 459sq m freehold site and its 409sq m building — but not the business — are to be sold by tender through Bayleys Gisborne.

Tenders are to close at 4pm, February 15, and the property will feature in Bayleys’ next Total Property portfolio magazine.

Donaldson says the building, at 285 Grey St, Awapuni, dates from the 1950s. It comprises the foodservice business at street level, with the business operators living in the upper residential portion of the property.

The business generates rent of $53,500 per annum, with a lease running through till 2023.

The two-storey building has 137sq m of retail and dining space, plus 123sq m of kitchen and foodservice space. Upstairs is a 149sq m spacious four-bedroom apartment with a deck that has spectacular and unimpeded views over Waikanae Beach.

Directly over the road from the site stands the Waikanae Beach Top 10 Holiday Park and the Waikanae Surf Life Saving Club. The location is zoned Inner City Residential under Gisborne Council’s district plan.

Florance says key options will open up on expiry of the lease.

“The length of the lease is far enough out that, from a pure investment perspective, either a new occupancy could be negotiated with the tenant, or new business operators could be sourced over the intervening period.

“With commercial and residential aspects of the location factored in, the property is under-rented, so there is the potential to lift the yield substantially.

“Alternatively, developers could buy the site with the intention of redeveloping it into a mixed-use venue,” Florance says.

“The tenancy provides at least four years’ good holding income, while the necessary council planning consents are sought.

“Under this configuration, subject to council consents, there could be the option to build a replacement foodservice outlet — with upmarket apartments above.”

The upper level residential components would have stunning views down Waikanae Beach across to Young Nick’s Head.

Donaldson says there’s parking for up to 50 vehicles directly outside the front doors.

Customer demographics are split between holidaymakers, local residents and workers at nearby light industry premises, she says.

“The address is one of a kind in Gisborne — there are no other fish and chip outlets offering this sort of vista on their front doorstep with some 31m of street frontage.

“It’s one of the reasons the eatery has remained so popular over the decades.”

Captain Morgan’s location means residents heading home from work to Gisborne’s southeast can conveniently pick up dinner en-route, says Donaldson.

“On the weekdays the business draws in a strong customer base from the scores of Light Industrial businesses which stretch south along and off the Awapunui Rd main arterial route.”