Staggering Restaurant Brands' KFC portfolio

By Campbell McIlroy

Friday 2nd November 2001

Restaurant Brands has put the largest sale and lease-back portfolio in New Zealand history on the market.

The portfolio of 51 KFC outlets tops the 45 properties offered by BNZ in 1996.

The properties will be offered for a sale through Colliers Jardine at three auctions in Auckland, Christchurch and Wellington on December 5, 6 and 7.

The properties are also being offered on extraordinary lease terms of 12 years with six, six-year rights of renewal, creating a potential lease term of 48 years.

Initial rents range from $35,000 to $140,000 a year with three yearly rent reviews set to market rates.

Colliers Jardine managing director Mark Synnott said if Restaurant Brands took all the rights of renewal it was about as long a lease-term as anything offered in New Zealand before.

Analysts said Restaurant Brands had been one of the best performing stocks of the last nine months since AMP Private Capital took a 22.3% stake in the company.

One said AMP's appointment of two Pencarrow Private Equity directors to the board had been a great shot in the arm.

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