For the first time in over 25 years, the land and buildings of Feilding’s Countdown supermarket are on the market, with a long term lease to General Distributors, the operator of the Countdown brand in New Zealand.
Located on 7,423 sqm of land on the corner of Kimbolton and Weld Streets in the central Manawatū town, the 2,815 sqm supermarket is being marketed by Cameron Darby, Tim Rookes and Rick Stace of CBRE by deadline private treaty closing at 4pm on April 29 (unless sold prior).
Seismic strengthening works are being completed on the supermarket building, which was constructed in 1996 and significantly extended in 2006, says Darby.
“The new seismic upgrades were agreed upon in return for Countdown exercising an early right of renewal on their lease. These upgrades will enhance this property’s attractiveness as a long term, high-quality investment asset with an exceptional tenant covenant, in a location which benefits from a strong regional catchment.”
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The supermarket property, which generates $676,000 in net annual rental income, will be considered a highly desirable acquisition among the many private investors, syndicators and funds currently searching for prime investment opportunities that are resistant to Covid-related business disruptions, Rookes says.
“As an investment proposition, this property is very hard to beat – offering a long lease term and a food-based tenant backed by a large Australasian corporation. The Countdown brand is well known and established at this location and offers a very strong tenant covenant.”
General Distributors is owned by Woolworths New Zealand, which also owns the Fresh Choice brand in addition to Countdown. Woolworths New Zealand is in turn owned by Australian retail giant Woolworths Group Limited, says Stace.
“Potential buyers can take a high degree of confidence from a tenant that is ultimately owned by Woolworths Group, Australia’s largest supermarket chain with sales in excess of AUS$63 billion for the 2020 financial year.”
Woolworths New Zealand owns over 180 Countdown supermarkets in New Zealand and is the country’s largest private sector employer, with 18,500 people employed in its stores, support offices, processing plants and distribution centres.
ASX-listed Woolworths Group Limited has been in the business of food retailing for more than 80 years, and has grown into a household name in Australia. The group employs over 200,000 people in Australia and New Zealand and operates 3,000 stores between the two countries.
On top of the current seven-year remaining lease term, Countdown has options to continue occupying the property through to 2046 if all rights of renewal are exercised.
Supermarket properties are viewed as exceptionally strong investments, owing to the non-cyclical nature of the tenants’ food-related business and their proven performance in the Covid-19 environment, says Darby.
“The future financial security and performance of this investment opportunity is underpinned by demand for food. This ensures supermarkets continue to trade well during both short-term interruptions to business, for example Covid lockdowns, as well as longer-term economic downturns.”
The property, which also includes 120 car parks, is located on the eastern edge of the central Feilding commercial precinct, next to The Warehouse. The site faces on to State Highway 54, a key regional arterial route connecting Feilding with Palmerston North, ensuring high visibility to a large number of passing vehicles.
