Supermarkets are one of the most sought-after asset classes in New Zealand and Countdown Herne Bay is being presented to the market for sale, giving prospective purchasers the opportunity to acquire a highly coveted asset.
Located at 1 Kelmarna Avenue in Herne Bay, the prominent building occupies a highly visible corner site that offers extensive street frontage to the well-known Jervois Road.
Boasting 1,640sq m of lettable area, the new-near building sits on a significant 2,342sq m freehold, north-facing site that is zoned Business – Local Centre Zone under the Auckland Unitary Plan. There are also 52 dedicated car parks, including two EV parks.
The property is fully leased to Woolworths New Zealand, a subsidiary of General Distributors Limited, trading as Countdown, on a 12-year term with future rental reviews in place. The lease agreement provides $1,511,875 plus GST in net annual rental income.
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There are also multiple rights of renewal available leading to a final expiry in June 2074, indicating Countdown’s long-term commitment to the location.
The property is surrounded by New Zealand’s most affluent residential suburbs and is less than 3km from Auckland’s CBD. Herne Bay has long been considered one of the city’s most exclusive residential precincts and continually ranks as one of the country’s most expensive suburbs.
Colliers Directors Blair Peterken and Peter Herdson have been exclusively appointed to market the property for sale via deadline private treaty closing at 4pm on Wednesday 5 July, unless sold prior.
Constructed last year, the property has a 100 per cent NBS rating, and the floor area comprises a 1,485sq m supermarket, 155sq m office, plant room, travelator, and canopy.
The main retail trade area is located at ground level with customer access provided from Jervois Road. The mezzanine area, housing the office and staff amenities, is located above the main customer entrance and offers lift access that connects to the ground floor and basement car park.
Access to the car park, which includes five bike racks, is via Kelmarna Avenue.
Peterken, Director of Capital Markets at Colliers, says this is one of the premier purchasing opportunities of the year.
“Supermarkets are one of the most keenly sought assets among buyers who are drawn to the prospect of acquiring a property with a strong tenant covenant that includes an occupant that has shown the ability to continue trading in all economic conditions,” Peterken says.
“The lease terms of the subject property are highly favourable to buyers given the annual base rent reviews include CPI plus 2 per cent, which are capped at 2.5 per cent.
“With multiple rights of renewal in place, this property shapes as a highly enticing passive investment opportunity that would be the jewel in the crown of many investment portfolios.”
Herdson, National Director of Capital Markets at Colliers, says this is an asset that will draw extensive interest on the open market as buyers continue to search for properties that have strong investment fundamentals.
“Given the property was built last year it presents immaculately and will serve as a low-maintenance asset for the future owner who will be able to enjoy the steady rental stream on offer,” Herdson says.
“It has been completed in Countdown’s metro style and provides a highly functional and customer-friendly layout that is easily accessible and provides convenience.
“We encourage all interested parties to contact us immediately to ensure they don’t miss out on this exciting purchasing opportunity.”
- Article supplied by Colliers
