Supermarkets have long been considered one of the premier passive investment opportunities in New Zealand and Countdown Orewa has been placed on the market for sale, presenting buyers with the chance to purchase a high-quality asset with a strong tenant covenant.
Located in a prominent position at 3 Moenui Avenue in Orewa, the property offers 4,089sq m of total net lettable area and 145 car parks on a 9,380sq m site that is spread across nine freehold titles and is zoned Business – Town Centre Zone under the Auckland Unitary Plan.
Extensively refurbished in 2014, the highly visible property has a 100 per cent seismic rating and more than 200m of road frontage.
Countdown’s current 10-year lease began in April 2021 and there are 10 further rights of renewal for five years each leading to a final expiry of April 2081. The net passing income from the property is $1,241,393 plus GST per annum.
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The property services the local catchment of Orewa, as well as coastal towns further north, including Waiwera and Hatfields Beach, and secondary catchments such as Silverdale, Red Beach, and the lower parts of the Whangaparaoa Peninsula.
Orewa is an accessible location that is just 25 minutes from Takapuna, five minutes from State Highway 1, and 30 minutes from Auckland’s CBD.
Colliers Directors Shoneet Chand and Matt Prentice have been exclusively appointed to market the property for sale by deadline private treaty closing at 4pm on Tuesday 29 November, unless sold prior.
General Distributors Limited, trading as Countdown, is part of Woolworths New Zealand, a subsidiary of the publicly listed Australian company, the Woolworths Group.
Woolworths has more than 1,050 stores in Australia and New Zealand, including its supermarkets, liquor, hotel, and retail divisions and has been in operation for more than 80 years.
Chand, Director of Investment Sales at Colliers, says this blue-chip property provides a strong tenant covenant.
“Supermarkets are keenly sought among buyers given they offer a range of key investment fundamentals such as an established tenant with a long-term lease on a high-profile site,” Chand says.
“They also have the ability to trade through a wide array of conditions and proved incredibly resilient throughout the Covid-19 pandemic as they adapted quickly to the changing retail environment.
“This property serves as the ultimate passive investment for prospective purchasers who will have the opportunity to secure an asset with an ASX-listed tenant that is a household name in New Zealand.”
Prentice, Director of Sales and Leasing at Colliers, says the property benefits from an outstanding location in Orewa, only moments from the beach.
“Surrounding properties are composed of some low-rise strip retailing and convenience retail blocks, with significant residential areas situated to the north, south, and west,” Prentice says.
“Investment from the council to upgrade the main road and widen the footpaths has reconnected the town centre to the beach and has proven to be a catalyst in growing the hospitality sector in Orewa.”
The Business – Town Centre Zone applies to suburban centres throughout Auckland, the satellite centres of Warkworth and Pukekohe, and the rural towns of Helensville and Wellsford.
The centres are typically located on main arterial roads, which provide good public transport access. The zone provides for a wide range of activities including commercial, leisure, residential, tourist, cultural, community and civic services, providing a focus for commercial activities and growth.
- Article supplied by Colliers
