Auckland's wealthiest suburb is getting a new $40 million Countdown, and agents who brokered the deal say there's appetite for at least two more supermarkets in the area.
Ray White commercial directors Finn Hurst and Mike Hoeft negotiated the lease for the new Countdown Metro on the corner of Jervois Road and Kelmarna Avenue, in Herne Bay.
The 2342sqm site of the new supermarket is owned by Auckland property investor Ben Cook and developer Kurt Gibbons, through their joint company Kremlin Capital.
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The new Countdown Metro on Kelmarna Avenue, Herne Bay, includes 52 carparks, including some for electric vehicles as well as bike parks. Photo / Supplied
Kremlin had already started construction work on the supermarket, which is slated for a November opening.
Hurst and Hoeft told OneRoof that supermarket operators were keen to extend their presence in Auckland’s inner west suburbs, from Grey Lynn to Herne Bay and Point Chevalier.
“We knew that both big supermarket chains are looking for sites the area,” Hoeft said.
“The site has historically been underutilised and will now see significant investment and activity which is pleasing to see for the Herne Bay community.
Cook and Gibbons had bought the site from private developers Mansons TCLM, which had plans to develop a five-storey apartment and retail block.
Former plans for the site were for a five-storey apartment and retail complex. Photo / Supplied
“Ben and Kurt know retail developments as well as residential. So, when they bought [the site] we had a chat and asked ‘would you consider a supermarket?’,” Hoeft said.
He added: “There’s still room for another two stores in the area, but there are no sites available.”
The leasing deal with Countdown went unconditional just before Christmas.
Agents say that there is demand between the city and Herne Bay and Point Chevalier for another two supermarkets. Photo / Supplied
Cook owns several other retail and hospitality sites in Herne Bay, as well as the land and buildings occupied by Bunnings in Grey Lynn and Westgate and other Countdown sites in Wellington, Orewa and Howick while Gibbons’ developments, through his company Gibbons Co, include medical facilities.
The site had been home of the Gables Tavern since the 1970s before closing in 2014. It now houses a gym. Negotiations to build the 1,683sqm supermarket with 52 carparks gave Countdown the chance to create a best-in-class metro store with amenities to suit the up-scale neighbourhood.
Gibbons will do the build to Countdown’s specifications.
The upscale market will include a new look fitout. Photo / Supplied
“Everybody’s got to eat, and a supermarket is a good market to be in, this one will be a lot more upmarket. When it comes to design, we’re used to working with good architects and [Countdown] have briefed us for a new look in the fit out, it looks really good,“ Gibbons said.
Matt Grainger, Countdown's acting general manager property, said the new store would include LED lighting, an environmentally friendly refrigeration system and a turntable to allow trucks to deliver to the corner site.
“Supermarkets have become an even more integral part of people’s everyday life in 2020 and we want to make it easier for our customers to shop locally, " he said.
Like the new Countdown Metro in Halsey Street, in Wynyard Quarter, which opens next Tuesday, the new Herne Bay supermarket "has been specially designed to pack a punch".
Gibbons said he was encouraged by friends and neighbours in Herne Bay who were excited to have a new supermarket in the area.
“A lot of people thought this would be hard to get through, but everyone thinks it would be great for the neighbourhood. People are excited, they can stop and pick up dinner on the way home.”
Hurst, who with Hoeft, specialises in large format retail, said the appeal of supermarkets was that, unlike other retail, hospitality and even office, they continued to trade well through Covid lockdowns.
“Investors now have an intense focus on quality tenant covenant, and supermarkets fit that: good corporates who take long leases, generally ranging from eight years and upwards with rights of renewal,” he said.
“The yield compression reflects the value that buyers place on supermarket assets.”
Gibbons said that while this was his first supermarket build, further deals were in the works.
“I’m buying a site a week at the moment.”
