Countdown’s newest metro-style supermarket in Auckland’s wealthy Herne Bay is up for sale.
The purpose-built Countdown Metro opened in June 2022 and is being marketed by Henry Thompson, of Whillans Realty Group.
It is for sale by tender, with tenders closing October 12.
The property is owned by a private investment partnership and has been developed on a prime 2,342 square metre, high-density freehold site on the corner of Jervois Road and Kelmarna Avenue, giving it approximately 125 metres of street frontage.
Start your property search
It delivers 1,640 square metres of rentable area and returns a net annual rental income of $1.47 million.
The property is fully leased to General Distributors Limited, a subsidiary of the ASX listed Woolworths Group. It is underpinned by a brand new 12-year lease to Countdown with rights of renewal out to 2074.
Woolworths New Zealand own and operate over 180 Countdown supermarkets across the country. They are New Zealand’s largest private sector employer, with 18,500 staff employed across their stores, support offices, processing plants and distribution centres.
In addition to the turnover rent, the property has annual CPI+2% rent reviews. These reviews are protected by a hard ratchet clause and capped at 2.5% per annum.
Countdown’s fourth metro-style store has been designed to appeal to its local upmarket community with its 52 basement parking spaces of which two are EV charging stations, and five dedicated bike racks.
The new metro-style store has a focus on quick eating options including a premium range of products like barista-made coffee, ready-to-go meals, fresh-made sandwiches, salads, health-focused snack options, take-home dinners and fresh pizzas made in store.
Thompson says supermarket properties are exceptionally strong investments, underpinned by the non-cyclical and essential nature of grocery shopping.
“This has been reinforced by the sector’s solid performance through various Covid 19 lockdowns and now high levels of inflation.
"Given the size of the landholding, its underlying high-density zoning, and position within Herne Bay, this property is truly irreplaceable.”
For these reasons, Countdown’s metro-store in Herne Bay is likely to make it highly attractive to intergenerational family trusts, high-net-worth private investors and fund managers, he says.
“As a brand new building, the property will require minimal maintenance and capital expenditure over the foreseeable future.”
He says Herne Bay is also one of Auckland’s most exclusive and sought-after suburban retail precincts.
The suburb’s median house price sits at $3.7 million and the proportion of Herne Bay residents earning over $150,000 annually is nearly six times greater than the Auckland region.
The suburb offers excellent proximity to public transport and the CBD. There are also a number of new high-density luxury residential developments recently completed and underway.
Jervois Road, where the new supermarket is located is home to a range of established cafes, restaurants and upmarket retailers which is driving two-way traffic between the Countdown and these venues.
“In the last 18 months, two new luxury apartment buildings have been completed on Jervois Road, adding to foot traffic and retail spend in the immediate area.
“With the new residential intensification policies adopted by the Government, a significant portion of residential land in and around Herne Bay will allow infill housing, new terraced homes and apartments.
“This intensification will support future population growth along with the demand for food, beverage and groceries in Herne Bay.”
- Article supplied by Whillans
