A prominently positioned Countdown supermarket in the affluent East Auckland suburb of Howick offers buyers the opportunity to acquire a premier property with a strong tenant covenant in a highly sought-after asset class.
35 Cook Street, Howick is home to a Countdown supermarket and seven specialty stores in a separate block of shops offering 3,395sq m of total net lettable area on a 9,096sq m freehold site that is zoned Business – Town Centre Zone under the Auckland Unitary Plan.
The property, which has 142 on-site car parks, is strategically located on a high-profile corner site with frontage to Cook Street, Fencible Drive, and Moore Street and offers three access points.
Countdown’s current lease runs until 2026 and includes further rights of renewal.
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The total net annual rental income from the property is approximately $1,050,000 plus GST and encompasses seven sub-tenants, including well-known brands Subway, Jesters Pies, and Pizza Hut, among others.
Howick has a favourable socio-economic make-up with higher-than-average household incomes, high levels of home ownership, and a diverse population.
Countdown Howick benefits from limited competition, being the only supermarket situated in the Howick Village.
Colliers Directors Blair Peterken and Jason Seymour have been exclusively appointed to market the property for sale by deadline private treaty closing at 4pm on Thursday 29 September, unless sold prior.
The supermarket, which includes a Lotto outlet, was built in 2004 and provides 2,679sq m in total floor area, comprising 2,275sq m of main retail space, 210sq m of mezzanine, and a 194sq m covered entry area.
The specialty retail store area was constructed in 2005 and spans 716sq m. The tenancies range in size from 59sq m to 173sq m.
Peterken, Director of Capital Markets at Colliers, says the property offers a significant rental stream, underpinned by a strong tenant covenant.
“Whether you consider this opportunity as a secure medium-term investment or a potential landbank, this is an opportunity that ticks a lot of boxes,” Peterken says.
“General Distributors Limited, a subsidiary of the Woolworths Group, is a national retail group that is the largest in Australasia and operates the Countdown supermarket brand nationwide.
“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.
“General Distributors Limited is the lessee of the entire property at 35 Cook Street and is responsible for future vacancy and rental negotiations with the sub-tenants.”
Peterken says the property offers long-term potential to buyers who will appreciate the Town Centre zoning.
“The easy accessibility into the site and the sought-after Business – Town Centre zone gives numerous options and flexibility to purchasers for future redevelopment.
“The zone applies to suburban centres throughout Auckland. The centres are typically located on main arterial roads, which provide good public transport access.”
Seymour, Director of Capital Markets at Colliers, says the highly visible corner site in the centre of Howick Village offers exceptional street exposure for the property, which serves an affluent local community.
“Data from Infometrics notes that Howick’s GDP experienced growth of 1.3 per cent in 2021, while employment in the area jumped 3.7 per cent,” Seymour says.
“House prices in the Howick ward have grown at an annual rate of 7.8 per cent across the past 10 years, according to the Real Estate Institute of New Zealand.”
Seymour says supermarkets are one of New Zealand’s most coveted asset classes.
“Supermarkets offer considerable appeal for buyers given their ability to continue to trade through challenging market conditions such as the Covid-19 pandemic.
“It is rare to see a supermarket like this one brought to the open market and this property will generate major interest among buyers. We encourage all prospective purchasers to contact us immediately.”
- Article supplied by Colliers
