One of the few supermarkets that will be presented to the open market this year is available for purchase, offering buyers the opportunity to secure a stake in one of New Zealand’s most coveted asset classes.
Countdown Regent, located at 11 Kamo Road in Whang?rei has approximately 3,785sq m of total floor area and sits on 11,952sq m of land in a premier location in a growing city that is the jewel in the crown of Northland’s thriving economy.
The property will be sold with a new 10-year lease with multiple rights of renewal with a final expiry of 2082, providing the potential for long-term occupancy and income security for prospective purchasers.
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The property is exceptionally well presented and has been extensively refurbished to new Countdown branding, with numerous other upgrades completed, which enhance the overall customer experience. The lease agreement provides approximately $1,414,000 plus GST in estimated net annual income.
Colliers Directors Blair Peterken, Nigel Ingham, and Jason Seymour have been exclusively appointed to market the property for sale and the deadline for offers closes at 4pm on Wednesday 11 May, unless sold prior.
Countdown Regent is 100 per cent leased to General Distributors Limited, a subsidiary of the Woolworths Group, a national retail group that is the largest in Australasia. Woolworths has more than 1,050 stores in Australia and New Zealand, including its supermarkets, liquor, hotel, and retail divisions.
Peterken, Director of Capital Markets at Colliers, says the property offers a blue-chip opportunity with a strong tenant covenant on a long-term lease that will generate substantial interest among prospective purchasers.
“Supermarkets are one of the most appealing asset classes available to investors and are also looked upon favourably by finance providers given they are a low-risk asset,” Peterken says.
“The supermarket industry has proven incredibly resilient through the Covid-19 pandemic and has been able to operate at near full capacity as they are an essential business meaning they have been far less impacted by lockdowns, making supermarkets highly desirable for buyers.”
Northland comprises three districts, the Far North, Kaipara, and Whang?rei, which serves as the region’s only city and generates approximately 59 per cent of the regional GDP, while housing 52 per cent of the population.
Research from Colliers notes Northland’s GDP has grown by an estimated 4.9 per cent in the year to September 2021, despite Covid-19-enforced trading restrictions impacting the September quarter figures.
Economic growth has been strong over recent years with GDP increasing by 32 per cent between 2015 and 2020. The 2020 figure of $4.84 billion equates to an increase of 4.6 per cent over the 2019 total.
Ingham, Director at Colliers Whang?rei, says the data points to the significant opportunities for investors to allocate their capital to the Northland region.
“The Whang?rei District’s population has experienced tremendous growth during the past decade, mirroring that which has been evident across New Zealand as a whole,” Ingham says.
“Research from Colliers indicates the population in the Whang?rei District increased by 21 per cent over the 10-year period between 2011 and 2021. The local population now stands at an estimated 99,400, up from the 2011 total of 82,100.
“This is hugely encouraging for investors who will see the continued growth and expansion of the region, which remains on a steady upward trajectory.
“There are also a number of key infrastructure projects that are ongoing in Northland that will only add to the area’s appeal in the future.”
Seymour, Director of Capital Markets at Colliers, says given the scarcity of opportunities to acquire properties in the supermarket sector there will be significant interest in this site.
“This is one of the few chances buyers will have to secure a property with such an exceptional tenant covenant in this sought-after asset class. The fact it is located in one of the country’s fastest-growing regions only adds to this outstanding offering,” Seymour says.
- Article supplied by Colliers
