A strategically located supermarket with multiple street frontages in the centre of New Plymouth is available for purchase. It provides buyers an opportunity to secure an asset that is occupied by a household name with a long-term lease on favourable terms.
53-65 Leach Street is home to Pak’nSave and has 8,567sq m of total lettable area spread across ground and mezzanine floors.
The property sits on a 10,633sq m freehold site and has approximately 320 on-grade and basement car parks.
Fully leased to Foodstuffs North Island, the current 18-year lease for Pak’nSave runs until September 2029 and one further 17-year right of renewal is available leading to a final expiry of September 2046.
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The property returns $1,841,276 plus GST in net annual rental income while there are 2 per cent fixed annual increases and five-yearly market reviews in place; such lease terms are rarely found with supermarkets.
Customers benefit from the convenience of dual access with entries from Courtenay and Leach Streets.
Colliers Directors Blair Peterken, Peter Herdson, Alan Pracy, and Benet Carroll have been exclusively appointed to market the property for sale via deadline private treaty closing at 4pm on Wednesday 17 July, unless sold prior.
Foodstuffs North Island, who run the Four Square, New World, Pak’nSave, Gilmours, and Liquorland brands, have been in business for more than a century and are a 100 per cent locally owned and operated organisation.
Peterken, Director of Capital Markets at Colliers, says having the opportunity to purchase a supermarket occupied by Pak’nSave is incredibly rare.
“Foodstuffs North Island can be accurately described as a blue-chip tenant and are one of New Zealand’s most well-known businesses. Pak’nSave is a highly recognisable brand with nearly 60 locations across the country,” Peterken says.
“Supermarkets remain a sought-after asset class given their ability to trade through a range of different economic conditions and the strength of the tenant covenant is a key consideration for buyers.”
Herdson, National Director of Capital Markets at Colliers, says the lease terms will also draw the attention of buyers.
“This is an established supermarket that benefits from its high levels of accessibility and the fixed annual rental growth means there is future upside for buyers,” Herdson says.
“If the right of renewal, which spans 17 years, is exercised in the future there will be a steady rental stream in place well into the 2040s. Future market reviews also present further opportunities for rental growth.”
The eye-catching yellow branding and prominent location ensure this Pak’nSave enjoys high levels of visibility to passing traffic.
Pracy, Director at Colliers Hamilton, says the location is a key selling point.
“This popular supermarket is situated on a main arterial route in the city centre and is near all of the key amenities in New Plymouth,” Pracy says.
“Devon Street, the main retail strip in the city, runs parallel to the property, meaning there’s a range of shops nearby.”
Data from the most recent Census notes the New Plymouth District had strong population growth of 7.8 per cent between 2018 and 2023 with the area’s accessible housing, lifestyle, and lower cost of living likely underpinning that population growth.
New Plymouth is the main city within the Taranaki region and is a service centre for the region’s principal economic activities.
Carroll, Director at Colliers New Plymouth, says this property represents the opportunity for buyers to purchase a premium asset in a stand-out location in an area that has seen consistent population growth during the past five years.
“This population growth will contribute to the ongoing need for services and a centrally located supermarket is well positioned to capitalise on that demand,” Carroll says.
- Supplied by Colliers
