JLL exclusively presents a trophy large-format retail asset with appealing covenants in one of Auckland’s most affluent suburbs.
1 Kelmarna Avenue, Herne Bay, trading as Woolworths Metro Herne Bay, has recently been developed and leased by General Distributors Limited, an organisation owned by ASX-listed Woolworths Group.
This location is a key Woolworths store in New Zealand, poised for strong turnover growth following its first two years of trading.
This strategically positioned property boasts dual street frontage on the corner of Kelmarna Avenue and Jervois Road. Improvements include a net lettable area of 1,640 square metres made up of a modern supermarket and associated facilities including mezzanine offices, canopies, plant room, and a travelator.
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The whole package is situated on 2,342 square metres of freehold, Business – Local Centre-zoned land which includes 52 basement car parks.
The store services the immediate, established catchment of Herne Bay, within 3.5 kilometres of Auckland’s CBD and just 1.5 kilometres from the bustling Ponsonby town centre.
Woolworths Metro Herne Bay at 1 Kelmarna Avenue is now on the market for sale via Deadline Private Treaty, closing 4pm Wednesday 3rd July 2024, unless sold prior.
JLL Capital Markets Broker, Harry Fergusson, highlights there is increasing demand for large-format retail investments across Asia-Pacific, with the retail asset class experiencing a strong uptick following the post-pandemic downward trend in demand for office investments, and the competitive nature of the industrial investment market.
“Key property fundamentals remain at the forefront of demand in the retail space, with these properties typically being land-rich and under-developed,” says Fergusson.
“They’re largely underpinned by single-tenant, defensive occupiers, that provide certainty of income into the future for the astute buyer that acts fastest.”
Beyond the strength of the asset class, Head of Metropolitan Sales and Investments for JLL New Zealand, Jonathan Lynch, reinforces the desirability of the surrounding area.
“Herne Bay is a tightly held market and rarely does a new development in such a prominent location present to the market,” says Lynch.
“Herne Bay is a market of its own, and paired with the strength of Woolworths as a tenant, provides secure income of $1.56 million, plus GST, per annum. This property is truly a benchmark asset and future-proofed for generations to come -offering investors rental growth certainty in addition to potential future turnover rental benefits.”
- Supplied by JLL
