Supermarkets have proven to be one of the most attractive asset classes for investors this year and the opportunity to purchase Woolworths Pukekohe Central gives buyers a chance to secure a foothold in this sought-after sector.
Located on a high-profile site on the corner of Tobin and Seddon Streets, this Woolworths has 3,889sq m of total net lettable area on a 7,828sq m landholding and was recently refurbished with significant capital expenditure by the vendors.
The tenancy of the supermarket spans multiple titles across 8 Tobin Street and 15 and 41 Seddon Street and includes 93 car parks.
General Distributors Limited, a subsidiary of Woolworths New Zealand, has a 12-year lease at the property that runs until 30 June 2032. There are four rights of renewal for six years each leading to a final expiry in June 2056.
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The net annual rental income is $1,295,000 plus GST while there is a 5 per cent fixed increase set for 2029 followed by three-yearly market rent reviews, providing built-in rental growth.
Included in this offering is an additional building at the adjoining 17 Seddon Street that is home to a retail store. The month-to-month tenancy provides $33,583 plus GST in net annual rental income.
This site provides buyers with a future value-add opportunity through negotiating a long-term lease with the existing tenant, finding a new occupant, or repositioning its usage.
The freehold property, located in the heart of Pukekohe's rapidly changing CBD, is zoned Business Town Centre Zone under the Auckland Unitary Plan.
Colliers Directors Blair Peterken, Peter Herdson, and Duncan Bell have been exclusively appointed to market the property for sale via deadline private treaty closing at 4pm on Thursday 30 October, unless sold prior.
Peterken, Director of Capital Markets at Colliers, says the recent refurbishment from the vendor includes a new roof, while the tenant has completed an internal modernisation of the facility, including the full replacement of the refrigeration plant and the addition of a dedicated click and collect area.
"The Woolworths is in excellent condition and the recent work done has been completed to a high standard. The tenant remains responsible for a majority of the operating costs, which is rare for a supermarket offering," Peterken says.
"This is an outstanding chance to acquire a supermarket investment that is underpinned by a net lease with fixed growth and further market reviews."
Herdson, National Director of Capital Markets at Colliers, says supermarkets have appealing underlying investment fundamentals that have seen investors drawn to them.
"Supermarkets provide investors with established tenants that are household names across New Zealand. These assets are often strategically located and benefit from being able to trade through all conditions," Herdson says.
"As interest rates have fallen this year, term deposits have become less favourable for investors who are seeking better returns on their capital. In turn, supermarkets have proven popular and are also bringing new investors into the market.
"The subject property is a prime example of a low maintenance passive investment that provides a steady rental stream."
Bell, Director of Investment Sales at Colliers, says Pukekohe is a growing town with numerous residential developments taking shape in recent years that have attracted more people to the area.
"Data from the 2023 Census notes Pukekohe had a population of just over 27,000 people, while the wider Franklin Local Board area's population growth has outpaced the national figure for the past 10 years according to Infometrics," Bell says.
"Projections from Auckland Council suggest the population of Pukekohe will grow to over 50,000 people by 2050. This growth will strengthen demand for essential services such as supermarkets, making this a highly compelling purchasing opportunity that will pique the interest of buyers."
- Supplied by Colliers
