The land and buildings of Waipukurau’s Countdown supermarket have been placed on the market for the first time in more than 25 years, presenting buyers with a rare opportunity to invest in one of New Zealand’s most coveted asset classes.
16, 18 and 20 Ruataniwha Street is located on 4782sq m of freehold land in the heart of Waipukurau with multiple entrances off Ruataniwha Street and Russell Street.
16-18 Ruataniwha Street is home to the supermarket, which has 1370sq m of total floor area on 3770sq m of land; 20 Ruataniwha Street is a 1012sq m plot of land that is used for additional car parking.
The total net annual rental income for the Commercial zoned property is $264,039 plus GST and while the current lease expires in August 2022, Countdown have indicated a desire to renegotiate a new agreement.
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Colliers brokers Calum Ironside and Ash Hames have been exclusively appointed to market the property for sale by tender, which closes at 4pm on Wednesday 23 March, unless sold prior.
Consisting of two structurally independent buildings, the original structure was built in the 1940s and the western extension, completed in 2001, houses the retail area and checkouts.
The northern extension, added in 1996, houses staff amenities, offices, cold storage, inward goods, and food preparation.
Over the years the buildings have been improved, most recently in 2020 when they were structurally strengthened to 70 per cent NBS, including remediation to the foundations and roof tension bracing.
In order to service the population growth in the region and the subsequent spike in sales the store experienced, the site at 20 Ruataniwha Street was acquired in 2019 to provide further parking facilities for customers. There are now more than 60 on-site car parks available.
Ironside, Industrial and Commercial Sales Broker at Colliers Hawke’s Bay, says this property presents prospective purchasers with the chance to secure a premier asset.
“Supermarkets have proven to be one of the top-performing asset classes across the country in recent times and have continued to thrive despite the challenging trading conditions presented by the Covid-19 pandemic,” Ironside says.
“Given the current tenant has expressed their intention to negotiate a new lease, the incoming owner will have the opportunity to secure a blue-chip tenant.
“The buildings have been maintained to a high standard throughout the past two decades and it is incredibly rare to see assets like this one presented to the open market.”
Hames, Commercial Broker at Colliers Hawke’s Bay, says Waipukurau is part of an area in the Hawke’s Bay region that is tipped for steady growth in the coming years.
“The population of Central Hawke’s Bay is forecast to grow by 2 per cent each year, leading to an increase of approximately 4000 people in the area by 2031,” Hames says.
“Supermarkets will continue to experience ongoing demand and with the population growth the area is experiencing, this property will offer significant potential for the future.
“In light of the clear growth possibilities on offer for a property in a highly desirable asset class, we expect this property will generate significant interest and encourage all interested parties to do their due diligence and contact us immediately.”
- Article supplied by Colliers
