One of Auckland's newest and most sought-after neighbourhood retail and medical investments, the Waiata Shores Neighbourhood Centre at 2 Te Napi Drive, Takanini, is on the market through CBRE.
The property is anchored by a Woolworths supermarket with five specialty retail tenancies and a purpose-built medical centre, with the combined offering providing strong exposure to the non-discretionary supermarket and medical sectors.
CBRE associate director of capital markets Brad Ross, who is marketing the asset for sale with CBRE executive chairman Brent McGregor, said the centre, which opened progressively from December 2021, is one of the best retail investments currently available in Auckland.
“Very few assets of this calibre exist, let alone having been available for sale in the past few years. The investment fundamentals on offer here are as strong as they come.
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"Close to 90 per cent of income comes from non-discretionary sectors and the leases are underpinned by fixed and CPI-linked rent reviews, including within the Woolworths lease.”
The centre also benefits from a 5-star Green Star rating and modern construction, with some warranties still in effect.
The property sits on two titles which are being sold together by expressions of interest closing on Thursday September 24 at 4pm, unless sold prior.
“This is an excellent opportunity to secure a newly built, quality retail holding in a prominent gateway location, benefiting from a growing local catchment,” McGregor said.
The Woolworths Waiata Shores supermarket was the first in New Zealand to achieve a 5-star Green Star rating and is likely to remain one of only a handful, with Woolworths having since moved away from pursuing the rating in new developments.
Woolworths holds a 10-year lease with further rights of renewal, and a fixed five per cent rent review is due in 2029 - a rare income growth mechanism among Auckland supermarket investments.
The supermarket also includes an in-store pharmacy, alongside five complementary food & beverage and personal care service tenants, providing a diversified income profile.
The purpose-built Waiata Shores Medical Centre is a full-service integrated health centre anchored by Counties Medical, providing general practice, urgent care, radiology, dental, physiotherapy and chiropractic services alongside a popular cafe, Ross said.
“Medical investments are in high demand at the moment and supermarkets have always been popular as passive, long-term, stable investments. Having both in a single property is a key benefit that will be considered highly desirable among investors.”
The centre's total net income is $2,556,001 a year plus gst, with 86 per cent derived from the non-discretionary grocery and medical sectors.
Combined with built-in rental increases, the investment provides a well-diversified and growing income stream, said McGregor.
“This asset has all the characteristics sought by investors including location, catchment, quality construction and tenant covenant. As such it’s likely to suit a range of buyers from private individuals and family trusts to syndicates and property funds.”
The supermarket building's sustainability features include solar panels, energy efficient fridges and lighting, an energy management system and customer EV charging. These sustainable characteristics remain rare among supermarket assets and give an incoming investor the opportunity to obtain green finance.
Fletcher Living has completed the master-planned Waiata Shores residential neighbourhood behind the centre, which takes in more than 600 homes on the former Manukau Golf Club site.
The centre sits at the neighbourhood's entrance on Great South Road, next to State Highway 1, a high-profile location with direct exposure to more than 12 million vehicles a year, Ross said.
“The Waiata Shores Neighbourhood Centre has already established itself as a focal point and convenient grocery and medical hub for the local community, and prospects for strong continued catchment growth are high as Auckland's southern urban sprawl continues.”
- Supplied by CBRE
