A premier commercial property in South Taranaki, underpinned by a long-term lease to a Woolworths supermarket, is now on the market.
The multi-tenanted investment is situated in the heart of Hāwera on a prominent site comprising two titles and three street frontages.
The Woolworths supermarket, located at 27-39 Nelson Street, was constructed in 2019 and has 3,475sq m of net lettable area plus more than 130 on-site carparks.
On the edge of the property at 13-19 Union Street is an 877sq m building that houses three individual tenancies, including a cafe, education provider, and a government tenant.
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Buyers have the option of purchasing both buildings or acquiring them individually.
Together, these properties represent a rare opportunity to acquire two quality assets in a tightly held market, offering long-term, split-risk income streams backed by essential service tenants and a total net annual return of $1,115,351 plus GST.
The property benefits from its high levels of accessibility, street exposure, and road frontage in the largest town in South Taranaki. Hāwera has a population of approximately 12,000 people.
The cornerstone of Hāwera's economy is the dairy industry. The Whareroa dairy factory, owned by Fonterra, is located approximately 4km south-west of Hāwera and is one of the largest dairy production sites in the world.
Benet Carroll, Director at Colliers New Plymouth, has been exclusively appointed to market the property for sale via deadline private treaty closing 3 September, unless sold prior.
The Woolworths supermarket is leased to General Distributors Ltd, a subsidiary of the ASX-listed Woolworths Group, on a 20-year lease from May 2019. The lease agreement includes multiple rights of renewal and has a final expiry in May 2074.
Five-yearly rental reviews are in place, and the property returns a net annual rental of approximately $987,996 plus GST.
The neighbouring building was constructed in the late 1990s. The tenants include the Marracbo Cafe, the Western Institute of Technology at Taranaki, and the Ministry of Social Development. The total annual rental income from this building is $127,356 plus GST.
The individual agreements have final expiries ranging between 2028 and 2037 and the leases have a mixture of CPI or market rent reviews in the future, offering potential rental growth.
Carroll says there are some appealing investment fundamentals that underpin this premier offering, including the strength of the tenant covenant that comes with having a reputable supermarket tenant.
"Woolworths New Zealand owns and operates over 185 supermarkets nationwide and is one of New Zealand s largest private sector employers with 20,000 staff across their operations.
"The Hāwera store has operated in the community for over five years and employs more than 85 people, two of which have been working for the Woolworths brand for over 30 years," Carroll says.
"These properties provide buyers with the chance to purchase two high-quality assets that are backed by essential service tenants."
- Supplied by Colliers
