The land and buildings making up Katikati’s Countdown supermarket – the only major supermarket in the growing Western Bay of Plenty town – have been placed on the market through CBRE.
Located on 10,283sq m of land on State Highway 2 between Waihi and Tauranga, the high-profile property is being marketed by CBRE negotiators Buzz Scown and Cherry Higginson.
It is for sale by deadline private treaty closing at 4pm on Wednesday July 20, 2022.
With a long term lease to General Distributors Ltd, the operator of the Countdown brand in New Zealand, the property is a “superb” stand-alone investment offering strong security of income, says Scown.
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“We expect the property to be highly attractive to investors as a long term, high-quality investment asset with an exceptional tenant covenant, in a location with no major competitor and the benefit of a strong and growing local population.”
The 3225sq m building was constructed in 2012 as a purpose-built Countdown supermarket, providing retail space, first floor offices and amenities and a loading bay.
The building has recently received seismic strengthening work to increase its seismic rating to 67% of new building standard (NBS).
Multiple rights of renewal on the original 10-year lease give a final expiry date of 31 May 2062, while rent reviews are also built into the lease, providing regular income growth.
The property will be considered a desirable acquisition among the many private investors, syndicators and funds currently searching for prime investment opportunities that are resistant to market downturns, Higginson says.
“As an investment proposition, this asset is very hard to beat – offering a long lease term and a food-based tenant backed by a large Australasian corporation. The Countdown brand is now well known and established at this location and offers a very strong tenant covenant.”
General Distributors is owned by Woolworths New Zealand, which also owns the Fresh Choice brand in addition to Countdown. Woolworths New Zealand is in turn owned by Australian retail giant Woolworths Group Limited, says Scown.
“Potential buyers can take a high degree of confidence from a tenant that is ultimately owned by Woolworths Group, Australia’s largest supermarket chain with sales in excess of AUS$67 billion for the 2021 financial year.”
Woolworths New Zealand owns over 185 Countdown supermarkets in New Zealand and is the country’s largest private sector employer, with 21,000 people employed in its stores, support offices, processing plants and distribution centres.
ASX-listed Woolworths Group Limited has been in the business of food retailing for more than 80 years, and has grown into a household name in Australia. The group employs over 200,000 people in Australia and New Zealand and operates 3,000 stores between the two countries.
Supermarket properties are viewed as exceptionally strong investments, owing to the non-cyclical nature of the tenants’ food-related business and their proven performance in the Covid-19 environment, says Higginson.
“The future financial security and performance of this investment opportunity is underpinned by demand for food. This ensures supermarkets continue to trade well during both short-term interruptions to business, as well as longer-term economic downturns.”
The property, which also includes 158 carparks, is located on the eastern side of State Highway 2, a key North Island arterial route connecting Tauranga with Auckland. This provides the supermarket with high visibility to a large volume of passing intercity traffic. Alternative access to the supermarket is also provided from two side streets bordering the site.
- Article supplied by CBRE
