A portfolio of Woolworths supermarkets is being presented to the market for sale, giving buyers the opportunity to acquire a stake in a sought-after asset class with proven investment fundamentals.
The properties are spread across the North Island in Dargaville, Tauranga, and Wellington.
Investors can purchase the supermarkets individually or in one line.
Collectively the portfolio provides buyers with exposure to large format retail assets that are supported by long-term leases, essential service retail, and prominent positions within their respective catchments.
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Woolworths Dargaville has 3,603sq m of total net lettable area and sits on the corner of 127-129 Victoria Street and 1-12 Gladstone Street. The freehold site spans 13,920sq m.
The current 20-year lease agreement at the property runs until 2036 with eight five-year renewals available leading to a final expiry in 2076. The passing income is $1,232,595 plus GST per annum.
The property also includes surplus land, and the lease includes provisions that allow for future subdivision and development opportunities that will provide flexibility and potential value-add upside that will draw the attention of buyers.
Woolworths Bureta Park, located at 40-50 Bureta Road in the growing Tauranga suburb of Otumoetai, is the anchor tenant of a high-profile neighbourhood centre that includes established speciality tenants Dominos, Liquorland, and Bay Audiology alongside further hospitality and service-based operators. The landholding measures 16,778sq m.
This fully tenanted centre benefits from its corner positioning and has approximately 5,361sq m of net lettable area with a weighted average lease term of approximately eight years.
It provides $1,715,786 plus GST in annual passing income, the majority of which is derived from the Woolworths that has a lease that runs until 2036 with multiple renewals available, taking the full lease term to 2051.
The additional tenancies all provide a mixture of fixed, CPI, and market rent review provisions.
Woolworths Crofton Downs is the anchor tenant of a complex that is supported by speciality retail as part of a popular neighbourhood shopping centre that has 3,497sq m of net lettable area. The total site measures approximately 11,013sq m.
The property, located at 124 Churchill Drive, Crofton Downs, only 5km from Wellington CBD, provides $1,627,609 plus GST in annual passing income with a weighted average lease term of approximately 10.5 years.
The Woolworths lease runs until 2037 with further renewals available that would extend the lease to 2052.
This supermarket is the predominant Woolworths in Wellington's western suburbs stretching from Karori and Kelburn in the south through to Khandallah and Broadmeadows in the north. This catchment includes some of Wellington's highest-priced housing.
Colliers Directors Blair Peterken and Peter Herdson have been exclusively appointed to market The Mackersy Supermarket Portfolio for sale via expression of interest closing at 4pm on Wednesday 19 August, unless sold prior.
Peterken, Director of Capital Markets at Colliers, says the portfolio offers geographic diversification across regional and metropolitan markets.
"The Woolworths in Dargaville is the only major supermarket in the catchment, providing it with an entrenched customer base," Peterken says.
"Meanwhile, the assets in Tauranga and Wellington offer attractive income profiles given the multi-tenancy structures that are anchored by a supermarket, an essential service business. There are also rental growth mechanisms in place for the ancillary tenancies.
"Given the properties can be acquired individually or as a singular portfolio there is a range of investment options for buyers to consider. The assets have been well maintained and present in modern condition."
Herdson, National Director of Capital Markets at Colliers, says when considering all of the relevant information, these properties represent a highly appealing investment opportunity.
"Investors are drawn to supermarket assets given the strength of the tenant covenant that comes with having a nationally renowned occupant with an established presence," Herdson says.
- Supplied by Colliers
