Investors have snapped up a 60 per cent ownership stake in the Tauranga property housing Countdown Supermarket at Fraser Cove.
The 183 individual $50,000 shares in the property title have been oversubscribed, leaving Augusta Funds Management to return cheques to investors wanting a piece of the action.
"Unfortunately, we've ended up with a lot of disappointed investors ... we continued to receive inquiry well after the offering sold out," Mike Houlker of Bayleys Real Estate said.
Bayleys managed the marketing of the proportionate ownership scheme on behalf of Augusta which established the scheme to buy the supermarket off the developer of Fraser Cove, New Zealand Retail Property Group (NZRPG).
The deal was worth $15.56 million of which $9.1 million came from the smaller $50,000 investors.
There are two 15-year leases over the property to General Distributors, a wholly owned subsidiary of Progressive Enterprises.
Mr Houlker said the offer attracted investors from all over New Zealand and an ex-patriot based in Hong Kong.
The main attraction of the proportionate ownership scheme was that it offered small investors a way to access better quality higher yielding large commercial properties that would otherwise be beyond their reach.
The new owners of a portion of the freehold title, including buildings, will receive a projected annual return on investment of 9 per cent. It had a net lettable area of 5112sq m, sitting on 5767 sq m of freehold land.
Augusta managing director Mark Francis said one of the attractions of supermarkets to investors was they offered the longest leases available on the market.