Hamilton's largest central city supermarket, a purpose-built Countdown, is for sale for the first time since it was built in the 1990s.
The 4880sq m building on the corner of Liverpool and Anglesea Streets is at the northern periphery of the central business district near Waikato Stadium. It also comes
with a 485sq m Shell service station.
The complex is up for tender, closing September 2, through Mike Houlker of Bayleys Auckland and Jim McKinlay of Bayleys Waikato.
The supermarket was built for Progressive Enterprises' Woolworths supermarket brand but was recently rebranded as a Countdown.
Woolworths (NZ) has a 20-year lease until January 31, 2019, with two further rights of renewal of five years each. The whole property, including the service station, is producing net annual rental income of $836,880. The service station, sub-leased to Shell, was added to the big 1.37ha site in 2008.
McKinlay says that, while the property is on leasehold land, the lease and all other outgoings arepaid by the tenant and the propertyis expected to fetch a higheryield than similar freehold sites.
The lease agreement contains a base rental plus a turnover component which means there is potential for the rent to increase in line with the performance of the supermarket.
"Turnover figures are subject to confidentiality but we believe the total occupancy cost, as a proportion of turnover, compares well with similar properties nationally," he says. McKinlay says the supermarket is well established and draws from an excellent primary catchment area around the central business district.
The building features a mixture of exterior cladding comprising rustic weatherboard, glazing, Colorsteel and concrete block.
He says the interior has recently been refurbished with new lighting and suspended units giving it a modern and attractive feeling. It has sprinkler and fire detection, heating and ventilation systems throughout and fully enclosed sprinklered loading facilities. Houlker says it would be a good passive investment for a large individual investor or group of investors. "There is little to do on this property except to collect the rent."
