A Countdown supermarket in Auckland's Blockhouse Bay is for sale through Colliers International, offering investors a chance to acquire a substantial retail asset on long-term lease to a national tenant.
The 7115sq m property at 19-29 Donovan St is being marketed for sale by tender closing at 4pm on Thursday, March 8, unless sold earlier.
Shoneet Chand, who is marketing the property with colleagues Matt Prentice and Josh Coburn, says it makes for an excellent long-term investment.
"Strategically positioned in the heart of tightly held Blockhouse Bay, this substantial property is zoned Business Local Centre, with plentiful future development potential.
"It is on a high-profile site at the corner of Donovan St and Blockhouse Bay Rd, giving it excellent exposure to both local and passing traffic.
"It is earning $481,021 a year in net rent, providing investors and land bankers alike with a solid income.
"Quality property assets of this calibre are sought after in the city fringe."
Chand says the property — featured in the latest Colliers Portfolio — is signed to a nine-year lease commencing November 30, 2016.
Three rights of renewals of six years each extend the lease until November 2043.
The property's lessee, General Distributors Ltd, is a subsidiary of Countdown owner Progressive Enterprises, which is owned by Australian supermarket giant Woolworths.
Prentice says Progressive is one of New Zealand's largest and most successful retail organisations.
"It is the country's third largest company by revenue and the largest private sector employer, with more than 18,500 staff."
Countdown Blockhouse Bay is one of 183 Countdown supermarkets that Progressive owns and operates throughout New Zealand.
"Investors can take a high degree of confidence from the tenant's ultimate ownership by Woolworths, Australia's largest supermarket chain, which had sales of A$55 billion in 2017," Prentice says.
Prentice says the property comprises a 2238sq m commercial building with a 260sq m mezzanine floor that accommodates offices, amenities and plant rooms.
"Originally built in 1972, the building is generally in good condition and exceeds seismic standards," he says.
"It is mostly constructed of reinforced concrete columns atop concrete ground beam foundations, with block shear walls and concrete columns at the southern end.
"The mezzanine comprises a suspended concrete slab, also supported by block shear walls and concrete columns.
"Light-weight metal roofing with steel purlins is supported atop roof girder trusses and steel rafters."
Off-street parking is interspersed between mature trees and outdoor lighting.
Cobur says the property's large surrounding residential catchment and main road location make it ideally located to benefit from Auckland's growth.
"The property is in the heart of Blockhouse Bay's well-established town centre, surrounded by such amenities as local medical centres, a dental clinic, pharmacy, library, hair salon, banks and a number of busy cafes."
Coburn says Blockhouse Bay is a pleasant, established residential suburb on the western city fringe, about 11km southwest of the CBD.
"Blockhouse Bay is on the northern coast of the Manukau Harbour, with a number of bays located nearby, including Blockhouse Bay Beach and Green Bay Beach.
"There is a strong sense of community within this seaside suburb, which has a diverse demographic from young families through to retirees."
The property for sale is within walking distance of a number of schools including Lynfield College, Blockhouse Bay Intermediate School, St Dominics Primary School and Blockhouse Bay Primary.
It is also close to Ryman Healthcare's proposed new retirement village in nearby Lynfield.
The LynnMall Shopping Centre is 3km away and has undergone large-scale redevelopment in the past few years.
Coburn says Blockhouse Bay is well positioned within fast-growing West Auckland which is projected to undergo substantial population growth, fuelled by large-scale residential development and infrastructure investment.
"It is ideally located on the city fringe, ensuring strong residential property values, while retaining the special character that makes West Auckland an attractive growth area."
Coburn believes the site offers plentiful future potential given its Business Local Centre zoning under the Auckland Unitary Plan.
"With a permissible height of 18m, the zone is ideal for any combination of residential, office and retail developments," Coburn says.
"Its closeness to residential, commercial and community amenities ensures value can be achieved."