Countdown supermarket in fast-growing Beachlands
The Beachlands Countdown supermarket is on the market for sale, opening up a dramatic investment opportunity in one of East Auckland’s hottest growth zones.
JLL agent John Binning says the asking price for the supermarket is $15.355 million, providing a yield of
5.21 per cent, which he adds represents extraordinary value for money.
“This asking price equals JLL’s latest valuation on the Pohutukawa Coast Shopping Centre property — so it’s quite clear our vendor intends to sell,” says Binning.
The building at 129 Beachlands Rd sits on a large 10,892sq m site within the Pohutukawa Coast Shopping Centre, having 252 carpark spaces on its freehold title.
Pohutukawa Coast Shopping Centre is at the corner of Whitford/ Maraetai and Beachlands Roads, about 37km to the east of Auckland CBD.
In 2017 Countdown leased the building for 20 years, the current rate of return being $800,000 net pa. Three rights of renewal of 10-yearseach have been agreed to, plus an additional right of renewal of five years, with final expiry in 2072. Rent reviews are scheduled every five years.
“Countdown utilises much of the building’s 3,582 square metres for retail areas, grocery freezers, a cleaners room, back-of-house and dual path ductwork,” says Binning.
“However, this property also has ample room for future expansion.”
He adds that the steep population growth over recent years has delivered regular custom to supermarket and surrounding retailers and service providers. Its completion in 2017 transformed the lives of people living in this area.
“Countdown anchored a major retail development, one bringing people in this fast-growing area access to everything they needed — a medical centre, pharmacy, physio, Labtests facility, accounting and legal practices, beauty services, gym and multiple food outlets.
“This well-planned retail development became a one-stop-shop for locals; it’s well located and easy to use, with both multiple access points and plenty of on-site car parking,” says Binning.
The building is engineered to Countdown’s high standards, having concrete foundations and structure with steel beam construction; vinyl flooring to the main retail areas; exposed concrete in the store-room areas and exposed ceilings.
The main frontage provides glazed internal walls with the rear of the site providing the loading dock and back of house areas.
Nearest competing supermarkets are at Flat Bush, Howick, Botany Downs and Highland Park.
“Beachlands is predicted to grow by 53 per cent between 2017 and 2043, rising from just under 8000 at present, to more than 12,000 in this period. Research shows that residents of Beachlands have an average household income $101,600pa, considerably higher than the Auckland regional average of $76,500. Many families have choosen to move to this area. Years ago it was a holiday location but now a popular residential area, with beach, marina and parks easily accessible.
“Residential subdivisions such as Pine Harbour and Spinnaker Bay have attracted many residents, while the level of house construction to the south of the township is staggering.”