Retail and medical centre with sustainability credentials
One of Auckland’s top retail investments – the Waiata Shores Neighbourhood Centre – is on the market. Spread across three titles, the centre is offered for sale through CBRE either together as a portfolio or as individual investments.
The lots comprise a retail centre anchored by Woolworths in New Zealand’s first 5-star Green Star supermarket building; the purpose-built Waiata Shores Medical Centre and a 1,039sq m parcel of development land.
The centre, at 2 Te Napi Drive, Takanini, was developed by Woolworths New Zealand and has opened progressively since December 2021, when Woolworths commenced trading.
CBRE executive chairman Brent McGregor, who is marketing the asset for sale with capital markets senior negotiator Brad Ross, says the freehold 1.9 hectare property provides enviable investment fundamentals including strong exposure to non-discretionary supermarket and medical sectors, rental growth and outstanding ESG credentials.
“This is a compelling opportunity to secure a newly-built commercial property asset, with nearly 90 per cent of the income coming from non-discretionary sectors. Paired with the growing local residential catchment and the centre’s prominent gateway location, this is an exceptional investment which will suit private investors, family trusts, syndicates and property funds.”
The property, which is for sale by deadline private treaty closing on Wednesday March 27 at 4pm (unless sold earlier), is among New Zealand’s leading retail developments and one of Auckland’s newest neighbourhood retail centres, says Ross.
“Without doubt, this is one of Auckland’s finest retail investment opportunities. Recently developed, offering a retail component anchored by Woolworths and a purpose-built medical centre, it is unlike anything that has come to the market in recent years.”
The Woolworths Waiata Shores supermarket features several modern sustainability initiatives, including solar panels, energy efficient fridges and lighting, an energy management system and EV chargers for customers.
In addition to the supermarket, the retail centre has several additional food & beverage tenants, providing a strong, diversified income amounting to an estimated $1,802,280 a year.
Woolworths New Zealand will take a new 10-year lease over the supermarket on settlement, with further rights of renewal, says Ross.
“Purchasers can take a high degree of confidence from a tenant that is ultimately owned by Woolworths Group, Australia’s largest supermarket chain.”
The Waiata Shores Medical Centre is a full-service integrated health centre anchored by Counties Medical; providing general practice, urgent care, radiology, dental, physiotherapy and chiropractic services. The medical centre currently returns $615,709 a year in rent.
“With 87% of the centre’s total estimated net income derived from non-discretionary tenants in the grocery and medical sectors, along with fixed and CPI-linked rent reviews, this investment provides an excellent, well-diversified and growing income stream,” says McGregor.
Directly behind the Woolworths supermarket is an undeveloped lot, providing the opportunity to expand the centre’s commercial offering, income and value. The site is currently used for car parking and is consented for a two-level office development. A design covenant limiting the site’s use to commercial offices will lapse in December 2026, opening up the potential for food and beverage, retail and residential developments.
Positioned on Great South Road, at the entrance to Fletcher Living’s master-planned Waiata Shores development and adjacent to State Highway 1, the centre is situated in a high profile location with direct exposure to more than 12 million vehicles annually, Ross says.