Countdown Orewa offers prime seaside opportunity
Supermarkets have long been considered one of New Zealand’s premier passive investment opportunities. Countdown Orewa has been placed on the market, presenting the chance to purchase a high-quality asset with a strong tenant covenant.
In a prominent position at 3 Moenui Ave, the property offers 4089sq m of total net lettable area and 145 carparks on a 9380sq m site spread across nine freehold titles and is zoned Business–Town Centre under the Auckland Unitary Plan.
Extensively refurbished in 2014, the property is rated 100 per cent NBS and has more than 200m of road frontage.
Countdown’s current 10-year lease began in April 2021 and there are 10 further rights of renewal for five years each leading to a final expiry of April 2081. The net annual passing income is $1,241,393 plus GST.
The supermarket services the local catchment of Orewa, as well as coastal towns further north, including Waiwera and Hatfields Beach, and secondary catchments such as Silverdale, Red Beach and lower parts of the Whangaparaoa Peninsula.
Colliers directors Shoneet Chand and Matt Prentice are marketing the property for sale by deadline private treaty closing at 4pm on Tuesday 29 November, unless sold prior.
Chand says this blue-chip property provides a strong tenant covenant.
“Supermarkets are keenly sought among buyers given they offer a range of key investment fundamentals such as an established tenant with a long-term lease on a high-profile site.
“They also have the ability to trade through a wide array of conditions and proved incredibly resilient throughout the Covid-19 pandemic as they adapted quickly to the changing retail environment.
“This property serves as the ultimate passive investment for prospective purchasers who will have the opportunity to secure an asset with an ASX-listed tenant that is a household name in New Zealand.”
Prentice says the property benefits from an outstanding location, only moments from the beach.
“Surrounding properties are composed of some low-rise strip retailing and convenience retail blocks, with significant residential areas situated to the north, south and west.
“Investment from the council to upgrade the main road and widen the footpaths has reconnected the town centre to the beach and has proven to be a catalyst in growing the hospitality sector in Orewa.”
The Business–Town Centre Zone applies to suburban centres throughout Auckland, the satellite centres of Warkworth and Pukekohe, and the rural towns of Helensville and Wellsford.
Centres are typically located on main arterial roads, which provide good public transport access.
The zone provides for a wide range of activities including commercial, leisure, residential, tourist, cultural, community and civic services, providing a focus for commercial activities and growth.