Countdown Supermarket with a 20 year lease
JLL marketing Countdown Supermarket in Beachlands
AUCKLAND, 1 October 2018 – The opportunity has arisen to purchase a Countdown Supermarket in Beachlands new Pohutukawa Coast Shopping Centre.
JLL agent John Binning, who is marketing the property, describes it as being a remarkable investment opportunity with properties like this not becoming available very often.
"This is a landmark property for the Beachlands area. The vendor has clear intentions to sell with the property having an asking price of $15.355 million, providing a yield of 5.21 percent.
"The building is 3,582sqm and it sits on a large 10,892sqm site, with 252 car parking spaces held under the main supermarket title. In 2017 a 20 year lease was put in place to Countdown, which returns $800,000 net pa. There are three rights of renewal in place of 10 years with the final ROR being for five years. The rent reviews are scheduled every five years.
"The property has room for future expansion, with Countdown currently utilising this space for grocery freezers, cleaners' room, back of house and dual path ductwork."
Due to Beachlands having undergone considerable growth in recent years, the supermarket has regular custom, aided by the additional retail offering that surrounds it.
The Pohutukawa Coast Shopping Centre is located on the corner of Whitford/Maraetai Road and Beachlands Road, approximately 37km to the east of Auckland CBD. Following its completion in 2017, residents have enjoyed easy access to a medical centre, pharmacy, physio, Labtests facility, accounting and legal practices, beauty services, gym and multiple food outlets, along with the anchor tenant the Countdown Supermarket.
"This development has been well planned and designed to be a one-stop-shop for local residents. It is well located and is easy to get in and out of with a number of access points and plenty of on-site car parking," says Binning.
The building has been constructed to a standard Countdown specification providing modern improvements including a combination of 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.
The supermarket does not experience any immediate competition with the nearest competing supermarkets being situated to the west including stores in Flat Bush, Howick, Botany Downs and Highland Park.
Beachlands is predicted to experience growth of 53 percent between 2017 and 2043, which will see the number of residents grow from 7,870 to 12,050.
Research shows that residents of Beachlands have an average household income $101,600 per annum, which is considerably higher than the Auckland regional average of $76,500.
"A lot of families have chosen to move to this area. Years ago Beachlands was a holiday location, whereas today, thanks to its proximity to Auckland, it is a popular place to live, with the beach, marina and parks easily accessible. It is also on 35 minutes' drive from Auckland Airport, 44 minutes drive from the CBD and has a ferry service to the CBD. There is certainly value to be had from living in Beachlands and the retail offerings at the Pohutukawa Coast Shopping Centre further adds to the desirability of the area," says Binning.
Residential subdivisions such as Pine Harbour and Spinnaker Bay are home to many residents, with further construction taking place further to the south of the township at present.
Beachlands School and Maraetai Beach School are both located within reasonable proximity to the property. To the west and south of the property is the Pine Harbour Marina and the Formosa Golf Course and Country Club.
Approximately 9,086 cars pass the site along Beachlands Road each day during the working week and close to 7,000 cars pass the site each day on the weekend.
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