 Asset Class: | Retail |
 Price: | $ 8000000 |
 Net Yield: | 6.75 % |
Net Yield - including solar strategy: | % |
 Property Market Status: | Off Market |
The opportunity offers investors the rare opportunity to acquire a freestanding supermarket returning $544,658* per annum with a highly desirable net lease to Woolworths Ltd that expires 2033** with options. Woolworths is one of the country’s largest and most prominent supermarket operators, proudly operating nearly 200 supermarkets across New Zealand.<br><br>This is the only supermarket in New Brighton, the asset comprises 2,207 sqm of lettable area on a large freehold site which has advertising frontage to Marine Parade with the carpark access off Hawke Street. The car park provides ample A-grade spaces and the property integrates seamlessly with the soon-to-be New Brighton Mall redevelopment, providing a wave of reinvigoration into the community. This will provide excellent cross-shop opportunities for patrons with Woolworths to assume an anchoring position alongside the new development.<br><br>As part of the sale conditions the proposed negotiated terms are:<br><br><ul style="list-style-type:disc;list-style-position:inside;padding-inline-start:20px;"><li style="list-style-image:none;color:rgb(51, 51, 51);"><p style="display:inline;"><span style="color:rgb(51, 51, 51);font-weight:normal;font-style:normal;">The property will be subject to an early right of renewal taking the lease term out to over 8 years</span></p></li><li style="list-style-image:none;color:rgb(51, 51, 51);"><p style="display:inline;"><span style="color:rgb(51, 51, 51);font-weight:normal;font-style:normal;">Vendor will contribute towards flooring and lighting replacements</span></p></li><li style="list-style-image:none;color:rgb(51, 51, 51);"><p style="display:inline;"><span style="color:rgb(51, 51, 51);font-weight:normal;font-style:normal;">Woolworths will undertake a store rebrand (From Countdown)</span></p></li></ul><br>The supermarket sector is considered one of the most attractive asset classes available to investors given they trade through all conditions and are deemed essential businesses. Opportunities to secure trophy investments in Christchurch such as this one remain scarce and supermarkets are one of New Zealand’s most coveted assets. This Woolworths is well established in its current location and provides a steady rental stream that is underpinned by a secure tenant covenant and strong underlying land value, especially with the upcoming nearby redevelopment.<br><br>*Net Rental to be confirmed as this is based on a Gross Profit projection<br>** Lease expiry to be confirmed as negotiations are currently taking place between vendor and tenant<br>
How old is the asset?
Vendor's reason for selling?
Days property been on market?
Is this property strata titled?
Are the seller and tenant related parties?
How long has the current tenant been on site?
How long has the tenant been in business?
Is this property in a flood zone?
Is this lease a leaseback arrangement?
<span style="color:rgb(51, 51, 51);">The property is strategically located approximately 5.5kms east of Christchurch CBD. New Brighton serves as a commercial and residential hub for eastern Christchurch for those seeking a balance between urban and coastline opportunities. With major housing developments being constructed in the area it is a suburb that will continue to expand.</span><br>
Additional Location Information File<b>Our Company</b><br><br>We are New Zealand’s leading supermarket brand, serving more than 3 million customers every week. It’s a big job, but we love what we do - giving customers the very best in choice, value and convenience, while keeping our social and environmental responsibilities top of mind. Find out more about our purpose, our stores and our people.<br><br><b>Our Purpose</b><br><br>As a company at the heart of communities throughout New Zealand, our mission is to make Kiwi lives a little better everyday. A huge part of that is our commitment to making sure our customers enjoy exceptional shopping experiences, both in store and online. We want you to get the very best in choice, value and convenience.<br><br>Making Kiwi lives a little better every day is also about the difference we make outside of our stores, for our communities and the environment. Whether it’s working with KidsCan or The Salvation Army, making sure our products are responsibly and ethically sourced, using electric delivery trucks or making our stores energy efficient, we take our social and environmental responsibilities seriously.<br><br><b>Our Stores</b><br><br>With over 185 supermarkets across New Zealand, we’re proud to serve Kiwi communities all over our beautiful country. Every week, we serve more than 3 million customers, and offer more than 20,000 different products in each of our stores. Keeping these products stocked up, means that our drivers make over 250,000 deliveries from our distribution centres to our stores, every year.<br><br>Woolworths New Zealand is a subsidiary of the publicly-listed Australian company, Woolworths Group Limited. Woolworths New Zealand is also the franchise coordinator for Fresh Choice and SuperValue. That's why you might see products that are ‘exclusive to Woolworths’ or ‘only sold at Woolworths’, also sold at these stores.<br>
Initial Term:
Security:
Security Info:
Woolworths Rangiora, $1,159,000 p.a, 3,786 sqm, $306 / sqm Woolworths Kaiapoi, $901,000 p.a, 3,205sqm, $281 / sqm Woolworths Timaru, $782,000 p.a, 4,032sqm, $194/sqm Woolworths Colombo Street (Cashmere), $1,213,000 p.a, 3,976 sqm, $305 / sqm
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<ul style="list-style-type:disc;list-style-position:inside;padding-inline-start:20px;"><li style="list-style-image:none;color:rgb(51, 51, 51);"><p style="display:inline;"><span style="color:rgb(51, 51, 51);font-weight:normal;font-style:normal;">Rental income is made up of a base rent plus a turnover component - 1.5% of Gross Turnover above a threshold (Year 3 (2000) gross income of $11,136,262)*</span></p></li><li style="list-style-image:none;color:rgb(51, 51, 51);"><p style="display:inline;"><span style="color:rgb(51, 51, 51);font-weight:normal;font-style:normal;">Base Rental Income - $391,750 (To remain unchanged)</span></p></li><li style="list-style-image:none;color:rgb(51, 51, 51);"><p style="display:inline;"><span style="color:rgb(51, 51, 51);font-weight:normal;font-style:normal;">Gross Turnover Rental Income 2024 - $138,256</span></p></li><li style="list-style-image:none;color:rgb(51, 51, 51);"><p style="display:inline;"><span style="color:rgb(51, 51, 51);font-weight:normal;font-style:normal;">Estimated Gross Turnover Rental Income 2025 - $152,908</span></p></li><li style="list-style-image:none;color:rgb(51, 51, 51);"><p style="display:inline;"><span style="color:rgb(51, 51, 51);font-weight:normal;font-style:normal;">Estimated 2025 Combined Rental Income - $544,658</span></p></li></ul><span style="color:rgb(51, 51, 51);">*As the gross income is way above the threshold it means that any increase in Gross Turnover is a 1.5% increase in rent</span><br><br><ul style="list-style-type:disc;list-style-position:inside;padding-inline-start:20px;"><li style="list-style-image:none;color:rgb(51, 51, 51);"><p style="display:inline;"><span style="color:rgb(51, 51, 51);font-weight:normal;font-style:normal;">NLA of 2,207 sqm ($247 / sqm)</span></p></li><li style="list-style-image:none;color:rgb(51, 51, 51);"><p style="display:inline;"><span style="color:rgb(51, 51, 51);font-weight:normal;font-style:normal;">Blue Chip Tenant providing stable income</span></p></li><li style="list-style-image:none;color:rgb(51, 51, 51);"><p style="display:inline;"><span style="color:rgb(51, 51, 51);font-weight:normal;font-style:normal;">Economically Resilient Tenant</span></p></li><li style="list-style-image:none;color:rgb(51, 51, 51);"><p style="display:inline;"><span style="color:rgb(51, 51, 51);font-weight:normal;font-style:normal;">Unmatched Central New Brighton Location</span></p></li><li style="list-style-image:none;color:rgb(51, 51, 51);"><p style="display:inline;"><span style="color:rgb(51, 51, 51);font-weight:normal;font-style:normal;">Proven performer with year on year gross increases. 11% increase from '22-'23, 5.2% from '23-'24 and an estimated 4.8% for '24-'25</span></p></li></ul>
