A fully leased neighborhood mall anchored by a Countdown supermarket in Mangere East, Auckland, as well as flagship Countdown Rototuna in Hamilton, have been sold in a combined deal negotiated in the country’s latest level three lockdowns.
Owned by Woolworths New Zealand Limited, which is part of the ASX-listed Woolworths Group and markets under the Countdown brand, the two properties were sold to a single investor with an unconditional bid at a combined price of around $ 67 million. .
With new 10-year leases at Countdown and combined net rental income of $ 2,798,868 on both properties – including multiple retail rentals of the Mangere East property – the sale represented a return of 4.19% and was negotiated by Bayleys.
Located on the main thoroughfare Massey Road, the central Mangere East neighborhood – where 89% of the property’s overall basic income comes from occupants of essential services – spans a 1.47 hectare site and offers 5,263m² of land. rental area.
The center includes modern purpose-built buildings housing the Countdown supermarket and healthcare companies, as well as a shopping area occupied by KFC and other retail tenants, where there are opportunities for redevelopment and added value. .
At the north end of Hamilton, in the city’s main growth cell, the A Rototuna quality standalone countdown timer, which opened in May 2020, sits at a central 1.25 hectare site in the Rototuna Village master plan and demonstrates the latest supermarket design, layout, sustainability and technology initiatives.
Ryan Johnson, National Commercial Director of Bayleys, said demand for large defensive commercial real estate assets underscored by non-discretionary tenant occupiers is particularly strong, as the country’s economic recovery from ongoing pandemic dynamics continues.
“While it is undeniably a changing landscape, there are currently fiscal stimulus in the economy, the weight of cheap money in an environment of persistently low interest rates and indexes. Reassuring worlds in the trade sector give this country’s capital the confidence to trade, ”he said.
“With the cost of debt rising, quantitative easing dwindling, and major commercial banks starting to increase lending rates, the sale was timely. “
Pete Gorton, associate director of retail sales and leasing for Bayleys Auckland Central, said the timing of the sale benefited from market conditions, which are now starting to change.
“The transaction leveraged Bayleys’ existing strong relationships with high net worth clients (UHNW) and our transaction history with Woolworths NZ Ltd.”
As of January 2020, and including this latest portfolio sale, Bayleys has closed deals worth approximately $ 300 million for properties held by Countdown across the country.
“The Bayleys sales team is extremely active in this segment of the market and has confidently navigated the sale of the portfolio with the benefit of access to active buyers, in-depth knowledge of pricing in this sector and ‘an ability to leverage the capabilities of multiple lines of business,’ Johnson said.
“Investors of all backgrounds – from individuals to syndications, listed entities and intergenerational family trusts – appear to be reviewing their investment strategies to focus on defensive asset classes, including supermarkets, healthcare, health and mass distribution. “
In addition, Bayleys sees an extremely strong interest in business assets located in identified growth areas and Mangere East and Rototuna both have strong underlying demographic and geographic credentials.
Brad Ross, of the Brokers Capital Markets team, said the Mangere District Mall is the focal point of the Mangere East community.
“This watershed is expected to grow 16.9% by 2028, reflecting the significant redevelopment activity underway in the larger area.”
Meanwhile, as Hamilton continues to grow towards Auckland, the Rototuna property in the mixed-use area of Rototuna Village represents a premier asset with a quality tenant commitment, solid returns and supported by the Triangle’s economic fundamentals. Golden.
“Rototuna has been a priority for infrastructure investments to dramatically improve connectivity and growth in the region, which is experiencing rapid adoption of new commercial and residential opportunities supported by a high level of community amenity,” said David Cashmore, manager of Bayleys Waikato shopping.
Woolworths New Zealand Limited is New Zealand’s largest supermarket operator and one of New Zealand’s largest organizations, employing over 20,000 Kiwis.
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