Cambridge supermarket a top-tier investment

A Countdown supermarket placed on the market in Waikato offers a toptier asset with a blue-chip tenant on favourable lease terms in a high growth area.

Countdown Cambridge is located at 51 Empire St in town centre’s commercial precinct, and has 3906m2 of gross lettable area on a 11,701m2 freehold site.

The property, which sits on a prominent corner site, was originally constructed in 2003 but underwent a substantial refurbishment and extension in 2015. It has a New Build Standard rating of 85%.

The main shopping area spans 3565m2. There is also 208m2 of office and amenities space, plus two plant rooms measuring 35m2 and 98m2 respectively, a 154m2 pedestrian canopy, a 135m2 service canopy, and 169 customer car parks.

Countdown Cambridge is 100% leased to General Distributors (a subsidiary of the Woolworths Group) which began a 21-year lease on the property in 2003. There are three further rights of renewal for 10 years each leading to a final expiry of October 2054.

The annual net rental income is approximately $1,270,965 plus GST.

Alan Pracy, director at Colliers Hamilton, said the lease agreement included three-yearly market rent reviews, which was rare for a super

market, and offered substantial growth potential for the new owner.

Pracy said supermarkets were a highly desirable asset class among buyers given their resiliency through all trading conditions.

‘‘As supermarkets are deemed an essential service, these properties are always keenly sought by prospective purchasers who view them as a lowrisk asset with the ability to operate through a range of unique circumstances, as evidenced by the Covid-19 pandemic,’’ he said.

The site was well presented, and the attractive leasing arrangements could bring about significant future earning potential for buyers who had the opportunity to secure a high

profile property with a strong tenant covenant, he said.

Cambridge had a population of 21,600 as of June 2022, an increase of 13% from the 2018 Census, making it the largest town in the Waipa District, and the third-largest urban area in Waikato after Hamilton and Taupō.

Pracy said Cambridge’s main sources of employment and income came from dairy farming, tourism, the equine industry, and sport, with dairy farming providing more than one in 10 jobs in the Waipa District.

‘‘The ongoing population growth in Cambridge ensures there will be continued demand for this supermarket in the future.’’