The freehold block, which is just over 1 hectare, is being offered by the supermarket chain which plans to retain a perpetually renewable lease.
The land has a rating value of $17.2 million and the initial lease will be for an annual rent of $1.193m, plus GST with five-yearly rent reviews.
The site has frontages to Molesworth, Murphy and Little Pipitea streets and is fully developed with the New World supermarket, specialty retail stores and car parking.
Colliers Broker Chris Gollins describes an attractive offering for investors. ‘‘Aside from the security offered, one of the major appeals of freehold investments is the total lack of any maintenance requirement and minimal management.’’
As a condition of the sale, Foodstuffs retains the right to make alterations to the property. For example, it could enlarge the supermarket.
Foodstuffs group property manager Wayne O’Styke said the ground lease sale at Thorndon would allow Foodstuffs and its member operator to retain control and use of the site. It would also release capital for other supermarket developments throughout the lower North Island. ‘‘In this year alone, Foodstuffs Wellington and its member operators will have invested $50m in new supermarkets in Waipukurau and Marton, and major expansions to Pak ’n’ Save and New World stores in Palmerston North and Levin.’’
The development and upgrading programme includes new stores at Newlands, Churton Park, the Basin Reserve, Tawa and Westown (New Plymouth). Suburban stores such as Island Bay are also being upgraded and an extension to the rear of the Thorndon New World has just been completed to improve stock handling and office areas, said Mr O’Styke.
Tenders on the Thorndon New World land close on November 23.
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