Bulk retail investment opportunity in Southland's second biggest centre
The Countdown supermarket in Gore is for sale, offering investors the chance to buy one of the most established retail assets in Southland’s second largest centre.
The freehold property at 24 Medway Street, in Gore’s largest block of bulk retailers, is being marketed exclusively by Colliers International Capital Markets Director Jason Seymour and Queenstown Sales Director Mark Simpson.
It is being sold by deadline private treaty closing at 4pm on Thursday, 29 June, unless sold prior.
Simpson says it is a chance to invest in a large South Island retail asset on long-term lease to a nationwide retailer.
“This is an outstanding opportunity to buy a closely held property that hasn’t been on the market since the supermarket opened in 1983,” he says.
“Located in the heart of Gore’s main retail area, Countdown occupies the same city block as numerous other major large format retailers including The Warehouse, PlaceMakers, Noel Leeming and Mitre 10.
“The Countdown is one of only two major supermarkets serving the wider Gore district’s population of more than 12,000 people, making it an essential shopping destination for a significant proportion of the town’s residents.”
The total site of 5,800sq m is a short walking distance to Gore’s main retail area which includes cafes, restaurants, banks and H&J Smith's department store.
Simpson says the original supermarket and car park was built in 1982/83, expanded in 1994 and modernised in 2009.
The supermarket building occupies 2,260sq m on a 4,877sq m site. An adjacent 923sq m site was bought in 2010 to boost the number of car parks.
Some 95 car parks are available, with dual access from Medway Street to the south and Irwell Street to the north.
Seymour says the property is currently returning $819,403 plus GST in rent per annum.
The lessee is General Distributors, a subsidiary of Countdown owner Progressive Enterprises, which is ultimately owned by Australian supermarket giant Woolworths.
“Progressive is one of New Zealand's largest and most successful retail organisations,” Seymour says.
“It is the country’s third largest company by revenue and the largest private sector employer, with more than 18,500 staff.”
Seymour says the Gore asset is one of more than 184 Countdown supermarkets that Progressive owns and operates throughout New Zealand.
“The tenant’s position as one of the largest players in the New Zealand retail market makes this an astute investment,” he says.
“Investors can also take a high degree of confidence from the tenant’s ultimate ownership by Woolworths, Australia’s largest supermarket chain, which had sales of A$58.1 billion in the last financial year.”
Simpson says the property is at the heart of the second-largest town in the Southland region.
“With a combination of culture and heritage that is teamed with modern facilities and city advantages in a rural setting, the southern town of Gore is a drawcard for many,” he says.
The town serves the wider district’s population of more than 12,000 people including the surrounding farming communities. The nearest major centre is Invercargill, 64km to the southwest.
Simpson says Countdown’s main public entrance is located at the southeastern corner of the building, facing the main car park.
“Roughly two thirds of the building comprises the main retail and trading area, while the remainder includes stock rooms and a goods delivery area to the west,” he says.
“A mezzanine area provides an office and staff amenities.”
Simpson says the supermarket is generally constructed of concrete foundations and floors, with concrete framing supporting a portal frame and long run iron roof.
“The main supermarket area has a suspended tile ceiling with recessed fluorescent tube lighting, sprinklers and air conditioning.”
The external walls are a combination of precast concrete panels and some concrete block walls.
The property, zoned for commercial use under the Gore District Plan, is currently on multiple titles. A boundary realignment is currently underway on the site used for car parking and is expected to be completed in early June.