Papakura Woolworths investment for sale

Buyers have a rare chance to secure a grocery sector investment in a fast-growing catchment as the site housing a busy South Auckland supermarket goes up for sale.

Woolworths anchors the Roselands Shopping Centre site

The more than 2,800-square-metre premises with 187 car parks has for many years been home to Woolworths Roselands (formerly Countdown). The store sits prominently on Great South Road, in Papakura, where it forms part of the Roselands Shopping Centre.

Net annual rent of $840,000 with fixed growth

The site currently returns an annual net rent of $840,000 plus outgoings and GST – with fixed rental growth lifting this to $861,000 plus outgoings and GST in March 2028, and by a further 5 percent every three years thereafter.

Renewed lease could extend to 2055

Woolworths Group operating company General Distributors Limited has renewed the lease for another 10 years from March 2027. Three further six-year rights of renewal are available which, if exercised, will take final expiry to 2055.

Large freehold site offers redevelopment potential

The premises are underpinned by some 8,771 square metres of freehold land with intensive zoning providing future options for redevelopment and alternative uses.

Papakura supermarket property offered by tender

The land and buildings at 90-96 Great South Road are being offered to buyers by way of a tender closing on Thursday 26 November (unless sold prior).

The sale is being marketed by Alan Haydock, Damien Bullick and Tony Chaudhary of Bayleys Real Estate.

Essential grocery investment provides secure cashflow

Haydock says the address offers a top-quality passive investment in the essential grocery sector.

“Currently trading as a Woolworths supermarket, the renewed 10-year lease will provide a secure cashflow with structured rental growth for investors taking a long-term view.

“Consideration must also be given to the large underdeveloped freehold site, which benefits from an intensive Business – Metropolitan Centre zoning. Second in intensity only to the city centre, this allows for a range of future commercial and residential development possibilities and underpins future value for long-term owners,” Haydock says.

Refurbished building has a 90 percent NBS rating

Originally constructed in the 1970s, the building has been refurbished and strengthened to an A-grade seismic rating of 90 percent of new building standard.

Retail layout supports supermarket operations

Bullick says the premises are proven as a well-suited base for successful supermarket operations.

“The substantial retail space of some 2,440 square metres is complemented by mezzanine office and storage/plant areas, trolley storage, and canopies enabling all-weather loading and unloading of goods.

“Bounded by Subway Road, O’Shannessey Street, and key arterial Great South Road, the site enjoys triple street frontage, extensive customer parking, and convenient vehicle movements facilitated by multiple access points,” says Bullick.

Papakura growth supports long-term value

Chaudhary says future activity and value at the site are supported by a popular location that is part of a regionally significant growth story.

“Situated around 30 kilometres south of Auckland’s city centre, Papakura has handy access to motorways, arterial routes and public transport – including one of the network’s busiest train stations, offering frequent services into central Auckland.

“The suburb’s population has more than doubled in the past 20 years, to an estimated 37,000, and is projected to keep growing as Papakura and surrounding areas including Drury and Takanini are targeted for ongoing expansion.

“This area has seen numerous large housing projects as expansive tracts of land are opened for residential development, and is set to reap long-term benefits from transport network improvements,” Chaudhary says.