Supermarket site offers food for thought
A strategically located supermarket with multiple street frontages in the centre of New Plymouth is available for purchase and provides buyers an opportunity to secure an asset that is occupied by a household name with a long-term lease on favourable terms.
53-65 Leach Street is home to Pak’nSave and has 8567 square metres of total lettable area spread across ground and mezzanine floors. The property sits on a 10,633sqm freehold site and has approximately 320 on-grade and basement car parks.
Fully leased to Foodstuffs North Island, the current 18-year lease for Pak’nSave runs until September 2029 and one further 17-year right of renewal is available leading to a final expiry of September 2046.
The property returns $1,841,276 plus GST in net annual rental income while there are 2 per cent fixed annual increases and five-yearly market reviews in place; such lease terms are rarely found with supermarkets.
Customers benefit from the convenience of dual access with entries from Courtenay and Leach Streets.
Colliers Directors Blair Peterken, Peter Herdson, Alan Pracy, and Benet Carroll are marketing the property for sale via deadline private treaty closing at 4pm on Wednesday 17 July, unless sold prior.
Foodstuffs North Island, who run the Four Square, New World, Pak’nSave, Gilmours, and Liquorland brands, have been in business for more than a century and are a 100% locally owned and operated organisation.
Peterken, Director of Capital Markets at Colliers, says having the opportunity to purchase a supermarket occupied by Pak’nSave is incredibly rare.
“Foodstuffs North Island can be accurately described as a blue-chip tenant and are one of New Zealand’s most wellknown businesses. Pak’nSave is a highly recognisable brand with nearly 60 locations across the country,” Peterken says.
“Supermarkets remain a sought-after asset class given their ability to trade through a range of different economic conditions and the strength of the tenant covenant is a key consideration for buyers.”
Herdson, National Director of Capital Markets at Colliers, says the lease terms will also draw the attention of buyers.
“This is an established supermarket that benefits from its high levels of accessibility and the fixed annual rental growth means there is future upside for buyers,” Herdson says.
“If the right of renewal, which spans 17 years, is exercised in the future there will be a steady rental stream in place well into the 2040s. Future market reviews also present further opportunities for rental growth.”
The eye-catching yellow branding and prominent location ensure this Pak’nSave enjoys high levels of visibility to passing traffic.
Pracy, Director at Colliers Hamilton, says the location is a key selling point.
“This popular supermarket is situated on a main arterial route in the city centre and is near all of the key amenities in New Plymouth,” Pracy says.
“Devon Street, the main retail strip in the city, runs parallel to the property, meaning there’s a range of shops nearby.”
Data from the most recent Census notes the New Plymouth District had strong population growth of 7.8 per cent between 2018 and 2023 with the area’s accessible housing, lifestyle, and lower cost of living likely underpinning that population growth.
New Plymouth is the main city within the Taranaki region and is a service centre for the region’s principal economic activities.
Carroll, Director at Colliers New Plymouth, says this property represents the opportunity for buyers to purchase a premium asset in a stand-out location in an area that has seen consistent population growth during the past five years.
“This population growth will contribute to the ongoing need for services and a centrally located supermarket is well positioned to capitalise on that demand,” Carroll says.
“We encourage all interested parties to reach out to us to explore their options.”
A prominently located Kāpiti Coast retail property occupied by a well-established Wellington bed manufacturer and retailer is for sale by auction, offering a hands-off opportunity for a passive investor.
The north-facing 308 square metre unit on a 649sqm site at 123 Kāpiti Road, Paraparaumu is one of six semi-detached, single level and individually titled retail units constructed in 1997 and set back from the road with generous parking amenity and excellent profile to passing traffic. There is no Body Corporate associated with the units.
The well-maintained and modern-looking premises was refurbished for the current occupier, Wellington Beds, and has a double access door at the front, large windows ideal for display purposes and brand profile, a small storeroom on the south side, plus office, lunchroom and toilet facilities.
The unit returns annual net rental of $77,070 plus GST, with rental uplift to $80,000 in February 2025. Wellington Beds has exercised an early right of renewal providing term through to 31st January 2028.
The vendor of the property is looking to free up capital for other projects, with salesperson Jo Stewart of Bayleys Wellington Commercial marketing the property ahead of an auction scheduled for 11th July.
The coveted real estate strip is immediately east of the Kāpiti Landing development where tenants include Mitre 10 Mega, Repco and New World and Stewart says like others in the immediate block, the property has had a sound leasing history.
“It’s a viable and popular location with occupiers and local customers, and being on a main feeder road just 300m from the Kāpiti Expressway interchange, it’s a good stop off point for those travelling north or south too. There’s easy access and a range of convenient food and beverage offerings with parking right outside.
“While the property is a neat fit for Wellington Beds and they have shown confidence in the location by renewing their lease ahead of time, the building itself is fairly generic and could suit any number of different business users in the future.”
Stewart says there’s robust activity and demonstrated confidence in the Kāpiti Coast commercial real estate market off the back of population growth and improved roading initiatives that have created safer and more reliable connectivity between Wellington city and the northern region.
“Further improvements to the roading network linking the Horowhenua will only add to the value equation,” she says.
“Bayleys recently sold a property in Presentation Way directly behind this property, along with the nearby Tile Warehouse late last year. We had strong interest on both of these properties from local buyers and Wellington central buyers as the Kāpiti Coast does offer comparatively good value.
“The Kāpiti Road offering is exactly the sort of bottom drawer, easy-care property investment that buyers are hankering for and with the tenant providing an assured rental stream and having low impact on the building itself given its retail focus and product offering, it’s hassle-free.”
Locally owned and operated Wellington Beds has been in business for more than 30 years, with a factory in Tawa, five retail stores throughout the Wellington region and one in Masterton.
The well-maintained and modern-looking premises at