$14 million Orewa sale reflects town's property potential

Orewa's Countdown Supermarket and close to 9000sq m of surrounding land zoned for retail use in the seaside town's central commercial precinct have sold for $14.28 million.

The sale was concluded just prior to the supermarket going up for auction as part of Bayleys' latest Total Property portfolio.

The sale of the properties, in Moenui and Tamariki Avenues, encompasses the 2161sq m Countdown building on a 5245sq m site in five titles, plus four other titles totalling 4102sq m of underdeveloped land housing residential dwellings developed in the late 1970s and early 80s - one of which has been altered for use as a gymnasium.

Sales agent Richard White, who marketed the property in conjunction with Logan Gilbert, of Bayleys Northwest office, and Mustan Bagasra from Bayleys Orewa, says the sale price equates to around $1527 per sq m, which he says is a good result in the current property development market.

"It reflects Orewa's strategic location within one of New Zealand's fastest-growing population areas. The town centre has undergone substantial growth over the last five years spurred on by the motorway extension and substantial new residential subdivisions, rest home and retirement developments and a number of new schools.

"This strong growth is expected to continue, which makes Orewa attractive from both an investor's and developer's perspective."

The Countdown supermarket lease, on which Progressive Enterprises is the guarantor, has just been renewed for a further six years, which is the last of two rights of renewal.

The supermarket is currently producing annual net rental income of $401,000, with close to $115,000 also coming from smaller residential and commercial tenancies at the neighbouring sites.

The sale of the Countdown site follows a number of other sales in the heart of Orewa. White sold three properties to two purchasers late last year for $18.3 million, including the Orewa Village shopping centre, Moana Court retail centre and a two-level retail and office building. He also has several retail units beneath the Nautilus apartment complex under contract.