Big supermarket planned for Auckland's CBD

File photo

A huge new Auckland CBD supermarket is being planned.

NZX listed landlord Kermadec Property Fund and supermarket giant Progressive Enterprises are planning to bring a Countdown to the city.

Kermadec owns the Finance Centre on Albert St.

Before Christmas, Kermadec said it has executed two big lease agreements at its largest property, the Finance Centre in Auckland's CBD.

"General Distributors Limited, a wholly owned subsidiary of Progressive Enterprises Limited has signed a new 12 year lease over circa 2100 square metres of retail area, from which it will operate a "Countdown Metro" inner-city supermarket.

The lease includes a base rent plus an additional turnover rent component.

Due to the extensive fit-out requirements of the tenant, lease commencement is anticipated to be August 2011.

The lease remains conditional only on obtaining the necessary council consents relating to the fit-out works.

"The company has also entered into a new 8 year lease with an established restaurant operator, over 632 square metres of lettable area. The new fit-out will comprise two restaurant concepts plus some adjoining offices.

Commencement date will be 1 May 2011.

"This leasing will increase Kermadec's portfolio occupancy from 86 per cent to 92 per cent, and increase the portfolio weighted average lease expiry (WALE) from 4.9 to 5.7 years.

The leases will have a positive impact on earnings from the second half of the financial year ended 31 March 2012.

"Kermadec has also confirmed renewal of its banking facility with ASB for a further 4 year term from June 2011," the NZX was told.