Lichtenstein says Colliers is leveraging its expertise in the syndications market and the agency's extensive database to ensure successful take-up of the offer.
The latest syndication follows the successful sale and leaseback of the Te Awamutu Countdown by General Distributors to CIPL, part of a portfolio of four North Island Countdown supermarkets offered through Colliers International last month.
Cheryl Macaulay, of CIPL, says she expects the syndication to be popular among investors, owing to the strength of the tenant and the long lease term.
This offer presents an opportunity for individual investors to buy a share of a quality commercial asset occupied by a solid tenant on a new, long-term lease. The property provides an opportunity for long-term income security for investors along with the prospect of income growth through rent reviews."
The Tokoroa supermarket was built in 2010 and has a net lettable area of 2235sq m on a 10,532sq m site.
In addition to the main supermarket floor, it houses mezzanine offices and a storage and service area. The property has on-site parking and access from two road frontages.
It is 200m from Tokoroa's main commercial precinct and serves the town of 14,000 people plus the wider South Waikato.
General Distributors offers a strong tenant covenant with Countdown now the largest retail brand by turnover in New Zealand, Lichtenstein says.
A well established business like this makes an ideal commercial tenant and Progressive has plans for further growth.
Oscroft believes the syndication will appeal to local investors who wish to boost their portfolios with a commercial property holding occupied by a strong tenant operating in a non-cyclical sector. In a sluggish economic climate, supermarkets offer defensive characteristics - while discretionary retailers suffer as consumers rein in their spending, supermarkets are in a 'necessity sector' and continue to thrive, says Oscroft.
Many property investors view supermarkets in good locations as the ideal recession-proof tenants, offering strong income security during uncertain times.
The Countdown Tokoroa syndication is the latest offering in a national strategic move by Colliers International to drive an increase in the market share of the syndications business in New Zealand.
It follows the successful allocation, before closing date, of all units in two large commercial properties in Albany, Auckland, within the past five months.
We closed the syndication of the Unitec North Shore campus and an office-warehouse complex at 265 Albany Highway, in advance of the subscription deadlines, with all units taken up in what proved to be extremely popular offerings.
"We expect equally strong demand for this latest offering from CIPL, says Lichtenstein.
