Waterfront orchard an opportunity for investors

One of the largest Bay of Plenty avocado orchards on a stunning peninsula site in the inner Tauranga Harbour is on the market for sale.

The 64.9 hectare orchard on a flat to gently sloping site has about 28 hectares of Hass avocado trees and several recently planted areas of kiwifruit, including internationally lucrative G3 Sungold, divided by mature shelterbelts.

The jewel in the crown is the Riparian Rights for about 2.2 kilometres of waterfront, with views and beach access, giving an opportunity to a savvy buyer to obtain a large scale orchard in a great location.  

Situated about half way between Tauranga and Katikati, the prime inner harbour waterfront orchard at 419 Matahui Road on the Matahui Peninsula was established about 17 years ago and is now being marketed for sale by international tender closing on November 28 through Bayleys Tauranga salesperson Phil Mangos.

“The well-established orchard has a myriad of options. It is among the biggest horticultural production blocks in the region and has been successfully cropping avocados for nearly two decades supplying an Australian supermarket chain, Asian and Pacific markets plus locally. Last year's export crop exceeded 34,000 trays,” Mr Mangos said.

Orchard management recently planted several blocks of kiwifruit – 1.31 canopy hectares of Hayward, yet to reach full production maturity and 2.53 canopy hectares of G3 Sungold, with half at full production. Last year about 11,000 trays were harvested from the G3 and in the past the fruit has received early start payments due to the orchard's peninsula location.

The kiwifruit is marketed and sold by co-operative Zespri, one of the world's leading horticultural companies and the recognised category leader in the fruit. It is also based in the region. The orchard owner has appreciated having easy access to packhouses and the port for exports.

“A savvy investor, corporate, trust or syndicate may see value in converting the entire orchard to Sungold kiwifruit and use the avocado and kiwifruit infrastructure, professional management and sophisticated industry structure for further investment and profit,” Mr Mangos said.

On the property, irrigation is from a hot water bore supplying three 35,000 litre storage tanks with the kiwifruit investment backed by a fully automated zoned frost protection system.

Sound infrastructure supports the orchard's production. It includes a large half round barn with a good load out area and used for machinery storage, equipment and fertiliser, a packhouse and office, a workshop, staffroom with laundry and bathroom, two 15,000 litre fertigation tanks and 1960s brick house built when the property was a dairy farm. It is now used for staff accommodation or could be utilised as an orchard manager's living quarters.  

The Bay of Plenty province is the country's biggest producer of avocados and kiwifruit. “New Zealand horticulture is a multi-billion dollar industry and the province contributes significantly to this,” Mr Mangos said.

“Key export markets have shown significant growth in the past 10 years and this is likely to continue. The kiwifruit industry's global revenue is expected to jump from more than $2 billion two years ago to $6 billion by 2030.”  

“Growers have shown a responsiveness to market demand and the sustained growth in the sector along with a positive outlook means the orchard's key attributes of scale, location, quality infrastructure, spectacular views and financial opportunities will make it a highly sought-after property,” he said.

“It is an exceptional opportunity for buyers to get into the avocado or kiwifruit sector with scale, or for those already in the industry to substantially grow their holdings.

“Although the attraction for investment and scope to maximise financial returns from this orchard is obvious, Mr Mangos said the picturesque waterfront location provides scope to also subdivide the land. The peninsula is a sought after destination with the property surrounded by premium housing and orchard enterprises.”