A modern, purpose-built cool store and distribution facility in Hastings that is occupied by Fonterra is being presented to the market for sale and will pique the interest of astute investors looking for a premier asset with a strong tenant covenant.
52 Hanui Road, Tomoana has 754sq m of total floor area on a 12,920sq m freehold site. The property is zoned Tomoana Food Industry Zone under the Hastings District Plan.
The facility provides a mixture of freezer, chiller, and ambient storage accommodation, along with a small office area and canopy with raised loading dock at the front of the site.
Fonterra, the world’s largest dairy exporter and New Zealand’s biggest company, are halfway through a 10-year lease at the property and have multiple rights of renewal available, leading to a final expiry of 31 May 2040.
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Their lease agreement returns $231,857 plus GST in net annual rental income. There are future market reviews in place and 2 per cent fixed annual increases.
There is approximately 8,800sq m of land remaining for further development, which will be highly appealing for buyers given the property’s sought-after location.
The neighbouring Tomoana Food Hub is Hawke’s Bay’s only industrial business park that is dedicated to the food industry sector and is home to prominent operators Heinz Wattie’s, Jamestrong Precision Packaging, and Booth’s Logistics.
The Hawke’s Bay Airport and Napier Port can be reached in just over 20 minutes, while the Hastings CBD is only five minutes away. The strategic positioning of the property means State Highway 51 and State Highway 2 are readily accessible.
Colliers Hawke’s Bay Director Danny Blair has been exclusively appointed to market the property for sale via deadline private treaty closing at 4pm on Wednesday 29 November, unless sold prior.
Originally constructed in 2018, the property has 530sq m of cool and cold store space, a 77sq m office, and accompanying canopy.
The building is constructed with reinforced concrete floors and foundations, insulated panel walls, and an iron roof. The office is constructed of a timber frame with plasterboard lined walls and ceiling.
There is a concrete yard that spans 1,900sq m and provides convenience for trucks entering the site.
Blair says this is a compelling investment opportunity that is underpinned by the strength of the tenant covenant, while the development land is another major selling point.
“Fonterra is a blue-chip operator with an outstanding global reputation whose annual revenue is measured in the billions,” Blair says.
“Their commitment to the site is evident through their 10-year lease that began in 2018 and the lease agreement provides continual fixed rental growth, something that will be highly appealing to prospective purchasers.
“The sizeable surplus landholding provides the new owner with a range of options for the future to create a substantial development that will unlock the true value of the property.”
The property sits to the rear of the foodeast-haumako facility that is currently under construction and is being funded by The Ministry of Business, Innovation and Employment, Hawke’s Bay Regional Investment Company, Hastings District Council, and Progressive Meats. It is owned by a Council Controlled Trading Organisation.
The facility will eventually include a factory, innovation centre, and contemporary offices and will run as a commercial enterprise to provide the food, beverage, and agri-tech industries with connections that will assist businesses to develop new products and enhance existing ideas to take them to national and international markets.
“The Tomoana Food Hub provides a platform where food processing and manufacturing companies can work together and enjoy the benefits of clustering with the potential to value-add to their food products,” Blair says.
“With further room to develop, including at the subject property, the location is well placed to entrench itself in the Hawke’s Bay region as a key cog in the area’s infrastructure and a strong contributor to the local economy.”
Article supplied by Colliers
