The land and buildings of a sizeable cool store facility in Hastings are being presented to the market for sale and will be highly appealing for buyers looking for a premium investment opportunity with an established occupant and steady rental stream.
1478 Omahu Road, Hastings has 10,544sq m of gross lettable area on a highly visible 13,289sq m freehold site that is zoned General Industrial Zone under the Hastings District Plan. The property has a 100 per cent NBS rating.
Located on a high-profile corner site on the western fringe of Hastings city, the property offers more than 230m of total road frontage and is tenanted by Everest Kool Solutions, one of the busiest cold storage and distribution operators in Hawke’s Bay that services food producers, growers, retailers, and distributors.
The current occupant began an 11-year lease at the property in April which runs until 2034 with one further right of renewal for five years leading to a final expiry of 31 July 2039.
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The annual net rental income from the lease is $938,896 plus GST, which will increase to $988,312 plus GST following capex works at the property that are due to be completed by December.
The Omahu industrial area is a tightly held location that is approximately 7km from the Hastings CBD and is home to a mixture of well-known international and local brands, including the Freshmax Group, McCain Foods, and New Zealand Frost Fans.
The subject site offers connectivity to key transport links across the Hawke’s Bay region, providing convenience for the occupants.
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 Thursday 8 June, unless sold prior.
The property has a 2,496sq m cool store, a 1,064sq m controlled atmosphere building, and two cold store facilities that measure 1,073sq m and 2,553sq m, respectively. All buildings offer functional stud heights and the cold stores run at a temperature of -20 degrees Celsius.
There is substantial canopy space and administration offices, while the property includes a sealed yard area spanning 1,610sq m. There are six dedicated car parks.
Bair says this premium purchasing opportunity is underpinned by a strong tenant covenant as Everest Kool Solutions are an established operator with international locations.
“They opened their first facility in Hawke’s Bay in 2013 and have remained focused on the regional distribution requirements of local and multinational food producers as well as providing a modern and efficient export facility,” Blair says.
“There is considerable upside in the lease terms that will be highly appealing for prospective purchasers given the annual rental income will rise to $1,175,000 plus GST on 1 August 2025 with three-yearly market reviews thereafter in place.
“The length of the existing lease shows that Everest Kool Solutions have a strong commitment to this prominent location, which is a key part of Hawke’s Bay’s thriving horticultural and agriculture sectors.”
Blair says this property has outstanding investment fundamentals, including a top-tier tenant in a prime site in a tightly held area that offers excellent accessibility.
“Cool store facilities such as this one are rarely presented to the open market and represent the opportunity to acquire a premier asset with long-term upside.”
- Article supplied by Colliers
