A premium Hawke’s Bay investment property in the sought-after Hastings industrial precinct of Whakatu is for sale with a long-term lease to innovative beverage company Milk Kitchen.
The property at 37 Johnston Way comprises a large, modern multipurpose facility with approximately 2,595sq m of manufacturing, distribution and office space.
It sits on a 15,562sq m (more or less) freehold site with a large land bank suitable for future expansion or subdivision.
The surrounding area is home to a number of significant operators such as T&G Global, Silverfern Farms, Carter Holt Harvey and Whakatu Coldstores, which highlights the location’s appeal.
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Colliers has been exclusively appointed to market the property for sale by tender closing at 4pm on Wednesday 14 April.
Rob Nankervis, Industrial broker at Colliers Hawke’s Bay, says it is an opportunity to capitalise on the property’s strong tenant covenant and long lease.
“This outstanding offering is fully leased to Milk Kitchen, which offers a comprehensive contract manufacturing service for a range of beverages.
“As an essential service, the company is able to operate at any Covid-19 alert level, making it a highly resilient and secure investment.
“Six years remain on the current lease, which returns $352,000 plus GST in net annual rent per annum. There are two rights of renewal of five years each, plus regular market rent reviews. There is also an additional rental payable of $3,576 plus GST per annum from a fire system upgrade noted as a Landlord Fixture and Fitting in the lease.
“Properties of this size and quality are rare, and with the Hawke’s Bay region continuing its solid growth, this is a strategic investment which cannot be overlooked.”
The facility has a 100 per cent NBS seismic rating and provides an approximate 1,580sq m high stud warehouse and factory and extension, along with an approximate 266sq m of office and amenity space.
Other areas include approximately 1,050sq m of lean-to and a 55sq m boiler room.
The General Industrial zoned property is located at the heart of Whakatu – a major satellite industrial area formerly occupied by the Hawke's Bay Farmers' Meat Company freezing work.
Whakatu is only 8km east of Hastings CBD and is easily accessible by road, with recent improvements including a link to the regional expressway.
Tenant Milk Kitchen was founded in 2008 by food scientist Neil McGarva. It produces a range of contract manufactured products for domestic and global markets including farm-fresh New Zealand milk, UHT aseptic dairy, non-dairy, plant-based drinks, sports drinks and juices.
Milk Kitchen also offers guidance on product development, packaging, export and logistics, to ensure products meet standards and overseas market access requirements.
Food safety is the highest priority and the factory is registered with the Ministry for Primary Industries (MPI). It is also certified as a Bio Gro organic dairy manufacturer, and certified with MPI for non-dairy beverages export manufacturing.
With convenient access to Napier Port, the company’s contract-made products can go from farm to ship within days.
The surrounding Whakatu area is home to a wide range of industrial activities including food processing, cold and cool storage, as well as a number of other activities associated with the primary sector.
Dispersed amongst the industrial activities are a number of established rural activities including orchards and grazing.
The wider Hastings area is home to major food production companies including Heinz Wattie's and McCain Foods.
Hastings is also home to a number of major warehousing, manufacturing, service and transport businesses.
The Hawke’s Bay economy has been relatively resilient to the impacts of Covid-19, with Infometrics reporting GDP growth of 0.8 per cent over 2020, compared with a -2.6 contraction nationally.
