The land and buildings of a large-scale cool store facility in Hawke’s Bay are for sale, offering buyers the opportunity to acquire a top-tier asset in New Zealand’s premier pipfruit region.
5 Hill Road, Twyford in Hastings is home to a modern, state-of-the-art cool store with approximately 16,416sq m of total net lettable area on a 3.5345ha site that is spread across three freehold titles and is zoned Plains Production Zone under the Hastings District Plan.
The property includes three buildings, which are configured into six substantial cool stores, providing significant storage capacity for approximately 62,000 bins of fruit internally.
The strategically laid out site offers full drive around access and accommodates yard storage for circa 24,000 bins.
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The head lease to Akina Investments Limited expires in March 2035, offering an attractive lease term with 12-and-a-half years remaining.
A concurrent lease to Mr Apple New Zealand Limited, who occupy the property, has an initial expiry of March 2025 with two further rights of renewal for five years each.
The head lease provides $2,350,000 plus GST and outgoings in annual rental income and includes 2.75 per cent annual increases with market reviews in March 2025 and March 2030 subject to a 10 per cent cap and collar.
The property is well suited to meet the increasing demand for modern, generic cool store space within Hawke’s Bay.
The local pipfruit sector is experiencing strong demand and there is limited supply of available facilities, while rising construction costs for new builds are restricting the ability to economically deliver new premises.
The site is favourably located near the Heretaunga Plains production area, which the property serves. It also offers easy access to key transportation and distribution routes given it is only 400m from State Highway 50, which provides direct access to State Highway 2 and State Highway 5.
Colliers Hawke’s Bay Director Danny Blair and PwC’s Chagalle Ellis have been jointly appointed to market the property for sale by deadline private treaty closing at 4pm on Thursday 20 October, unless sold prior.
Blair says the purpose-built cool store and distribution facility has been developed in three stages from approximately 2005 to 2014.
“The cool stores are currently operating at 0.5 degrees Celsius on a modern glycol refrigeration system that was installed in 2016 and have the ability to be used as SmartFresh rooms offering significant flexibility,” Blair says.
“The property provides clear span industrial accommodation with stud heights of up to 8m to the knee.
“Ancillary areas include controlled atmosphere rooms, fumigation areas, and plant and battery rooms. There are also functional, relocatable offices and staff amenities.”
Blair says the property occupies a high-profile corner site that benefits from extensive frontage to Omahu Road and 140m of frontage to Hill Road.
“Twyford is located on the western fringe of the Hastings commercial precinct. The location is highly sought-after as it sits in the heart of the country’s largest and most established pipfruit locality.
“Approximately 62 per cent of New Zealand’s apples and pears are grown in Hawke’s Bay and this is a key driver of the thriving horticulture industry in the region.”
Ellis, Partner at PwC, says the property offers a strong tenant covenant that will be highly appealing to prospective purchasers.
“The property offers a long-term lease to Akina Investments Limited, and Mr Apple, the concurrent lessee, exports approximately 25 per cent of New Zealand’s apple crop to the world,” Ellis says.
“With built-in rental growth through the 2.75 per cent annual increases and further market reviews this property will be highly desirable for buyers.”
Ellis says the highly functional property has all the key fundamentals of a premier purchasing opportunity.
“This property offers all the vital pillars that investors are looking for with a 12.5-year lease term on a high-profile site servicing an industry that is continuing to experience ongoing growth.”
- Article supplied by Colliers
