A recently completed accommodation complex purpose-built for New Zealand’s largest horticultural export industry, together with an existing cool store facility, provides a prime passive investment opportunity, Bayleys salespeople say.
The dual-purpose premises on 1.1575ha (more or less) of freehold land at 43 Sharp Road lies minutes beyond Katikati, just off the main State Highway network to Tauranga and the Eastern Bay of Plenty.
Bayleys Tauranga salesperson, Brendon Bradley says the property is offered to the market following a bumper kiwifruit harvest for Bay of Plenty growers in 2024, which saw labour availability, adoption of new technology, and strong fruit volumes anchor confidence in the sector.
“While kiwifruit orchardists are switching to pruning following the successful 2024 harvest, the subject property presents an excellent passive investment option, anchored by a blue-chip tenant in a thriving industry.
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“NZX-listed Seeka Limited is New Zealand and Australia’s largest fully integrated kiwifruit supply company, managing more than 900ha of kiwifruit orchards across the Bay of Plenty and Coromandel.
“The business has secured a long-term lease for the subject property, with an initial 15-year term, complemented by three additional five-year renewal options.
"The annual net rental income stands at $750,000 plus GST with annual CPI rental growth, which ensures a consistent and growing income stream for investors,” he says.
Bradley, along with family members and Bayleys Tauranga colleagues Ryan Bradley and Lynn Bradley, are marketing the property for sale by deadline, closing at 4:00 pm on Wednesday, 10th July 2024 (unless sold prior).
Ryan Bradley says the facility, named Turanga Whetu, has been comprehensively constructed to support the regional kiwifruit industry’s growing demands.
“Off the back of a fantastic crop yield that increased demand for services and worker accommodation, the facilities at Turanga Whetu now include nine buildings with a total floor area of 3,020sq m (more or less).
“The seasonal worker accommodation is configured in six connected buildings that form two U-shaped facilities, licensed for 140 Recognised Seasonal Employees (RSEs).
"Each block is centred around shared yards, with two communal facilities buildings - totalling 518sq m (more or less) comprising kitchens, dining rooms, television and lounge areas, toilets, and laundries.
“Additionally, a new two-bedroom manager’s residence located nearby features a bathroom, open-plan kitchen and living area,” he says.
Adjacent to the accommodation facilities, an original 1980s cool store/packhouse has been partly repurposed for workshop and office use.
Lynn Bradley says the 1,350sq m packhouse section has been decommissioned but is currently utilised as a workshop. It includes four roller doors, an internal partitioned office, and 288sq m (more or less) of canopy cover.
“The rear of the cool store has been converted to a communal lounge that forms part of the accommodation amenities.
"The balance of this area includes plant and storage space, plus a staffroom and shower facilities on the mezzanine floor.
“Substantial in size and quality, Turanga Whetu is a sharp provincial investment. It is strategically located amidst Seeka’s extensive regional orchards, and this proximity ensures a steady demand for accommodation driven by worker needs.
“The property is a stand-out addition for investors looking to diversify their portfolios, with credentials anchored by a long-term lease to a reputable tenant, with built-in rental growth and an opportunity to leverage New Zealand’s thriving kiwifruit sector.”
- Supplied by Bayleys
