A tenanted investment property within Rotorua’s preferred agricultural service precinct has been placed on the market for sale, with agents saying the industrial sector has continued to perform well in the region.
The property at 40 Marguerita Street, Fenton Park, is fully occupied by Farm Source, New Zealand’s largest retailer of agricultural supplies to dairy farmers and a subsidiary of Fonterra.
It is part of the comprehensive nationwide network of Farm Source hubs, and one of seven on the Bay of Plenty region.
The modern, purpose-built premises were completed in 2014 and comprise a total 1,241.5sqm of warehousing, retail showroom space, office, amenities and canopy, plus a 3,728sqm concrete yard – all on a 5,855sqm site with parking and drive-around access.
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The property backs onto Racing Rotorua’s Arawa Park Racecourse, with the lettable areas comprising a 583sqm showroom, 344sqm high-stud warehouse, 80.5sqm mezzanine staff amenities and offices, and a 234sqm canopy.
There are 18 marked car parks on site plus ample room for service vehicles and large transport vehicles to offload and pick up products, including the area below the covered canopy.
The property returns net annual income of $217,947pa plus GST and outgoings. The current lease to RD1 Limited, trading as Farm Source, extends to 31 December 2027, with a 3-year right of renewal in place, and rental reviews to market every two years. All outgoings are covered by the tenant.
Mark Slade, Brei King and Damien Keenan of Bayleys Rotorua are marketing the property, with the auction scheduled for 5th December, unless sold prior.
Slade says the location has traditionally been very tightly held and as the main hub for Rotorua’s agricultural service sector, it is a precinct that always leases well.
“There have been no sales of properties of this calibre in recent times which makes the asset a standout in the current market,” he says.
“The industrial real estate sector has been a star performer for Rotorua. Given that the Marguerita Street property is underpinned by a proven and well-performing national tenant, and few comparable options available in the market for an operation such as this, we’re fielding strong enquiry from buyers looking to secure a stake in the region’s industrial market.”
While the site in its current guise is fully utilised by Farm Source, the land itself is arguably underdeveloped leaving room for future expansion which the Industrial 1 zoning would support,
“Rotorua has an identified shortage of appropriately zoned land suitable for commercial and industrial activity,” says Slade.
“Leasing activity is robust, and any existing industrial stock is pretty much at capacity occupier-wise. At the southern gateway to Rotorua, around 4km south of the Marguerita Street property, work has begun on stage one of the Peka Industrial Park which will go some way to addressing gaps in the market.
“The Marguerita Street precinct is seen as the service hub for Rotorua’s agri-sector, with other occupiers including major national tenants such as Farmlands, PGG Wrightson, and ABC Milking Solutions.”
- Supplied by Bayleys
