A block of fertile rural farmland sustaining an industrial hub of agri-service companies - as well as producing commercial quantities of stock-feed crops - has been placed on the market for sale.
The property at 4711-4715 State Highway 29 near the Waikato township of Matamata consists of three separate land titles - comprising various warehousing structures along with a substantial truck yard and vehicle maintenance amenities in one portion of the block, and a large in-ground feed supply pit and rural activities being undertaken on the remainder of the land.
In addition, the property also sustains a modern four-bedroom/two-bathroom home on some 7,074 square metres of land. Extensively refurbished in 2013, the upmarket residence has open-plan living areas, a wrap-around deck with outdoor entertaining space and is available with vacant possession.
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A separate three-bedroom villa has been converted into administrative office space which is utilised by one of the four commercial tenants.
A further cottage is leased on a rolling residential tenancy for $400 a week.
A shared driveway off State Highway 29 links the various arms of the property together - creating a central entry and exit point for the multitude of tenants, their clients and suppliers.
The State Highway 29 property located some 10 kilometres from Matamata is zoned Rural 1A under the Matamata Piako District Council plan. Now the land, tenanted buildings and infrastructure within the property are being marketed for sale by tender through Bayleys Hamilton, with tenders closing on August 6.
Salespeople Josh Smith and Rebecca Bruce said it was unusual for a rural landholding to contain so many commercial tenancies - aside from producing livestock feed, and containing a substantial residential dwelling all operating independently of each other.
The tenancies generate a combined annual rental income of $283,614, and include:
- Agricultural research and feed supplier AgVision on a current lease running through to 2024 with two further two-year rights of renewal generating rental of $116,000 plus GST per annum;
- Wood shavings and sawdust wholesaler Animal Bedding Supplies on a current lease running through to 2021 with one further one-year right of renewal delivering annual rental of $60,000 plus GST;
- Family-owned agricultural services and stock-feed production firm John Austin Ltd on a rolling monthly lease generating annual rental of $46,814 plus GST; and
- Winton Stockfeed Ltd on a current lease running through to 2022 with two further five-year rights of renewal generating annual rental of $40,000 plus GST.
“It is rare that a property with this much to offer from a multiple revenue stream perspective comes to the market,” said Smith.
“The 29.32 hectares of Hineura clay base cropping land within 4711-4715 State Highway 29 is leased for the production of maize grain. The current leasee, John Austin Ltd, has been cropping the land since 2014 and has expressed an interest in continuing with its current arrangement.
“Concurrently, Agvision utilises a 2,500sqm warehouse within the block, and Winton Stockfeeds has a ground lease over the in-ground bladder which stores much of the Waikato’s molasses supply.
“A smaller workshop-type warehouse and the remaining yard space is tenanted to Animal Bedding Supplies for its large stockpiles of woodchip and sawdust products. A three-bedroom cottage adjacent to the yard is utilised as an office for Animal Bedding Supplies, while a decommissioned cowshed has been repurposed as a wash-down area for the company’s heavy haulage trucks.”
Smith said a truck weigh station within the yard was shared by the various tenants, and was also used by local carriers.
He said all tenancies within the rural block - situated on the corner of State Highway 27 and State Highway 29 - benefitted from its strategic location in the heart of the Waikato, with Hamilton and Tauranga situated approximately 50 kilometres away in opposite directions.
“After beginning as a feed mill in Southland, Winton Stockfeed is now this country’s only wholly New Zealand-owned molasses importer – employing some 20 staff around New Zealand and operating its own fleet of delivery trucks. The molasses storage bladder on site in Matamata is one of the biggest such amenities of its type in the Waikato – reflecting the strategic importance of this farming region,” Smith said.
“Likewise, Animal Bedding Supplies’ products are also sought after in the province – delivering premium-quality kiln-dried wood shavings, saw dust and other bedding materials for poultry, dairy goats, horses and livestock.”
