A substantial, long-standing rural warehousing retail showroom with extensive yard storage space – located within one of New Zealand’s premier dairy farming regions – has been placed on the market for sale.
The 4,805 square metre block facing directly onto State Highway 2 in the established and prosperous Hauraki Plains township of Ngatea is exclusively tenanted by farm supplies retailer Farm Source – the subsidiary retail trading arm of Fonterra Co-Operative Group Limited, which is New Zealand's largest company and the world’s largest dairy exporter.
The location was previously tenanted by retailing brand RD1, but in 2014 Fonterra undertook a rebranding of RD1 to rename it as Farm Source with an aim to provide a far greater service to farmers. The location within Ngatea’s main street has long been home to rural farm supplies retailers – previously also housing not only RD1, but also their predecessors McCleans and Anchormart.
The Farm Source retailing brand has subsequently set itself apart from competitors in the dairy farm sector through a range of customer-focused innovations – such as the inclusion of features ranging from drop-in lounges with complimentary coffee, through to business amenities consisting of meeting and seminar rooms, and user-free high-speed Wi-Fi.
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Most Fonterra customers are shareholders in the cooperative entity – providing a loyal clientele to all Farm Source stores. The aim is to establish Farm Source branches as a ‘one stop’ farm services retailer - selling animal feed, shed supplies, hardware, fencing, clothing, animal husbandry, and stock management equipment, agri chemicals, machinery, fertilizer, livestock, and nutritional supplements.
Over the years the buildings within the Ngatea plant have been expanded and upgraded to house the ever-growing demands of servicing farmers in the rural sector. The site’s well-maintained building is divided into a warehouse showroom, offices, lunchroom, and storage space.
Sitting on the border of Ngatea’s urban boundary, the land and buildings located at 59 - 65 Orchard Road West in Ngatea are now being marketed for sale by auction on September 28 through Bayleys Hamilton. Salesperson Josh Smith said the steel-framed, iron-clad building has an IEP rating of 100 percent and would appeal to investors looking for a strong tenant.
Farm Source is currently on a lease at the Ngatea site running through to 2025 with four further three-year rights of renewal – generating annual rental of $191,048 plus GST and operating expenses.
“The flat Orchard West Road site benefits from a high-profile street frontage alongside one of the busiest roads in the Coromandel Peninsula. Farm Source has strategically created a hub for the farming community. The block is zoned Industrial 7A under the Hauraki District Council Plan,” said Smith.
“With two street entrances/exits, the fully fenced yard offers drive-through access, with multiple carparks allowing for easy access for inward goods and customer parking.
“Perfectly situated for future-proofing business activities, the positioning and configuration of the building structure within the site running along the rear boundary allows for potential expansion onto the undeveloped yard area.”
Orchard Road West is the main arterial route running through central Ngatea, and sustains a broad selection of retail businesses including food and beverage, fuel service stations, real estate agencies, and supermarkets, along with council offices.
Situated in the heart of the Hauraki Plains, the township of Ngatea services a vast hinterland of dairying operations – which are the core of Farm Source’s retail activities. Surrounding farmers identify with the location of Ngatea as the one stop for their dairy, dry stock, and lifestyle needs.
As a compact rural services town within a well-defined generally square-shaped boundary, Ngatea is strategically geographically located in the Hauraki Plains – with Thames to the North-East, and Paeroa to the South-West both within easily commutable distances.
Dairying and agriculture are the predominant business activities in the surrounding area. Accordingly, much of Ngatea’s economic activities derive revenues from the likes of veterinary services, along with farm equipment engineering/machinery business.
- Article supplied by Bayleys
