An industry-leading coolstore facility with a long-term triple net lease to New Zealand’s largest apple exporter presents an unparalleled investment opportunity located at the core of the nation’s fruit bowl, Bayleys salespeople say.
Bayleys Investment Sales and Metro Markets director Stephen Scott and colleagues Layne Harwood and Kerry Geange are marketing the freehold 3.932ha site, with a half share in an additional 2,471sqm (more or less) at 14 Groome Place in Hastings.
The property features in Bayleys’ latest Total Property portfolio and is offered for sale by tender, closing at 4:00 pm on Wednesday, 4th December 2024 (unless sold prior).
“Positioned in the established industrial hub of Whakatu, this high-grade asset serves as a cornerstone of post-harvest infrastructure, directly supporting Mr Apple – New Zealand’s largest apple exporter and a subsidiary of the publicly traded Scales Corporation.
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“Returning $1,500,000 net pa from a 20-year triple net lease to a blue-chip tenant, the property offers stability and substantial scope for rental growth in a strategic location globally recognised for apple production, where current supply of coolstore space is simply not sufficient to meet increasing demand,” Scott says.
The new facility comprises ten separate coolstores, five dedicated loading pods, smart fresh facilities, plant rooms and a high-capacity refrigeration system totalling 6,996sqm (more or less) of lettable area.
Bayleys Investment Sales and Metro Markets director Layne Harwood says the property has been designed for optimal temperature control, energy efficiency and safety – which are critical features for a modern, state-of-the-art coolstore.
“With its high-performance insulated panel system and an 11m stud height, the facility is designed to streamline cold chain operations and maximise product quality. Its robust operational setup is bolstered by extensive sealed yard space spanning 2.15ha, designed to accommodate efficient bin storage and handling, further enhancing its suitability as a key support in the agricultural export pipeline.”
Harwood says that the tenant covenant undoubtedly strengthens the property’s investment appeal.
“Mr Apple – with deep roots in New Zealand’s agribusiness dating back to the 1980s – holds a significant share of the global apple export market and has a reputation for quality and operational excellence. Their parent company, Scales Corporation, is a prominent agribusiness listed on the NZX and has a current market capitalisation of more than $500 million.
“The long-term lease arrangement is structured to include annual rent growth of 2.5 percent, along with market rent reviews every 10 years, offering investors income security and potential for growth,” he says.
Whakatu is an established industrial precinct accessible to main transport links from the centre of the Hawke’s Bay growing region. Bayleys Hawke’s Bay Investment, Commercial and Projects director Kerry Geange says being just seven kilometres northeast of Hastings and a short drive from the Napier Port, the location is ideally positioned for logistics and distribution, with well-established road and rail links.
“The area has evolved into a specialised industrial zone suited to wet processing industries, making it highly attractive for complex infrastructure operations. Leading food and beverage companies, including Silver Fern Farms and Turners and Growers, have established a presence here, creating a robust network of complementary businesses. The property is adjacent to one of the country’s largest packhouses and is a critical supplier within this thriving ecosystem.
“The facility represents an extremely rare opportunity for investors to secure a premium foothold in New Zealand’s food logistics network. It combines a prime location, cutting-edge infrastructure, and a strong tenant covenant with Mr Apple. Designed with state-of-the-art technology to meet export-quality cold storage standards, it offers institutional-grade investors a streamlined, passive income stream through a long-term triple net lease, transferring all outgoings to the tenant.
“With resilient demand in the food sector and world-class cooling infrastructure, the property stands out as a streamlined, passive investment vehicle for institutional-grade capital seeking exposure to agribusiness and export sectors.”
- Supplied by Bayleys
