A large new accommodation complex that will house seasonal orchard workers hired by a top horticulture business is up for sale, offering investors a unique stake in a flourishing Bay of Plenty “fruit bowl”.
Located near the eastern Bay town of Edgecumbe, the development known as Putauaki Village features a purpose-built 96-bed facility with extensive amenities and a separate manager’s cottage.
Its position in the heart of the Rangitaiki plains, a fast-growing horticultural area tagged the fruit bowl of the Eastern Bay of Plenty, places it close to numerous large-scale kiwifruit orchards with significant labour requirements.
The industry’s workforce is underpinned by the Recognised Seasonal Employer (RSE) scheme, which allows the horticulture and viticulture industries to recruit workers from overseas for seasonal work when there are not enough New Zealand workers.
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Booming demand has seen the annual cap on RSE workers soar from 5,000 at the scheme’s inception in 2007, to 19,000 for 2022/23.
In addition to being RSE accommodation, the newly developed complex is also licensed for backpackers. The buildings come with a 10-year build guarantee, excluding the existing cottage.
Underpinned by some 1.5 hectares of rural-zoned freehold land, the village is being offered for sale with a long-term lease to Southern Cross Horticulture, one of New Zealand’s most successful orchard developers and producers of SunGold Kiwifruit.
Southern Cross Horticulture is a family-owned operation that has been planting,
growing and exporting kiwifruit for more than 40 years. The company provides a unique end-to-end offering in orchard development for growers and landowners.
Headquartered in Tauranga, the company employs more than 100 full-time staff and 200 seasonal workers to develop up to 100 hectares of new orchards every year and manage over 600 canopy hectares of SunGold Kiwifruit.
Putauaki Village will be fully leased to Southern Cross Horticulture, the site’s developer and vendor, on a new 10-year lease with rights of renewal which, if exercised, will extend to a total of 30 years. The lease will be secured by a 12-month bank guarantee.
The site will provide a new owner with an annual net rental income of $500,000 plus all outgoings and GST. The lease agreement will deliver three percent annual rent increases, replaced by market rent reviews every five years.
The freehold land and buildings at Lots 13 and 14, 313a hydro Road, Edgecumbe, are being marketed for sale by Myles Addington and Mark Walton of Bayleys Tauranga.
The property is being offered by deadline private treaty closing on Wednesday 7 December, unless it is sold earlier.
Addington said Putauaki Village provided state-of-the-art accommodation with a total of 96 beds – and resource consent for 100 beds – plus a modernised three-bedroom cottage providing on-site manager accommodation.
The new buildings have a total floor area of some 1,345 square metres.
“Developed in two stages over a twelve-month period, this highly functional facility is purpose-built to the latest regulations and designed to Southern Cross Horticulture’s specifications.
“The complex incorporates eight accommodation blocks with two large common recreation spaces which house lounge areas, dining, residents' kitchen, chefs' kitchen, laundry and bathroom facilities.
“Each accommodation block contains a large, shared bathroom and locker room with a mixture of three or four beds per room. A separate auxiliary shed is also being converted to be used as a communal gym.
“The final touches are being added with a large automatic gate being installed at the front of the property, together with landscaping and planting, including a large lawn for official welcoming of guests. The site is also well served with plenty of car parks,” Addington said.
Walton, who heads Bayleys’ Tauranga Commercial team, said the Rangitaiki Plains location offered one of New Zealand’s sunniest, least windy climates, ideal for burgeoning kiwifruit production.
“The Putauaki Village development sits less than four kilometres from Edgecumbe, the main service town for the agricultural region surrounding the plains of the Rangitaiki River. In addition to booming horticulture, Fonterra’s Edgecumbe factory is a significant employer for this area, providing work for around 380 people.
“Te Puke, known as the country’s Kiwifruit Capital, is around 60 kilometres away via State Highway 2. Tauranga and its leading export port are an hour’s drive away and Auckland International Airport is within a 3.5-hour drive. Edgecumbe also benefits from established rail connections to both Tauranga and Auckland.
“All of this adds up to what is an exceptional, once-in-a-generation investment opportunity in this area – one which is certain to attract buyer interest from well beyond the region,” Walton said.
- Article supplied by Bayleys
