Commitment to business park pays off

Ahuriri Business Park director Ray McKimm says his racing days are behind him.

But the purple Maserati outside Big Save Furniture's head office says otherwise, as does the now-full business park in which it sits.

The site was once British and American Tobacco's (formerly Rothmans) manufacturing site of 5.6ha with 135,000sq m of buildings, which became vacant on December 4, 2006.

"Its closure ended a huge chapter in Napier's history because it was the largest employer here for about 70 years," Mr McKimm said.

"There was huge concern about what would happen to it. Since July 2007 we've put in 52 tenants with over 900 people working back on site. The 900 number was the most that have worked on site in the 1970s, but by the time it was sold there were only 45-50 people working there."

Mr McKimm's family firm Big Save Furniture bought the site because they were looking for a national distribution centre. The chain's 21 stores have a high turnover of stock - on average the distribution centre has 4000 mattresses and bases.

With plenty of space, its own rail siding and next door to the port, buying the Ahuriri site was "a pretty easy decision to make", he said.

"The Napier port had been recommended to us as probably one of the best managed ports in New Zealand. It's been particularly good from the port's point of view. This port isn't primarily export based and we bring containers here with product in them rather than having to bring them in empty. Between December 1 and March 31 Hawke's Bay needs over 30,000 empty containers."

He said the company had "no idea" what it would do with the many spare buildings. "We weren't in recession then, we weren't particularly worried."

The potential of the site soon became obvious. From the gold taps in the executive toilets to buildings made entirely from 19th century imported timbers, the site reeks of character.

"We own enough property around the country to know that when you see a building that's got good bones and there is tenant demand out there, there's a good chance you can make it happen."

The park is "pretty much full" and expanding. A new purchase is a large woolstore on Ahuriri's water edge that will be called Quay Haven.

"We are about to have $10 million spent on it and we believe it will probably end up becoming an iconic building. There will be about 200 people working there. The job starts in February and the last tenant needs to be in there by September.

"But the very exciting thing is 50 per cent of the people going into it are new to Hawke's Bay."

Plans for the iconic Art Deco National Tobacco Building are still on hold. It is currently used for storage.

"The long term plan is evolving, it will certainly involve maintaining public access. It will probably be some kind of hospitality/conference/cultural activity to it."

Mr McKimm has great faith in the future of Hawke's Bay and has joined the board of the new regional development agency, Business Hawke's Bay.

He sees the park contributing to Hawke's Bay achieving its potential.

"Our whole thrust is employment and it is great to be a part of the many businesses choosing Hawke's Bay."

He said his retail background helped him fill the park by not being afraid to offer tenants a good deal.

"Retailers are used to meeting the market. If we don't supply you with value then the future of that business is going to be bleak."

His keenness to foster the Hawke's Bay economy saw him offer a dozen tenants month by month deals.

"I said look, have a go and if it works we'll all be proud of it. And if it doesn't well you haven't lost anything. At the end of the day we haven't pushed ourselves out too far. I want it to be successful and we haven't had a failure yet.

"These young businesses have to succeed."