Hawke's Bay's Tomoana food hub nets $41m in record sale for region

The Tomoana Food Hub processing and distribution centre on the outskirts of Hastings has been sold for $41 million in the highest-priced property sale ever in Hawke's Bay.

The sale to a new property of the 10.47 hectares to a property investment syndicate especially developed by Queenstown-based law firm Mitchell Mackersy was brokered by Danny Blair and Greg Goldfinch of Colliers International during Covid-19 lockdown levels 4 and 3.

Neighbouring a Heinz Wattie's plant, it comprises five fully-tenanted warehouses on individual freehold titles off Elwood Rd, Hastings, just west of the Hawke's Bay railway line, and on Hanui Rd.

Colliers Hawke's Bay director Blair said that while the property went under contract in February, the Mitchell Mackersy syndication scheme did not close until the end of May – including when the level 4 coronavirus lockdown was in full swing.

"This didn't deter investors, and the syndication scheme was oversubscribed prior to going unconditional late last month," he said.

"It's clear from this landmark sale that demand for investment-class assets in the Hawke's Bay is as strong as ever."

Colliers Industrial national director Goldfinch said the asset's strong tenant covenants were a key selling point, being fully occupied by a strong mix of local and international tenants in the food and packaging sectors.

Established by the Taylor family, the Tomoana Food Hub is occupied by Tomoana Warehousing, Chinese-owned Jamestrong Packaging and Fonterra, which together return almost $2.56m in net annual rent.

Blair says Hawke's Bay has a particularly strong industrial property sector due to the underlying productivity of the regional economy, and adds: "The main driver is the primary sector, which is underpinned by robust horticulture and viticulture businesses.

"As a result there is strong demand for quality industrial properties, especially within the food production, distribution and rural services sectors."

The Hanui Rd property was purpose-built in 2017 as a thoroughly modern manufacturing facility with a warehouse, office, amenities, environmental load-out, dangerous goods store, concrete yard, asphalt sealed parking and security fencing.

The Elwood Rd property, accessed via an enclosed linkway, is an 8642.8sq m industrial facility on a 1.71ha site. Constructed in 2000, it comprises a contemporary high stud, dry store warehouse with associated office and amenities.

Fonterra occupies a 753.6sq m facility on a 1.29ha site. It comprises a purpose-built coolstore distribution facility with a mix of freezer, chiller and ambient storage, a canopy with raised loading dock, and a small office area.

The remaining 8.8ha of industrial land on Hanui Rd will be retained by the owners for further food-related industrial development.