The 98.4 hectare property at Ohaupo, just south of Hamilton, could suit cattle or commerce.
The Narrows Rd land and farm are being marketed by Bayleys Hamilton, through a tender process closing on November 10.
The airport business-zoned 40ha portion is highlighted in Waipa District Council's regional growth management plan, identifying the site as the Northern Precinct and future potential expansion area of Titanium Park which adjoins Hamilton Airport.
Titanium Park is a 75ha industrial and commercial business park surrounding the aeronautical infrastructure and has been managed by McConnell Property Ltd, former development manager of Auckland's Highbrook Business Park.
McConnell Property general manager Nigel Richards says the farm was acquired as a strategic move.
"This recognised a value-add opportunity around its re-zoning, connection to the park and broader regional infrastructure," says Richards.
"We have worked closely with private and public stakeholders over recent years to obtain the 40ha industrial zoning and leverage the property's position in a new transportation network," he says.
Permitted activities under Waipa District Council's airport business zoning for land around Hamilton airport are business operations, including: commercial and industrial premises, transport and freight depots. Activities allowed include vehicle rental and valet services, vehicle parking and storage, helicopter pads, utility services and structures, the storage and sale of aviation fuel, service stations and commercial garages, cafes/restaurants/ takeaway outlets and licensed premises, and accommodation.
About 40ha of the farm is zoned for business, but currently used for farming activities.
Bayleys Hamilton salesperson Stuart Gudsell says investment and development opportunities for the property are definitely long-term.
"As existing land and buildings within Titanium Park are sold down or leased, the availability of tenancy options will shrink.
"Over time, and as Hamilton Airport traffic and support activities continue to grow, new commercial and industrial space will be required," Gudsell says.
"As most of the land adjacent to this part of the airport is undeveloped, and in this case used as a working farm, there is an opportunity to implement the principles of good urban design in any future development. In the interim, holding income can be sustained by the present dairying operations, which could continue to include an additional 60ha of land adjoining the property and currently being leased from the airport."
Gudsell says the New Zealand Transport Agency is aware of the property's strategic location, and last year bought about 4.264ha of land for the $100m-plus Southern Links arterial expressway project.
"This has created a somewhat exciting aspect to the offering.
"Southern Links is a key regional transport link that will connect State Highway 3 with Hamilton City and the Waikato Expressway - all of this occurring effectively at the front door of the farm.
"Combine this with the immediate proximity of the airport and freehold tenure of the property and it is an attractive offering in terms of its commercial development potential," Gudsell says. Over the past four years, the farm has run a herd of about 500 cows - producing an average of 182,075 kg of milk solids each season.
He says the property was designed to run up to 600 cows in a 50-bale rotary dairy shed. In its current format, the farm grazed 475 cows and leased a further 60 hectares from Hamilton Airport for grazing.
The farm has a three-bedroom homestead with swimming pool and tennis court, and a three-bedroom workers' residence. Infrastructure on the property includes an implement shed, workshop/storage shed, six-bay calf shed, two-bay barn, consented water bore, and effluent pond.
The property has a Waipa District Council rating valuation of $5,350,000 - calculating the block on its current 102.7ha.
Gudsell says the valuation will most likely change when the next rating calculation is made on a landholding of 98.43ha.