Gisborne kiwifruit orchard a high performer

The property for sale at 169 Bushmere Rd, Gisborne, features kiwifruit orchards growing under canopy.

A property containing one of the highest performing kiwifruit orchards on the east coast of the North Island along with a mandarin orchard has been placed on the market for sale.

Located on the fertile Gisborne flats at 169 Bushmere Rd, the property totals 8.66 ha, bringing together the production of 1.88 hectares under canopy of G3 kiwifruit and 2.2 ha under canopy of Green Hayward kiwifruit with 1.89 hectares of Miyagawa and Silver Hill mandarins.

"This is an exceptional opportunity to take over one of the most productive and profitable orchards in the district," said Simon Bousfield of Bayleys Gisborne who is marketing the freehold property and going concern business for sale, with colleagues Tony Rasmussen of Bayleys Gisborne and Mark 'Snow' Williams of Bayleys Tauranga.

In addition to the kiwifruit and mandarin orchards, the property encompasses a four-bedroom home and is for sale through a tender process closing on March 31.

"This well-known orchard has been in operation by the current owners since 1987 after taking it over from members of their family. A new owner could run the orchard as is or expand the current operation to take it to the next level and further maximise profitability," says Bousfield.

"Trading figures and current yields show a very strong performance from the kiwifruit orchard, particularly compared to regional and Zespri output averages. This is an opportunity to invest in a well-established slice of the New Zealand kiwifruit industry which is world renowned."

Bousfield says kiwifruit industry continues to flourish with growers producing more than 100 million trays for export each year - "a figure that is increasing, according to the New Zealand Horticulture Expert Authority".

He says kiwifruit is New Zealand's largest single horticultural export by volume and value, and for the first time exports exceeded $1 billion in 2012. "Japan, Europe and China are among the biggest consumer markets, with a growing volume of exports to the Indonesian, Thailand Brazilian markets.

The four bedroom home on the property at 169 Bushmere Rd, Gisborne, is a low-maintenance brick and tile residence, set in private grounds.

"When the devastating kiwifruit disease Psa arrived, the owners carried out a quick and hugely successful conversion from variety Hort16A to Gold3 - a move which has seen the business go from strength to strength," he says.

"Confidence has returned to the kiwifruit market since Psa," Bousfield says.
He cites Recent Real Estate Institute of New Zealand figures showing the average per hectare price of horticultural properties sold in the three months to January was $205,634, compared with $202,308 in the three months to the end of December.

"This compares with $132,474 a hectare in the three months to January last year and $89,047 a hectare in the three months to January 2013. It's a positive upwards trend we're seeing, and combined with a lack of orchards to supply the market, demand continues to grow," says Bousfield.

"The citrus fruit market is also strong with $50 million of fruit produced each year, and of that $6 million exported to overseas markets."

The four bedroom home on the property is a low-maintenance brick and tile residence, set in private grounds at the end of a sealed driveway, back from the road. It features double glazing, spacious living areas and opening onto a large deck that overlooks a solar heated swimming pool.

Orchard improvements include a high stud, three bay implement shed with break room and mezzanine floor, second shed with single bay implement shed, and three additional sheds including one for chemical storage.

The orchards have comprehensive irrigation systems, with water pumped from a bore, and established shelter belts. Soil types are Makauri clay loam, Waihirere heavy silt loam and Matawhero clay loam.

Bousfield says the property has a capital valuation of $1.13 million.