Gisborne stores high-yielding investment

The 1.68ha Cook Stores site, in blue border, spans 14 freehold titles on the corner of Peel, Kahutia and Lowe Sts in Gisborne. Photo / Supplied

A multi-tenanted industrial complex for sale in a prime Gisborne location offers a rare high-yielding investment.

The 1.68ha Cook Stores site on the corner of Peel, Kahutia and Lowe Streets is being marketed for sale by tender by Colliers International Hawke's Bay industrial broker Rob Nankervis.

Offers on the freehold property, featured in the Colliers Portfolio released yesterday, will close on June 29.

Nankervis sees this as an opportunity for investors to secure an asset with solid revenue, prime positioning, and promising future development prospects. "This excellent split-risk investment comprises a substantial landholding with a mix of high stud cold and dry storage facilities," he says.

"Tenanted by a good mix of high-calibre international, national and local companies, it generates significant cash flow, with potential to grow revenue. This is an opportunity to secure a high-yielding investment close to Gisborne CBD, Eastland Port and a stunning east coast beach."

The property, which spans 14 freehold titles generates annual rental income of $705,497 net. Once fully let, it has the potential to generate $725,000.

Nankervis says the Outer Commercial zoned property is ideally located on the southwestern periphery of Gisborne CBD. "The area has flexible zoning and a progressive council which is reflected in the many recent developments including high quality apartments, offices and several large national retailers."

Built between 1960 and 1985, the property has a net lettable floor area of 11,213sq m.

It comprises four freezers, three dry stores, five canopy loading areas, offices, two plant rooms, and storage and staff facilities, Nankervis says.

The site also features a truck drive through, carparks, and dispatch and storage aprons.

Current tenants are Genetic Technologies, which produces and markets the Pioneer seed brand in New Zealand; Cedenco Foods New Zealand, which produces and exports natural fruit and vegetable ingredients; PetfoodNZ, which makes canned dog and cat food; and Juken New Zealand, which produces a range of timber products.

The site's Outer Commercial zoning allows for light industrial activities, warehouses, offices ancillary to permitted uses and parking.

Nankervis says the property's right of way access from Lowe St and its 14 freehold titles are all in common ownership.

Access is also available from Peel St, while the property also has frontages on to Kahutia St and Customhouse St (State Highway 35).

"Both Peel and Lowe streets are 350m from the intersection with Gladstone Rd, which is the main route through the CBD. Customhouse St, which sidles around the southeastern periphery of the CBD, is the main arterial route through the city, linking with SH2 to the west and extending through to the East Cape to the east."

Nankervis says the surrounding area comprises a mix of small, medium and large industrial development.

The property's buildings require some annual maintenance due to their age.

The landlord has carried out seismic strengthening works to freezers seven and eight, the latter of which has recently been repainted on the outside.

The cool stores are fed by anhydrous ammonia from a main and remote plant room.

The main plant room's two compressors were replaced recently in 2003 and 2005.

Current vacancies include a 61sq m two-storey office, 611sq m of dry store and 62sq m of staff amenities.