The 1.56ha freehold property at 37 Johnston Way, Whakatu, is on long-term lease to Envictus. Photo / Supplied
The 1.56ha freehold property at 37 Johnston Way, Whakatu, is on long-term lease to Envictus. Photo / Supplied
A large Hawke's Bay industrial investment property, with a multinational tenant and development potential, is on the market through Colliers International.
The 1.56ha freehold property at 37 Johnston Way, Whakatu, is on long-term lease to Envictus, which produces and bottles a wide range of beverages for local and overseas markets.
Colliers' Hawke's Bay industrial broker, Rob Nankervis, is marketing it for sale by tender with offers closing on July 5.
He says it's an outstanding opportunity to secure a solid industrial investment with add-value potential; the property has sufficient land to double the size of the facility.
"This is a must-buy for investors looking for quality with an eye to the future," Nankervis says.
"The property boasts a modern, multipurpose facility on a large landholding with room for expansion and future development.
"It's ideally located in the heart of Whakatu, a prime Hawke's Bay industrial precinct that is well-positioned to benefit from the region's solid growth.
"Seldom do properties of this size and calibre come onto the open market, making this a strategic investment that cannot be overlooked."
The property comprises a 2959sq m bottling facility which is rated to 100 per cent of new building standards.
Envictus Dairies NZ Limited has 10 years remaining on its lease, which is returning $334,976 in net annual rent. Two five-year rights of renewal could extend the lease to January 2033.
The tenant is part of the multinational Envictus Group, based in Malaysia and listed on the Singapore Stock Exchange.
The plant produces and bottles a wide range of beverages for local and overseas markets. Photo / Supplied
Nankervis says the Whakatu plant was set up in 2011 to establish the company in the ready-to-drink beverage segment.
"The plant has been fitted out with a state-of-the-art UHT aseptic PET bottling line for dairy, juice and water products," he says.
"It is ideally suited for bottling operations with its existing resources, including trade waste discharge rights and tanker access."
The plant produces UHT milk for the Chinese and Taiwanese markets, flavoured milk for Australasia, pet milk for Japan and fruit juice for local and Asian markets, Nankervis says.
"It has also developed and launched a range of ready-to-drink sports nutrition beverages including isotonic drinks, protein drinks and pre-workout drinks.
"Most recently, the plant has expanded into non-dairy alternatives such as coconut and almond milk."
Zoned Industrial 2 under the Hastings District Plan, the property is located within the wider Whakatu industrial precinct, some 8km east of the Hastings CBD.
Nearby businesses include significant operators like Turners and Growers, Silver Fern Farms, Carter Holt Harvey and Whakatu Cold Stores.
"This reflects the appeal of the Whakatu industrial area, which is ideally positioned to grow with the wider Hawke's Bay region," Nankervis says.
Occupying the area of the former Hawke's Bay Farmers' Meat Company freezing works, Whakatu is a major satellite industrial area on the eastern outskirts of Hastings.
Industrial activities include food processing, cold and cool storage, as well as a number of other activities associated with the primary sector.
Major operators in Hastings include food giants Heinz Wattie's and McCain Foods.
Hastings is also home to a number of major warehousing, manufacturing, service and transport businesses.
