Hastings vehicle testing giant's premises for sale

Investors "drive in" as vehicle testing giant's premises go up for sale in Hastings. Photo Supplied

Freehold land and buildings in Hastings currently occupied by VTNZ have been placed on the market.

The property for sale at 701 Orchard Rd, in Hastings' Omahu industrial area, was established in 1994 as a state-owned enterprise and later privatised; the VTNZ (Vehicle Testing NZ) business is majority-owned by one of the world's leading inspection organisations, the German-based DEKRA group.

VTNZ has occupied the premises since the mid-1990s, generating current net rental income of $126,000 plus outgoings and GST per annum. Its lease runs through to 2023, with two further three-year rights of renewal, and incorporates market rent reviews in 2023, 2025 and 2027.

In 2013, a 60 per cent shareholding in VTNZ was purchased by DEKRA, a near century-old firm that lays claim to being the world's third-largest certification and inspection company. The DEKRA group generated revenue of €3.34 billion ($5.5 billion) in 2018 and employs 45,000 people globally.

The freehold property is being marketed for sale by deadline private treaty closing on March 24 (unless sold prior), through Bayleys Havelock North.

Salespeople Daniel Moffitt and Jake Smith said the premises consisted of a single-level building of approximately 1170sq m on a flat, rectangular site of some 3321sq m.

"The building structure incorporates high-stud, clear-span industrial warehousing used for VTNZ testing, along with adjacent office and reception areas," Moffitt said.

"The structure has an Initial Evaluation Procedure seismic rating of 75 per cent of new building standard. It is accessed via two front and three rear roller doors, and is surrounded by expansive concrete hard standings which allow easy movement of cars, trucks and trailers around the site, and plenty of parking."

He said the site was zoned General Industrial under Hastings District Council's district plan.

"This allows for a wide variety of industrial activities such as manufacturing, processing, packing and storage and the servicing and repair of goods and vehicles. Industrial uses in the surrounding precinct represent a mix of scale and are of mixed vintage," he said.

Smith said Hawke's Bay Hospital was of particular significance to the area. "This major regional health facility is located in close proximity and encourages the positioning of medical services in surrounding locations," he said.

"The Omahu location is fully developed and there are a number of larger sites and national tenants in the precinct. This includes a number of other automotive businesses and BP, Gull and Caltex service stations."