The 2.39ha Hastings property for sale is indicated by a red border. Photo / Supplied
A 2.39-hectare Hastings newly-zoned industrial property with development potential and holding income - owned by respected Hawke's Bay orchardists Kevin and Karen Bayley's company Rimu Hastings – has been placed on the market.
The property at 1215 Omahu Rd, in the suburb of Twyford, is housed by a business in leased premises with development land at the rear of the site.
Rural machinery company Tractor Spares and Repairs operates its business from a mixture of workshops, office, storage and wash-pad facilities on 6300sq m of the site.
The tractor company has been at the property since 2016 after it acquired the Hastings business TFM, says Daniel Moffitt of Bayleys, who is marketing the property for sale by tender closing on Wednesday April 24.
Started in 1996 by a husband and wife team, Tractor Spares and Repairs now has a staff of 45 employees spread over four branches, and the owners have built the business on first-class service and customer support rather than growing at a rapid pace.
The company has a nine-year lease on the Omahu Rd site, generating annual rent of $100,000. Three-yearly rents reviews are also built into the lease, which expires in September 2025 with no right of renewal, says Moffitt.
The Tractor Spares and Repairs building at the front of the property has a 4.2m stud and 84sq m showroom; offices of 38sq m; and a 160sq m workshop. Buildings at the rear of the site encompass a 234sq m workshop, storage shed of 28sq m, a 65sq m wash-pad, and 163sq m house.
Moffitt says that ,while the tractor company occupies a sizable portion of the site, there is development potential over a further 1.7ha at the northern end of the property.
"The flat site is part of the newly rezoned Omahu industrial land, which is particularly suited to dry industrial activities - including the sale and hire of machinery, equipment and supplies from premises that need a high profile on a busy road," Moffitt says.
"As a result of the rezoning, all development contributions have been paid on the property by Rimu Hastings. Before that it was zoned Rural and used for cropping. No further development levies will need to be paid in the future."
Moffitt says a house on the western side of the property could be removed to create driveway access for a potential "industrial park" at the rear.
"This well-located site in Hastings' sought0after prime industrial area is likely to appeal to developers as it has the potential to be subdivided into lots of 1000sq m on front and corner sites and 2000sq m lots at the rear," Moffitt says.
"The rear of the site has been bought by the council to allow for the access road under which services have already been installed.
"An area for the infiltration basin is also included in the council owned part of the site. It will be used to manage stormwater runoff, prevent flooding and downstream erosion. A device will need to be installed by a new owner and the council will take over running the infiltration basin from then on."
Moffitt says development or holding benefits of the property include:
• a large portion of subdivisable industrial land, with cashflow from an existing tenant;
• a long tenancy;
• development levies fully paid;
• strong demand for industrial subdivision land in the area; and
• Council services complete and ready for development
The property, in the centre of the Omahu industrial precinct, is three minutes' drive from the Napier/Hastings expressway, and a 20 minute drive to the Napier port. Neighbouring properties include national tenants and a number of Hawke's Bay's prominent industrial services.