Levin Licorice sale predicted to tempt investors

5-13 Tiro Tiro Rd, Levin, Horowhenua, situated east of the main township and State Highway 1. Photo / Supplied

The freehold land and buildings associated with Levin confectionery company RJ's Licorice, have been placed on the market.

Stephen Lange of Bayleys Wellington says the property's owners are realigning their New Zealand property portfolio and this has facilitated the sale of the Levin land and buildings which will be auctioned by Bayleys Wellington at 11am on Thursday March 7.

Lange says RJ's Licorice (NZ) Ltd has a nine-year lease from July 2017 and multiple rights of renewal on the substantial property, at 5-13 Tiro Tiro Rd, Levin, Horowhenua, situated east of the main township and State Highway 1.

He says the lease has annual rent reviews with built-in increases of 3.25 per cent per annum through until – and including – 2025 which gives confidence to potential buyers.

Lange says RJ's is one of Levin's biggest employers and the business is now owned by the Australian-based firm, Quadrant Private Equity, which also acquired a number of confectionery brands from Nestle NZ when that company closed factories in Auckland.

Quadrant acquired the RJ's business, along with the Darrell Lea Group chocolate business in Australia, from private Australian investors. Those investors retained ownership of RJ's manufacturing, distribution and administration buildings on an 8754sq m industrial site in Tiro Tiro Rd, Levin, when it sold the business to Quadrant.

Lange says the development of the site has evolved over the 23 years that RJ's have been manufacturing in Levin and there are now 4000sq m of facilities.

"There's a mix of original warehousing developed by the Halliwell family, founders of RJ's, plus newer buildings established around 2002 and 2015," he says.

"The front of the building houses a very busy retail store plus well-appointed offices, training and meeting rooms and other amenities.

"There are modern staff facilities, car parking and sealed yard areas for inward and outward goods movement.

"The rateable value of the property is $2,950,000 and the market will jostle in the auction room to decide where the value lies," Lange says.

"RJ's is an award-winning business that has cemented a strong presence in the Levin community and as such, can be seen as a tenant with credibility and significant commitment to the region.

"Quadrant has been investing significantly in the RJ's business – which now employs around 100 staff – with $1m of new equipment installed in the last 12 months.

"Turnover has increased more than 40 per cent in that period, with around 20 per cent of its confectionery destined for export markets."

Lange notes that, once Transmission Gully and the Peka Peka to Otaki section of the lower North Island's roading network are completed, there will be a four-lane motorway from south of Levin direct to Wellington city which is expected to further increase the growth and development of the Horowhenua region both commercially and residentially.