A substantial Hastings industrial estate with long-term leases to a mix of local and international tenants is the largest industrial offering ever to be placed on the open market in the Hawke's Bay.
Colliers International has been exclusively appointed to market the Tomoana Food Hub for sale by expressions of interest.
Located on a substantial 19.97ha site on Elwood Road, the offering comprises five modern warehouses on individual freehold titles, plus a large area of additional development land.
The properties are for sale either individually or together, allowing prospective buyers to acquire one or more titles.
The offering is being presented to the market by Danny Blair, Director of Colliers International Hawke's Bay, in conjunction with Industrial National Director Greg Goldfinch.
Expressions of interest close at 4pm on Thursday 12 December, unless one or more properties are sold earlier.
"Never before has such a substantial industrial offering been placed on the open market in the Hawke's Bay," says Blair.
"I'm humbled that Colliers has been entrusted with such a significant sales campaign, which really is testament to our
commercial and industrial property expertise.
"This is an unprecedented opportunity to acquire a prime industrial offering that boasts exceptional investment fundamentals.
"This diverse portfolio has a long 10.5-year weighted average lease term, a superb mix of local and international tenants, and an excellent location close all main transport routes.
"The five warehouses are leased to Tomoana Warehousing, Jamestrong Packaging and Fonterra on long-term leases returning $2,557,765 plus GST in net annual rent.
"With a further 8.84ha of industrial-zoned land zoned available for development, this magnificent A-grade industrial investment opportunity ticks all the boxes that any astute investor is looking for.
"This is without a doubt the Hawke's Bay commercial property offering of the year."
The portfolio fronts Elwood Road, strategically positioned between the two main arterial routes, State Highway 51 and State Highway 2, and the new Whakatu arterial link.
Blair says the central location means the property is close to all main transport routes around New Zealand.
"It is approximately 21 minutes from the Napier Airport, 22 minutes from the Napier Port and five minutes from Hastings CBD."
Goldfinch says the portfolio makes an astute buy, as New Zealand's industrial sector continues to go from strength to strength.
"The appetite for quality industrial properties throughout New Zealand is strong, with yield-hungry investors competing for the limited amount of available stock.
"Hawke's Bay has a particularly strong industrial property sector due to the underlying productivity of the regional economy.
"The main driver is the primary sector, which is forecast to deliver robust returns this year, particularly in the horticulture and viticulture sectors.
"As a result, we continue to see strong demand for quality industrial properties, especially within the food production, distribution and rural services sectors."
The portfolio is anchored by Tomoana Warehousing, which occupies two properties at 29 Hanui Road and 115B Elwood Road.
The Hanui Road property is a 6,012sq m industrial facility on a 2.08ha site. It comprises a food grade warehouse with an enclosed loading canopy, office, amenities, racking, security fencing and a concrete yard.
The facility on Elwood Road comprises a 6,872sq m warehouse, workshop and office on a 3.38ha site. The buildings front a concrete and metal sealed yard with security fencing and electronic access gates.
Both properties are on initial leases of eight years and eight months commencing on 1 November. The leases include CPI rental reviews every three years, plus two rights of renewal of six years each.
The Hanui Road lease returns $527,592 plus GST in net annual rent, while the Elwood Road lease returns $467,000.
Jamestrong occupies two properties at 47 Hanui Road and 115A Elwood Road.
The Hanui Road property was purpose-built in 2017 as a contemporary manufacturing facility with a warehouse, office, amenities, environmental load out, dangerous goods store, concrete yard, asphalt sealed parking and security fencing.
It is leased to Jamestrong Packaging NZ Ltd on a 15-year term from 1 June 2017 with two rights of renewal of 10 years each.
The lease returns $885,471 plus GST in net annual rent, with CPI rental reviews every two years and market rental reviews every four.
The property provides access to Jamestrong's neighbouring facility on Elwood Road via an enclosed linkway.
The Elwood Road property is an 8,642.8sq m industrial facility on a 1.71ha site. Constructed in 2000, it comprises a contemporary high stud, dry store warehouse with associated office and amenities.
The 15-year lease from 1 June 2016 contains two rights of renewal of 10 years each. It returns $463,502 plus GST in net annual rent, with CPI rental reviews every two years and market rental reviews every six.
Fonterra occupies a 753.6sq m facility on a 1.29ha site. It comprises a purpose-built coolstore distribution facility with a mix of freezer, chiller and ambient storage, a canopy with raised loading dock and a small office area.
The facility fronts a 1,900sq m concrete yard, while the site also offers some 8,800sq m of land for further development.
Fonterra Brands NZ Ltd is on a 10-year lease commencing on 1 June 2018, with three rights of renewal of four years each.
The lease returns $214,200 plus GST in net annual rent, with 2 per cent fixed annual rental increases plus market rental
reviews every four years.
The portfolio also contains two separate industrial sites that are currently vacant.
The smaller of the two landholdings at 121 Elwood Road comprises an irregular-shaped, partly sealed site of 6,624sq m with a fenced perimeter.
The larger landholding on Hanui Road comprises an 8.84ha block of industrial land suitable for development, with service connections and road access available.
Investor confidence in the Hawke's Bay commercial property market continues to grow, according to research from Colliers International.
Colliers' latest quarterly confidence survey found a net positive 31 per cent of respondents expect investment conditions in Napier/Hastings to improve over the next 12 months, up from 20 per cent the previous quarter.