The land and buildings of a major cool store operation in Hawke’s Bay are being presented to the market for sale, offering buyers the opportunity to purchase an asset with a long-term lease and market-leading tenant.
Located at 5 Hill Road, Twyford on the outskirts of Hastings, the property has 16,488sq m of total net lettable area spread across multiple buildings on a freehold site that measures 3.5345ha.
The purpose-built cool store is home to Mr Apple that has occupied the property since it was first developed in 2005. During the following nine years the property was further expanded to the current offering.
From settlement, Mr Apple will begin a new 15-year lease with net annual rental income of $1,979,000 plus GST. The agreement includes 2.5 per cent annual rental increases and there are two five-year renewals available. Market rent reviews will take place after 10 years and on renewal.
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Sitting on the corner of Omahu Road and Hill Road, the subject property is approximately 650m east of the intersection of State Highway 50 and approximately 6km west of the Stortford Lodge intersection.
This location has a mix of contract depots and horticultural activities, including multiple viticultural developments based on the Gimblett Gravels. The Hawke’s Bay Expressway is 4.5km away and the town centre of Hastings can be reached in less than 15 minutes.
Colliers Brokers Daniel Moffitt, Danny Blair, and Greg Goldfinch have been exclusively appointed to market the property for sale via deadline private treaty closing at 4pm on Thursday 1 May, unless sold prior.
The three cool store buildings are configured into six substantial cool stores with stud heights of up to 8m at the knee. Four of the cool stores measure 1,646sq m, while the two larger ones span 2,691sq m.
The property provides significant storage capacity for approximately 57,000 bins internally and yard storage for 24,000 bins.
Large breezeway canopies connect each stage offering all-weather loading, additional workspace, and drive-through capability.
Ancillary areas include controlled atmosphere rooms, fumigation areas, plant and battery rooms, functional relocatable offices, and staff amenities. The site is fully fenced to the perimeter.
Moffitt, Senior Broker at Colliers Hawke’s Bay, says this is a modern facility that will hold considerable appeal for prospective purchasers
“This property is well equipped to meet the ongoing demand for cool store space in Hawke’s Bay,” Moffitt says.
“There are favourable rental terms in place that provide built-in rental growth and this is underpinned by a long-term agreement from the tenant that is fully committed to the location.”
Blair, Director at Colliers Hawke’s Bay, says the strength of the tenant covenant will be desirable for investors as Mr Apple is a high-profile operator in the horticulture sector that serves local and international customers.
“Following government deregulation of the apple exporting market in 2001, two major companies merged to create Mr Apple. They are now part of the Scales Corporation that has more than 120 years of operating in the New Zealand corporate scene,” Blair says.
“Today, Mr Apple is New Zealand’s largest integrated grower, packer, and exporter of apples and sends approximately a quarter of the country’s apple crop to key markets around the globe.”
Goldfinch, National Director of Industrial at Colliers, says the property is strategically positioned with excellent transport linkages to major supply routes.
“The Hawke’s Bay Airport is just over 23km away, while the Napier Port is readily accessible,” Goldfinch says.
“With the motorway network only a few kilometres away the property offers convenience for suppliers and customers. This is a high-quality asset and one that warrants serious consideration among buyers given its strong underlying investment fundamentals.”
- Supplied by Colliers
