The land and buildings of an industrial property in Hastings in Hawke’s Bay are available for purchase and will catch the eye of buyers looking to acquire an asset with a steady rental stream and the potential to generate more income.
Located at 700 Omahu Road, the property has two buildings with 4,041sq m of total lettable area. The front structure is occupied by established long-term tenants, while the rear office and warehouse building, which is the original at the site, is vacant. The rear building has 1,843sq m of floor space and 327sq m of canopy.
The front tenancy (700A) is occupied by trade retailer NZ Safety Blackwoods, while the middle tenancy (700B) is utilised as a storage and warehouse facility by the Hawke’s Bay District Health Board.
The space occupied by NZ Safety Blackwoods includes 600sq m of floor area, while the middle tenancy includes offices, warehouse, mezzanine, and canopy, totalling over 1,600sq m.
Start your property search
NZ Safety Blackwoods has a five-year lease that runs until October 2026 with two further rights of renewal for five years each. Their lease provides $113,411 plus GST in annual rental income and the rental review is conducted two yearly and is the lessor of 5 per cent or CPI.
Hawke’s Bay District Health Board began a 10-year lease in December 2023 with two rights of renewal for five years each. The annual rental income from their lease is $149,483 plus GST and includes fixed 2 per cent annual increases and a market review on renewal.
A market estimate from Colliers Hawke’s Bay for the vacant premises (700C) suggests it could generate approximately $250,000 plus GST in annual rental income, taking the total rental figure for the property to nearly $512,000 when fully leased.
The two buildings sit on one freehold title, which spans 6,699sq m. There is an opportunity for buyers to purchase the whole property or subdivide it and split it into two new titles with one being the front building, with the rear warehouse and office sold separately. Any subdivision would be subject to the relevant consents.
The site is zoned General Industrial under the Operative Hastings District Plan.
Colliers Hawke’s Bay Brokers Danny Blair and Calum Ironside have been exclusively appointed to market the property for sale via deadline private treaty closing at 4pm on Thursday 4 September, unless sold prior.
Blair, Director at Colliers Hawke’s Bay, says there are a range of options available to prospective purchasers who will also value the strength of the tenant covenant on offer given the existing tenants.
“An owner-occupier could acquire the property and utilise the vacant building for their own operations while enjoying the steady rental stream from the existing tenants,” Blair says.
“The built-in rental growth from the current occupants will be highly appealing for buyers and is a key feature of this offering.”
Ironside, Industrial and Commercial Sales Broker at Colliers Hawke’s Bay, says the property sits in a busy industrial hub in Hastings.
“The property enjoys exposure to a heavy volume of passing vehicular traffic with Omahu Road forming one of the major thoroughfares leading into the Hastings CBD, which is less than 2km away,” Ironside says.
“The Hawke’s Bay Expressway is easily reached, while Napier Port is approximately 23km away. This is an industrial property that ticks a lot of boxes and its future usage could be positioned in a range of different ways.”
- Supplied by Colliers
