A large site in Hastings offering accommodation for seasonal workers and residential land with development potential will appeal to investors, developers, and owner-occupiers searching for a vast landholding with long-term growth potential.
811 Omahu Road in Frimley, Hastings is a 16,187sq m site which includes 1,482sq m of existing floor area spread across multiple buildings, with the current capacity to house 128 workers as part of the Recognised Seasonal Employer (RSE) scheme.
The property is located in a prime position on Omahu Road with favourable proximity to Hastings Hospital and the CBD. The nearby expressway provides easy access to the Hawke’s Bay Regional Sports Park, EIT, airport, and Napier’s city centre, while southbound travellers can quickly reach Waipukurau.
The property offers more than 10,000sq m of land at the back of the site, which is zoned Hastings General Residential. It could be developed for a range of uses including residential activities, day care centres, aged care facilities, home occupiers, temporary events, and visitor accommodation. Notably, these activities are only permitted up to a certain scale, with resource consent required beyond that.
Hawke’s Bay’s prosperous horticulture and viticulture industries have led to a strong demand for seasonal workers in the region to ensure that suppliers can meet consumer demand.
Nankervis says this multi-building property offers a host of comfortable accommodation facilities in an accessible location.
“The site includes a 379sq m split-level house with amenities, two 312sq m accommodation blocks, a 61sq m accommodation block, a 21sq m portacom ablutions block, five 63sq m portabuild accommodation blocks, and an 82sq m kitchen block,” Nankervis says.
“The original house was constructed in the 1960s before being upgraded and converted in 2009 when two of the major accommodation blocks were built. The portabuild buildings were added in 2018.”
The RSE scheme came into effect in 2007. This policy allows the horticulture and viticulture industries to recruit workers from overseas for seasonal work when there are not enough New Zealand workers.
Nankervis says the government’s decision to approve the entry of approximately 300 seasonal workers every month from June this year means a total of 2,400 workers will enter New Zealand by March 2022.
“While there is substantial holding income on offer from this property, an independent market evaluation suggests this could be much higher, especially given the need for accommodation of this nature in Hawke’s Bay, potentially pushing total income to around $450,000 plus GST per annum,” Nankervis says.
“The existing tenant’s RSE license to occupy runs until 30 June 2022, which will give the new owner plenty of time to formulate their next steps with this property.
“The zoning will provide prospective purchases with a host of options, including the opportunity to build one residential dwelling per 350sq m of net site area.”
Nankervis says Hastings has experienced steady net migration since 2017 due to a number of factors, namely the affordability of the city coupled with its growing economy.
“Potentially, inward migration could increase further as more people view the region as an attractive place to live, either in retirement or for raising a family. Changes to workplace and education practices could also support population growth with potential for increased remote working and learning.
“There will be significant interest in this property, and I urge all interested parties to do their due diligence and contact me immediately.”