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Largest-ever Hawke’s Bay industrial portfolio on the market

Largestever Hawkes Bay industrial portfolio on the market

Substantial Hastings industrial estate with long-term leases for sale

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.


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Danny Blair

Broker

Hawke's Bay (Commercial)

Having worked in commercial real estate since 2006, Danny is a Director and shareholder of Colliers Hawke's Bay And Taupo.

Danny has been involved in multiple transactions throughout the past decade, specialising in sales and leasing solutions for corporate tenants, government agencies, investors and developers alike.

Danny has progressively established his position in the Hawke’s Bay commercial property market as ‘the top broker’ across the region. He has been the lead broker on some of the largest transactions in the Hawke’s Bay property market over the last five years, including The Tomoana Food Hub, which sold in excess of $40M+ at a yield of 6.23%. This is the largest industrial sale in Hawke’s Bays history, Further sales include 37 Johnston Way, Hastings which recently sold at a record yield of 4.95%. Danny has sold in excess of $270M worth of commercial real estate within the Hawke’s Bay region alone.  In 2016, 2017, 2018 and 2020 Danny was awarded Colliers top broker in Hawke’s Bay.

 

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Greg Goldfinch

National Director | Industrial

Auckland South

Greg specialises in the mid to upper end of the Industrial sale and leasing markets. He joined Colliers International in 2004, coming from a policing background. He quickly established strong relationships within the industrial market and has worked exclusively for the likes of Fisher & Paykel, The Warehouse, Freedom Furniture, Fletchers, NZ Police, NZ Guardian Trust, Goodyear Dunlop NZ Ltd and Mercedes-Benz to name a few.

Greg has been the lead broker on nearly all of the largest transactions in the industrial property market over the last ten years. Greg has completed three of the largest industrial sales ever in the New Zealand market. He is a regular top 10 broker for Colliers across NZ having transacted in excess of $6billion worth of industrial real estate in his time with Colliers.

In 2013, 2019 and 2020 Greg was awarded the Commercial and Industrial Salesperson of the Year Award by the Real Estate Institute of New Zealand and was runner up in 2018. Greg was Colliers International’s top salesperson in New Zealand across all sectors in In 2010, 2013, 2017, 2018, 2019 and 2020.

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