Covid-19 hasn’t stopped the largest single commercial property sale ever in Hawke’s Bay being recorded with the Tomoana Food Hub in Hastings selling for $41 million to a newly developed property investment syndicate.
Colliers Hawke’s Bay Director Danny Blair says the syndicate established by Mitchell Mackersy Lawyers bought the property – which comprises five fully tenanted, modern warehouses on individual freehold titles – at a yield of 6.23 per cent.
“While the property went under contract in February, Mitchell Mackersy’s syndication scheme did not close until the end of May – including when the Level 4 coronavirus lockdown was in full swing.
“This didn’t deter investors, and the syndication scheme was oversubscribed prior to going unconditional late last month.
“It’s clear from this landmark sale that demand for investment-class assets in the Hawke’s Bay is as strong as ever.”
Goldfinch, Industrial National Director at Colliers, says the asset’s strong tenant covenants were a key selling point.
“The property is fully occupied by a strong mix of local and international tenants in the food and packaging sectors.
“These sectors proved resilient during the Covid-19 lockdown and will continue to be highly sought by investors seeking to ‘pandemic-proof’ their property portfolios.”
The Tomoana Food Hub is occupied by Tomoana Warehousing, Jamestrong Packaging and Fonterra, which together return almost $2.56 million in net annual rent.
The property is strategically located between two main arterial routes, State Highway 51 and SH2, and the new Whakatu arterial link.
This central location is close to all main transport routes around New Zealand, with Napier Port and Napier Airport less than 25 minutes away.
Blair says the 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 underpinned by robust horticulture and viticulture businesses.
“As a result, there is strong demand for quality industrial properties, especially within the food production, distribution and rural services sectors.”
The Tomoana Food Hub 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.
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.
The Elwood Road property, accessed via an enclosed linkway, 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.
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.
The remaining 8.8ha of industrial land on Hanui Road will be retained by the owners for further food related industrial development.