A highly visible site near Hastings that is home to two commercial tenants with room for further development will appeal to buyers looking to acquire a premier asset with a steady rental stream and long-term upside.
11 Allen Road, Pakowhai is a 12,938sq m landholding with approximately 1,200sq m of floor area that is leased by Oderings Garden Centre Napier, while Expressway Landscape Supplies occupies approximately 3,571sq m of yard space.
Both tenants are committed to the location with long-term lease agreements that provide $171,236 plus GST in total net annual rental income. The property is zoned Plains Production Zone, which recognises the value of the extremely productive and versatile land in this area.
The site, which corners the Hawke’s Bay Expressway and Pakowhai Road, also offers approximately 3,000sq m of vacant land that is not assigned to the two existing commercial leases and could be developed to further enhance the value of the property.
Expressway Landscape Supplies, a locally owned supplier of a wide range of landscaping products and firewood, has a 12-year lease at the property, which runs until April 2033.
Their lease agreement on the sizeable yard provides $96,236 plus GST in annual rental income. The lease also includes annual CPI rent reviews and a market review every four years.
Oderings Garden Centre Napier is one of the company’s eight stores across New Zealand. The family-owned business has more than 90 years’ experience in the plant and landscape industry.
Oderings began a three-year lease on the 1,200sq m building at the property in October 2021 and their agreement has two further rights of renewal for five years each leading to a final expiry of September 2034.
The net annual rental income from their lease is $75,000 plus GST and there are annual CPI reviews in place, alongside market rent reviews on renewal.
Moffitt, Senior Broker at Colliers Hawke’s Bay, says the site enjoys significant road exposure and is strategically located with easy access to key locations across Hawke’s Bay.
“Pakowhai Road and the Hawke’s Bay Expressway have high traffic volumes with more than 22,000 vehicles passing the subject property daily. The site is some 10 minutes from the CBD of both Napier and Hastings,” Moffitt says.
“Hawke’s Bay Airport is only 12.5km away, while Napier Port is less than 15km away. The location of the site provides excellent accessibility for tenants and customers.”
Smith, Commercial Broker at Colliers Hawke’s Bay, says the unique zoning of the property offers opportunities for a bespoke on-site development.
“The focus is on cropping, viticulture, and orcharding in the region. Land-based primary production is the focus in this zone,” Smith says.
“There is significant growth potential through the vacant land, which makes this an ideal opportunity for owner-occupiers who are in a position to purchase a site to develop their preferred land and building set-up, while benefiting from the rental income from the existing tenants and passing business clientele.
“Given the unique zoning, development potential, and existing tenants, this property shapes as a compelling offering and we encourage all interested parties to contact us immediately.”
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