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Income and growth in prominent Hawke’s Bay site

NZ_AucklandCBD_Communications_Income and growth in prominent Hawkes Bay site

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.

Colliers Brokers Daniel Moffitt and Jake Smith have been exclusively appointed to market the property for sale by deadline private treaty closing at 4pm on Thursday 11 August, unless sold prior.

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.”

To view more investment opportunities use our property search here.


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Daniel Moffitt

Sales Manager

Taupo

Daniel joined the Colliers Central Commercial team in 2021. He specialises in both commercial and industrial sales and leasing as well as rural and agribusiness sales. Client satisfaction is Daniel’s number one goal, and this is exemplified by the strong loyalty, referrals and repeat business shown by his customer base. Having been brought up on a deer farm in the Tararua district, Daniel has a strong affiliation with land and more recently helping his father with their small sheep and beef operation in the Manawatu. 

Prior to his return to Colliers Daniel was an owner/shareholder for Bayley’s Hawkes Bay and Wairarapa during which time they won the National Growth award for medium franchises. He was also awarded the Top Commercial Sales Broker for 2020/21 for Hawkes Bay. 

Daniel has managed residential, rural, and commercial sales agents for over eight years, and always drives to create a high-performance team. Culture is the key to this and his teams thrive in positive office environments which are fun and open-minded.

Daniel’s strong work ethic and intelligent approach to real estate consistently sees him achieve great results. He strives to exceed client expectations in selling, buying, leasing or tenanting with an emphasis on solid communication, regular and relevant market feedback and ultimately, excellent results.

The property market has changed in recent times and Daniel has adapted to this change to provide his clients with educated solutions and options.

The art of negotiation is one of Daniels strongest attributes, ensuring his clients achieve the best out of every deal.  

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Jake Smith

Broker

Hawke's Bay (Commercial)

For Jake Smith, successful brokering is all about matching people to properties and approaching deals from every angle to find solutions that work best for his clients.  Taking the time to discover exactly what his clients need, combined with a genuine desire to fulfil those needs has seen Jake’s career in commercial real estate progress rapidly, even earning him top industry awards from a previous employer along the way.

Now, with five years’ experience under his belt, Jake has built a solid database of diverse property-focused clients throughout Hawke’s Bay.  Actively maintaining contact with past clients means he can respond quickly and provide solutions as required.

Working within the team of talented professionals at Colliers comes easily to Jake.  A background in sport (mainly cricket) was inevitable with father Ian and elder brother Jarrod representing New Zealand in cricket and soccer respectively, but it was his school days at Lindisfarne College playing team sports that taught Jake to appreciate the value of good communication and collaboration.  He also welcomes any additional assistance through sales support, innovative marketing and effective selling tools, recognising that each deal is different and may require alternative measures to achieve a positive outcome. 

Continuing to participate in a range of sporting endeavours has kept Jake in touch with the community and has taught him to relate well to a wide range of age groups.  An avid racegoer and keen golfer, he lives in Havelock North with partner Ally and dog June.

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