Sites for sale following 2019’s largest Hawke's Bay industrial deal
Two prime Hastings industrial lots are for sale next to a substantial site that recently changed hands in the Hawke’s Bay region’s largest industrial land transaction this year.
Located in the industrial hub of Irongate, the newly subdivided lots are on the market as the region’s industrial sector continues to go from strength to strength, buoyed by the thriving horticulture sector.
Colliers International recently brokered the sale of the largest site to a well-known Hawke’s Bay pip fruit company.
The 6.3ha landholding is in the process of being turned into a modern pack house and 4,000sq m cool store to the tune of an estimated $30 million dollars.
Colliers International Broker Danny Blair says the high-performing horticulture sector is driving strong demand for industrial land as businesses seek more space.
“This has been translating into some significant deals, with the Irongate Road sale ranking as the largest industrial land transaction in the Hawke’s Bay so far in 2019.
“The company that bought the land required larger premises in order to meet export demand. This is the case for many horticultural businesses as pip fruit exports increase in volume, particularly apples, which exceeded 23,000 export containers for the first time last year.”
Blair says the remaining two parcels of land for sale have areas of 5,710sq m and 5,500sq m. They are situated beside the new cool store and pack house facility on Irongate Road.
“Both lots boast prime road frontage as well as having titles available and services provided.
“We are expecting to see a lot of interest for the land, which will be attractive to industries that can service existing and upcoming larger occupiers in the region.”
Many larger industrial users such as pack houses, cool stores and engineering facilities have been attracted to the Irongate area in recent years.
“Irongate is Hastings’ newest industrial business park and is one of the best located, being only five minutes’ drive south of Hastings,” says Blair.
“Demand remains high, which is likely to drive strong interest in two new opportunities currently on the market.”
Industrial Broker Rob Nankervis adds that Irongate is an ideal location as it is close to main arterial routes with easy access to both Napier and Hastings via the expressway as well as its proximity to Napier Port.
“Irongate also provides close connectivity to Havelock North and Hastings for accommodation purposes as well as close to a skilled labour pool and a large proportion of local orchardists.
“These are all important factors that these businesses are taking into consideration when making a choice as to where to base operations.”
Nankervis says that the face of Irongate is changing and there has been large growth over the past few years with the average price per square metre more than doubling.
“This can be put down to a number of factors. Location is certainly one, as well as the council’s re-zoning of land and providing infrastructure allowing subdivisions to go ahead and businesses to own and occupy.”
He says that it isn’t only local businesses purchasing industrial land in order to expand their operations – there has also been a good proportion of out-of-town businesses moving in.
“Hawke’s Bay is an ideal option being a central North Island location with convenient access to transport routes via road, sea and air.
“The strength of Hawke’s Bay’s economic climate is also a key factor with investor confidence extremely high in all markets and this is forecast to continue for some time.
“For quality property, we are seeing investment yields in the 5 to 7 per cent range.”
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