The land and buildings housing a trio of commercial businesses – including the processing and distribution plant of New Zealand’s largest garlic grower – have been placed on the market for sale.
The site at Grovetown near Blenheim in Marlborough consists of 1.4350 hectares of freehold triangular-shaped rural zoned land at 377 Vickerman Street.
The site is occupied by three tenancies – Marlborough Garlic Ltd, Kiwi Seed Co (Marlborough) Ltd and Ironside Engineering Ltd. Combined, the three businesses generate an annual rental return of $138,347 +GST.
three tenancies have just re-signed new three-year leases
running through to May 2022. Marlborough Garlic Ltd pays
annual rental of $103,124 + GST per annum.
Kiwi Seed Co (Marlborough) Ltd pays annual rental of $28,638 + GST per annum.
Ironside Engineering Ltd pays annual rental of $6,585 + GST per annum.
As the lead tenant on the
property, Marlborough Garlic occupies a multitude of
• A substantial open-plan concrete floor high-stud processing, grading and packing warehouse with product delivery infrastructure, chilled store room, office space, and staff amenities spread over a mezzanine level
• Three concrete floor drying sheds built from the 1970s onwards and later variously expanded over the ensuing decades to sustain the company’s growing output.
Kiwi Seed Co (Marlborough) Ltd occupies
• A 315-square metre concrete floor drying and storage shed consisting of timber framing and corrugated iron exterior cladding built in 2011
• A 277-square metre seed processing shed with twin roller door access which was built in 2005 and extended in 2011.
Ironside Engineering occupies two
• A 119-square metre concrete floor workshop and adjacent lean-to
• A 97-square metre concrete floor packaging store built in 1982.
The freehold land and buildings located at 377 Vickerman Street are now being marketed for sale at auction on May 17 through Bayleys Marlborough. Salespeople Kurt Lindsay and Peter Coldwell said the greater property encompassed a tar sealed driveway carpark and yard, an additional metaled yard, mains power, sewage connections, water supply, shelter hedging around the boundaries, a concrete pad for gas tank storage, and a small portion of lawn with shaded trees.
“Typically, investment yields for commercial and light industrial properties in and around Blenheim range from six to nine percent depending on the tenancy, their lease term, and the quality of the building,” Mr Lindsay said.
“The strengths of this offering are that the buildings across the property have been maintained to a good condition, and that there is future potential use for a variety of light industry and agricultural or horticultural-based tenants.”
An independent valuation report undertaken at the end of last year on the Vickerman Street property noted: “The market for rural industrial processing tenancies within Marlborough’s light industrial periphery localities is finely balanced between supply and demand.”
“Rental levels vary significantly. However, we see the market at approximately $50 to $65 per square metre for grading/processing plants, with storage space (letting for) between $25 and $35 per square metre, and workshop space (letting for) between $40 and $70 per square metre,” the valuation concluded.
The flat Vickerman Street property is located some four kilometres north-east of Blenheim’s central business district on the Lower Wairau plain. Neighbouring and nearby properties support a variety of arable cropping, intensive cropping, intensive livestock grazing and viticulture activity.
Mr Coldwell said the buildings on site were situated towards the front road-facing portions of the property – leaving rear yard space available for storage, and future development.
Fact file at a glance.
The 1.4350 hectares of freehold land and buildings located at 377 Vickerman Street – sustaining tenancies by Marlborough Garlic Ltd, Kiwi Seed Co (Marlborough) Ltd, and Ironside Engineering Ltd. Combined, the three businesses generate an annual rental return of $138,347 +GST.
The freehold land and buildings located at 377 Vickerman Street are being marketed for sale at auction on May 17 through Bayleys Marlborough.