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Garlic production property for sale
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.
All
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
buildings, including:
• 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
and
• 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
two buildings:
• A 315-square metre concrete floor
drying and storage shed consisting of timber framing and
corrugated iron exterior cladding built in
2011
and
• 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
buildings:
• A 119-square metre concrete floor workshop
and adjacent lean-to
and
• 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.
What’s on
offer?
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.
Sale
process?
The freehold land and buildings located at 377
Vickerman Street are being marketed for sale at auction on
May 17 through Bayleys Marlborough.
Bayleys Real Estate
New Zealand
Bayleys is New Zealand's largest full-service real estate company. We offer expertise in the marketing and sale of a wide range of property, including residential real estate, farms and lifestyle blocks, and commercial and industrial property. This includes tourism and business sales such as hotels and motels. We also cover the real estate markets in Fiji and other Pacific Islands.
Bayleys also provides a complete property and facilities service including property management and valuations teams focused on achieving both Owner and Tenant satisfaction.
No other real estate company can match our breadth of coverage across all market sectors throughout New Zealand.
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