Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search


Mammoth pack house and cool store complex on the market

Date 1.8.2011

Mammoth pack house and cool store complex on the market for sale

One of the largest pack house and cool store complexes in the Bay of Plenty has been placed on the market for sale – with a long term lease in place to one of the leading kiwifruit and avocado industry operators.

The huge 5000 plus square metre kiwifruit pack house and cool store facility in Pyes Pa Road, Tauranga, will be going under the auctioneer’s hammer on August 17.

The massive facility on the southern side of the city was built in 1985 and comprises five cool stores with canopies, a pack house, dry storage, office amenities and administration block, and substantial car parking for both staff and visitors. Expansions to the buildings were added between 1987 and 1999.

The building is currently leased to Apata Limited through until 2020, with two further four year rights of renewal, and currently returns a rental revenue of $508,720 plus GST annually. Built-in rent reviews every two years are contracted in the lease agreement.

Click for big version

One of the most successfully operated pack house and cool store facilities in the Bay of Plenty is going up for sale.

The property is being marketed for sale by Bayleys Tauranga, whose director Kevin Wehipeihana said the auction list of chattels fitted to the Pyes Pa Road land and buildings would also include all refrigeration equipment running the chillers, and a water bore pump with all the associated plumbing.

“The location of the building is ideal for such an operation – with the Bay of Plenty being the mainstay region of kiwifruit production in New Zealand. With some 77 percent of the nation’s kiwifruit crop being grown in the Bay of Plenty, the tenant has a significant supplier base to carry out its post harvest operations,” Mr Wehipeihana said.

“The tenant, Apata Limited, is in a very healthy state and posted a gross dividend of 12.95 percent to its 263 shareholders for the last calendar year, and there is no foreseeable reason why this result will not continue.”

Mr Wehipeihana said the Pyes Pa Road property had a significant road frontage, while the remainder of the land had been developed to include a fully sealed driveway and visitor parking area. An additional workers’ car park was fully metalled. The overall site covers more than 1.5 hectares of flat land.

“If at the end of the company’s lease, and Apata decided to relocate, there would be sound options for potential redevelopment. It is within a strong residential growth zone surrounded by above average dwellings, yet the site has an existing use zoning, at present, over a commercial zoning beneath,” Mr Wehipeihana said.

“Permitted activities in the commercial business zone include general offices and retail options – such as supermarkets, vehicle sale yards, education facilities or visitor accommodation services such as a motel or hotel.

“Any such future development of the site could open up access from dual access to Pyes Pa Road.”

The cool stores are set on a concrete floor slab and have steel portal framing, with aluminium sheathed panels running from floor to ceiling. Some $200,000 of maintenance has been undertaken on the building within the past year.

Apata Limited was formed in 1983 when a number of local kiwifruit and avocado growers banded together to establish a cool store operation north of Tauranga. Resulting from excellent results for the growers over several years, the company continued to grow and moved to its current site in the mid 1990’s. Kiwifruit processing is the core component of Apata’s activities – with approximately 7.8 million trays passing through the company’s combined facilities in 2010.

Meanwhile, the company’s avocado volume has reached as many as 1.3 million trays a year – representing a 29 percent share of the national avocado market. The Pyes Pa site is renowned for specialising in the handling of organic kiwifruit and the lessee, Apata Limited continues to process on this site more than 50 percent of the kiwifruit industry’s organic produce.

Mr Wehipeihana said the size, scale and location of the Apata site so close to the city, meant very few opportunities of this nature ever came up for sale.

“The solid history of the tenant’s business combined with the length of the leases and the quality of the buildings and fittings, stack up to make this offering an exceptional long term investment opportunity,” he said.


© Scoop Media

Business Headlines | Sci-Tech Headlines


Auckland Transport: Successful Bridge Repair Opens Two Additional Lanes To Traffic

The opening of two additional lanes on the Auckland Harbour Bridge this morning will help relieve some motorway congestion for motorists heading home to the North Shore tonight. More>>


Statistics New Zealand: COVID-19 Sees Record 12.2 Percent Fall In New Zealand’s Economy

Gross domestic product (GDP) fell by 12.2 percent in the June 2020 quarter, the largest quarterly fall recorded since the current series began in 1987, as the COVID-19 restrictions in place through the quarter impacted economic activity, Stats NZ said ... More>>


Climate: Scientists Release ‘Blueprint’ To Save Critical Ecosystems And Stabilize The Earth’s Climate

A group of scientists and experts produced the first comprehensive global-scale analysis of terrestrial areas essential for biodiversity and climate resilience, totaling 50.4% of the Earth's land. The report was published in Science Advances ... More>>


MPI: Independent Review Launched Into Assurances For Safe Transport Of Livestock By Sea

The Ministry for Primary Industries (MPI) has launched an independent review of the assurances it receives for the safe transport of livestock by sea. MPI Director-General Ray Smith says Mike Heron QC has been appointed to lead the review, which is expected ... More>>


Computers: New Zealand PC Market Grows Nearly 40% Due To Work From Home Demand

COVID-19 had large impacts on demand for PCs as businesses prepared for lockdowns by purchasing notebooks to mobilise their workforce. In the second quarter of 2020, New Zealand's Traditional PC market experienced a 39.7% year-on-year (YoY) growth ... More>>


University Of Auckland: Whale-Watching By Satellite – Follow Their Travels Online

Scientists have successfully attached satellite tracking tags to six New Zealand southern right whales, or tohorā, and are inviting the public to follow the whales’ travels online. Part of a major research project involving the University of Auckland ... More>>

Commerce Commission: Kiwibank Admits System Failures And Agrees To Pay Customers $5.2 Million

Kiwibank has entered into a settlement agreement with the Commerce Commission after reporting that it failed to have in place robust home loan variation disclosure policies, procedures and systems. In a settlement dated 27 August 2020, Kiwibank admitted that ... More>>

Ministry of Health: Public Transport Distancing Requirements Relaxed

Physical distancing requirements on public transport have been reviewed by the Ministry of Health to determine whether they are still required at Alert Level 2 (or below). The Ministry’s assessment is that mandatory face covering and individuals tracking ... More>>


NZHIA: New Zealand Hemp Industry Set To Generate $2 Billion Per Annum And Create 20,000 Jobs

A new report says a fully enabled hemp industry could generate $2 billion in income for New Zealand by 2030, while also creating thousands of new jobs. Written by industry strategist Dr Nick Marsh, the report has prompted calls from the New Zealand Hemp ... More>>


Stats NZ: One In 14 Employed People Report High Risk Of Losing Jobs

About one in 14 workers say they expect to lose their job or business by mid-2021, Stats NZ said today. A survey of employed people in the June 2020 quarter showed 7 percent felt there was a high or almost certain chance of losing their job or business ... More>>

ASB Quarterly Economic Forecast: NZ Economy Doing Better Than Expected, But Challenges Remain

August lockdown estimated to have shaved 8% off NZ’s weekly GDP, and 0.5% off annual GDP Economy now expected to shrink 5% (year-on-year) by end of 2020 Unemployment rate now expected to peak at 7.2% The latest ASB Quarterly Economic Forecast is less ... More>>