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.
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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.