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


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
• 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
• 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
• 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.

© Scoop Media

Business Headlines | Sci-Tech Headlines


Consumer NZ: Buy-now, Pay-later Raking In $10m+ In Late Fees Annually

A Consumer NZ survey has found buy-now, pay-later services are costing shoppers more than $10 million a year in late fees. Close to four out of 10 Kiwi consumers use buy-now, pay-later services, such as Afterpay, Laybuy and Zip... More>>

Westpac: Catherine Mcgrath Appointed New Zealand CEO

Westpac Group CEO Peter King and the Westpac New Zealand Board today announced the appointment of Catherine McGrath as Chief Executive Officer, Westpac New Zealand... More>>

Amazon: AWS To Open Data Centres In New Zealand

Today, Amazon Web Services (AWS), announced plans to open an infrastructure region in Aotearoa New Zealand in 2024. The new AWS Asia Pacific (Auckland) Region will consist of three Availability Zones (AZs) and join the existing 81 Availability Zones across 25 geographic AWS Regions at launch... More>>


Statistics: Surge In Imports Results In Record Monthly Trade Deficit
Imports increased $1.8 billion in August 2021 compared with August 2020, resulting in a record monthly trade deficit of $2.1 billion, Stats NZ said today. Exports were little changed, down $42 million. "This is a larger deficit than normal because of higher values for imports.. More>>

Fonterra: Completes reset, announces annual results and long-term growth plan out to 2030

Fonterra Co-operative Group Limited today announced a strong set of results for the 2021 financial year, reflected in a final Farmgate Milk Price of $7.54, normalised earnings per share of 34 cents and a final dividend of 15 cents... More>>

Statistics: GDP rises in the June 2021 quarter

Gross domestic product (GDP) rose by 2.8 percent in the June 2021 quarter, following a 1.4 percent increase in the March 2021 quarter, Stats NZ said today. June 2021 quarter GDP was 4.3 percent higher when compared with the December 2019 quarter... More>>