Tourism business set to be milked for additional income

Media Release
05/09/2011

Tourism business set to be milked for additional income

An opportunity to gain a foothold in the Hawke’s Bay tourism and dairy product industries is on the market for sale.

The two hectare block of land located at the gateway to the Tuki Tuki Valley houses both the former home of the award-winning Te Mata cheese factory and café.

The property is located on the corner of Te Mata and Te Mata-Mangateretere Roads, three kilometres east of Havelock North village, and is part of the popular Landscapes Ride on the Hawke’s Bay Cycle Trail.

The surrounding properties are utilised for viticulture, olive production, and lifestyle, with close neighbours including the renowned wineries of Craggy Range, Te Mata Estate, Black Barn Vineyards, and Askerne Estate.

The purpose-built cheese factory has a total building area of 294 square metres, with an additional 55 square metres of factory facility space. The factory and café were completed in 2005, and when operational, produced up to 135 tonnes of white-rind, blue and feta cheese a year.

Both the factory and cafe closed in April, with the continued rise in milk prices cited as a contributing factor.

The property is on the market through Bayleys, with expressions of interest closing on September 21. Marketing the property for sale is Bayleys Havelock North commercial and industrial salesperson Rollo Vavasour.

Mr Vavasour said: “This property can be molded into a number of different options for investors. For those looking to join the tourism industry, this is ideal opportunity as all the investment and work in setting up the business has been taken care of, and all the applicable consents are in place.

“Alternatively, for those wishing to derive rental income, there is already interest from tenants wishing to lease the café premises. There is also additional land available which is currently unused, but which could potentially be utilised for additional revenue opportunities.”

The factory, located to the rear of the café, contains the required components for cheese production including a milk tank, cheese room, pasteurising room, brining room, storage equipment, three curing rooms, packing room, main chiller, as well as a dry goods packaging room.

The factory equipment contained in the sale includes a 2000 litre milk pasteuriser, a cheese vat, a milk silo compound with milk pump, gas hot water heater and chemical dosing pumps.

The fully licensed café, located at the front of the factory, contains a large predominately open-plan seating and service area, with the kitchen positioned at the eastern corner behind the service counter.

The café auditorium measures 99 square metres, while the kitchen is 27.5 square metres. There is an additional outdoor seating area amongst landscaped grounds consisting of low maintenance irrigated gardens with a sealed access.

The list of equipment for the TeMata café includes a freezer, four display fridges, an electric oven and gas stove, a dishwasher, tables and chairs, plates, glasses and cutlery.

Also on the property is a 130 square metre three bedroom house constructed in the 1930s, with an additional 33 square metre veranda. The property is currently used for office accommodation.

Mr Vavasour said the café would also benefit from the Hawke’s Bay Regional Council’s decision to direct a cycle trail immediately adjacent to the cafe which would bring increased tourism visitors right to its door.

Hawke’s Bay Regional Council communications manager Drew Broadley, said: “Te Mata Cheese Café is a popular stop for cyclists using the Hawke’s Bay Cycle Trails.

“The Landscapes Ride passes right by the café and we could promote this venue as a stop off – as and when a café operation starts up again.”

Mr Vavasour said: “This is an opportunity for locally made cheese to be sold at the nearby wineries and farmers market. The concept of a café/deli and cheese factory works well at both Puhoi Valley north of Auckland, and Over the Moon in Putararu.

“The new owner may want to extend the café to catering for dinner or group function.”

The property has capital valuation dated at 2010 of $2.3million, including $1.62million worth of improvements. The annual rates are $13,428.

The land is predominately level, with vehicle access available off both Te Mata and Te Mata-Mangateretere Roads.
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