Strategically-located dairy farm next to Hamilton Airport

Media Release
1.11.2016

Caption: Cattle or commerce? Auckland based Titanium Park Development Ltd is selling off a sizeable chunk of highly strategic dairy farm land adjacent to Hamilton Airport.

Strategically-located dairy farm provides unique opportunity to acquire freehold industrial land next to Hamilton Airport

Auckland-based Titanium Park Development Ltd is selling a highly strategic dairy farm adjacent to Hamilton Airport.

The 98.4 hectare property at Ohaupo just south of Hamilton consists of 58.4 hectares of rural-zoned land with an additional 40 hectares of land zoned airport business but currently used for dairy farming activities.

The airport business zoned 40 hectare portion of the farm is specifically highlighted in Waipa District Council’s regional growth management plan – identifying the site as the Northern Precinct and future potential expansion area of Titanium Park which adjoins Hamilton Airport.

Titanium Park is a 75 hectare mixed-used industrial and commercial business park surrounding the existing aeronautical infrastructure and has been managed by private developer McConnell Property Ltd – former Development Manager of Auckland’s successful Highbrook Business Park.

General manager for McConnell Property, Nigel Richards, said that the farm was acquired as a strategic play in the recognition that there was a value-add opportunity around both its re-zoning potential and connection to not only the Park but also broader regional infrastructure.

“We have worked closely with a number of private and public stakeholders over recent years to obtain the 40ha industrial zoning and leverage the property’s position in a new transportation network,” he said.

Permitted activities under Waipa District Council’s airport business zoning for land around Hamilton airport allow for business operations such as commercial and industrial premises, transport and freight depots, vehicle rental and valet services, vehicle parking and storage, helicopter pads, utility services and structures, the storage and sale of aviation fuel, service stations and commercial garages, cafes/restaurants/ takeaway food outlets and licensed premises, and visitor accommodation.

The Narrows Road land and farm are being marketed for sale by Bayleys Hamilton through a tender process closing on November 10. Bayleys Hamilton salesperson Stuart Gudsell said the investment and development opportunities for the property were definitely long-term.

“As existing land and buildings within Titanium Park are sold down or leased, the availability of tenancy options will shrink. Over time, and as Hamilton Airport traffic and support activities continue to grow, new commercial and industrial space will be required,” Mr Gudsell said.

“As most of the land adjacent to this part of the airport is undeveloped, and in this case used as a working farm, there is an opportunity to implement the principles of good urban design in any future development. In the interim, holding income can be sustained by the present dairying operations, which could continue to include an additional 60ha of land adjoining the property and currently being leased from the Airport.”

Mr Gudsell said the New Zealand Transport Agency was fully aware of the property’s strategic location, and last year bought approximately 4.264 hectares of land for the $100 million+ Southern Links arterial expressway project.

“This has created a somewhat exciting aspect to the offering,” Mr Gudsell said.

“Southern Links is a key regional transport link that will connect State Highway 3 with Hamilton City and the Waikato Expressway – all of this occurring effectively at the front door of the farm.

“Combine this with the immediate proximity of the Airport and freehold tenure of the property and you have a truly unique offering in terms of its commercial development potential,” he said.

Mr Gudsell said that over the past four years, the Narrows Road farm had run a herd of approximately 500 cows – producing an average of 182,075 kilograms of milk solids each season.

He said the Narrows Road property was designed to run up to 600 cows utilising a 50-bale rotary dairy shed. In its current format, the farm currently grazed 475 cows and also leased an additional 60 hectares from Hamilton Airport for herd grazing.

The farm contains a three-bedroom homestead with swimming pool and tennis court, and a secondary three-bedroom worker’s residence. Farm building infrastructure on the property include an implement shed, workshop/storage shed, six-bay calf shed, two-bay barn, consented water bore, and effluent pond.

The property has a Waipa District Council rating valuation of $5.35 million – calculating the block on its current 102.7 hectares. Mr Gudsell said the valuation would most likely change when the next rating calculation was made on a landholding of 98.43 hectares.

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