INDEPENDENT NEWS

Garlic production property for sale

Published: Mon 15 Apr 2019 09:43 AM
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
and
• 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
and
• 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
and
• 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.
Bayley's Real Estate
New Zealand
Bayleys is New Zealand's largest full-service real estate company. We offer expertise in the marketing and sale of a wide range of property, including residential real estate, farms and lifestyle blocks, and commercial and industrial property. This includes tourism and business sales such as hotels and motels. We also cover the real estate markets in Fiji and other Pacific Islands.
Bayleys also provides a complete property and facilities service including property management and valuations teams focused on achieving both Owner and Tenant satisfaction.
No other real estate company can match our breadth of coverage across all market sectors throughout New Zealand.
Contact Bayley's Real Estate
Phone:
09 375 6868
Media Contact:
Scott.Cordes@bayleys.co.nz

Next in Business, Science, and Tech

COVID-19 Sees Record 12.2 Percent Fall In New Zealand’s Economy
By: Statistics New Zealand
Scientists Release ‘Blueprint’ To Save Critical Ecosystems And Stabilize The Earth’s Climate
By: Joint Press Release
Independent Review Launched Into Assurances For Safe Transport Of Livestock By Sea
By: Ministry For Primary Industries
New Zealand PC Market Grows Nearly 40% Due To Work From Home Demand
By: IDC New Zealand Ltd
Whale-watching By Satellite – Follow Their Travels Online
By: University of Auckland
Kiwibank Admits System Failures And Agrees To Pay Customers $5.2 Million
By: Commerce Commission
Public Transport Distancing Requirements Relaxed
By: Ministry of Health
New Zealand Hemp Industry Set To Generate $2 Billion Per Annum And Create 20,000 Jobs
By: New Zealand Hemp Industries Association Inc
One In 14 Employed People Report High Risk Of Losing Jobs
By: Statistics New Zealand
ASB Quarterly Economic Forecast Shows NZ Economy Doing Better Than Expected, But Challenges Remain
By: ASB
Successful Bridge Repair Opens Two Additional Lanes To Traffic
By: New Zealand Transport Agency
Engineers Assess Damage To Auckland Harbour Bridge After Truck Strike
By: NZ Transport Agency
Motorists Urged To Avoid Damaged Auckland Harbour Bridge
By: NZ Transport Agency
Harbour Bridge: Public Transport A Great Option And Plan Ahead
By: Auckland Transport
Second Harbour Crossing Needed Now, More Than Ever
By: New Zealand National Party
View as: DESKTOP | MOBILE © Scoop Media