Apple coolstore portfolio ripe for the picking

A portfolio of two of Hawke’s Bay largest coolstore facilities leased by New Zealand’s leading apple producers is up for sale.

The offering comprises the land and buildings of two substantial properties on the outskirts of Hastings containing a total of nine coolstore buildings and associated infrastructure.

The two properties, currently generating total net annual rental income of approximately $2.81 million plus GST, are being offered for sale through Bayleys Real Estate by tender, closing on December 9, unless sold prior.

Bayleys Hawke’s Bay director Kerry Geange said the properties can be tendered for as one portfolio or individually. He is marketing the offering with Bayleys’ national commercial director Ryan Johnson and national industrial director Scott Campbell.

“These are two of the Hawke’s Bay best-in-class coolstore facilities located on the boundary of Hastings industrial precinct and the fertile Heretaunga Plains, one of New Zealand’s premier produce growing areas,” said Geange.

The property located at 5 Hill Road, Twyford, is occupied by Mr Apple NZ, New Zealand’s largest apple producer and exporter which is owned by NZX listed Scales Corporation.

This complex encompasses 11,966sqm of coolstore capacity across six purpose-built, full height stores and 2150sqm of bin storage on a 2.9276ha site.

This property is currently producing net annual rental income of $1,514,010 plus GST.

There is a 10-year lease to Mr Apple NZ until March 2025 plus two five-year rights of renewal.

The property at 120 Henderson Road, Omahu, has a long-term lease to Bostock NZ, one of the Southern Hemisphere’s largest producers of organically grown apples.

It offers 9020sqm of coolstore facilities across three stores on 2.61ha of land which includes a 1200sqm concrete yard and 3500sqm metal yard.

Bostock has a 15-year lease until March 2031, plus two five-year rights of renewal, which is currently generating net annual rental income of $1,296,207 plus GST.

Campbell said both properties comprise modern purpose-built industrial assets and incorporate technology highly sought after by food producers.

This includes industry-leading glycol refrigeration cooling systems, controlled atmosphere storage, Smartfresh storage capability and fumigation facilities.

“The tenants have maintenance obligations in their leases but also obviously have a vested interest in ensuring their plant is in optimum working order to ensure the longevity of their produce,” said Campbell.

Johnson said the portfolio represents a rare opportunity where there is limited supply but growing demand for high quality premises.

“Mr Apple and Bostock are widely recognised as innovators and exceptional, world-class operators in the apple industry. They offer an outstanding long term blue chip tenant covenant.”