Packhouse and coolstore for export of kiwifruit is ripe with long lease

A Takanini packhouse and coolstore used exclusively in the the $2.9bn New Zealand kiwifruit industry is on the market for sale and leaseback.

The 7223sq m Auckland Pack & Cool (Apac) facility on 1.1ha at 149 Phillip Rd, Takanini, handles kiwifruit for export by the country's main distributor, Zespri International.

It is one of the kiwifruit industry's key post-harvest operators, able to pack about 3.5m trays each season, and with cool storage capacity for 1.75m trays.

It is part of the wider Jace Group, which also owns Mount Pack & Cool (Mpac) in Mt Maunganui. This facility packs around 12.5m trays a season. Combined, the two handle about 10 per cent of the national crop.

Apac's business model is dedicated to providing a low cost, high quality service with a focus on helping its growers to achieve industryleading returns.

Returning $780,000 + GST a year, the property has a lease until 2043 and has been put on the market by Apac to free up capital for investment into the business.

It is being marketed for sale by tender closing on March 11 through Bayleys South Auckland salespeople Shane Snijder and Peter Migounoff.

Snijder said a new owner will reap the benefit of a rent increase to CPI on May 1, which is expected to add about $30,000 a year to the return. “Jace is also investing a substantial amount of money in upgrading the cooling systems for the post-harvest operation.”

The company's 15-year lease started in May 2018 and has two fiveyear rights of renewal until 2043. During the term there are two yearly rent increases to CPI and if needed increases to market in 2028, 2033 and 2038. The existing lease will be sold to a new owner.

Built progressively from the 1990s through to 2016, the freehold premises consist of a pre-cooler, temperature-controlled rooms, bin rooms, two packhouse areas, offices, staff facilities and four canopies.

The offices and staff facilities are to the front of the property where there is also ample car parking. A fourbedroom manager/caretaker house is also on the property, giving overall site coverage of 62.3 per cent.

The South Auckland premises are only five minutes off the Southern Motorway and close to the airport.

“A new owner will reap the benefit of a rent increase to CPI.”