Kiwifruit orchard workers’ village doubles as backpackers
A large new accommodation complex that will house seasonal orchard workers and backpackers is for sale, offering investors a unique stake in the Bay of Plenty ‘‘fruit bowl’’.
Located near Edgecumbe, the freehold land and buildings on Lots 13 and 14, 313a Hydro Rd, supporting Putauaki Village feature a purpose-built 96-bed facility with extensive amenities and a separate manager’s cottage.
Underpinned by approximately 1.5 hectares of rural-zoned land, the village is for sale with a long-term lease to Southern Cross Horticulture, producers of SunGold Kiwifruit.
Putauaki Village will be fully leased to Southern Cross Horticulture, the site’s developer and vendor, on a new 10-year lease with rights of renewal which, if exercised, will extend to a total of 30 years. The lease will be secured by a 12-month bank guarantee.
The site will provide a new owner with an annual net rental income of $500,000 plus all outgoings and GST per annum. The lease agreement will deliver 3% annual rent increases, replaced by market rent reviews every five years.
Mark Walton of Bayleys’ Tauranga Commercial said the property’s location in the Rangitaiki Plains, a fast-growing horticultural area tagged ‘‘the fruit bowl’’ of the eastern Bay of Plenty, placed it close to large-scale kiwifruit orchards with significant labour requirements.
The industry’s workforce is underpinned by the Recognised Seasonal Employer (RSE) scheme, which allows the horticulture and viticulture industries to recruit workers from overseas for seasonal work.
Walton said, in addition to being RSE accommodation, the newly developed complex was also licensed for backpackers. The buildings had a 10-year build guarantee, excluding the existing cottage.
Myles Addington of Bayleys Tauranga said the complex incorporated eight accommodation blocks with two large common rec
reation spaces with lounge areas, dining, residents’ kitchen, chefs’ kitchen, laundry and bathroom facilities.
The new buildings have a total floor area of 1345m2, plus there is a modernised three-bedroom cottage providing on-site manager accommodation.
‘‘Each accommodation block contains a large, shared bathroom and locker room with a mixture of three or four beds per room. A separate auxiliary shed is also being converted to be used as a communal gym,’’ Addington said.
‘‘Developed in two stages over a 12-month period, this highly functional facility is purpose-built to the latest regulations and designed to Southern Cross Horticulture’s specifications.