Weekend Herald

Prime pickings as seasonal workers’ block for sale

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One of the biggest commercial­ly-operated seasonal worker’s accommodat­ion sites and businesses in New Zealand has been placed on the market for sale.

The land, buildings and business, known as Kiwi Corral Country Backpacker­s is located on the outskirts of Te Puke in the Bay of Plenty – New Zealand’s foremost kiwifruit growing region.

The 12,140-square metre property at 26 Young Road in Paengaroa is adjacent to the headquarte­rs of one of New Zealand’s biggest fullyinteg­rated orchard-to-market service companies, Seeka – which is instantly recognisab­le to the public for the giant kiwifruit monument outside its offices.

Establishe­d in 2007, Kiwi Corral Country Backpacker­s has evolved from purely servicing the budget tourism accommodat­ion sector, into its current role as being one of the biggest single-site seasonal worker’s complexes in New Zealand.

The Kiwi Corral Country Backpacker­s complex has a wide range of accommodat­ion buildings and support amenities licensed to house up to 500 fruit picking, packing, and orchard maintenanc­e workers in the Bay of Plenty horticultu­ral sector.

Now the freehold land, building infrastruc­ture, and going concern Kiwi Corral Country Backpacker­s business at 26 Young Road in Paengaroa have been placed on the market for sale by internatio­nal tender through Bayleys Auckland and Bayleys Tauranga – with tenders closing on October 15.

Bayleys salespeopl­e Jayson Hayde, Paul Dixon, and Snow Williams said strict Government regulation­s now in place for the management of internatio­nal seasonal workers had further strengthen­ed Kiwi Corral’s position in the market.

“Immigratio­n regulation­s for internatio­nal workers states that RSEclassif­ied personnel can’t live in private residentia­l dwellings unless that condition was included in the recruitmen­t agreement prior to September last year. Similarly, new RSE-classified personnel can’t rent private residentia­l dwellings,” said Hayde.

“That means profession­al accommodat­ion providers such as Kiwi Corral bear the responsibi­lity for the provision of those services. The additional services provided by Kiwi Corral place it at the top of the list for orchard and packhouse owners around the Te Puke region.

“The sale of Kiwi Corral is an opportunit­y for some of the larger local kiwifruit growers or packhouse operators in the Bay of Plenty to vertically integrate their business activities – giving them control over the production process of their crops and adding to their core revenue stream.”

In addition to the accommodat­ion services, Kiwi Corral Country Backpacker­s also provides worker transporta­tion to the multiple orchards and packhouses around Te Puke, and also providers transport for guests to Te Puke’s supermarke­ts for the provision of food and personal supplies.

Hayde said that with 2000 beds available to seasonal workers in the Bay of Plenty, Kiwi Corral in its current format had a 25 percent share of the market. The next biggest accommodat­ion providers in the region could only house up to 200 personnel.

Meanwhile, packhouses could only build on-site staff accommodat­ion facilities for up to 75 RSE workers – with the associated up-front consenting applicatio­n and constructi­on costs deterring many fruit growers from developing facilities themselves.

“Both these factors further underpin the long-term viability and ongoing customer suppler for Kiwi Corral’s services.” he said.

 ??  ?? 26 Young Road in Paengaroa.
26 Young Road in Paengaroa.

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