Hawke’s Bay cider site apple of investors’ eyes
The Hawke’s Bay property housing a renowned destination cidery and an exportbrand nectarine orchard has been put up for sale.
The freehold site sits on SH50 between Napier and Hastings in Fernhill, an area coveted for fertile soils and convenient regional transport links. The property is fully leased to award-winning New Zealand cider producer Zeffer Brewing and export fruit grower X Fruit.
It will offer a new owner a total net annual rental return of $120,633 plus GST and outgoings.
Established in Matakana in 2008, Zeffer’s early success drove a move to its current base in the apple-growing stronghold of Hawke’s Bay. The company’s all-natural craft ciders are now sold in major supermarkets and around the world. Zeffer has won many awards, including World’s Best Cider in 2017, and lays claim to being New Zealand’s first zero-carbon cidery.
Its Fernhill cidery and taproom is a popular destination and hosts summer events with entertainment, music, food and drinks.
Zeffer will continue to occupy the site on a new five-year lease with a further five-year right of renewal. This will provide a net annual rental return of $87,130 plus GST and outgoings. The lease incorporates CPI rent reviews after 2.5 and 7.5 years, plus a market review at lease renewal.
Hastings-based X Fruit grows premium quality fruits for local and export markets, including various varieties of apples, peaches, nectarines, plums, apricots, cherries and pears. Founded in 2010, the business has around 20 orchards with 220ha in Hastings.
X Fruit’s current lease runs through to 2027. It generates annual net rental income of $33,503 plus GST and outgoings, with built-in CPI adjustments every three years.
The freehold land and buildings at 1747 Korokipo Rd, Fernhill, are being marketed by Kerry Geange of Bayleys Napier and Tim Wynne-Lewis of Bayleys Havelock North.
Sale will be by tender closing on Friday 2 September, unless sold prior.
Geange said the site was well-known for its world-class product and summer events. “The Mediterranean facade visible from the state highway draws people into the cidery and taproom. This opens onto picturesque lawns which are ideal for events, and overlooks the heritage apple orchards that provide the raw product for award-winning ciders. Long views to the ranges beyond give a real sense of context,” said Geange.
The approximately 0.7ha orchard is planted in six French and English cider apple varieties. Around 80 per cent was planted in 2017 and the remainder in 2019.
To the rear of the cidery is a highly productive nectarine orchard of some 8ha under a separate lease to X Fruit. This contains around 9000 trees in several nectarine varieties, planted in 2017.
A converted cowshed provides basic facilities for orchard workers, including office and staff amenities, bathroom facilities and storage.
In total, the site comprises 10.9ha of productive land plus thoughtfully located and constructed character buildings with a total floor area of approximately 760sq m.
Geange said the wastewater system had been upgraded to protect the cidery operation, including domestic waste from the taproom. “Discharge consents have been renewed, providing long-term security to the tenant and new owner. Groundwater consents provide for a significant volume of water on site for tenant use and irrigation, and these consents will be transferred to the new owner,” he said.
Wynne-Lewis said the site’s Plains Production zoning under the Hastings District Plan provided for a wide range of commercial uses, while existing consents secured current use rights for food processing and hospitality under new ownership.
“This property offers a buyer the advantage of productive land ownership with the benefit of being fully leased to A-grade tenants. The status of both tenants as essential-service providers in terms of any Government pandemic response will help protect future income.
“There is potential to add value by working with tenants to add further infrastructure supporting an increase in income,” he said.