Blue-chip tenant in sought-after Hastings location
A modern, purpose-built cool store and distribution facility occupied by Fonterra in Hastings is for sale and will pique the interest of investors looking for a premier asset with a strong tenant covenant.
52 Hanui Rd, Tomoana, has 754sq m of total floor area on a 12,920sq m freehold site. The property is zoned Tomoana Food Industry Zone under the Hastings District Plan.
The facility provides a mixture of freezer, chiller and ambient storage accommodation, along with a small office area and canopy with raised loading dock at the front of the site.
Fonterra is halfway through a 10-year lease and has multiple rights of renewal available, leading to a final expiry of 31 May 2040.
The lease agreement returns $231,857 plus GST in net annual rental income. There are future market reviews in place and 2 per cent fixed annual increases.
Approximately 8800sq m of land remains for further development, which will be highly appealing for buyers given the property’s sought-after location.
The neighbouring Tomoana Food Hub is Hawke’s Bay’s only industrial business park dedicated to the food industry and is home to prominent operators.
Hawke’s Bay Airport and Napier Port can be reached in just over 20 minutes, while the Hastings CBD is only five minutes away and SH51 and SH2 are readily accessible.
Colliers Hawke’s Bay director Danny Blair is marketing the property via deadline private treaty closing at 4pm, Wednesday November 29, unless sold prior.
Originally constructed in 2018, the property has 530sq m of cool and cold store space, a 77sq m office and accompanying canopy.
The building is constructed with reinforced concrete floors and foundations, insulated panel walls and an iron roof. The office is constructed of a timber frame with plasterboard lined walls and ceiling.
A concrete yard spanning 1900sq m provides convenience for trucks entering the site.
Blair says this is a compelling investment opportunity underpinned by the strength of the tenant covenant, while the development land is another major selling point.
“Fonterra is a blue-chip operator with an outstanding global reputation whose annual revenue is measured in the billions. Their commitment to the site is evident through the 10-year lease that began in 2018 and the lease agreement provides continual fixed rental growth, something that will be highly appealing to prospective purchasers.”