Mortgagee tender for processing facility

Mortgagee tender for cold store and processing facility

A compact, fully-leased cold storage and processing facility just out of Levin is being taken to mortgagee sale with tenders closing with Bayleys on 28 October.

“This property has to be sold and we expect offers to be below the current capital valuation of $335,000,” says marketing agent Stephen Lange of Bayleys Wellington.

Originally built for the processing of eels back in the 1980s, the freehold facility at 142 Hokio Sand Road - five kms west of Levin - has been extended and modernised since then and Mr Lange understands that consent was also granted for a further extension in June 2004 with no expiry date.

“The property is fully-leased to New Zealand Meats Ltd which is wholly owned by Freshpork NZ Ltd, reputable operators in the bacon and ham processing field, with other cutting and processing plants in Timaru and Auckland,” says Mr Lange.

“As committed tenants, they have contributed financially to upgrading the property both inside and out and are currently in the process of completing tree and shrub planting requirements to fulfill a consent granted for a further 25-year discharge permit.”

NZ Meats has a 3 year tenancy from 23 November, 2008 with two further three-year rights of renewal. The lease is personally guaranteed by a director of NZ Meats Ltd and as part of the lease, the tenant has first right of refusal to purchase the property upon giving the owner two to three months notice.

The annual net income is $38,000 per annum.

With a total land area of 3315sq m and a building area of 487sq m, the property is surrounded by farms and lifestyle blocks, is on town water supply and has on-site sewage disposal by way of a Biocycle disposal unit to drainage fields.

The building has concrete foundations and floor with the majority of walls and the roof being poly panels all maintained in above average condition.

The property would be suitable for boutique or smaller-scale processing operations given the layout and construction. Included in the building are offices, lunch room, store rooms, amenity areas, three processing rooms, a freezer room, three chillers and associated control rooms.

“This is an opportunity for an investor to take advantage of the current circumstances leading to a necessary sale and to secure a sound processing/cold storage facility near to a well-established rural service town. Processing is a strong contributor to this district’s economy and there is always a rental market for facilities such as this,” says Mr Lange.

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