You decide the future usage of rural-industrial Gisborne site

It’s a fact. Land is a finite resource - they’re not making any more of it - which makes a 12.7628 hectare block close to Gisborne’s CBD a prime investment opportunity for a visionary buyer who believes in Gisborne’s economic prospects and long-term future.

And there are plenty of people who fit that bill as evidenced by the early interest being shown in this well-located land in Willows Road according to Rod Chrisp of Bayleys Gisborne.

“It seems as though people are starting to shake off the economic gloom that has consumed us for the last few years and I’m pleased to see that optimism and business confidence is alive and well in Gisborne. That’s great for the region’s future; we need positive, forward-thinking people willing to build on the fantastic natural advantages that this district boasts,” says Mr Chrisp.

“This block lies within the area earmarked by the Gisborne District Council (GDC) as being suitable for future rural industrial development having weighed up environmental, social and cultural considerations. Several major players in the processing and forestry industries are already domiciled in this area which shows confidence in the location.”

During a recent GDC process of rezoning, some seven hectares of land closer to Gisborne - traditionally used as industrial land - has been deemed unavailable for future large industrial projects.

“This makes the land in Willows Road all the more desirable – and valuable – long-term as an industrial development option. Gisborne people are known to be innovators and we have plenty of examples of out-of-the-box thinking that have put this region on the national and international map,” says Mr Chrisp, citing Pultron fibreglass extrusion, White Pointer Boats, several large industrial engineering operations and forestry industry presence as confirmation of this.

“We have the luxury of relatively low overheads in Gisborne, access to good water supply, an active Port and a willing labour force. Sure, our geographical location throws up a few constraints, but with technology and communication tools at our finger tips there’s not a lot to stop us from competing on a national and global stage.”

The land is currently owned by the Eastland Group of companies which includes Eastland Network Ltd, Eastland Port Limited and Eastech Ltd. General Manager of commercial operations for Eastland Group, Ben Gibson, looks after the commercial property portfolio for the group and says this block of land is now surplus to requirements.

“It was purchased for strategic development some time back however, we have identified far greater needs around the Port and hence wish to sell the Willows Road site and redirect those funds back into Port infrastructure projects.”

On offer is a total of 12.7628 hectares of rural industrial-zoned land running between Willows and MacDonald Road 10km west of Gisborne’s CBD and just 1.6km off the main arterial route, SH 35.

There is a modest two-bedroom manager’s home, sheds plus two water tanks intelligently positioned in the south-western corner of the block against Willows Road to minimise the impact on land use. Plantings allow for a good degree of privacy and the grounds are well-laid out.

Both the land and the home are currently leased to LeaderBrand Produce Ltd. LeaderBrand practice short crop rotation on around 11.8ha of the land. The lease agreement runs through until 2014 although there are ‘out clauses’ should a new owner require the land for industrial, non-agricultural use.

With the massive forestry plantings around Gisborne and the proposed Hikurangi Forest Farms operation just 1km away from this rural industrial-zoned land, there is the very tangible option of building a factory to further process timber or to create value-added products.

“Gisborne’s financial strength comes primarily from the rural and forestry sectors and more intensive timber processing has been identified as the next big thing for the region. With a shortage of suitable land so close to the city for processing plants or workshops, here’s a chance for someone to pre-empt demand and land-bank a desirable site for use somewhere down the track,” says Mr Chrisp.

“The GDC website states that forestry production is predicted to triple over the next decade generating further economic growth of around 25 percent. Anyone considering an enterprise based around timber would be well-positioned to capitalise on this trend.”

The rural industrial zoning allows for subdivision of the block to 2ha lots, and with the two road frontages allowing for multiple access options, land-banking for future portioning-off is also a viable opportunity.
Whilst early interest would suggest that industrial usage is the most likely end-use for this block, the land is of a quality able to sustain large scale permanent horticultural development or rotational cropping.
“There’s kiwifruit being grown in this general area along with citrus and vegetable crops. The land is basically flat with just a slight slope to MacDonald Road, soils are relatively free-draining and the block enjoys a good, open aspect with all day sun,” says Mr Chrisp.

Tenders close on the property at 149 Willows Road at 2pm on 17 September with Bayleys Gisborne.