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From the grower to the gardener direct – nursery business for sale

Wednesday 4 May 2011, 7:20AM

By Bayleys

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The well-established and successful Native Garden Nursery in Gisborne is for sale as a going-concern through Bayleys.
The well-established and successful Native Garden Nursery in Gisborne is for sale as a going-concern through Bayleys. Credit: Bayleys

GISBORNE

‘Providing plants that enhance New Zealand’s landscape’ has been the fundamental premise for a successful Gisborne nursery business which is now for sale as a going concern with Bayleys.

The Native Garden Nursery in Makaraka, next to the show grounds and Golfmania, has been Nigel and Lana Hope’s passion and focus for the last 15 years, however, the couple is now looking forward to a change in lifestyle and extra family time.

The business is being sold through Expressions of Interest closing with Bayleys Gisborne on 17 June.

On offer is a lease on the land and buildings of the one hectare business site which includes 23 nursery beds, potting shed, under-cover potting area, retail shop, two plastic tunnel houses, one flexi-tunnel, a 1000sq m shade house and office and ‘smoko’ room.

The sale will also include plant and equipment assets (a full list is available on request) and interested parties will have the option of buying all the stock, or just the retail stock leaving the Hopes to handle the forward-ordered wholesale stock.

“A new lease will be established with a successful purchaser at a very reasonable $27,000 plus GST per annum for a three by three year term with a review after the initial three year period. This gives the new owner the benefit of a locked-in rate for the first three years,” says McNab.

Cutting out the middle man has been a real point of difference for this flourishing operation whose business catch-cry is ‘from the grower to the gardener – direct’.

The business started out in 1995 as Matawhero Nursery which operated from the Department of Conservation site in Matawhero. Then in 2003, the Hopes bought this property at Makaraka and converted the former truck yard into Native Garden Nursery.

“They have established a regular clientele ranging from city dwellers and bach owners beautifying their sections, to farmers planting shelter belts to schools planting trees for shade and to attract native birds. They have also fostered sound wholesale networks and ongoing relationships with government-assisted planting schemes and re-vegetation programmes such as Project Crimson,” explains McNab.

“Those interested in purchasing the business will see from the financials that by offering value-for-money plants straight from the source where as growers they have control over the quality, equates to a good profit margin.”

Full financials are available to interested parties on the signing of a confidentiality agreement and McNab says he expects plenty of interest in this proven and popular Gisborne business.

“The success of this business is a reflection of the strong networks and relationships that the current owners have carefully built up over 15 years. A new owner can now capitalise on this initiative and continue to reap the rewards.”

The Hopes will retain ownership of the land and buildings and because of this vested interest, are keen to support and transition a new owner into the business.

“It is in their interests for a new operator to do well and the Hopes have such a wealth of knowledge to share. Their staff members have also shown dedication to the business and are skilled in all aspects of the nursery operation. A good percentage of the nursery’s income is generated from door sales on site and the customer service aspect of the business is something the owners have focused on,” says McNab.

“The Native Garden Nursery is a fine example of a family-run business that has carved out a niche for itself in the popular gardening market. There has been a resurgence of interest in gardening in recent years as people have embraced the trend towards home improvement as championed by lifestyle shows on television and a raft of magazines devoted to houses and gardens.

“And boosting this business’s success has been the swing towards using New Zealand native plants to create low maintenance and great looking landscapes that suit our climate and lifestyle, and which encourage bird life.”

The nursery site has been configured to provide ample parking and generous turnaround areas for cars, trailers and trucks. The Hopes have meticulously maintained the user-friendly site and the whole nursery has been set up to work efficiently with all areas accessible either by tractor, quad bike or trailer, while irrigation systems are all automated.

“It is truly a walk-in, start trading scenario and that is a reflection of the care that has been put in to every aspect of the business,” stresses McNab.

In an increasingly eco-conscious world, revegetation projects have come to the fore with riparian and wetland planting, and forward-thinking planting for carbon credits becoming more prevalent. The Native Garden Nursery has developed a burgeoning wholesale market for its plants and it is an aspect of the business that sets them apart from more mainstream garden centres.

McNab says there are still facets of the Native Garden Nursery business that could be expanded or evolved to increase the turnover, so a keen new owner has opportunity to stamp their own mark on the nursery.

“Resource Management Act requirements often stipulate the planting of New Zealand natives in order for resource consent to be granted to developers, or for industrial and residential sites on marginal land,” McNab says.

“There is also scope to grow and provide a consistent supply of larger grade plants. Developers and landscapers often want established specimens to give gardens a head start so this is an area of the business that could be further pursued.

“In addition, a new owner with a passion for online marketing to expand the reach of the well designed business website through increasing the email database and targeting out of town buyers – especially those in Hawke’s Bay.”