Countryside industrial development land sells in mortgagee process

A substantial chunk of farmland South of Auckland which has been rezoned from rural to industrial use has sold through a mortgagee process and is to be redeveloped into an agricultural processing plant – bringing some 150 new jobs to the area.

The 31.7 hectares of relatively flat block - situated between Tuakau and Pokeno – is currently being used for cattle grazing. However, the land has recently been rezoned for industrial use as part of the Whangarata Business Park – opening up the future potential for substantial commercial development.

The deal was successfully negotiated recently by Bayleys commercial salesman Marty Roestenburg after the land was marketed for six weeks – attracting strong interest from multiple prospective buyers – one of whom has also indicated the possibility of creating another 100 jobs in the area.

Mr Roestenburg said client confidentiality restricted him from identifying the new purchaser, or how much they paid for the land. However, he could say that the new owner, a well known and long-established New Zealand company, had expressed an intention to develop the Whangarata Road property into a state-of-the-art agricultural processing facility that would create employment opportunities for approximately 150 people when completed next year.

“The beneficial economic implications from the sale of this land are huge. It’s some of the best news, from an employment perspective, that the greater Counties region has seen for a number of years,” Mr Roestenburg said.

“The value of this land is definitely in its commercial potential – an opportunity recognised by the new owner, who will be investing considerable resources in building what will be one of the largest and most sophisticated operations of its type in New Zealand.

“In our negotiations with the purchaser, they indicated that subject to their final plans for the buildings, there may be some surplus land available. We are now in discussions with other parties whose offers were unsuccessful, for the opportunity to buy that surplus land.

“And if that were to proceed, their intentions are also to build another separate agricultural processing plant – creating an additional 100 jobs. That’s 250 jobs which could be added to the Counties employment pool.

“This is great news for the Tuakau, Pokeno and Pukekohe areas – coming on top of Hewlett Packard’s recent announcement of building a $60million database centre in the region.”

Currently the Whangarata land is in paddocks - with a small selection of old farm sheds. It borders onto the North Island main trunk rail line. The land was previously owned by property development company Madhvi Developments Ltd which was placed into liquidation in 2009.

“The former Franklin District Council’s economic and business development plan estimates that some 24 hectares of this block is suitable for industrial use, with the remaining land being set aside for storm water retention, roading, and green park space,” Mr Roestenburg said.

“As a result of marketing this property, we have built up a database of other interested parties who are looking for similar development orientated landholdings around Waiuku, Tuakau, Paerata, Ramarama and Pokeno - where the council has identified rezoning of rural land for commercial use,” he added.

“Our instructions from these potential purchasers are to source properties ranging in size from 10 – 20 hectares, through to properties in the 100 hectare range, and we will consequently be closely monitoring the markets to secure such sites as and when they become available.”