Longburn meatworks site has broad potential

The former meatworks site's buildings cover around 35,000sq m. Photo / Supplied

The former Aotearoa Coolstores meatworks site at Longburn, just outside Palmerston North, has been placed on the market by receivers Grant Thornton.

Jude Minor and Grant Lloyd of Colliers International Palmerston North are marketing the huge property, which is for sale by deadline private treaty closing 4pm on Wednesday August 24, unless it is sold before that date.

The site of the former freezing works, which closed in October 1987, comprises a large parcel of industrial land of over 11,000 hectares that includes various buildings of around 35,000sq m in total area.

Two tenants, Huttons Kiwi, owned by Goodman Fielder, and Icepak Logistics occupy part of the property, located 3km from central Palmerston North.

Huttons Kiwi produces bacon, ham and smallgoods at the facility and pays $160,000 in annual rent on a 41-year lease dating from October 1994. Icepak Logistics provides temperature-controlled storage and logistics services for a range of businesses in the dairy, meat, pet food, poultry and horticulture sectors and pays $835,000 in annual rent on short-term lease expiring next year.

He says the property offers "huge potential" for a keen buyer with an eye for value creation. "For example, it could suit a cold storage company. Freezer space is in high demand and being a former meatworks, the property has significant cold storage facilities already on-site with agreements in place with Excel and Wormald to service the coolstore equipment."

Minor says the property could also suit light industries.

Lloyd says he expects an attractive yield and excellent return on investment to attract buyers. "It's an opportunity to secure a great cash flow."

Other features include an onsite water tank with a nine million litre capacity and a deep artesian bore water supply.

Located just off SH56, the property has a rail siding connected to the main trunk line.

colliers.co.nz