Marlborough triple business land and buildings

The triangular-shaped business site is occupied by three tenancies in several buildings. Photo / Supplied

The land and buildings housing a trio of commercial businesses — including the processing and distribution plant of New Zealand's largest garlic grower — have been placed on the market for sale.

The site, at Grovetown near Blenheim, consists of 1.435ha of freehold triangular-shaped Rural-zoned land at 377 Vickerman St.

The site is occupied by three tenancies — Marlborough Garlic Ltd, Kiwi Seed Co and Ironside Engineering. Combined, the three businesses generate annual rent of $138,347 plus GST.

All three tenancies have just re-signed new three-year leases running through to May 2022. Marlborough Garlic Ltd pays annual rent of $103,124 GST;. Kiwi Seed Co (Marlborough) Ltd pays rent of $28,638 plus GST per annum; and Ironside Engineering Ltd pays annual rent of $6,585 plus GST.

As the lead tenant on the property, Marlborough Garlic occupies several buildings, including an open-plan concrete floor high-stud processing, grading and packing warehouse with product delivery infrastructure, chilled store room; office space and three concrete floor drying sheds.

Kiwi Seed Co (Marlborough) Ltd occupies two buildings, including a 315sq m concrete floor drying and storage shed; and a 277sq m seed processing shed with twin roller door access.

Ironside Engineering occupies two buildings: a 119sq m concrete floor workshop and adjacent lean-to; and a 97sq m concrete floor packaging store.

The freehold land and buildings located at 377 Vickerman St are now being marketed for sale at auction at 12pm on Friday May 17 through Bayleys Marlborough.

Agents Kurt Lindsay and Peter Coldwell say the greater property encompasses a tar-sealed driveway carpark and yard, an additional metalled yard, mains power, sewage connections, water supply, shelter hedging around the boundaries, a concrete pad for gas tank storage, and a small portion of lawn with shaded trees.

"Typically, investment yields for commercial and light industrial properties around Blenheim range from 6 per cent to 9 per cent depending on the tenancies, their lease terms, and the quality of the buildings," Lindsay says.

"The buildings have been maintained in a good condition and there is potential use for a variety of light industry and agricultural or horticultural-based tenants."