"The recent rezoning of the road's under-developed northern side unlocks the opportunity to develop a hub for the region's burgeoning primary sector and ancillary businesses.
McLachlan says the General Industrial zoned landholding is of predominantly flat contour, allowing for easy development. "With development contributions paid in full and work on new stormwater outlets to Omahu Rd under way, a large part of the work for a future developer is taken care of," he says.
A proposed subdivision plan indicates the 162,331sq m site could accommodate 36 industrial sections ranging from 900sq m to 11,000sq m.
"The subdivision has the potential to be serviced by a new internal road that would link-up with a council roundabout proposed for the intersection of Omahu and Chatham Rds.
"This would provide easy access to the lots and allow businesses to make the most of the site's extensive frontage to Omahu Rd, which has abundant exposure to substantial volumes of traffic."
Heard says the site is in the centre of the Omahu Rd industrial precinct, central to much of Hawke's Bay.
"The property is opposite a well-established industrial zone on the southern side of the road.
"Businesses in the area include rural retail, machinery sales, food processing, logistics and distribution, and heavy and light industrial users."
Heard say developers can draw on useful holding income while they plan to unlock the site's potential.
"The property earns $146,800 in annual rent from three commercial leases. The longest of these leases is not due to expire until September 2025, allowing for staged development with long-term rental income."
The property also earns $35,360 in annual rent from two residential tenancies. Notice periods of 90-91 days give developers flexibility when it comes to developing these sites.
McLachlan says New Zealand's industrial sector continues to go from strength to strength.
"The appetite for quality industrial properties throughout New Zealand is strong, with yield-hungry investors competing for the limited amount of available stock.
"Hawke's Bay has a particularly strong industrial property sector due to the underlying productivity of the regional economy. The main driver is the primary sector, which is forecast to deliver robust returns this year, particularly in the horticulture and viticultural sectors.
"We continue to see strong demand for quality industrial properties, especially within the food production, distribution and rural services sectors."
