Te Mata Mushrooms site goes up for sale in Havelock North

The site for sale, which is owned by Te Mata Mushrooms Limited. Photo / Supplied

Hawke's Bay company Te Mata Mushrooms is selling its entire property on the outskirts of Havelock North, just weeks after laying off the bulk of its staff.

The company has put its 22.5-hectare section up for sale along Brookvale Rd, which includes its existing buildings.

In August, the company announced it was suspending production at the property after 55 years and laying off most of its staff, reducing staffing from about 110 workers to 10 or 15 workers.

"The company completed its final mushroom harvest production at the property last weekend and, as previously announced, will focus on its business development opportunity in Central Hawke's Bay," a statement, released by the company on Friday, read.

"Most of the over 100 staff have been offered new jobs with local businesses thanks to the support of Ministry of Social Development."

Te Mata Mushrooms has long been based on the outskirts of Havelock North. Photo / NZME

Colliers Hawke's Bay is marketing the property, which is zoned Plains Production Zone within the District Plan.

One of the main objectives of the Plains Production Zone is to ensure that good growing soil and land within the zone "is not fragmented or compromised by building and development".

A statement about the sale of the property stated the zoning did permit some "residential activities" but a "resource consent would be required for more intensive residential development".

A deadline for the sale is November 3 and Colliers real estate agent Danny Blair is currently taking expressions of interest.

The mushroom company cited urban encroachment as one of the factors behind it shutting down production at its long standing home.

It is now planning on moving its operation to a yet-to-be-built operation in Takapau.

The company has received complaints in the past from nearby residents in Havelock North about bad odours, and was fined $15,000 in 2016 and $26,000 in 2018 over discharges of offensive odours.

Te Mata Mushrooms was based in what was long considered a rural site, but housing has expanded towards it over the years.

Chairman John Seton said last month that the Brookvale Rd facility was no longer fit for purpose under "the current regulatory regime" and with "the pressures caused by urban encroachment on established agricultural production".

Te Mata Mushrooms changed ownership on April 1, with Hawke's Bay-based equity firm Due North Ltd Partnership increasing its shareholding from being a minority shareholder to full ownership.