A prime commercial investment opportunity is available with the sale of a rurally zoned Hawke’s Bay landholding, which offers a combination of passive income, strong tenant covenants, and long-term growth potential, Bayleys brokers say.

Bayleys Hawke’s Bay director Kerry Geange is marketing the freehold property of 10.94ha (more or less) at 1747 Korokipo Road for sale by auction at 3:00 pm on Friday, 11th April 2025 (unless sold prior), alongside colleagues Jodie Woodfield and Tim Wynne-Lewis.

Geange says that being positioned on the highly productive plains of the Ngaruroro River in Fernhill, the abundant property provides investors with a foothold in New Zealand’s premium region for agribusiness and food production, fortified by an established income stream.

“Currently leased to an award-winning beverages producer, Zeffer Brewing, and experienced local grower X-Fruit, the property benefits form a diversified tenancy mix, reinforcing its appeal as a low-risk, multi-faceted investment option,” he says.

“Zeffer occupies 1,860sqm (more or less) of manufacturing facilities, warehousing and a taproom, in addition to the front orchard of approximately 0.7ha with a lease which runs through to 2028, and two five-year rights of renewal.

“X-Fruit’s lease extends to 2027, providing investors with a structured and stable return profile.

“With a net annual income of $123,364 plus GST, lease arrangements provide built-in growth mechanisms, including CPI-linked reviews and market assessments at key intervals.

“Zeffer Brewing has evolved from a boutique cidery to an internationally recognised brand, cementing its position as a craft beverage sector leader. Its commitment to sustainability, innovation, and quality has driven strong consumer demand, supporting the long-term security of operations at this site. This is further evidenced by the brand’s significant capital outlay on-site, including the new 1,000sqm warehouse and export-approved canning facility.

“Meanwhile, approximately 8ha of productive back block orchard land leased to X-Fruit is planted in four nectarine varieties, providing further revenue security from an established grower in a prime horticultural region.”

The site’s Plains Production zoning supports productivity and commercial viability, with resource consents in place for food processing and hospitality operations.

Bayleys Napier commercial and industrial broker Jodie Woodfield says that beyond its commercial investment fundamentals, the property also holds lifestyle potential, with an elevated profile offering scenic views for a future home.

“Located along State Highway 50, the site provides excellent accessibility to both Napier and Hastings, which is a boon for the school run, a daily commute, or efficient commercial logistics. As demand for quality agribusiness assets in Hawke’s Bay continues to strengthen, this property presents a rare opportunity to secure a high-performing, multi-tenanted rural investment with the potential for future upside.

“Hawke’s Bay is regarded as the nation’s fruit bowl and a powerhouse of New Zealand’s food and beverage industry, with fertile plains and a climate ideally suited to horticulture and viticulture.

“The region’s strong agribusiness sector has continued to attract investment, particularly in premium food and beverage production, making this property an attractive proposition for those looking to capitalise on a more rewarding market outlook while keeping an eye on versatile future use opportunities.”