The land and building housing a major storage and distribution facility for Tip Top ice cream’s Upper South Island operations have been placed on the market for sale.
The freehold chiller and freezer facility at 4 Timandra Place on the fringe of Blenheim’s central business district, is leased to the Fonterra dairy co-operative which sub-leases a portion to Tip Top. Fonterra owned the popular ice cream brand for nearly 20 years until it sold the Tip Top business to a UK-based buyer last year.
Tip Top has been making ice cream in New Zealand for more than 80 years - using locally-sourced milk and cream to produce one of the country’s most-recognised ice cream brands, with Kiwi consumers eating an average of 340 serves of its ice cream every minute.
Fonterra sold Tip Top in May last year to global ice cream giant Froneri for $380 million, after having owned the Tip Top brand since 2001.
Froneri is the world’s third-largest ice cream manufacturer, selling its products in 20 countries. In announcing its New Zealand purchase, it committed to retaining the Tip Top name and business operations, including the ice cream factory in Mount Wellington, Auckland. It also agreed to continue sourcing milk for Tip Top products through Fonterra.
The Timandra Place site serves as a base for the distribution of Tip Top ice cream and Fonterra milk products to retail, foodservice, and supermarket outlets across Marlborough.
Located in a light-industrial precinct bordered by residential housing a few hundred metres from Blenheim’s central business district, the purpose-built Timandra Place distribution facility generates annual net rental income of $69,348 plus GST per annum. It is leased to Fonterra through to 2026, with two further three-year rights of renewal.
The land and building at 4 Timandra Place are now being marketed for sale by Bayleys Marlborough. Salesperson Grant Baxter said the property comprised a single-storey building of some 191 square metres on approximately 624 square metres of freehold land, which incorporated three car parks.
Mr Baxter said the chiller and freezer facility was purpose-built in 2006, and modified with the addition of an open storage area in 2016. Constructed from pre-cast concrete with insulating panels, the structure has an Initial Evaluation Procedure rating of more than 100 percent of new building standards.
“An extensive yard area with wide drive-on access from Timandra Place enables the efficient movement of vehicles and stock onto and around the site, supported by a sizeable canopy for all-weather loading,” Mr Baxter said.
“The site is zoned Industrial One under Marlborough District Council’s Wairau Awatere resource management plan, allowing for a wide range of industrial and warehousing uses – as well as commercial activities, services and recreational and community facilities.
“Neighbouring properties are a mix of predominantly light-industrial facilities, warehouses and outlet stores as well as residential housing,” said Mr Baxter.
“The Timandra Place property has ready access to major routes in and out of Blenheim. It is approximately 500 metres from State Highway 1, linking to the interisland ferry terminal at Picton less than a 30-minute drive away. Meanwhile, Nelson with its port and airport, is one hour and 45 minutes away via State Highway 6.”
Mr Baxter added: “Being fully tenanted to a national-brand company, and with a 100 percent NBS A-grade seismic rating, the property will be of interest to buyers seeking a quality passive investment.”