Huge New Plymouth property for sale

5:00 AM Wednesday November 9, 2016 True Commercial

The property occupied by Ravensdown at 662-672 Devon Rd, New Plymouth is on the market for the first time since the 1920s.

A 7.44ha property owned and occupied by Ravensdown, is one of the largest commercial sites offered in the New Plymouth area for years, says Jason Seymour of Colliers’ capital markets team.

Seymour is marketing 662-672 Devon Rd with colleagues Alan Pracy and Peter Herdson for sale by private treaty closing November 30.

“This is a simply outstanding development opportunity, available for the first time in decades,” says Seymour. “It has a wide variety of potential uses and occupies a prime spot directly opposite New Plymouth’s main bulk retail precinct.”

The property, on the market as a potential development site for the first time since the 1920s, is offered with up to 12 months of holding income from a leaseback arrangement to Ravensdown, one of New Zealand’s largest rural co-operatives.

Ravensdown is developing new facilities on an adjacent property which it owns, says Pracy.

“Completion of Ravensdown’s new facility is expected by early 2018, at which time the company will relocate to the new site and vacate this property,” he says.

“This will provide the purchaser with holding income under a leaseback arrangement, while the buyer finalises their plans for this significant piece of real estate — which holds a tremendous amount of potential future value.”

The property is in an established industrial and commercial area and is directly opposite the Valley Mega Centre complex, a bulk retail development, home to national and international brands including Countdown, Mitre 10 Mega and Noel Leeming. The site’s underlying zoning could accommodate a variety of possible future uses, says Herdson.

“This is a massive site in a strategic location with plenty of redevelopment options. The area is already proven as a commercial location, with a well-established industrial area as well as bulk retail,” he says.

“Given its location opposite a major existing bulk retail centre and adjacent to existing industrial users, it is likely to be of interest to developers looking to construct modern retail, showroom, trade or industrial premises.”

The size further increases the range of future options, Seymour says. “The property could easily accommodate several large warehouses or bulk retail stores; or an entire business estate made up of medium-sized units suitable for industrial or trade occupiers.”

Buildings on the site total nearly 2.3ha of floor area and have been constructed at various times since the 1930s. They include offices, workshop, staff amenities, fertiliser store, storage sheds and the main building, which gives access to a central road link through the facility, as well as conveyors leading to the various stores.

The property occupies a highly visible corner site which is mostly level, providing a good platform for future development in one of New Plymouth’s busiest commercial areas, says Pracy.

“Just 4km from the New Plymouth CBD, it is well-placed to benefit from the Taranaki district’s growth.”

The property is on the southern side of Devon Rd (State Highway 3) and is bounded to the east by Katere Rd and to the west by Smart Rd. The New Plymouth railway line and yards run along the southern boundary.

Devon Rd is the main arterial link from New Plymouth to Waikato, carrying around 32,000 vehicles a day. This busy location has seen changing uses in the area over the past five to seven years, says Herdson.

“It was predominantly industrial but is now moving towards showroom, service workshops and bulk retail use. This change was kicked off by the construction of the big Harvey Norman store directly opposite the property. Since then the Valley Mega Centre has been developed, further increasing the retail provision in the area.”

Taranaki is a strong growth region, backed by the long-established dairy farming, and oil and gas industries, with regional gross domestic product (GDP)  up 6.4 per cent since 2010.

The property is in a part of New Plymouth which is developing rapidly, says Seymour.

“A significant portion of the city’s new development is occurring in the area around and to the north of Devon Rd, towards Bell Block and the airport. Around 350ha of semi-rural land on Smart Rd to the south of the site has been identified for future residential development of up to 3000 sections.”

Around 13ha of nearby land has been identified for future business/light industrial development, he says.

Access to the site will be enhanced over the long term with a proposed second arterial crossing of the Waiwhakaiho River to the south of the site, providing access to the east from western New Plymouth.