Converted Dairy Factory Could Be Cream Of Crop For Commercial Property Investors


436A
State Highway 26 – Dairy Factory Lye | Photo: Hamilton Milk
Supply

An historic converted dairy
factory that once delivered milk across Hamilton and now
houses a cutting-edge electronics business has been placed
on the market for sale.

436A
State Highway 26 

The
building’s Art Deco façade at 436A State Highway 26, in
Newstead, is a familiar sight for motorists travelling the
busy route between Hamilton and the beach resorts and
holiday-homes of the Coromandel.

Constructed in 1935,
just after the Great Depression, the Newstead milk supply
plant (initially the Hamilton Co-operative Pure Milk
Company) traded through WWII before being bought by the NZ
Co-operative Dairy Co in 1947.

It was co-founded by
Frederick Lye, who served as a member of parliament for
Waikato for more than a decade in the 1920s and 1930s. He
was awarded the King George V Silver Jubilee Medal in 1935
for his contribution to the community.

Offered to the
market for the first time in 25 years, the property is
currently home to an established electronics business. With
good road profile and signage opportunities to passing
traffic, it is expected to appeal to investors and
owner-occupiers, including first-time commercial property
investors.

Located just a few minutes east of
Hamilton, the rural countryside around Newstead has long
been a hotspot for rural-residential lifestyle properties.
The area is also enjoying the benefits of improvements to
regional transport links, led by the soon-to-be-completed
Waikato Expressway.

The property at 436A State Highway
26 is being marketed for sale by auction on 3 December, if
not sold prior, through Bayleys Hamilton.

Salespeople
Jordan Metcalfe and Rebecca Bruce said the Newstead property
for sale consisted of a building of some 234 square metres
on a quarter share of an approximately 4,074-square metre
cross-leased site.

Mr Metcalfe said the building
incorporated a high-stud, clear-span workshop space equipped
with three-phase power, plus separate offices and additional
storage, supported by external yard space and
parking.

The property is leased to Pure Electronics,
which develops high-tech products and solutions for
industrial and commercial businesses. Its tenancy generates
net rental income of $25,000 plus GST and outgoings, on a
lease that extends through to 2021.

However, the lease
agreement includes a right to earlier vacant possession if
the property is bought by a new
owner-occupier.

“Built in the mid-1930s as a dairy
factory, this Art Deco-style property has a fascinating
historical back-story and heritage features which have seen
it put forward for a Heritage-B ranking under the proposed
Waikato District Plan,” said Mr Metcalfe.

“Decades
on, the changed nature of this area, the establishment of
national transport networks and sprawling city growth bodes
well for its future returns.”

The Newstead site has
an underlying Rural zoning from Waikato District Council and
resource consent for light-industrial activity.

Ms
Bruce said commercial and industrial property in Newstead
had traditionally been in short supply. However, a booming
population in recent years had led to an increase in demand
and some commercial development.

The Waikato
settlement is home to the global headquarters of the
multinational farming co-operative, Livestock Improvement
Corporation (LIC), which supplies genetics information to
the dairy sector. Its sprawling site incorporates a farm,
research centre, laboratory and testing facility – drawing
workers from across the district and neighbouring
Hamilton.

DairyNZ’s head office is also located
nearby – a dairy farmer-funded research, education and
advocacy organisation. Opposite the property for sale is
DairyNZ’s Scott farm, and behind that, Lye farm – a link
back to the dairy factory co-founder.

Ms Bruce said
the area’s popularity as a rural-residential lifestyle
location had helped to fuel rapid growth in recent years.
“The area’s population leapt by 20 percent to nearly
1,600 in the five years to the 2018 census, and has grown by
50 percent since 2006,” she said.

“Just a few
kilometres to the west, Hamilton provides a large and
growing catchment as well as ready access to a wide range of
city amenities.

“Positioned on State Highway 26, the
Newstead site for sale has excellent transport connections
across New Zealand’s ‘Golden Triangle’ linking
Auckland, Hamilton and Tauranga. This location will get
another major boost soon with the completion of the nearby
Hamilton section of the expressway,” Ms Bruce
said.

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