The more than 32 hectares of prime flat land just outside Blenheim currently produces Sauvignon Blanc grapes under a supply agreement with an international wine label.
Its location at the foot of the Wither Hills places it at the centre of Marlborough’s wine country, with more than half of New Zealand’s wine produced within a one-kilometre radius.
But the site’s prized industrial zoning and location also give it what commercial real estate experts say is arguably the best industrial development potential of any site in Marlborough – raising the prospect of a major wine production, food processing or manufacturing facility.
Bayleys Marlborough has been exclusively appointed to market the property at 3518 State Highway 1, Riversdale, for sale by way of a tender closing on Thursday 4 November.
Salespeople Grant Thorpe, Mike Poff, Harrison Martin and Zak Thorpe said the property consisted of some 32.8 hectares of land across three freehold titles.
Poff, a viticultural sales specialist, said the land currently produced an average annual yield of just over 370 tonnes of Sauvignon Blanc grapes, at about 14 tonnes per hectare, generating an estimated net income of $450,000 to $500,000.
“The vineyard has a grape supply agreement in place until 2023 with New Zealand’s award-winning original producer of Sauvignon Blanc, which will be very attractive to wine industry investors and wine companies.
“The property contains a planted area of some 26.5 hectares, with nearly 59,000 vines, a bore water supply and minor buildings including an implement shed, a two-bay garage, pump shed and office,” said Poff.
Grant Thorpe, Bayleys senior commercial broker, said ongoing grape production would offer a new owner excellent holding income while they investigate the exceptional development potential afforded by the site’s large size, key location and prized ‘Industrial 2’ zoning under Marlborough’s district plan.
“In combination, these factors give this property industrial development potential that’s virtually unrivalled by any other site in Marlborough.”
Thorpe said ‘Industrial 2’ zoning allowed for a wide range of heavy industrial facilities and ancillary commercial activities.
“This is the only property of any scale in Marlborough with this highly sought-after zoning. With a very real shortage of industrial land in the region, especially in large development blocks, there is strong demand for additional industrial space for the likes of wine production, wine industry support services, food manufacturing and processing, and transportation services.
“These are among the future possibilities likely to be investigated by new owners of the Riverlands site,” said Thorpe.
Martin said future activities would gain further support from the site’s highly strategic location between the neighbouring Riverlands Industrial Estate and Cloudy Bay Business Park.
“Superb transport links are also assured by the property’s position beside State Highway 1 and the main trunk railway line. Just across the road is a truck stop with a service station, truck wash and accommodation,” Martin said.
Zak Thorpe, said the location also offered any future development ready access to a substantial workforce in Blenheim, whose centre is just 6 kilometres to the northwest.
“Together, these factors make this a truly pivotal location at the top of the South Island with key transport links to Christchurch and Nelson, and north by road and rail to inter-island ferry services in Picton,” Thorpe said.