Investors scope Manawatū property

A large-scale industrial building that was formerly a mail and parcel distribution centre and is owned by NZ Post, has been placed on the market for sale with holding income in place from a high-profile New Zealand recreational sports company.

The expansive property at 9 Matthews Avenue in the Palmerston North suburb of Takaro, just minutes from Palmerston North’s CBD, is now predominantly leased to Hunting and Fishing New Zealand as the firm’s central distribution hub. NZ Post has minimal infrastructure still in place including private mailboxes, and is soon to fully vacate the premises.

The 4,919sqm warehousing building with support offices was built in the 1980s and sits on a freehold 11,508sqm flat site with wide frontage to Matthews Avenue, adjacent to the Palmerston North railway station.

The property comprises high-stud drive-through interchange warehousing, expansive low-stud workrooms, generous office accommodation, staff amenities, and extensive hardstand parking and yard areas.

The site is partially security fenced, and has efficient B-train access making it ideal for logistics and distribution-focused operations. The property has been assessed at 75 percent new building standard.

It returns gross annual income of $225,000 plus GST on a lease to HuntfishNZ Co-operative Limited through until 30 June 2028 with no renewals, and with vacant possession available at the end of that lease term.

The property is being marketed for sale by tender closing Friday 12th December through Karl Cameron and James Crawley of Bayleys Manawatū.

Describing the vendor as very motivated with the property now surplus to operational requirements, Cameron says the divestment creates an opening for a forward-thinking owner-occupier or investor looking to secure a pivotally located property with unrivalled scale, and development potential.

“There’s real opportunity, particularly for owner-occupiers thinking ahead, with the solid holding income allowing for a staged move to the site on lease expiry mid-2028.

“The property’s got that rare combination of true scale, versatility, drive-around capability, and connectivity right in the heart of Palmerston North’s tightly held industrial precinct and is eminently suited to a wide range of occupiers. Add-value investors and developers will also appreciate these fundamentals.

“The location couldn’t be better, and there are still region-wide efficiencies to be unlocked in the near future as other roading and infrastructure projects further improve the resilience of transport networks and services.”

Cameron says the central North Island location is convenient and strategic, as tenants Hunting and Fishing are appreciating from a logistics and distribution perspective.

“Along with being directly opposite the Palmerston North railway station and close to Kiwi Rail yards on the North Island main trunk line, Transmission Gully and its extension to Ōtaki has effectively brought Wellington and the Kapiti Coast closer to the Manawatū region, creating distinct commercial advantages.

“The planned Ōtaki to north of Levin highway extension is now only a matter of time which will better connect the Horowhenua, while on the other side of Palmerston North, logistics have also been streamlined.

“The new Te Ahu a Turanga-Manawatū Tararua Highway which provides a direct route between Ashhurst and Woodville, replacing the old Manawatū Gorge road, has greatly improved the journey to Hawke’s Bay.”

These infrastructural improvements have opened the eyes of business operators who recognise the logistical advantages that Palmerston North can now offer as a key North Island distribution hub, says Cameron.

“Occupiers are seeing the benefits of being smack in the middle of the Wellington and Hawke’s Bay markets and accessible to other key central North Island locations and are saying, ‘why don’t we have a presence here’.”

Takaro is a key industrial and service hub, home to a mix of logistics operators, trade suppliers, and light manufacturing businesses. It has easy access to key arterial routes including Tremaine Avenue, Rangitikei Street, and State Highway 3, and is handy to Palmerston North Airport, the city’s freight hub, and the ring road network.

Cameron says add-value investors and developers are back in the market, and while they’re still being somewhat cautious, the sentiment is more positive now.

“There is plenty of money out there looking for a home and we expect strong activity as 2026 unfolds.”