Whanganui food production sector gets boost from sale

Farmland Foods Limited recently purchased the manufacturing facility in Bryce Street, Castlecliff, and will soon enter a commissioning phase as it transitions the property to its food production requirements.

The land, buildings, plant and chattels inventory were sold for an undisclosed sum in a transaction facilitated by Bayleys.

John Bartley, managing director Bayleys Whanganui, says the real estate agency’s two-stage sales campaign drew on interconnected nationwide team to bring the deal together and the Farmland Foods operation will bring tangible benefit to the regional economy.

“Understandably, when Mars Petcare announced its closure after 27 years of manufacturing in Whanganui, there was an element of sadness that the region was losing a valued business entity and committed employer,” he says.

“However, the announcement that Farmland Foods would expand their proven operation into Whanganui has been welcomed and its business track record across three generations is very positive for the wider regional economy.

“We were heartened by the amount of interest we received for the property, with the initial expressions of interest stage of the marketing coaxing out multiple parties – many of whom went on to submit offers via the deadline private treaty process that followed.”

While not being drawn on the eventual sales’ price, Bartley says it exceeded expectations and is unrivalled in terms of transactional value for an industrial property in the region in recent years.

The property is part of the Castlecliff industrial precinct which is home to other food-related operations such as meat processing. It is located 6km from the city centre and 150m from Whanganui Port.

“Looking ahead, there is scope to extend the building footprint within site boundaries and this appealed to a broad range of prospective buyers including developers, owner-occupiers, add-value investors, and passive investors,” says Bartley.

Farmland Foods Limited began as a family butcher shop in 1964 and is a locally-owned family business that currently operates from a production facility based on the Davis family’s rural property near Bulls.

The directors and their families have all resided in Whanganui since 1994 and are committed to the region and to supporting local manufacturing.

Farmland Foods managing director Eddie Davis says the purchase of the Mars facility is a natural progression for the company.

“The addition of another site will add the capacity we need for growth and will future proof for our current business and operations supplying smallgoods, bacon and ham to supermarkets nationwide.”

“In addition to future employment opportunities, the site’s conversion to a food manufacturing facility will support Whanganui businesses through the plant commissioning process and we are proud to be in a position to continue strengthening employment and growth in the region.”