Source of proven returns in South Taranaki

A substantial large format retail and industrial warehouse in one of New Zealand’s key dairying regions is for sale, giving passive investors the opportunity to secure a strong and growing income stream backed by a subsidiary of the country’s largest company.

The property at 215 Glover Road, Hāwera in South Taranaki has been occupied since new by RD1 Limited, now trading as Farm Source, a wholly-owned subsidiary of Fonterra Co-operative Group Limited, and the nation’s leading agricultural supplies retailer with 65 stores nationwide.

The 4,145sqm freehold site supports a 936sqm modern building constructed in 2004, comprising an open-plan retail area, high-stud bulk store warehouse, office and meeting space, amenities and a mezzanine floor. The balance of the site is fully sealed and provides a large, enclosed yard with dual access to allow efficient vehicle movement, and 15 marked car parks. The building is well-presented with concrete and steel construction, and an A grade seismic rating.

Farm Source’s current lease term is six years, with rights of renewal, if exercised, extending the final expiry to 2042. As of November 2026, the property returns net annual income of $127,165 plus GST, with the lease including fixed three percent increases and market rent reviews, providing steady rental growth. The tenant has occupied the property for more than 20 years, reinforcing the income profile.

The property is for sale by deadline private treaty closing Wednesday 9th September, unless sold prior, through Mike Houlker and Samara Phillips of Bayleys Auckland Central, and Iain Taylor, Bayleys Taranaki.

Houlker says the resilience of New Zealand’s primary sector continues to underpin confidence in businesses across dairy regions, supported by firm commodity prices, steady export demand, and consistent production volumes.

“The primary sector is the country’s largest export earner, and continues to perform with real consistency. That stability supports businesses like Farm Source that serve rural communities every day.”

He says investors appear to be favouring strong performing regional assets, with rural landowners diversifying into commercial and industrial property to spread risk, and national investors widening their focus to regional opportunities that deliver strong yields and dependable returns.

“A property like this, backed by a subsidiary of Fonterra and located in one of the country’s most productive dairy regions, offers the secure long-term income investors appear to be targeting in the current market.”

Hāwera is a proven rural service town, and its wider commercial environment is strengthened by the long-standing connection to the dairy industry, says Taylor.

“The presence of the Whareroa Dairy Factory and the scale of farming across South Taranaki create a strong and reliable commercial setting that supports long-term tenant performance.”

The property sits on the southern side of Glover Road, a key arterial route with high traffic volumes, and around 200 metres from the Waihi Road and State Highway 3 intersection. The surrounding area is a strong commercial precinct within Hāwera, with neighbouring occupiers including Bunnings, VTNZ, Mico Plumbing and Supercheap Auto.