One of New Zealand's largest kiwifruit and avocado packhouses is now on the market for sale, with post-harvest operator Apata holding a lease until 2020, website Scoop.co.nz reported.

The 5,000 plus square meter facility in the Bay of Plenty will go to auction on Aug. 17, with the sale marketed by Bayleys Tauranga, the story reported.

Newspaper the Bay of Plenty Times reported owners Centrepac were selling the property to raise money to expand a nearby retirement home and hospital.

The region is home to around 77% of the country's kiwifruit production, while the site rental yields NZ$508,720 (US$446,019) plus goods and services tax (GST) annually.

"The tenant, Apata Limited, is in a very healthy state and posted a gross dividend of 12.95 percent to its 263 shareholders for the last calendar year, and there is no foreseeable reason why this result will not continue," Bayleys Tauranga director Kevin Wehipeihana told Scoop.

"If at the end of the company’s lease, and Apata decided to relocate, there would be sound options for potential redevelopment. It is within a strong residential growth zone surrounded by above average dwellings, yet the site has an existing use zoning, at present, over a commercial zoning beneath."

"The solid history of the tenant’s business combined with the length of the leases and the quality of the buildings and fittings, stack up to make this offering an exceptional long term investment opportunity."

An Apata spokesperson told www.freshfruitportal.com the sale was just 'business as usual' and the company had no plans to buy the property either. Apata processed 7.8 million trays of fruit through the facility in 2010.

www.freshfruitportal.com