Press Release
Cold store property offers unbeatable investment package
Palmerston North
June 17, 2025
Media Contact
Dan Scott
Marketing and Pitch Director, New Zealand
A large, extensively upgraded cold store complex in Palmerston North, with an 11 year lease to Beehive, a subsidiary of the world’s second largest food producer, has been placed on the market by CBRE.
375 Tremaine Ave, Palmerston North, is being marketed by John Bedford and Bruce Catley for sale by Deadline Private Treaty closing at 4pm on July 8, 2025 (unless sold prior).
The 2.12 hectare property is fully occupied by smallgoods producer Premier Beehive NZ Ltd, a subsidiary of Primo Foods Australia. Primo is in turn owned by Brazil-based JBS, the largest protein producer in the world and the second largest food producer, which has been operating for 70 years and employs over 280,000 people in 18 countries.
Beehive has recently extended its lease term until 2036. This offers investors excellent long term income with attractive fixed annual escalations of 5%, alongside the unbeatable tenant covenant, Bedford said.
“JBS is recognised as a worldwide food industry leader and the number one player in protein-based food production. As part of the JBS Group, the tenant covenant offered by Premier Beehive is quite outstanding.”
Another key attraction for potential buyers is a guaranteed fixed rental increase of 5% every year, providing superior income growth at a level that is rarely offered on commercial property leases today, said Catley.
“The 5% annual rental increase is exceptional and very rarely seen in the current market, providing income growth well ahead of current CPI inflation. This alone makes this asset a stand-out holding for investors searching for yield. There is also a fully recoverable annually reviewable management fee which will further boost the new owner’s real returns.”
The property has undergone a significant upgrade and complete replacement of its refrigerator and freezer plant and equipment. Beehive has invested significant capital into these upgrades, future-proofing the complex’s cold store and freezer capability, Bedford said.
“Beehive’s investment into upgrading and replacing the refrigeration plant on site with new, state of the art equipment safeguards the company’s production, storage and distribution capability well into the future.”
A further benefit for investors is that the tenant owns and is solely responsible for the maintenance, upkeep and replacement of the cooling equipment. This means that from a purchaser’s perspective, the asset is free from any maintenance burden concerning the refrigeration and freezer plant and equipment.
“Beehive’s lease extension to July 2036 plus two five-year rights of renewal further demonstrates the company’s commitment to this site, which is highly fit-for-purpose for food storage and distribution; as well as its plans for long-term occupation of the facility,” said Catley.
A further benefit to Beehive in upgrading its existing site, rather than searching for a new facility, is that the current rental is significantly below the economic rent level that would be required to develop and install new freezer and chiller facilities, he added.
Beehive uses the 6,391sqm of chilled & frozen storage and food-grade warehousing facilities on the site to store and distribute bacon, ham and other meat products. The company has been producing protein-based food products for over 25 years and employs over 300 staff in New Zealand.
The buildings on the property, which was formerly occupied by Foodstuffs, include substantial large-scale freezers and chillers, with clear span interiors and high studs. The site also features an enclosed loading area, warehouse, offices and amenities, as well as various sheds and equipment buildings.
The large site has low building coverage of around 30%, providing ample space for future expansion or longer term development options.
It is located in the Takaro industrial precinct, close to Palmerston North Airport and with excellent access to state highways, Bedford said.
“Palmerston North is a key location for logistics occupiers, providing excellent transport connectivity in the middle of the North Island and access to destinations north and south. The Manawatu inland port and industrial zone, Te Utanganui, is also undergoing a major expansion, which will enhance transport synergies for industrial occupiers in and around Palmerston North.
“Beehive recognises these benefits and has committed to this location as its long term home for its main national storage and distribution centre.”
375 Tremaine Ave, Palmerston North, is being marketed by John Bedford and Bruce Catley for sale by Deadline Private Treaty closing at 4pm on July 8, 2025 (unless sold prior).
The 2.12 hectare property is fully occupied by smallgoods producer Premier Beehive NZ Ltd, a subsidiary of Primo Foods Australia. Primo is in turn owned by Brazil-based JBS, the largest protein producer in the world and the second largest food producer, which has been operating for 70 years and employs over 280,000 people in 18 countries.
Beehive has recently extended its lease term until 2036. This offers investors excellent long term income with attractive fixed annual escalations of 5%, alongside the unbeatable tenant covenant, Bedford said.
“JBS is recognised as a worldwide food industry leader and the number one player in protein-based food production. As part of the JBS Group, the tenant covenant offered by Premier Beehive is quite outstanding.”
Another key attraction for potential buyers is a guaranteed fixed rental increase of 5% every year, providing superior income growth at a level that is rarely offered on commercial property leases today, said Catley.
“The 5% annual rental increase is exceptional and very rarely seen in the current market, providing income growth well ahead of current CPI inflation. This alone makes this asset a stand-out holding for investors searching for yield. There is also a fully recoverable annually reviewable management fee which will further boost the new owner’s real returns.”
The property has undergone a significant upgrade and complete replacement of its refrigerator and freezer plant and equipment. Beehive has invested significant capital into these upgrades, future-proofing the complex’s cold store and freezer capability, Bedford said.
“Beehive’s investment into upgrading and replacing the refrigeration plant on site with new, state of the art equipment safeguards the company’s production, storage and distribution capability well into the future.”
A further benefit for investors is that the tenant owns and is solely responsible for the maintenance, upkeep and replacement of the cooling equipment. This means that from a purchaser’s perspective, the asset is free from any maintenance burden concerning the refrigeration and freezer plant and equipment.
“Beehive’s lease extension to July 2036 plus two five-year rights of renewal further demonstrates the company’s commitment to this site, which is highly fit-for-purpose for food storage and distribution; as well as its plans for long-term occupation of the facility,” said Catley.
A further benefit to Beehive in upgrading its existing site, rather than searching for a new facility, is that the current rental is significantly below the economic rent level that would be required to develop and install new freezer and chiller facilities, he added.
Beehive uses the 6,391sqm of chilled & frozen storage and food-grade warehousing facilities on the site to store and distribute bacon, ham and other meat products. The company has been producing protein-based food products for over 25 years and employs over 300 staff in New Zealand.
The buildings on the property, which was formerly occupied by Foodstuffs, include substantial large-scale freezers and chillers, with clear span interiors and high studs. The site also features an enclosed loading area, warehouse, offices and amenities, as well as various sheds and equipment buildings.
The large site has low building coverage of around 30%, providing ample space for future expansion or longer term development options.
It is located in the Takaro industrial precinct, close to Palmerston North Airport and with excellent access to state highways, Bedford said.
“Palmerston North is a key location for logistics occupiers, providing excellent transport connectivity in the middle of the North Island and access to destinations north and south. The Manawatu inland port and industrial zone, Te Utanganui, is also undergoing a major expansion, which will enhance transport synergies for industrial occupiers in and around Palmerston North.
“Beehive recognises these benefits and has committed to this location as its long term home for its main national storage and distribution centre.”
About CBRE Group, Inc.
CBRE Group, Inc. (NYSE:CBRE), a Fortune 500 and S&P 500 company headquartered in Dallas, is the world’s largest commercial real estate services and investment firm (based on 2024 revenue). The company has more than 140,000 employees (including Turner & Townsend employees) serving clients in more than 100 countries. CBRE serves a diverse range of clients with an integrated suite of services, including facilities, transaction and project management; property management; investment management; appraisal and valuation; property leasing; strategic consulting; property sales; mortgage services and development services. Please visit our website at www.cbre.com.