Price of meatworks takes a big chop

Last updated 05:00 11/12/2012

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The former Taumaranui Affco meatworks is being sold for 5 per cent of what it was once worth.

The 10,000 square metre plant - sitting on 5.5 hectares of land - was once valued at $18 million during its peak production period in the 1980s and 1990s.

The plant was closed in 2009.

The property, next to State Highway 4, will be auctioned by Bayleys Hamilton on Thursday.

Bayleys agent Jim McKinlay said the vendor's price expectations was upwards of $450,000.

The property last sold in 2010 but the owner subsequently chose not to pursue development options for the plant. Administration offices once associated with the meatworks were sold off separately.

"The plant was constructed around 1981. When the operation was mothballed, the processing lines were largely stripped out by Affco. The facility was sold with an encumbrance prohibiting its use for processing or freezing sheep, beef, and goat products," McKinlay said.

"However, that encumbrance expires in 2019 and in the meantime does not cover the processing of other meat products such as poultry, dairy production, agricultural goods. Discharge consents have remained in place."

The two largest rooms are each 1000 square metres with 60metre stud and are beside rail docks and there are 400m of sidings off the main trunk.

"The existing infrastructure of the plant is robust, and could be recommissioned into an industrial or manufacturing operation with immediate access to both road and rail links for product transportation both in and out.

Use as a logging depot and or milling plant is also a possibility given the scale of forestry plantings in the area," McKinlay said.

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- BusinessDay.co.nz

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