The high-profile, Tasman Insulation-occupied property on the corner of Halswell Junction Road and Shands Road in Christchurch has been sold by Sam Staite of Colliers International to an entity associated with well-known businessman Simon Henry, who plans to redevelop the site into the South Island’s largest specialist chemical logistics facility.
Fletcher-owned Tasman Insulation recently announced it would be relocating from its 102 Shands Road home into a brand-new, design-built logistics building with another Fletcher-owned business, Laminex.
The new build is being constructed by Calder Stewart at its Hornby Quadrant development not far from the existing site.
Henry, an NBR rich-lister with an estimated worth of $200 million, has a business history of more than 30 years in New Zealand and abroad.
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He has steadily grown his investment business, Rapaki Property Group, and has established a very large and diverse commercial and industrial group of companies operating across Australia and New Zealand, as well as internationally.
Rapaki Property is known for a high number of substantial purchases and developments including the IRD building in Christchurch, which was subsequently sold to government agency CERA post the 2011 earthquakes.
From 1 July this year, Henry’s Rapaki Property, Chempro, Hydromet, DGL Logistics and Hardman Chemicals businesses will all be re-branded under the common umbrella of DGL.
DGL, with an annual 2019 turnover of A$125m, employs over 250 staff and moves over 1,000,000 metric tonne of chemicals per annum.
Henry says: “DGL’s recent business acquisitions and focus on gaining market share have been hugely successful and the result is we need more space.
“102 Shands Road will give us everything we require to continue on this growth path and the pivotal location will provide our clients with a storage and distribution solution for chemicals, which our competitors simply can’t offer.
“Logistics is all about efficient storage combined with the speed and safety of delivery; this property will assist us with achieving both.”
Colliers agent, Sam Staite says: “The vendors weren’t originally considering a sale but we brought Simon Henry to the table and he was the perfect occupier of this asset.
“Significant improvement works were needed and a lot of these will be specific for the DGL business, so it just makes sense that they invest their capital in a property which they have ownership in.”
Staite also commented: “This is more firm evidence that there is a lot of resilience in our industrial sector and the owner-occupier market is stronger than ever.
“We simply can’t find enough of the right property for businesses to buy; this trend is expected to continue as our low industrial vacancy level just isn’t rising.
“The commercial property market has not seen a mass recalibration of pricing post-lockdown. Despite some large corporates using Covid-19 as an excuse to restructure, thus putting pressure on the unemployment rate, it appears the New Zealand economy is continuing to perform at a high level. Agribusiness and industrial are widely expected to pull the country through these uncertain times.”
