Mackersy Property has bought Countdown’s planned new fresh distribution centre in Rolleston on a 15-year sale and leaseback.
The state-of-the-art build is Canterbury’s largest industrial sale by dollar value and will provide the Countdown network with a purpose-built distribution facility for its fresh and perishable product lines.
Sam Staite, Director of Industrial at Colliers Christchurch, transacted the deal, with the total development cost reported at $99 million by Countdown’s parent company, Woolworths New Zealand. Building is scheduled to begin shortly, and the site will be operational by 2024.
“Institutional investment grade assets of this scale rarely become available in the New Zealand market, and we received substantial interest from investors throughout New Zealand and abroad. Parties from as far away as Malaysia engaged in the process, which is rare for a South Island offering, but does show the strength and pull of the Countdown/Woolworths brand,” Staite says.
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“This asset offers everything the investment market searches for; tenant strength, fixed rental growth, scale, brand new improvements, low site coverage on freehold land, and all situated within a prime, high-growth location close to two inland ports and less than 10 minutes to New Zealand’s second largest centre and the South Island’s main export hub, Christchurch.”
Mackersy is syndicating the distribution centre, describing it as an ideal investment for those looking for a strong cashflow in the current market.
Countdown’s Director of Property, Matt Grainger, says its distribution centres streamline the supply chain, and ensure a direct link to local growers and fresh food suppliers.
The new 11,000sq m distribution centre is located in Ngai Tahu Property's now sold-out industrial park of Tawhiri in Rolleston.
The 30ha Tawhiri development, directly adjacent to the sought-after 180ha Izone Southern Business Hub, links from Izone via Hynds Drive with the main entrance to the park coming from Hoskyns Road. The region’s two inland ports are housed in Izone and the nearby IPORT, respectively.
“During recent years, national investors have shown a keen interest in the Christchurch industrial market with demand across the board on the back of continuing high prices,” Staite says.
“All areas are performing strongly, lease terms are getting longer, and rental rates are now rising rapidly after 10 years of being stagnant. This is countering the currently increasing interest rate market and continues to provide the returns investors are seeking.”
Rolleston is one of the most sought-after and high-growth areas in Canterbury for both industrial and residential activity. The thriving population is serviced by quality amenities, including banks, retail, food and beverage outlets, an aquatic centre, and multiple new schools.
Countdown has 185 supermarkets and a 20,000 plus team of people across New Zealand.
- Article supplied by Colliers
