Colliers International - The Industrial Evolution

COMMERCIAL INSERT

THE INDUSTRIAL EVOLUTION

CANTERBURY. THE GROWING TRANSPORT AND LOGISTICS POWERHOUSE

South Island Commercial (2004) Limited Licensed under the REAA 2008

Rebuilding Christchurch

INDUSTRIAL SALES YE

AR

S RU

NNIN

G20

10-2

0156

COLLIERS INTERNATIONAL 06.06.15

Colliers International Industrial Brokers lead the way as the top real estate providers, call us today.

Sam Staite: 021 738 245 Oliver Salt: 027 838 6494 Christian Kellar: 027 333 4057Sally Ryan: 027 483 3311 Paul Marhall: 027 221 9994

While the Christchurch central city occupies centre stage in the rebuild,

the industrial property sector is the unsung hero of the market and is continuing to attract enormous interest.

We believe that considerable unsatisfied demand this year is set to further fuel the sector’s already stellar performance and we expect to see continued pressure on investment yields.

Interest rates are cyclically low and early indications in 2015 suggest they are likely to be lower for longer yet. This has enabled a re-rating of risk margins. Average prime industrial yields pushed below 7% at the end of 2014, the first time in our 20-year historical time series. Investors and owner-occupiers have bolstered the market’s

exuberance, both confident that industrial property is a solid bet at current margins.

In Canterbury, arguably the biggest winners of post quake activity are Hornby and Rolleston, both from a residential and industrial perspective. The Rolleston area is booming and business parks such as Izone and the new Carter Group development, IPORT, are in strong demand. Such activity is in no small part helped by the $900 million upgrade of Canterbury’s motorways, part of the National Roads of Significance project.

The development of Stage 2 of the Southern Motorway is certainly fuelling interest in the western areas, as freight transport is made easier from Lyttelton Port right through to Rolleston. Construction of Stage 2 will be

tendered early in 2016 and, once complete, is estimated to halve the travel time between Rolleston and the central city.

In industrial leasing, we’ve seen rentals begin to plateau as the market has become more competitive with increasing availability of existing and new stock. Demand is still steady and Colliers has recently leased a number of significant warehouses in the 1500-5000m² size range.

The future of industrial property in Christchurch is bright with opportunities aplenty.

Sam Staite

Director of Industrial Sales & LeasingColliers International - Agency, Christchurch

INDUSTRIALFORGESAHEAD

INDUSTRIALFORGESAHEAD

South Island Commercial (2004) Limited Licensed under REAA 20082 Colliers International The Industrial Evolution

Sam Staite, Director of Industrial Sales and Leasing


While work on the ambitious programme began before the earthquakes, the

undeniable advantages of the new highways are a godsend for those involved in the rebuild.

Rapid growth in and around Christchurch, particularly in the Selwyn and Waimakariri Districts, is placing demands on the state highways to the north and south of the city and around its western edge. The most ambitious such programme ever undertaken in Christchurch will improve access to Christchurch City, the International Airport and the Lyttelton Port of Christchurch (Lyttelton Port).

This investment will not only increase the capacity of Canterbury’s roads to handle increasing freight traffic, but will improve safety for all road users, said the NZ Transport Agency.

The Christchurch Roads of National Significance project covers three corridors, which have been broken down into a number of smaller projects.

Southern Corridor The Southern Corridor provides access to Lyttelton Port and the Christchurch CBD for people and freight from south of Christchurch. The corridor includes the Southern Motorway from Barrington St to Halswell Junction Rd (Christchurch Southern Motorway Stage 1) and the extension to rejoin SH1 south of Waterholes Rd and widening the existing highway to just north of Rolleston (Christchurch Southern Motorway Stage 2).

Stage 1The Christchurch Southern Motorway Stage 1, a four-lane median-separated motorway

between Collins St and Halswell Junction Rd, opened to traffic in mid December 2012 and now provides a safer, more efficient and reliable route between the central city, Lyttelton Port and southwest Christchurch.

Stage 2The Christchurch Southern Motorway Stage 2 will be tendered in early 2016. Construction is likely to begin in the summer of 2016 and is expected to take three to three and a half years.

Western Corridor The Western Corridor, SH1, provides access to Christchurch International Airport for people and freight from throughout Canterbury and the South Island.

Traffic volumes on the Western Corridor are increasing and this is expected to continue as commercial and industrial activities grow, particularly in Hornby and at the airport. There is insufficient capacity in the existing two-lane roads to absorb this future traffic growth. To ensure businesses based in and outside Christchurch are able to get their goods to and from suppliers, customers and the airport, the current road needs upgrading.

The existing Western Corridor runs along Johns, Russley, Masham and Carmen Rds. When the Western Belfast Bypass is built, the Western Corridor will run from the Northern Motorway and join Johns Rd near the Groynes. The Western Corridor will be a four lane highway (two lanes in each direction) with a median separating on-coming traffic; selected main road intersections will also be improved.

Northern Corridor The Northern Arterial is a planned new section of four-laned, median-separated state highway between the existing Northern Motorway and QEII Drive. As part of this project QEII Drive will be four-laned, between Main North Rd and Innes Rd and the Waimakariri Bridge will be widened to three lanes heading north through to Tram Rd.

3 Colliers International The Industrial Evolution

NEW MOTORWAYSPAVE THE WAY FOR GROWTHNEW MOTORWAYSPAVE THE WAY FOR GROWTH

Christchurch’s burgeoning transport and logistics sector will be one of the chief beneficiaries of the $900 million upgrade of Canterbury’s motorways, part of the

National Roads of Significance project.

In The Fast LaneAround 44,000 vehicles a day use Main North Rd, north of Johns Rd. This drops to 32,500 in the Redwood area, while QEII Drive currently carries more than 20,000 vehicles a day.

Information compiled with the assistance of the NZTA

NZTA traffic modelling shows that by 2031 the daily number of vehicles in the Redwood area of Main North Rd will rise to 40,000 if the Northern Arterial is not built and 22,000 if it is built.Currently there are 15,200 vehicles a day on Marshland Rd near Prestons Rd; by 2031 there would be 23,100 vehicles a day without the Northern Arterial or 12,200 if the Northern Arterial is built.By 2031 the Western Belfast Bypass will carry 27,700 vehicles a day without the proposed Northern Arterial in place and 23,000 with it.

Without the second stage of the Southern Motorway, traffic on Main South Rd is likely to double in the next 15 years. Its construction will halve the travel time between Rolleston and the end of the motorway in Christchurch at peak-times (from around 30 minutes down to 15 minutes). NZTA also expects a 40% reduction in fatal and serious crashes.

The project will reduce the high traffic volumes on State Highway 1 (Main South Rd) through Templeton by separating local traffic from traffic heading to Lyttelton Port and the central city. There will be 2000 fewer trucks a day through Templeton.

Indicative impression of how a rail siding will operate at the Port of Tauranga’s International freight hub at Rolleston


The rapid growth of Canterbury as a transport and logistics hub has been

given a major injection with the construction of hefty new inland ports for Lyttelton Port Company (LPC) and Port of Tauranga respectively (PoT)

While the rebuild may have hastened decision making, the hub port strategy had already been earmarked to cope with the rising demand in the industrial sector and the consequent need for efficient transport of cargo – particularly around the lucrative dairy export trade.

Rolleston, with its excellent road and rail connections, is the beneficiary of both new inland ports – LPC buying 27ha next to Carter Group’s new development and Port of Tauranga taking 15ha at Izone Industrial Park for a freight hub, after last year buying a half-share of Prime Port Timaru for $21.6 million.

Both sites are in the middle of a dairy

mecca, north of one of Fonterra’s largest sites, Clandeboye, processing up to 13.2 million litres of milk a day, about 40 per cent of all Fonterra South Island milk. Synlait’s plant is south at Rakaia and Westland Milk Products is also at Rolleston.

Scheduled for completion in June, Tauranga’s new Rolleston site will be an export hub for primary products and particularly dairy exports, fish and fruit. The business will spend in excess of $20 million on the land and infrastructure.

The Christchurch, Rolleston and Environs Transportation Study (CRETS) completed for Environment Canterbury in 2007 identified the need for an inland port for greater Christchurch.

Izone was able to use CRETS in its negotiations with Port of Tauranga, resultingin its land purchase late 2013. Design was undertaken and a resource consent process worked though by October 2014. A

construction contract was let shortly after and work began in February this year. The transport hub/inland port is expected to be operational shortly, giving exporters and importers more choice with strong transport links between the hub and both Lyttelton and Timaru.

Hughes Developments’ chief executive Stephen Gubb said they worked very closely with PoT to facilitate the development, which was notable for the speed with which the purchase and land fit-for-purpose deal was put through.

It now works mutually with PoT to promote the inland port. For Izone, the presence of the transport hub makes adjoining land more attractive to buyers, especially those in related transport industries and export businesses. This, in turn, benefits PoT by growing its customer base in the immediate area.

Inland Port Integral to LPC

Meanwhile, late last year LPC announced its own plans to develop an inland hub on land adjacent to Carter Group’s new industrial development at Jones Rd in Rolleston.

The inland port would be able to receive and deliver import and export containers, provide container storage and repairs and transfer containers between trucks and trains. Planning is well advanced so that a non-rail based service can be up and running around September 2015.

The new facility, part of LPC’s 30 year development plan, should be fully operational with a rail service early in 2016.

Simon Munt, LPC marketing manager, said the Rolleston inland hub would provide significantly improved supply


Rolleston the winner in lyttelton and tauranga hub port strategyRolleston the winner in lyttelton and tauranga hub port strategy

For more information contact: 03 983 2333 | www.GoughCat.co.nz

WORKING TOGETHER TO REBUILD OUR CITY.We believe in the power of working together. We offer the right equipment, technology and services to help you achieve the success you want for the long term. Cat machines working on the Christchurch rebuild have the full backing of our Gough dealership resources. This ensures maximum machine uptime for contracting businesses from major nationals to one-man bands. Our vast range of equipment, parts & servicing support covers the earthmoving, quarry, concrete, landfill and general contracting sectors. The option to rent during periods of peak demand is also available. As the rebuild continues, we look forward to continuing to support our clients as a new and stronger Christchurch emerges.

LPC’s City Depot in Woolston


chain efficiency, particularly for Central Canterbury importers and exporters, and would reduce the number of container trucks moving through Christchurch city to Lyttelton.

“The earthquake has given LPC a unique opportunity to develop the port for the future. LPC expect significant growth over the next 20 – 30 years. With continued population growth and the rebuild of Christchurch we expect imports to continue to grow at a healthy rate (currently +10%). Export growth will be driven by the increase of irrigation on the Canterbury Plains.”

LPC’s current total container throughput including export/imports and empties is around 380,000TEU annually. This equates to almost 60% of the total movement of containers through South Island ports.

“The inland port is an integral part of our development plan. As volumes continue to grow, there is a need to move greater volumes to the port,” Munt said.

“Container vessels are continuing to grow in size and will continue to do so. LPC supports the NZ Shippers Council view that when the larger vessels arrive, they will call

at multiple ports in New Zealand as opposed to one hub port.

“With the increase in vessel sizes and exchanges also increasing, the time to move these volumes to and from the port is getting shorter so there is a need for more cargo aggregation off port.

“Our future development is about readying the port for the larger vessels and the

Rolleston development is a crucial aspect of this. We would like to see South Island exporters / importers continue to have direct access to international services.”

Munt said LPC’s Rolleston development was not about recreating a supply chain but about making the existing supply chain more efficient and capable of handling future demand.

“Most sites in Christchurch don’t have room for trucks on them or they’re in congested areas with small access ways.”

“The cost made it a pretty easy decision to make.”

Murray Doig

Operations Manager PGG Wrightson Seeds

Gavin Lawry

Pegasus Engineering

HO

SKYNS RO

AD

HYN

DS D

RIVE

DRIVE

STO

NEL

EIG

H

IZON

E DR

LINK DR

WESTLAND PL

RADIUS LOOP

DETROIT DR

ILLI

NO

IS D

R

IZONE DR

IZONE DR

LINK DR

JONES ROAD

HANNOVER PLACE

CENTRUM

LANE

SH1

Stage 7 (Under Des ign)

FUTURE STAGE

SOLD

UNDER OPTION

UNDER CONTRACT

FOR SALE

SDC2

7445

_Col

iers

Spr

ead

Nationally significantIzone, NZ’s largest fully consented industrial development, has played a key role in fuelling the economic and population growth experienced as a result of the rebuild. Already over sixty businesses have established themselves at Izone in Rolleston, Canterbury with many more poised to design and build.

This is a true hub in every senseIt is sited for both city & agri-businesses catchments, has optimal road, rail & air links and is home to the impressive Port of Tauranga Intermodal freight hub.

Cost still mattersThe low land costs, low rates and available workforce have contributed to over 120ha having been sold since 2007. The final stage commences in June 2015 and is set to deliver on value, location and return on investment.

Izone is driving our rebuild.

“We were able to secure more land to future proof our growth.”Gregg Wafelbakker

General Manager Sales and Marketing Westland Milk Products

Construction / BuildingServices & Products

• Akarana Timbers• Asmuss SI• Asphalt Contracting• AW Harper• Canterbury Frame & Trusses• Complete Sheetmetals• Concision Panelised

Technology• Continuous New Zealand• Cosio• CRONZ• Dynamic Drainage• Enable Industries• Exal• Fifth Wall• Glass Relate• Hynds• Leighs Construction• Long Industries• Maverick Sandblasting• Oasis Clearwater• Pegasus Engineering• Portable Building Hire

• Precast Panels• Tennant Engineering• Tuffnell Drainage Ltd• Woodshack Kitchens

Logistics / Transport

• Hilton Haulage• Port of Tauranga

Agri-business

• Agriseeds• Ag Tech• Drummond & Etheridge• Enerpro Feeds Limited• Farmlands Grain and Seed• Glencore Grain• Nutri-Tech Industries• NZ Dairy Packaging Ltd• Permbrand• Pest Control Research• PGG Wrightson• Pure Oil NZ• Specialty Seeds• Westland Milk Products

Other

• Café Izone• Designline• Enterprise Recruitment• Fiordland Lobster• Haydn Brushes• Medifab• Moffat• Morgan Furniture• Rolleston Automotive• Rolleston Storage• Selwyn Printing• Synargy• Southern Gas Services• St. John• Thermo King• The Warehouse• Transalpine Fire Service

Find out how Izone can deliver for your business. Visit izone.org.nz or phone 0800 569 455

Industrial land solutions

Meet the 60+ resident businesses

After 130 years, we’ve learnt that survival in business goes way beyond bricks and mortar. It’s excellence in innovation, ideas and know-how that create a better future.

We’ve learnt that our rock solid foundations bring strength and determination, enabling your projects to succeed. We’re proud to have stood shoulder to shoulder with you on landmark projects such as Izone Southern Business Hub, Waterloo Business Park, Belfast Business Park, Dakota Business Park, Glassworks Industry Park and the Tait Communications Technology Park.

That’s why we’re dedicated to rebuilding Canterbury. To rebuilding its industrial and commercial heart. Our award-winning teams work closely with you to engineer excellence in land development, surveying, planning, urban design and infrastructure.

And we do it for one very simple reason. To make life better.

INDUSTRIALSTREN TH


The Carter Group has unveiled plans for a $500 million industrial park on

prime industrial-zoned land at Rolleston, Canterbury. Stage 1 of the 122ha South Island Industrial Port, known as IPORT, saw the sale of 27ha to Lyttelton Port of Christchurch (LPC) to develop an inland port.

Carter Group spokesperson Tim Carter believed a huge advantage for companies locating at IPORT would be the shared boundary with LPC’s inland port, providing access to the efficiencies and convenience of being co-located. Several large sites in Stage 1 share this boundary. These sites could be customised for particular needs. There was also scope for expansion to cater to long term growth requirements as well as the ability to operate 24/7.

“Containers can be delivered and received directly to IPORT, resulting in a significant reduction in transportation costs and reduced congestion delays at peak times at Lyttelton Port. Companies will be able to closely link their supply chain with LPC’s storage and handling facilities, managing inbound and outbound freight to reduce total logistics costs.”

Carter said that with the establishment of LPC’s inland port, as well as Port of Tauranga’s inland port at Izone, Rolleston would become a significant regional hub for exporting, importing, logistics, industrial and agricultural businesses.

“Being strategically positioned at the intersection of Canterbury’s major freight arteries – the South Island Main Trunk Railway Line, the Midland Railway Line, and State Highway 1 - is important. These arteries provide easy access to Lyttelton Port and Christchurch Airport, the major freight links into and out of the region.

“We cannot see large importers or exporters establishing anywhere other than Rolleston in the next five years.”

Carter said the construction of the Christchurch Southern Motorway Stage 2, to begin in early 2016, would be a game-changer.

“Figures from the New Zealand Transport Agency (NZTA) show the new motorway will be able to carry more than double the traffic volumes of the current route, bringing added benefits to the region.”

Based on 2041 traffic figures supplied from NZTA, the motorway would halve travel times between Rolleston and Christchurch’s central city from around 30 minutes to 15 minutes, a significant time saving.Carter said cost savings for companies locating at IPORT would come from sharing in transport efficiencies to Lyttelton and through more favourable terms at the inland port (reducing demurrage costs).

“With 92 per cent of all Lyttelton Port exports currently going through Rolleston, that signals a huge saving to many organisations.”

“For example, savings for dairy companies locating to IPORT will include a decrease in supply chain costs and better matching of exports and imports. Freight forwarders and logistics companies will also benefit from reduced turnaround times and better utilisation of assets.”

LPC’s inland port would have road service by late 2015 and a rail service early in 2016.

Carter Group invests in ‘city of the future’



to achieve the best outcome for our clients

Record low yields for quality industrial stockSuburban industrial markets have

continued to grow in terms of development and capital appreciation since 2011.

Significant areas of outer suburban land have been re-zoned for industrial activities during the past five years and major subdivision development has occurred or is proposed. For the most part, this land is located to the south west of the Christchurch city, adjacent to the principal road and rail corridor and around the northern periphery at Belfast.

Gary Sellars, Director of Valuation and Advisory Services for Colliers International, said the opening up of new industrial areas in locations such as Hornby, Rolleston and Belfast has had the effect of limiting land value inflation.

“There has been significant new industrial building/construction completed, particularly in the popular south western suburbs of the city where land conditions are superior to the eastern suburbs. Industrial building rents have grown steadily during the past four years reflecting strong demand and building cost increases.

“The industrial investment market has been active with record low yields achieved on the back of an imbalance of limited supply, an insatiable demand in terms of investors and either low cost borrowing opportunities or meagre returns offered from alternate cash investments. Capitalisation rates or property yields in the 6.50 per cent to 7.00 per cent range are now common for quality, well leased and well located industrial property in the low to medium price bracket up to $10 million,” Sellars said.

“While some of the large corporate real estate owners have opted to sell Christchurch investment property, there is no shortage of buyers evident in this strong market.”

Gary Sellars - Director of Colliers Valuation

The complexities of compliance issues are prompting an increasing number of industrial property owners to seek help with property management. This has come about principally because of a vast increase in compliance issues for tenants and landlords, according to Evan Harris, a Director of Real Estate Management for Colliers International. “Aspects such as Building Warrant of Fitness, Health and Safety issues, noxious and noise issues have all become much more complicated with changes in legislation. On top of those factors are changes in the Building Act, the requirement for fire regulation compliance, maintenance and other issues.”

Harris said leases had also become more complex and tenant and landlord responsibilities on maintenance, fair wear and tear, payment and collection of fair operating expenses and the like have all grown. “The complexities of ownership benefit from independent professional management to ensure that the owner’s interests are being best covered and their income is being maximised. Tenant requirements in the lease also need to be policed to ensure the property is maintained and kept in compliance so that the owner is not at risk.

“This is added to the usual issues of fair rent collection and calculation, rent review activities and normal lease supervision and

accounting matters. There are also lease termination issues around make good and compliance to consider,” Harris said.

Complex compliance issues need specialist advice

Evan Harris - Director of Real Estate Management

WORKING TOGETHERWORKING TOGETHER

With the rebuild in full swing, coupled with a strong regional economy, businesses now have the confidence to implement plans they have had on

ice for the past several years, according to Kevin Arthur, development manager at Calder Stewart.

“Many businesses have experienced unprecedented growth over the past three years. They’re businesses that postponed decisions to relocate but now have the confidence to make a move to more appropriate premises. Previously they would have been cautious about making a financial commitment so have been content to make do.

“Now that a lot of businesses have taken the decision to start looking – one of the first decisions is, ‘should we buy or should we lease?’”

In earlier years, ownership wasn’t always a viable option – land in Christchurch was tightly held and Calder Stewart was one of the few developers that would sell land and building packages to clients. Nowadays there’s an abundance of land available for purchase throughout the city.

“It’s certainly true that land is available, however, it’s vital that businesses seek good advice when considering the options,” Arthur said.

“Businesses are invariably knowledgeable about their needs in terms of preferred location and operational requirements. But often it’s the smaller details that get overlooked. Surprisingly, we find the area clients often get wrong is office space. Typically they specify too much space. That’s a high-value area so even small changes make a substantial difference to the budget. “We spend as much time as it takes with every client to completely understand their requirements. It’s important we get it right. After all, this is a major commitment. Clients need to be totally confident that the building they’re investing in is completely right.“

Calder Stewart is encouraging businesses to make decisions as early as possible.

“Virtually every element of the construction industry is under stress and industrial vacancy rates are at historically low levels. Forward planning is absolutely vital. We’re seeing clients locked into long lease extensions that could easily have been avoided if they’d started planning sooner.”

Kevin Arthur wouldn’t be drawn on timing to design, consent and build - “obviously every project is different so it’s difficult to generalise. I would be allowing at least 12 months from commitment through to handing over the keys.

“The design and build is relatively straightforward. The part that’s more difficult to predict is the consenting process. Council is trying to work with developers to find


Fonterra Darfield is a flagship project for Calder Stewart with its 75,000 ton storage capacity.

BUILDINGSBUILDINGSTHAT ARE FIT FOR PURPOSETHAT ARE FIT FOR PURPOSE


ways of making the consent process less painful, but we’ve still got some way to go before we’re confident in the system.”

Arthur has heard some disturbing stories of businesses that have come unstuck when rebuilding their industrial premises.

“A number of businesses have gone out thinking they can get into the development market because they think they can save money. But the trouble is that they don’t understand the risks or the costs.”

“What we pride ourselves on is making buildings buildable and affordable. Industrial premises are the overcoat for someone’s business. It’s not an architectural marvel. But it’s fit for purpose. Buildable and affordable.”

The ProcessDesign builds, as they are often referred to, are where a business has a property constructed to their exact requirements; a design build can be developed for a tenant or for an owner occupier.

With the right advice, the design build process is relatively straightforward and puts a client’s needs first. In the early stages it is non obligatory so that businesses can explore the various options that will best fit their requirements.

Depending on the scale and complexity of a project, and the business’ decision-making process, it is crucial to allow a minimum of 12 months from start to finish. Ideally a business should be thinking about their move two years out from their target relocation date.

INITIAL BRIEFThe client – often with the help of their real estate advisor – will develop a brief of what they’re looking for. This will involve aspects such as identifying a desired location and establishing the critical needs of the business including building size, approximate budget, target dates, logistical requirements and overall project requirements.

SITE & CONSTRUCTION OPTIONSIndicative cost options are prepared by the developer, based on suitable sites and building construction preferences. This aims to meet the key issues of the brief.

DESIGN EXPLORATION & COSTSIf the client wants to proceed, sketch plans and a preliminary specification are prepared and further detailed design and costing is undertaken with the client. Developers may also provide the client with more specific designs such as floor plans and visuals.

AGREEMENTSOnce the floor plans and costs are approved, agreements are signed so that the full design and construction process can begin.

WORKING DRAWINGSFull construction drawings are prepared for client approval and Council consent. The developer would usually handle permits and meeting local regulatory criteria.

CONSENT & CONSTRUCTIONOnce building consent is received, construction gets underway. Project management is the responsibility of the developer to ensure the building meets the client’s requirements.

COMPLETION & OCCUPANCYOnce finished, the building is handed over to the client to move in. Options may be to lease or buy.

Prepared with the assistance of Calder Stewart Development

MOVE Logistics

In today’s competitive market, the design build process is demanding increasing

attention and expertise to meet the specific needs of clients.

The design and quality for industrial buildings has changed drastically over the years. Key focus on buildings now is the stud height as this allows for the customer to increase their racking and the volume of product that they are able to store within the facility.

Goodman Property Trust, which specialises in high quality logistics space solutions tailored to the changing business needs of customers, has been heavily involved in design builds in Christchurch at its Glassworks Industry Park in Shands Rd, Hornby.

William Main, development manager for Goodman in Christchurch, works closely with customers to provide the desired outcome they are looking for.

“The key benefit of the design build process

is that it enables the customer to achieve what they specifically want and need. We work closely with them from the initial proposal stage right up to the practical completion of the facility. It is through the design phase that the customer is able to specify the features they want the building to have.

“Each customer has a different requirement in terms of how they operate and function their business. Common trends with the industrial buildings are high stud heights, large yard areas, efficient site layouts and the ability to harness efficiencies. In our own properties such as Glassworks, we also focus on the smaller details such as landscaping, internal estate signage and the general overview of how the estate looks.”

Main said that each customer at Glassworks had a different requirement with their facility, and the design build process allowed them flexibility to alter their required design throughout this process.

One such client is DHL, which has three warehouses in Christchurch, including the most recent 6500m² food grade facility at Glassworks.

Jim Hindle, DHL’s project manager on the company’s design build at Glassworks, said the new build-to-suit facility in Christchurch future proofs DHL’s consolidation and expansion strategy as a major 3PL

(Third Party Logistics) player in the South Island.

“The customised, multi-client facility consists of customers in the FMCG, technology and life science sectors and is capable of being highly flexible to accommodate additional customers. “Strategically located, the facility is situated in prime realty, housing existing operations and offers the opportunity for new customers to utilise operational synergies, proven capabilities, reliable supply chain solutions and compliance standards, that are essential business success factors.”

Another client that has worked with Goodman on a new warehouse facility is MOVE Logistics. Last September, MOVE unveiled a new 5800m² design build in Seymour St at Glassworks. The addition brings its total number of Christchurch warehouses to six with a seventh in Auckland. Sizes range from 1500m2 through to its biggest facility of 7000m2 at Sir James Wattie Drive.

Owner Brendan Prendergast said the new warehouse was urgently needed to meet the demand for extra space. MOVE predominantly operates in the food, grocery and beverage sectors but has one warehouse solely allocated to house materials for the Christchurch rebuild. Additionally, MOVE has 30 trucks working on the rebuild – one of the biggest fleets in Canterbury.

“Quite simply, we ran out of capacity. Before the quakes, if you’d asked us to find some extra space – if we didn’t have any


DESIGN BUILD PROCESS REACHESDESIGN BUILD PROCESS REACHES

new heights

DHL facility at Goodman’s Glassworks Industry Park, Christchurch

build yourfuture+

Goodman provides the building blocks to your unique business space.The team at Goodman partners with you, providing the flexibility and expertise to create a property solution that grows and changes as your business does. We’re building modern and efficient spaces designed to reflect your brand and help your business reach its goals.

Over the past 18 months Goodman has confirmed over 15 development projects providing almost 95,000 sqm of new industrial and office space, for customers such as Frucor, Genesis Energy, DHL, MOVE Logistics, Bridgestone, Steel & Tube, Metro Glass and Mainfreight.

With development locations across Auckland and Christchurch, and over 65 ha of land, there are many options to suit your needs.

+ Goodman can build you a custom-designed facility from 2,000 sqm upwards. To view other available property visit www.goodmanproperty.co.nz or download the Goodman NZ property app.

Sam Staite mob: 021 738 245 email: [email protected]

One of Christchurch’s key industrial estates, Glassworks caters for a diverse mix of customer requirements including manufacturing, warehousing and logistics. Three recently completed developments for DHL, Move Logistics and Bridgestone add 18,300 sqm and a further 38,000 sqm of land is available for future development.

DHL, Glassworks

in our own warehouses – we could usually find a little extra capacity elsewhere. But after the earthquakes that all dried up and the buildings that we’d typically go to were either demolished or taken up by the likes of manufacturers.”

His chain of warehouses largely stores products on wooden CHEP pallets and Prendergast estimated MOVE’s capacity was somewhere around 30-35,000 pallet equivalents, across its 25,000m2 of warehouse space. In lay terms, that would fill the Cake Tin in Wellington two times over.

Warehouse design and logistics is a far cry from when Prendergast and his wife bought out Pascoe Transport 10 years ago.

“One of the biggest changes is the high stud now, and the accompanying need for high rise racking and specalised equipment. Most studs are 12m today and product needs to be stored and accessed using specialised forklift equipment called reach trucks. These have roughly an 11m reach with a camera on the mast of the forklift and a screen in the cab. It means the driver can readily identify what’s required. Another of the most noticeable changes is that there’s no paper in any of our warehouses now – everything’s done electronically

with barcodes and scanning. It’s definitely different from how it used to be.”

With the newest warehouse already at capacity, and business unlikely to slow down anytime soon, Prendergast was already considering what next for his burgeoning business.

Earthquakes prompt changes in rackingAaron Young, managing director of Storepro Storage Solutions Ltd, said that many changes in racking systems in the last few years had been prompted by the Christchurch earthquakes and also because of the escalating land prices in key areas such as Auckland and Christchurch.

“The advance in design of base plates and upright posts particularly means racking systems are now more resilient and safe and, since the earthquakes, compliance regulations have also been tightened. The steel is thicker and stronger, the design and profile has been improved and independent engineers are being used or should be used to sign off new systems,” he said.

Since 2010 Storepro had developed enhanced new baseplate designs and systems in conjunction with independent

engineers to ensure that racking is far safer than it was pre Christchurch earthquakes.

“New Zealand now has some of the strictest and most stringent seismic regulations around racking in the world.”

Another major advance had been in decreasing the square metre footprint of shelving or building but extending the cubic metre capacity, a more accurate measure of storage.

“Long-term, this is the only way to go. It costs more to set up, but the savings over time far outweigh this initial investment. It is no longer a matter of simply looking at lease cost or land cost, it is about the whole operation which includes space, labour, machinery and time efficiency. This is where correct building and racking design can help immensely,” Young said.

“More sophisticated machinery also helps. Forklifts can now operate in increasingly smaller aisles, lift higher and with use of technology forklift drivers, are able to access product at heights more accurately. Fifteen years ago high rise racking used to be around six metres, the equivalent now would be over nine metres. Satellite automated racking has also helped space maximisation,” he said.


LYTTELTON

CHRISTCHURCH CBD

QE ll DRIVE

NORTHERN ARTERIAL

WESTERNBELFASTBYPASS

WESTERNCORRIDOR

AIRPORT

HORNBY

ROLLESTON

SOUTHERN MOTORWAY STAGE 2

PREBBLETON


Portlink Industrial Park

Industrial Port (IPort)

Waterloo Business Park

Belfast Business Park

Hornby Quadrant

Dakota Park

BELFAST

BROMLEY

SYDENHAMMIDDLETON

WOOLSTON / HILLSBOROUGH

SOCKBURNHORNBY

Wigram Business Park

Izone Southern Business Hub

MAP LEGEND

Roads of National Significance = RoNS

RoNS Upgrade of Existing Road

RoNS Planned New Hightway

RoNS Completed Project

RoNS Interim Improvement

Associated Activities (CCC)

State Highway

Railway

Urban Areas

Industrial Business Parks

Prominent Industrial Areas

03 365 7887South Island Commercial (2004) Limited

Licensed under the REAA 2008

LYTTELTON

CHRISTCHURCH CBD

QE ll DRIVE

NORTHERN ARTERIAL

WESTERNBELFASTBYPASS

WESTERNCORRIDOR

AIRPORT

HORNBY

ROLLESTON


PREBBLETON



Industrial Port (IPort)



Hornby Quadrant

Dakota Park

BELFAST

BROMLEY

SYDENHAMMIDDLETON

WOOLSTON / HILLSBOROUGH

SOCKBURNHORNBY


Izone Southern Business Hub

MAP LEGEND

Roads of National Significance = RoNS

RoNS Upgrade of Existing Road

RoNS Planned New Hightway

RoNS Completed Project

RoNS Interim Improvement

Associated Activities (CCC)

State Highway

Railway

Urban Areas

Industrial Business Parks

Prominent Industrial Areas

03 365 7887South Island Commercial (2004) Limited

Licensed under the REAA 2008

0

20

40

60

80

100

120

0

20

40

60

80

100

120

140

160

1998

1999

2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

2012

2013

2014

Number of Sales

Valu

e of

Sal

es $

(mill

ions

)

Sales - First Half Sales - Second Half Number of Sales

Source: CoreLogic & Colliers International Research

CHRISTCHURCH INDUSTRIAL VACANT LAND SALES

www.belfastbusinesspark.co.nz

STAGE 1INDUSTRIAL LAND SELLING NOW!

BLAKES ROAD

BE

LFA

ST

RO

AD

MAIN NORTH RAILWAY LINE

MARCH PLACE

423491m2

134699m2

223595m2

231808m2

241750m2

412882m2

403101m2

391858m2

382464m2

372800m2

363150m2

352800m2

342659m2

333149m2

322799m2

312813m2

700Stormwater Basin

16759m2

302335m2

292689m2

283487m2

44856m2

53643m2

34787m2

204659m2

STAGE 1

STAGE 2

STAGE 3

SOLD

SOLD

SOLD

SOLD

SOLDSOLD

SOLD

SOLD SOLD

SOLDSOLD

UNDERCONTRACT

UNDERCONTRACT

UNDERCONTRACT

> Located at the former Belfast

Freezing Works site

> Priced from $145 per m2

> Flexible lot sizes from

1,500m2 – 4,700m2

CHRISTCHURCH INDUSTRIAL VACANT LAND SALES

Year Number of Sales Sales Number of Sales Sales - First Half Number of Sales Sales - Second Half1998 42 14,560,158 20 9,344,528 22 5,215,6301999 59 22,155,677 22 9,906,663 37 12,249,0142000 36 16,314,399 21 7,818,462 15 8,495,9372001 53 19,973,092 29 9,350,641 24 10,622,4512002 85 37,503,950 36 21,491,585 49 16,012,3652003 90 55,032,977 35 13,372,415 55 41,660,5622004 79 57,134,602 40 30,381,235 39 26,753,3672005 56 25,893,535 33 17,179,200 23 8,714,3352006 56 26,123,590 21 10,130,765 35 15,992,8252007 38 29,869,055 21 13,946,299 17 15,922,7562008 25 32,538,782 14 12,672,907 11 19,865,8752009 20 10,263,400 9 5,223,625 11 5,039,7752010 12 6,278,743 5 2,428,000 7 3,850,7432011 12 4,095,800 3 730,300 9 3,365,5002012 34 39,378,907 15 10,354,670 19 29,024,2372013 103 136,940,393 49 58,499,585 54 78,440,8082014 40 36,111,525 30 29,378,125 10 6,733,400

Source: CoreLogic & Colliers International Research

For the first time since starting to track these data in 1998, more than 100 vacant land sales occurred in Christchurch in 2013, at an average price of approximately $1.3 million. The number of sales at 103 is, coincidentally, the same total as the previous five years combined. Last year’s activity has returned to more subdued levels with 40 land sales at an average of around $0.9 million. Even 40 sales is the highest since 2006.

New records in vacant land uptake


Christchurch Industrial Vacant Land Sales

THE RISE AND RISETHE RISE AND RISE

Years of minimal industrial development, an ageing fleet of lower stud industrial buildings, a recovering economy, record low interest rates and, of course, the earthquakes, have fuelled the dominance of the industrial business parks in Canterbury.

OF THE BUSINESS PARKSOF THE BUSINESS PARKSOF THE BUSINESS PARKS

Demand for quality properties pre-2011 was relatively strong but the supply of

modern premises was reasonably low and new builds were rarely seen.

Industrial buildings have evolved with technology; it wasn’t long ago that 5-6m was considered ‘high stud.’ The development in the technology of reach trucks, pallet trucks and stock-pickers 9-10m, is the new norm and it is not uncommon to see buildings constructed with stud heights in excess of 14m. Christchurch’s industrial building supply was vastly depleted while the demand for space exploded overnight in February 2011; the city’s rebuild required associated businesses to expand rapidly and new businesses to enter the local market. Fortunately, Christchurch’s topography meant we had the land and were able to cater for this influx of demand. Consequently there’s been a huge uptake of industrial land in all of Canterbury’s quality industrial business parks. Low interest rates paved the way for the wave of ‘owner occupiers’ buying land and constructing their own buildings. There has also been a huge increase in speculative building by developers and new design-builds for tenants and occupiers. Existing developments such as Portlink, Hornby Quadrant, Dakota Park and Izone were already poised to cater to this demand - selling and developing land at a record rate. The newer offerings such as Wigram Business Park, Central Business Park, Waterloo Business Park and Belfast Business Park also benefited greatly, with some stages selling out within months.

Here we run through some of the developments.


Belfast Business Park is a 22ha integrated industrial development on the former site of the Canterbury Freezing Works. Rapaki Property Group, a company controlled by rich-lister Simon Henry, bought the land in late 2012 and report that 50% of the first stage has already been sold with titles due shortly. It provides for a total of 42 lots ranging in size from approximately 1750m² to 24,600m² and is catering for a mix of business needs from those expanding due to the Christchurch Rebuild to others looking to simply relocate. The site is predominantly zoned Business 5 with approximately 10% made up of Business 4. Christchurch general manager Brendon

Stewart said Belfast Business Park was benefitting from lack of availability of developed industrial land in the Northern Corridor and the motorway extensions improving access and reducing driving times. Population growth in the northern suburbs also means an increased labour supply in the area. “Both the urban development in the Northern Corridor and the various motorway extensions are underwriting Belfast as a desirable location for businesses.” Those signaling their interest in the development include the construction industry, logistics and private developers.

Dakota Park and Mustang Park

Dakota Park and Mustang Park are developments overseen by the Christchurch International Airport Ltd on land it owns. Dakota Park is an 80ha freight, industrial and commercial precinct on the southern part of the airport campus. It has been designed for businesses harnessing the economic linkages between aeronautical activities, business and industrial development around the airport Infrastructure is built for approximately 30 sites - one third of the development. Eight buildings are already in place in Dakota Park with four more construction opportunities being negotiated.

Mustang Park is a specialist transport hub for tourism transport and motor vehicle services. The total development is approximately 30ha, with infrastructure in place for approximately three quarters of that. One building is already under construction, with negotiations underway for another seven operations. It’s aimed at the tourism travel market and associated services, particularly rental cars, car storage, vehicle servicing operations, large

yard users, transport operators and airport support services. A variety of sizes of land are available (the sites can be tailored to suit) and vehicle servicing facilities are being constructed nearby, including fuel and wash.

Glassworks Industry Park

The Glassworks estate takes its name from the Crown Crystal Glass factory, which operated from the strategic Hornby site up until the late 1980s. Now owned by Goodman Property Trust, Glassworks covers 11.4ha of land and offers 35,000m2 of high quality industrial space. Goodman bought the brownfield site, originally 15.2 ha, in late 2006 and has completed eight developments totalling 35,000m2 since acquiring the property. It has also undertaken a substantial amount of infrastructure and demolition work, creating a modern industrial estate with road frontage and dual access off Shands Rd and Halswell Junction Rd.

Glassworks caters for a diverse mix of customer requirements and has a particular focus on companies in the warehousing, manufacturing and logistics industries. The success of the estate has seen Goodman sell some of the facilities it has developed to fund further development activity.Key customers include MOVE Logistics, DHL, Bridgestone, Fisher & Paykel, NZ Safety, Cirtex, Placemakers, and Big Chill.

Hornby Quadrant

The Calder Stewart owned 200ha of industrial and commercial land has been released pre and post earthquake, with substantially stronger uptake after 2011. The formerly rural zoned land is being converted for B5 use or will be rezoned in the near



Dakota Park

future. Hornby Quadrant comprises four stages – the first two of which comprising 45ha (Sir James Wattie Drive) and 44ha (Shands Rd) - have already been released. Stage 1 is made up of owner occupiers and other businesses that have chosen to lease while Stage 2 is home to the likes of Foodstuffs South Island’s distribution centre. It’s likely that Calder Stewart itself will relocate to this area, which allows for some office use, once roading is complete.Calder Stewart’s other key industrial holdings include 6ha of freehold land at Christchurch International Airport, and 2ha at Central Business Park in Racecourse Rd, as well as various other smaller lots throughout the region.

IPORT

The Carter Group has unveiled plans for a $500 million 122ha park on prime industrial zoned land at Rolleston. For the full story please refer to page 8.

Izone

Izone is a 188ha business hub, wholly owned by the Selwyn District Council and managed by Hughes Developments. To date approximately 120ha has been sold. While sales have increased since 2010/2011, much of the growth has been driven by new businesses coming to Canterbury. Izone is also enjoying support from businesses expanding or building new facilities to meet the opportunities coming out of an increasingly prosperous agri-business sector. Hughes Developments director Robin Hughes said Rolleston is perceived as a go-ahead town with a readily available skilled labour force, which is attractive to

businesses and their staff. The continuing strength of the agriculture industry and related agri-businesses is also significant Businesses at Izone include the very large, such as Westland Milk Products (second biggest dairy cooperative in NZ), the Warehouse (largest building in the South Island) and Pegasus Engineering (builders of the new Dunedin stadium), through to smaller agri-business service industries (animal feeds, seed companies, implement retailers etc) and a wide range of infrastructure, construction and service companies.


Portlink is a 30ha site that was bought as a rural block in 2006 and rezoned B4. The subdivision is currently being undertaken in 8 stages. Stages 1 to 4 have been completed. Stages 1 & 2 (approximately 9ha) have all either been leased or sold. Stages 3 & 4 have a net area of around 4ha and approximately 30% of these sites have been either leased or sold.

Since titles were issued in 2012 Portlink has developed over half of the total site. Key occupants include Kathmandu’s national distribution centre, EPL, NZET and Clavel.Matt Currie, chief executive of property company Arcus Property, said the key attributes for Portlink residents included the ability to tailor sites to suit the company’s specific requirements; proximity to Lyttelton Port; access to major roading networks; competitive land prices; suitability of the ground conditions for the development of large format warehousing with shallow foundations (i.e. no requirement to pile); and clean contamination reports.


A joint venture between Southpark Corporation Ltd (led by Auckland-based developer John Sax) and Stewart Transport Ltd (Inky Tulloch and Paul Johnstone), Waterloo covers 114ha.

The idea for a business park on the site had been seeded before the Christchurch earthquakes but these events, as well as John Sax buying into the project in 2012, provided the catalyst for the development to really take off and gain momentum. Of the total project, 45% has been sold/leased to date. Occupiers include Santa Rosa Foods, Davis Food Ingredients, Hanham & Philp Contractors, Cardinal Logistics, Conroy Removals, Farmlands, Transdiesel and Canterbury Steelworks. Lissa Birse, assistant development manager, said the widespread shift west of people and businesses since the earthquakes had benefited Waterloo. The park’s community hub would centre around the restored Islington Freezing Works buildings, which will house mixed-use occupiers such as shops, services, hospitality and potentially accommodation.


Ngāi Tahu Property-owned Wigram Business Park, located on Hayton Rd, is approximately 25 hectares and zoned Business 4. Wigram Business Park was launched in late 2011, with earthworks beginning in 2012. It’s has been a success story of the post earthquake development era.Out of 45 lots, 37 are sold with a further one under contract. Only seven sites remain available. Tenants include: Skellerup


0

1

2

3

4

5

6

7

8

9

0

1

2

3

4

5

6

7

8

9

1999 2001 2003 2005 2007 2009 2011 2013 2015 2017

%%

Source: RBNZ, Westpac

Forecast


Industries; Caxton; Newfield Roofing; TyreMax; and two scaffolding companies. Mike Davison, development team manager at Ngāi Tahu Property, said businesses had a variety of motivations for shifting to Wigram Business Park.

“Certainly the earthquake was a reason but there were also businesses wanting to expand into larger buildings and new companies requiring premises. The location out towards the west of the city but in close proximity to both the CBD, as well as transport links, has been a big boost for us.”


Higher market rents make owner-occupying more attractiveIn a number of instances, established

business owners may be in a position to own their own premises according to Mark Bowen of Westpac Business Bank.

“While the increase in market rental rates for industrial property experienced through 2012-2014 may be attractive to investors, it also means that for owners of well established businesses, owning rather than renting their premises could be more cost effective. We have seen a number of instances where we have been able to utilise Westpac’s Business Property Pack to assist business owners into their own premises, and the cost of their interest is less than what they would have been paying in rent.”

Bowen said the benefits of businesses owning their own premises were varied and it may be more achievable than many thought.

“Owning their own premises provides a business with security of tenure and

protection from rising rents. As an owner, you are free to upgrade or develop the premises as you see fit and any capital gain achieved on the property is for your benefit. In addition to this, if you choose to sell your business, you can sell the property along with the business or retain it and become the landlord.”

How much will Westpac lend against these properties? “It really is a case by case basis – loan facilities are structured to suit the circumstances of each borrower, we want both the bank and the customer to be comfortable that they can meet their obligations without impacting their day to day business operations. However, in some instances, we can lend up to 100% of a building’s value. “

“Having a highly geared property is not for every business. But if you have been trading for in excess of three years, with strong positive cashflows and an ability to meet commitments, then you may find that that it is a viable option for you.”

*Westpac OCR Forcecasts

Lending criteria, terms, conditions, fees and charges apply to the Business Property pack. For more information, call us today or visit your local branch. The material in this document is provided for general purposes only and is not a recommendation or opinion in relation to the lending products. You should not rely soley on the information in this document. We recommend you seek independant legal, financial and/or tax advice. Westpac New Zealand Limited.

Finance packages for developers and owner occuipersThe industrial market appears to have

solid fundamentals, with inherent demand expected to improve due to the ongoing infrastructure investment across the region (water, roading and rebuild), according to Greg Bramley, Property Finance Partner at BNZ.

“As a result, investors might expect to see Christchurch consolidate as the distribution and manufacturing centre of the South Island.

“For some, the earthquakes have provided surplus cash from insurance payouts, which needs reinvestment. The returns from commercial property investment can appear attractive, relative to the returns from alternative investments,” Bramley said.

“In addition, with interest rates at current levels, we have seen a number of recent examples where there is a positive difference between the cost to borrow (fixed or floating rates) and the return from the commercial property investment.

“These factors are providing a weight of cash looking for commercial property investments, ensuring intense competition for quality assets with quality long term tenants. As a result, yields for industrial stock are at low levels.”

Bramley said that post-quake the BNZ had offered its Mezzanine Finance loan product in Christchurch for the first time, enabling a developer to push ahead on a $20 million industrial unit development.

The development was particularly designed to address occupier demand. The Mezzanine Finance loan was designed to assist developers in a difficult post-quake environment.

“In addition, when interest rates are lower and profits are strong, occupiers will look to buy or build their own property. BNZ has provided asset finance, invoice finance, and debtor finance solutions to the market, assisting clients with a strong desire to own their premises,” he said.

The views expressed are the writer’s own and do not necessarily represent those of BNZ or its related entities.

CHRISTCHURCH INDUSTRIAL MARKET Colliers International Valuation

Rock solid storage solutions

Call today to book your FREE SAFETY AUDIT

or review of any existing systemSTORAGE SOLUTION PROFESSIONALS

0800 RACK [email protected]

www.storepro.co.nz

7 2 2 5 8 7

For many businesses, rebuilding Christchurch has created the unique opportunity to design their ideal working environment.

Safety has become the focus, especially for warehouse facilities. Good design promotes safety, but the ability to design and install warehousing systems that withstand the demands of seismic activity, while also providing the safest, most efficient and productive work space, is a job for the experts.

In 2011, Storepro, with their can do - get it done attitude, stood out as the only New Zealand owned and operated storage solutions company capable of meeting all these demands. Their huge range of specifically designed racking systems help streamline the process through proven product and procedures.

From design, specification, supply and installation, Storepro is capable of handling the entire process, including council consents. No job is too big or small.

Storepro offers you:• The widest range of high performance racking

systems built to the highest New Zealand and Australian Safety Standards

• Specific Storepro components that have been designed, engineered and tested to withstand the effects of an earthquake

• The complete package from design to installation, plus a wide range of accessories including material handling machinery.

Stage 2A

Stage 3

State Highway One

20 mins to CBD

New road link

New road link

Stage 1

Stage 4

Stage 5 Stage 6

Stage 2B

10 mins to airport

nkN d li k

20 m

N

COLLIERS INTERNATIONAL Customised

IT’S TIME TO CHECK YOU HAVE THE

PERFECT LEVEL OF RISK & INSURANCE COVER.IS IT STRAIGHT & TRUE? CONSTRUCTED TO YOUR SPECIFIC NEEDS?

Marsh is the world’s leading insurance broker and risk advisor. Our dedicated New Zealand construction team have specialist industry knowledge, so you can be sure of getting expert advice in all aspects of construction risk including contract works, public liability and professional indemnity.

Marsh is offering a FREE INSURANCE HEALTH CHECK on your core insurance cover to identify opportunities to enhance cover and reduce costs.

Get your free health check appointment by scanning the QR code or contact 0800 627 744 today. Auckland | Wellington | Christchurch | Dunedin

SOLUTIONS... DEFINED, DESIGNED, AND DELIVERED.

marsh.co.nz/construction

The area of Woolston is a recognised light industrial suburb, with a ready catchment for staff recruitment.

A comprehensive Geotech report completed on Portlink Industrial Park has given the green light for the development of industrial buildings.

WOOLSTON PORTLINK SOUND GEOTECH

These suburbs are in the immediate boundary of Portlink with shops and amenities and many light industrial businesses.

FERRYMEAD

The CBD is the heart of Christchurch City, located only 12min drive from Portlink.

SOCKBURN

Sockburn, southern motorway and South Island arterial routes. 16min drive from the CBD.

LYTTELTON PORT

The Lyttelton Port is the South Island’s primary deep water port, catering for a diverse range of trades, connecting importers and exporters with the world.

CENTRAL BUSINESS DISTRICT

LYTTELTON PORT 6.2km/11min

5.9km/12min

7.5km/16min

TUNNEL ROAD

STRATEGIC LOCATION, MAXIMUM FLEXIBILITY

CURRENT OCCUPANTS

Online Distribution Elastmer Products Ltd Kathmandu NZ Express Transport

Cla-Val Pacific Fantech

Portlink’s proximity to the port of Lyttelton and accessibility to Christchurch’s main arterial routes also make it highly attractive to a diverse range of businesses including GA Harris, Thule, Boxman, NZ Express, ClaVal, EPL, Kathmandu, Fantech and Online Distribution.

COMPETITIVE LAND PRICES

VARIETY OF SITE OPTIONS AVAILABLE

FUTURE STAGES CAN BE TAILOR MADE www.portlinkpark.com

INDUSTRIAL SALES YE

AR

S RU

NNIN

G20

10-2

0156

South Island Commercial (2004) Limited Licensed under the REAA 2008

THE INDUSTRIAL SPECIALISTS

INDUSTRIAL Reach more people, better results faster

Colliers leads the way as the top Industrial Real Estate providers in the country; we have the solutions.

Call us today.

Sam Staite 021 738 245 Christian Kellar 027 333 4057Paul Marshall 027 221 9994 Sally Ryan 027 483 3311Oliver Salt 027 838 6494

South Island Commerical (2004) Limited Licensed under the REAA 2008

COLLIERS.CO.NZ Reach more people, better results faster

CLEARDOMINANCEColliers International’s Christchurch office has the largest Commercial property team in the Garden City, leading the market in sales, leasing, real estate management, rural & agribusiness and valuation services.

Reaching more people, better results faster.

ChristchurchAgency: 03 365 7887Rural & Agribusiness: 03 365 7887Valuation/Property Management: 03 379 6280

AshburtonRural & Agribusiness: 03 308 3338

A $500 million, 122ha industrial park is being developed by The Carter Group at Rolleston, Canterbury. Lyttelton Port of Christchurch (LPC), has already purchased 27 hectares for an inland port which will have road service by late 2015 and rail service early in 2016. This is a rare chance for manufacturers, importers and exporters to achieve cost savings and invest for growth by being located next to a port.

STRATEGICALLY LOCATED FOR IMPORTERS & EXPORTERS:• at the intersection of Canterbury’s three major freight arteries

• completion of Stage 2 of the Southern Motorway will halve travel times between Rolleston and central Christchurch from about 30 to 15 minutes

• increased use of rail will achieve cost savings.

STAGE 1 SITES ARE NEXT TO LPC’S INLAND PORT:• efficiencies and convenience of a shared boundary

• sites can be customised and expanded, and able to be utilised 24/7.

OFFERING EASY ACCESS TO LPC’S INLAND PORT SERVICES:• customs and quarantine area

• storage and repair and export certification of containers

SOME BENEFITS OF LOCATING AT I PORT:• savings will include a decrease in supply chain costs and reduced turnaround times

• containers transiting I PORT avoid peak time congestion at Lyttelton Port

Rolleston’s I PORT is well-placed to cater for significant regional freight growth over the next 20 years.

I PORT is set to revolutionise freight movements through the Canterbury region by increasing the efficiency of your operations.

LIMITED SITES ALONGSIDE LPC’S INLAND PORT ARE EXPECTED TO LEASE AND SELL FAST. FOR MORE INFORMATION VISIT

WWW.IPORTNZ.CO.NZ

ENQUIRIES: SAM STAITE Colliers International 021 738 245 [email protected]

Date post:	22-Jul-2016
Category:	Documents
Upload:	colliers-international-christchurch
View:	226 times
Download:	4 times

Colliers International - The Industrial Evolution

Documents