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$18.5 million Warehouse development for Rolleston

May 14, 2002

Media release ­ embargoed until 3pm Tuesday, May 14

$18.5 million Warehouse development for Rolleston

The Warehouse will build a $18.5 million high-tech distribution centre at Rolleston, servicing the entire South Island and part of the lower North Island, Warehouse founder Stephen Tindall announced in a joint release with the Selwyn District Council today.

Believed to be the biggest single level building in the South Island, the distribution centre will occupy more than 32,000 square metres (in excess of six rugby fields) on the seven-hectare site on the western side of the main trunk railway line at Rolleston.

In comparison, The Warehouse¹s largest store in Christchurch is Eastgate, with 9291sq m of retail space.

Work on the South Island distribution centre (SIDC) is expected to begin immediately, with completion expected by early next year. Once operational, the distribution centre is likely to employ up to 100 people at peak times and become a significant contributor to the Rolleston economy.

The Warehouse has purchased the site, and will build the distribution centre, which will then be sold back to the Selwyn District Council. The $18.5 million price tag includes building and land costs of $13 million and internal fitout costs of $5.5 million.

The Warehouse will lease the building for a significant period, providing good rates of return for the Selwyn District Council, which is diversifying its investment portfolio.

Mayor Michael McEvedy says The Warehouse¹s decision to locate the SIDC at Rolleston is due in part to the Selwyn District Council¹s economic development strategy. Part of the strategy is the development of an employment park at Rolleston, with The Warehouse being the first key anchor tenant. To successfully create the park, the SDC recognised the need to bring in outside expertise to grow the industrial park site.

Chaired by Councillor Jens Christensen, the Rolleston Industrial Park project team includes four professionals with expertise in commercial development. ³The work this team has done in attracting The Warehouse to Rolleston has been considerable, and it is a mark of their dedication and expertise that they have completed this agreement with The Warehouse,² Michael McEvedy says.

Cr Christensen says the SIDC will provide significant economic benefit for Selwyn, creating long-term employment opportunities as well as providing an investment with good earning capabilities.

³The council already has significant investments, but had been looking to diversify into commercial property. The option of investing in The Warehouse distribution centre meets our policies while also improving our annual returns from investment.

³Rolleston has experienced significant population growth in recent years, and The Warehouse¹s decision to site here is likely to fuel further interest from businesses looking to locate in the area.²

Selwyn District Council¹s economic development plan includes future expansion of the Rolleston site as a centre for high-tech businesses and industry. Considerable opportunities exist associated with the rural sector.

Stephen Tindall says The Warehouse chose the Rolleston site for a number of reasons, including its close proximity to various distribution channels, including State Highway 1, Christchurch International Airport, the Port of Lyttelton and the major national rail link.

Siting the distribution centre in the Selwyn District was made simpler by the lack of similar sized sites within the boundaries of Christchurch City. The rates on the Selwyn site will be around a quarter of an equivalent industrial site within the city boundaries.

In addition to the large building, the site will have traffic management systems designed to cope with the high volume of trucks anticipated at the distribution centre each day. ³We expect around 20 containers per day through the distribution centre, which will rise up to 40 or more at peak times,² Stephen Tindall says.

A large hardstand area of 15,000 sq m ­ capacity for up to 400 containers ­ will also be incorporated into the site to allow for the large number of containers being handled.

The Warehouse will now consolidate its South Island distribution at the Rolleston site, rather than operating over multiple sites, ensuring it is able to support immediate growth needs while also catering for future requirements.

A purpose-built facility offers The Warehouse the opportunity to implement automated and technically proficient distribution processes in the South Island.

A high-tech computer controlled tracking and distribution system ­ the first of its type in the South Island ­ will be installed at the site. Already in use at the Wiri site, the system provides for fast distribution of consignments and means the distribution centre will hold only a small amount of inventory.

South Island-based construction company Naylor Love has the contract for the building, which will lead to around 25 direct local jobs over the building programme of eight to 10 months.

For more information, contact:

Glen Inger Director, Property Development The Warehouse Ph 09 489 7000

Cr Jens Christensen Chairman Rolleston Industrial Park project team Ph 025 334 179

****************

Key facts

Rolleston

* Rolleston currently has a population of 3200 * A range of new commercial infrastructure has been developed in recent times, including a new supermarket, hardware store, restaurant/café and new service station

The Warehouse South Island Distribution Centre

# The building will occupy just over 32,000 square metres of the seven-hectare site. This is slightly more than the size of six rugby fields # The highest point of the building will be 13.7 metres # The site is seven hectares, with a further three hectares set aside for future expansion # Construction is due for completion in early 2003


# Features:
- Specially-stressed concrete floor
- Steel portal frames
- Precast concrete tilt panel walls /colour steel
- Zincalume roof
- Exterior will feature two red walls and two of a light beige
- Office space
- Large loading canopy
- 88 carparks with room for a further 38 in future
- 15,000 square metre container park with space for approximately 400 containers - State-of-the-art computerised tracking and conveyor system as used at The Warehouse Wiri distribution centre


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