Less than a year after purchasing a strategically located 32-hectare block of former farmland in Rolleston, iwi-owned intergenerational investor, Ngāi Tahu Property’s subdivision plans for Tawhiri on Hoskyns Road are well-advanced.
Early sales of industrial development lots proves that investors and owner-occupiers are hungry for land in the area.
The new Ngāi Tahu Property industrial development, known as Tawhiri, adjoins the Izone Southern Business Hub, is close to IPort Business Park and handy to the Rolleston town centre.
Tawhiri is being rolled out in three stages with nearly half of the sites in Stage 1 already confirmed as sold or under contract, including some deals confirming during the COVID-19 lockdown period.
In identifying a need for well-located industrial land close to State Highway 1, Ngāi Tahu Property’s growing Ahumahi-Industrial portfolio in the Canterbury region is attractively priced, which is resonating with the current market.
Harry Peeters and Nick O’Styke of Bayleys Christchurch are marketing the balance of the freehold sites in Stage 1 of Tawhiri with the individual lots being sold by negotiation and the new titles expected to be through by the end of this year.
“Of the 21 sites in Stage 1, seven have sold, a further three are under contract and advanced negotiations are underway on several other lots,” explains Peeters.
“Site sizes range from around 1,000sqm up to almost 2.8ha and there are no build ties with construction companies meaning there is inherent flexibility for both investors and owner-occupiers.
“Land is priced from $165 per square metre making it extremely competitive in the marketplace – particularly when compared with the asking price of other similar industrial land in the vicinity.”
Peeters believes Ngāi Tahu Property’s pricing model and attractive rates in the Selwyn District are largely driving demand, with interest coming from across the industrial business spectrum.
“Bayleys recently negotiated a large deal for a developer who purchased multiple lots and will build a substantial, customisable new building instead of purchasing an existing property that would require refurbishment and reconfiguration,” says Peeters.
“The value proposition stacked up given the land cost and the attractive site ratios which will allow our client to develop a modern, purpose-built offering in a really desirable part of the region.”
The sites have excellent Geotech profiles making for a more economical build and are zoned Business 2A under the Selwyn District Council Plan allowing for a wide range of business uses.
Peeters says they’re seeing demand and interest from trade merchants such as plumbing and gas specialists, coolstore, logistics, food processing and manufacturing businesses – both as owner-operators and tenants.
“I believe the market is showing confidence on the back of evidence that big players in the development market are committing significant resources to establishing a presence in the Rolleston area,” he says.
“When specialist construction company Calder Stewart acquired the balance of the Izone land for development, the market sat up and took notice.
“Ngāi Tahu Property has been proactive and strategic about securing industrial development land recognising that it’s the strongest performing segment of the wider commercial property market and wishing to support Canterbury’s logistics, manufacturing and agri-business sectors.”
Peeters says the COVID-19 situation may prompt business owners to seriously consider becoming owner-occupiers to give them more control over their business bottom lines.
“We do expect the remaining sites in the Tawhiri subdivision to be snapped up quickly – especially given the way the industrial market has performed during the pandemic outbreak, showing resilience and innovation in the face of unprecedented conditions,” he explains.
“For any industrial business that felt beholden to landlords over the past few months, the idea of owning and controlling their own business premises would have some appeal if they’re in a position to fund this.”
The Tawhiri lots are around 15 minutes from Christchurch city and are well-positioned for major transport and transit links including Port of Tauranga’s intermodal freight hub Metroport, Port of Lyttelton, the inland port ‘Midland’, the State Highway network, Christchurch International Airport and the KiwiRail network.