Farmers are increasingly turning their investment attention beyond the farm gate and Canterbury’s industrial property precinct is proving a natural landing spot.
Acting on strong Fonterra returns and the recent windfall from the company’s sale of the Mainland Group, many investors are actively seeking commercial and industrial properties with a particular focus on those with a link to agriculture, says Sam Staite, Director of Industrial at Colliers Christchurch.
“Whether the occupier is in any way associated with technology, harvesting, production, processing, or transport and distribution of animal or vegetable products, there’s certainly a natural leaning toward these primary-industry connected investments which seem to tick the boxes for rural investors in a way that generic commercial real estate doesn’t,” he says.
“It’s a sector these investors understand: the supply chains, the seasonal rhythms, and the export premiums. That familiarity is proving to be a genuine drawcard.”
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The trend makes sense. With significant capital now sitting in the hands of farmers, front of mind is the question of where it is best invested.
“They’re also looking at their debt, their succession, their investment portfolio, and other ways to diversify beyond the farm.
“On behalf of their clients, bankers and advisors are seeking opportunities and suggesting the best protected investment decisions.”
There’s one property that captures exactly what agri-capital investors appear to be looking at – 25 Izone Drive in Rolleston.
A purpose-built seafood processing facility, it’s currently on the market and fully leased to Fiordland Lobster Company Limited.
The company is a globally recognised exporter of premium, wild-caught southern rock lobster, with more than 35 years of operational history. It brings seafood up from Southland for processing and export.
The 2,935sq m facility sits on a 6,340sq m freehold site in Rolleston’s Izone Industrial Park – one of Canterbury’s premier industrial locations spanning approximately 180ha, with direct access to State Highway 1 and major freight networks
Selwyn District is New Zealand’s fastest-growing region, averaging 5.1 per cent annual growth, with strong residential development in Rolleston and Lincoln supporting long-term industrial demand.
Will Franks, Investment Sales Broker at Colliers Christchurch, who is marketing the property with Staite, says the asset offers a passive, hands-off income stream, built-in rental growth via CPI increases, and long-term security through lease tenure and renewal options.
“The strength of the tenant covenant is reinforced by the calibre of Fiordland Lobster’s ownership structure, with the company tracing its roots to the 15 Southland fishers who founded it in the 1980s,” Franks says.
Today it counts iwi and institutional investors among its shareholders, including ACC, Rangatira Investments, Jarden, Invest South, and Evergreen Partners, as well as the fishers who supply the product.
The property is being marketed for sale through a deadline private treaty process closing at 4pm on Thursday 4 June, unless sold prior.
- Supplied by Colliers
