Blue-chip logistics asset leased to dairy giant

A new cold chain logistics facility in Hornby, Christchurch, is on the market through CBRE, offering investors one of New Zealand's premier industrial assets.

Developed for Fonterra Brands and opened in early 2026, the property at 13 Bruce Stewart Drive is being sold with a 15 year lease to Lactalis through its legal lease entity Fonterra Brands (NZ) Ltd.

The property is marketed by Tim Rookes, Bruce Catley, Claus Brewer and Chris O'Brien and is for sale by deadline private treaty closing on 22 October 2026.

The South Island has seldom offered industrial investments of this calibre, said CBRE Christchurch managing director Tim Rookes.

"This is a genuine institutional-grade asset on every measure. It combines high-quality tenant specification, Calder Stewart build quality and a prime Hornby location, in the most sought-after investment sector, along with one of the strongest tenant covenants available. Offerings of this quality very rarely come to market."

Lactalis has an A- credit rating from S&P and reported revenue of NZ$61.7b in the 2025 financial year.

The lease, which commenced in April 2026, provides net annual rental income of $2.21m and two five-year rights of renewal through to 2051.

Fixed annual increases of 3.5 per cent are included, along with market reviews every five years that allow for rental growth.

Buyers will view the property as cold chain infrastructure rather than purely a logistics acquisition, said CBRE managing director of industrial and logistics capital markets Bruce Catley.

"Dairy generates more than a third of the country's merchandise export revenue. High-quality cold chain facilities like this one are integral to the sector, so the new owner is effectively investing in the infrastructure behind one of the country's most resilient industries, he said.

"Lactalis has made a major long-term commitment to New Zealand. This facility was purpose-built for Lactalis' New Zealand operations, making it a key part of the company's global operations."

The food-grade facility has about 8,600 sqm of lettable area on a 1.83 hectare site. This includes chilled storage, freezers, ambient warehousing, a loading tunnel and offices, along with more than 7,600 sqm of yard.

The facility was built to the latest standards in chilled storage technology, said CBRE national director of industrial and logistics Claus Brewer.

"Global consumer demand for dairy continues to grow. Future-proofed cold chain infrastructure assets like this are a key part of delivering products fresh to the consumer and safeguarding food supply over the long term."

The secure site includes dedicated truck circulation routes, ample container laydown areas and multiple loading docks. High-speed roller doors, refrigerated loading, canopies and the enclosed loading tunnel allows uninterrupted freight handling around the clock.

The property is flanked by State Highway One and the Christchurch Southern Motorway (State Highway 76) and is close to Christchurch International Airport.

It is also easily accessible to Lyttelton Port and the MetroPort and Midland inland ports in Rolleston.

Hornby is one of the leading industrial and logistics precincts in the South Island, said Rookes.

"Hornby is the dress circle for industrial and logistics operators in Christchurch, with occupiers benefiting from excellent intermodal connections to the port, inland ports, airport and state highways."

New Zealand's favourable investment environment adds to the property's appeal for offshore buyers, said Catley.

"We expect interest from national and offshore groups given New Zealand s relatively low tax burden, which offers a distinct advantage for property investors. Offshore buyers can also take advantage of the current exchange rate, which makes an asset of this quality even more attractive."

Brewer said the shortage of top-quality industrial property will drive demand.

"It's an ongoing challenge for investors to get their hands on industrial property of this standard, especially in the South Island, which offers geographical diversification, so we're expecting strong interest."

- Supplied by CBRE