Logistics facility with secure income, room to grow

A Palmerston North cold chain logistics asset with a long-term lease to Big Chill Distribution is on the market through CBRE.

The facility, at 43 Alderson Drive, Milson, was purpose-built for Big Chill in 2013.

It includes surplus land for future expansion, offering investors secure income with built-in rental growth and the potential to increase returns over time.

The property is marketed by John Bedford and Bruce Catley for sale by deadline private treaty closing on 4 November 2026.

Industrial investments with secure long-term income are highly sought after and those that also offer a compelling income growth pathway are much harder to find, said CBRE managing director of industrial and logistics capital markets Bruce Catley.

"This is a stand-out industrial investment that combines purpose-built cold chain infrastructure, a well-established tenant and a strategic location in one of New Zealand's key logistics hubs, along with future growth potential on the surplus land."

Big Chill, owned by NZX and ASX-listed company Freightways, is one of New Zealand's leading temperature-controlled transport, warehousing and logistics providers, delivering end-to-end cold chain logistics solutions nationwide through an extensive network of purpose-built cool stores, distribution facilities and refrigerated trucks.

Its core services include refrigerated transport, regional and national distribution, cold storage, third-party logistics and dedicated supply chain solutions for temperature-sensitive products.

A key strength of the business is its ongoing investment in specialist logistics infrastructure, with purpose-built facilities designed to support long-term operational growth and evolving customer requirements.

Big Chill's lease began in November 2013 with an initial 12-year term. The company exercised its first seven-year right of renewal in November 2025, providing about six years of remaining lease term to October 2032, with a further seven-year right of renewal to 2039.

Annual rental income amounts to around $528,000 and the lease also includes annual CPI-linked rent reviews, providing consistent rental growth and a degree of protection against inflation.

Big Chill's decision to renew its lease demonstrates its commitment to the site, said CBRE senior director of industrial and logistics capital markets John Bedford.

"This facility was built around Big Chill's operations. Its integrated refrigeration infrastructure would be costly and time-consuming to replicate, which sets this asset apart from more generic industrial property and supports the tenant's long-term occupation."

A key point of difference is the surplus land area on site, set aside in the original development to accommodate future expansion. This provides capacity for additional warehousing, storage or distribution space if Big Chill's operational requirements increase, said Catley.

"The surplus development land gives Big Chill room to grow at this location and also provides the new owner with a strong opportunity to increase rental income in the future."

Big Chill is also responsible for maintaining the facility's refrigeration and chiller plant and other specialist building services. This significantly reduces the new owner's exposure to the capital expenditure typically associated with temperature-controlled facilities.

The facility has about 1,500sq m of building area, including a freezer, chiller, load-out area and offices, on a 7,550sq m site. It operates as a regional hub, receiving, storing and distributing products for Big Chill's customers throughout the central and lower North Island.

Buyers will view the property as a cold chain infrastructure asset rather than simply an industrial building, said Bedford.

"Temperature-controlled facilities like this are integral to New Zealand's food supply chain. The new owner is effectively investing in infrastructure that helps keep chilled and frozen products moving around the country."

Milson is an established industrial precinct with excellent connections to Palmerston North Airport, the North Island Main Trunk rail line and State Highway 3.

As a high growth location benefiting from recent roading upgrades through to Wellington, the area has become an attractive regional distribution hub for logistics and supply chain operators.

- Supplied by CBRE