Tainui Group Holdings’ recently-announced joint venture partnership with Brookfield Asset Management, facilitated by CBRE, is about to supercharge the next stage of development at Ruakura Superhub.
The global investment firm’s stake in the Waikato development has kickstarted the rollout of new construction activity in New Zealand’s most significant new industrial precinct.
CBRE is also offering several options for industrial occupiers considering relocating to Ruakura Superhub, as momentum builds across the 610-hectare development.
Working alongside Tainui Group Holdings (TGH) as the exclusive leasing and consultancy partner for Ruakura, CBRE is inviting occupiers to consider upcoming warehouse and logistics space options for locating among Ruakura’s existing high-calibre tenants.
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Brent McGregor, executive chairman of CBRE New Zealand, said Ruakura Superhub is a “game-changing” development in New Zealand's logistics property sector.
“Ruakura’s location, scale and infrastructure advantages are unmatched. The development is an intergenerational venture for TGH and a nationally significant project, creating a sustainable and efficient supply chain hub within the North Island’s golden triangle.”
Offering superior intermodal transit infrastructure and flexible leasing options, Ruakura presents a strategic opportunity for occupiers to establish a long-term base in a premier logistics location, said Claus Brewer, national director of industrial & logistics at CBRE.
“TGH continues to take an agile and responsive approach to development, with flexible options available and a willingness to work with occupiers to achieve their vision both in the short and long term. Key advantages include flexible tenure, sustainability benefits and the ability to customise space to suit future growth.”
With rising property costs in Auckland and operational challenges, an increasing number of industrial and logistics occupiers are now looking to the Waikato as an attractive alternative location to service the entire country, he said.
“Ruakura helps companies accelerate growth by offering scale, seamless transit infrastructure and future-proofed, sustainable build options.
"As awareness grows nationally around the advantages of inland port models and the benefits of being located in these precincts, we’re seeing increased enquiry levels from a wide range of prospective occupiers.”
As well as offering upcoming options for a variety of prospective occupiers, including large scale design builds and provision for warehousing in smaller formats up to 4,000 sq m, phase two of the Ruakura service centre precinct is also in planning stages.
This will add further support amenity for businesses in the development. Only around 10% of the Ruakura Superhub land has been developed to date.
Activity is set to accelerate under TGH’s joint venture deal with Brookfield, which was announced following the completion of a competitive global capital raise programme run by CBRE.
The deal sees Brookfield, which manages over NZ$1 trillion in assets globally, entering a long-term partnership with TGH to develop out a further 70ha of logistics land at Ruakura, with a forecast completion value well in excess of $1 billion, said McGregor.
“Bringing in Brookfield is a major milestone which enables TGH to fast-track the next phases of development and respond quickly to occupier demand.
"There was a wide range of local and international bidders but Brookfield offered the capital depth and global expertise TGH was looking for, while allowing TGH to manage the execution of their vision.”
The announcement of the Brookfield partnership marks a significant milestone in CBRE’s ongoing work with TGH on the Ruakura project, which spans over eight years.
Over that time, CBRE has been involved in all stages of the project; providing strategic development advice, research insights, consultancy, valuation, marketing and leasing services to TGH, including running the search process for a joint venture partner.
The JV has initially acquired four industrial buildings on long-term ground leases, tenanted by Kmart, Big Chill, Refrigafreighters and PBT Express.
Brookfield’s investment also marks the entry of fresh international capital into New Zealand property, at a time when owners of major projects are increasingly considering joint venture partnerships to unlock growth, McGregor said.
“The partnership with Brookfield represents the entry of significant international capital to the New Zealand property market, which has been a rare occurrence in recent years. It also adds further credibility to the Superhub and signals that global investors see long-term value here.”
Located on Hamilton's eastern fringe and directly connected to the Waikato Expressway, Ruakura offers strategic advantages to businesses servicing the Auckland-Tauranga-Hamilton golden triangle and beyond.
Daily direct rail links, proximity to more than half the country’s population and efficient road access make it one of New Zealand’s most connected industrial locations, said Brewer.
“Ruakura’s success has been underpinned by its superior location and the calibre of its anchor tenants, including Port of Tauranga, Maersk, Waitomo Group and Kmart. Several new tenants are also due to be announced, joining recent entrants Sime Darby Motors, Refrigafreighters and Big Chill.”
From a sustainability perspective, Ruakura’s inland port model helps shift more container freight off the roads and onto rail, offering a strong advantage for logistics occupiers looking to achieve greater sustainability credentials.
TGH is also focusing on sustainable building, with Kmart’s distribution centre having achieved a 5 Green Star Design & As Built rating. The development also includes a 12ha wetland and extensive native planting under the Te Wairepo project.
Hamilton’s status as New Zealand’s fastest growing city adds further weight to Ruakura’s proposition for industrial and logistics occupiers, as well as recent NZTA funding approval for the design and consenting of the Ruakura Eastern Transport Corridor, which will further enhance access to the Superhub.
- Supplied by CBRE
