A brand-new A-grade industrial investment with 15-year lease term has been listed for sale in Christchurch.

The freehold warehouse-and-office premises in the city’s desirable Hornby industrial hub are home to a world-class contract pet food facility run by New Zealand Riverland Foods.

The company offers end-to-end solutions to pet food businesses, including product development, ingredient sourcing, manufacturing, branding and packaging, and product registration.

The modern high-speed, high-volume facility on Establishment Drive is fully leased to New Zealand Riverland Foods, generating an annual net rental return of $640,000 plus outgoings and GST. The current lease runs through to 2038 with two further five-year rights of renewal. The lease agreement incorporates annual three-percent rental increases, plus a five-yearly market rent review.

The new Hornby facility caters to a thriving industry driven by near record pet ownership in New Zealand and ambitious plans to boost pet food exports and international distribution.

Companion Animals NZ (CANZ) figures released in 2016 revealed Kiwis spent $1.8 billion a year on pets, up from $1.6 billion four years earlier. Food was the largest component of this spending. Further afield, in 2022, Americans spent US$136.8 billion on their pets, up 10.68% from 2021 (US$123.6 billion).

With more than 4.3 million cats, dogs and other pets nearly matching the country’s human population, Kiwis are among the world’s greatest pet lovers. According to a survey by animal welfare body CANZ, 64 percent of New Zealand households have a pet – second only to the United States, at 67 percent.

The Ministry of Business, Innovation and Employment has identified pet food as an export growth sector, with a 2021 report outlining the potential to more than double exports to over US$1 billion, amid surging global demand.

The 14 Establishment Drive property consists of an approximately 4,770-square-metre building on more than 1.2 hectares of freehold land, with 20 car parks, and is being marketed for sale through Nick O’Styke, Scott Campbell and Anna Morawiec of Bayleys Real Estate.

The property will be sold by deadline private treaty closing on Thursday 15 June, unless it is sold earlier. Constructed in 2022 by well-regarded property and construction company Calder Stewart, this impressive industrial facility features a high-stud, clear-span warehouse of some 4,000 square metres. With a 10 metre-plus stud height at the knee, four container-height roller doors and a large all-weather canopy, this is designed for maximum functionality.

“The warehouse is complemented by a smart office with floor-to-ceiling windows and a separate staff kitchen and lunchroom. The yard is fully fenced with dual access, allowing easy truck manoeuvrability and there is plenty of onsite parking,” said O’Styke.

Bayleys national industrial and logistics director Scott Campbell said investors would take confidence from the tenant’s commitment to a 15-year lease and investment in a substantial fitout of the property as a pet food processing facility.

“The exceptional tenant covenant, combined with a high build quality and strategic position in one of Christchurch’s premier industrial locations make the Establishment Drive property a true A-grade industrial investment,” said Campbell.

The site is positioned in the heart of Hornby, close to State Highway 1 and Christchurch International Airport. It sits within the Industrial General zone under Christchurch’s district plan.

Morawiec said neighbouring properties were home to a variety of industrial activities including manufacturing, building supplies, transport and logistics, plus big brands such as Heinz Wattie’s, Oji Fibre Solutions and distribution centres for Foodstuffs and Glassons.

“Hornby is widely considered by industrial businesses to be one of the best locations in Christchurch for many reasons, including excellent road and rail access and proximity to the CBD. The area has excellent infrastructure to cope with increasing demand, including ample power services and staff amenities,” Morawiec said.

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