Hornby asset offers stake in booming pet food industry
A brand-new A-grade industrial investment with 15-year lease term has been listed for sale in Christchurch’s desirable Hornby industrial hub.
The freehold warehouse and office premises at 14 Establishment Dr is home to 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 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 fiveyearly market rent review.
The 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 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.
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 property consists of an approximately 4770m2 building on more than 1.2 hectares of freehold land, with 20 car parks,
Bayleys broker Nick O’Styke said the industrial facility was constructed in 2022 by well-regarded property and construction company Calder Stewart.
Featuring a high-stud, clear-span warehouse of approximately 4000m2, and with a 10 metre-plus stud height at the knee, four container-height roller doors and a large allweather canopy, it was designed for maximum functionality, he said.
‘‘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.’’
Bayleys national industrial and logistics director Scott Campbell said investors could take confidence from the tenant’s commitment to a 15-year lease and investment in a substantial fit-out 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 Dr 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.