Fonterra House: the land of milk and honey for investors

A tenanted office tower on a prominent corner in Hamilton’s CBD is attracting strong interest from investors amid appetites for well-located premises that safeguard value with flexible use options.

The extensively refurbished 6791sq m of lettable refurbished office at 78 and 80 London St is in a prime position to leverage high-profile visibility, attracting maximum exposure from passing foot traffic and vehicle movements.

Bayleys executive director David Bayley says the property is a class-leading asset in New Zealand’s fastest-growing metropolitan area, which presents an inimitable opportunity for investors to maximise superb geographic fundamentals.

“Whilst currently occupied by global dairy giant Fonterra, there is scope for diverse use options, including a hotel, apartment conversion or continued use as a trophy office asset,” he says.

“Strong international visitation and the rebound of the tourism sector continues to be a bright spot for New Zealand’s economy. At the same time, projections see housing supply is not meeting demand due to escalating population growth, which presents development firms and investors with an opportunity to provide solutions.

“Funders continue to emphasise the role of quality and diversification for assets on their books, which informs investor appetites, particularly as the flight to quality narrative drives consumer demand as an entrenched market feature.”

Bayley is marketing the premises for sale by tender closing at 4pm on Thursday, October 26, unless sold prior, with colleagues David Cashmore, Alex ten Hove and Luke ten Hove.

Cashmore says the property currently returns $1,799,064.31 net annually plus GST and outgoings from a lease to global dairy giant Fonterra.

Fonterra has a lease due for renewal in September 2026 for a further term of three years.