FortHill Property closes offer

The 4170sqm Neville St industrial building in Carisbrook, Dunedin, tenanted by Fletcher Easysteel, part of the FortHill portfolio. Photo: Supplied
The 4170sqm Neville St industrial building in Carisbrook, Dunedin, tenanted by Fletcher Easysteel, part of the FortHill portfolio. Photo: Supplied
Launched three months ago, real estate investment fund FortHill Property has closed its initial offer to investors.

The industrial properties in the $170million portfolio were sold into FortHill by Milton-based property construction and development company Calder Stewart.

The fund attracted about 50 institutional investors, including the Stewart family, which had retained a cornerstone shareholding of 30%.

It is forecasting returns of between 6.5% and 7% per annum.

FortHill Property general manager Nick Maier said the fund would continue to invest in a diversified portfolio of industrial and commercial properties throughout New Zealand.

''Our primary focus will be on growing our portfolio for investors into Dunedin, Christchurch, Auckland, Tauranga and Queenstown markets and we have an excellent pipeline for new properties in the coming year.''

The fund already had a strong Christchurch bias, with 10 properties located in the city, their returns backed by long-term tenants including Waste Management, Penske, AB Equipment, Fletcher's and Komatsu.

It also includes 14 Neville St, in Dunedin, tenanted by Fletcher Building.

''With wholesale investors looking for suitable yields and growth in their investment mix, FortHill has been successful in attracting significant backing.

''We think it's struck a chord with investors who rate the quality of assets and our long term investment view.''

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