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The opportunity results from Hilton Haulage, one of New Zealand’s most recognised logistics providers, building a 7,700sqm warehouse and logistics facility to serve its growing South Island business.
Located at 17 Duke Street, Sawyers Bay, the 1.33-hectare site is just 2kms from Port Otago. It will be one of the largest logistics facilities in the region, have the capacity to handle multiple large scale customers and be built to the highest of international standards.
Scott Crampton, Hilton Haulage Limited Partnership CEO, says the business has been operating on the site previously as tenants and securing it for development is a strategic step to support the growth aspirations of clients.
“This is an exceptionally good location and site – the proximity to Port Otago supports productive and sustainable transport solutions, and the land size enables a large facility to serve the regional economy.
“With our focus being the food sector, it will be commissioned as food production grows, commodity prices stabilise and clients are looking for long term, high quality, sustainable, end to end logistic solutions.
“As a new build, it will be one of the most compliant, efficient and well positioned logistics hubs in the Otago area,” he says.
The Limited Partnership will purchase the property from Hilton Haulage Limited Partnership, with Hilton leasing it back on a new 12-year lease, with two rights of renewal of six years each.
Construction of the new building will start in April 2021, with anticipated completion in October 2021. During construction, pre-tax distributions will be 4.0% p.a., and on completion 7.0% p.a., paid monthly.
Quarry Capital Limited is a South Island based specialist in managed investment schemes and has carved a niche in the logistics and industrial sector. It currently manages two large sites in Christchurch for Hilton Haulage.
“Hilton Haulage is a market leading tenant in the essential service sector. We are looking forward to providing wholesale investors with an opportunity to invest in Dunedin.
“Investments in property schemes are sought out by investors who understand the pressures of a low fixed interest rate environment and the lack of alternative opportunities providing similar returns. Industrial sector properties with good tenant covenants are especially favoured because they are physical, active and operate at the economy's heart,” he says.
More information on this opportunity can be found at: quarrycapital.co.nz/offers/duke-street-limited-partnership
Hilton Haulage dates back to the 1960s and is currently 50% owned by South Island Iwi, Ngai Tahu. The business operates across the entire logistics sector and has over 240 frontline transport units operating from 17 sites throughout New Zealand, supported by a team of over 400.
Quarry Capital Limited is licensed under the Financial Markets Conduct Act 2013 to manage Managed Investment Schemes (excluding managed funds) which primarily invest in, or own, real property in New Zealand (other than forestry).