A near-new premium warehouse/office facility for sale in Christchurch’s industrial stronghold is expected to unleash keen interest from investors.

The property in the Hornby Quadrant houses a world-class contract pet food processing plant run by New Zealand Riverland Foods. The facility on Establishment Drive is fully leased, returning a net rental of $659,200 plus outgoings and GST per annum.

The current lease runs through to 2038 with two further five-year rights of renewal. The lease agreement provides for annual three-percent rental increases, replaced by market rent reviews every fifth year.

The building was developed in 2023 by Calder Stewart, one of New Zealand’s leading property and construction companies, and designed to the most modern standard including a separate staff and visitor car park for 20 vehicles. The substantial yard has dual access for drive-through transport movements.

The freehold industrial facility at 14 Establishment Drive, Hornby, Christchurch, is being marketed for sale by Sam Stone, Jesse Paenga and William Wallace of Bayleys Canterbury.

The property will be sold by deadline private treaty closing on Thursday 24 October, unless it is sold prior.

Stone said the building of some 4,770 square metres was underpinned by more than 1.2 hectares of freehold land.

The site is zoned Industrial General under Christchurch’s district plan

“The approximately 4,000-square-metre clear-span warehouse offers a 10 metre-plus stud height, four container-height roller doors and a large canopy.

"The warehouse roof also features solar panels which assist the tenants with their sustainability credentials.

“This area is complemented by a smart office with floor-to-ceiling windows and a separate staff kitchen and lunchroom,” said Stone.

Paenga said the tenant had invested in a substantial fitout, including the latest in technology with an automated production line and cold-storage facility.

“With the company committing to a 15-year lease, the tenant covenant, build quality and location in the coveted Hornby Quadrant make 14 Establishment Drive a true A-Grade industrial investment.

“The tenant’s fitout has been designed without structural changes to the building. If at any stage the fitout is required to be removed, investors will have the confidence of a functional layout with excellent warehouse-to-office ratios,” said Paenga.

Wallace said good access to State Highway 1, Christchurch International Airport and the city centre had helped industry to flourish in Hornby Quadrant.

“Surrounding properties house an array of activities such as manufacturing, transport, logistics and building supplies, distribution centres for Foodstuffs and Glassons, and other big names like Heinz Wattie’s and Oji Fibre Solutions,” Wallace said.

The tenant, New Zealand Riverland Foods, offers end-to-end solutions to pet food businesses, including product development, ingredient sourcing, manufacturing, branding and packaging, and product registration.

The company’s Hornby Quadrant plant caters to a booming industry buoyed by near-record pet ownership domestically and ambitious plans to grow pet food sales abroad.

New Zealand has one of the world’s highest rates of pet ownership, including some 2.2 million cats and dogs.

Annual revenue in the country’s pet food market has been estimated at $900 million. Data and business intelligence platform Statista tips the entire market to grow by nearly three percent annually between 2024 and 2029.

Exports of pet food soared from US$62 million to $US209 million in the 10 years to 2022 with the top markets being China, the US and Australia, according to ITC Trademap.

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

Click here for more information on the listing.