With the amount of space available in Stage 3 of the development rapidly running out, we are already planning Stage 4
18 January 07
Three new contracts have been signed for 11.6 hectares of space in the new Izone Southern Business Hub near Christchurch. The largest sale is to Westland Milk Products for its new East Coast transhipment centre, featuring a dry goods store, rail siding and trucking yards.
Owned by the Selwyn District Council, the 160ha Izone development is located on the outskirts of Rolleston, 25 minutes from the centre of Christchurch and 20 minutes from Christchurch International Airport. It is adjacent to State Highway 1 where a dedicated interchange is proposed to service the growing area around Rolleston.
The council has so far rezoned half of the block industrial, making it the largest industrial subdivision in the South Island and one of the largest in New Zealand. The council initially attracted an anchor tenant in The Warehouse, which built its South Island distribution centre - a giant 30,000m2 warehouse - on the site.
As well as Westland Milk Products, confirmed purchasers of Stage 3 include commercial property developer Castle Commercial and South Island farmer co-operative CRT.
Westland Milk Products has bought a 7ha site at the south-western edge of the Izone development. The facility will include a rail siding off the Midland Branch Line to the West Coast, the busiest rail line in the South Island.
Westland Milk Products deputy chief executive Hugh Little says Stage 1 of the project involves building a 17,000m2 dry goods store with other buildings to follow. Having rail access will allow easy storage and transfer of product bound for export from Lyttelton or Timaru, Mr Little said. Timing for the start of construction has yet to be confirmed.
Castle Commercial has purchased 3.6ha which it will develop both on spec and to the requirements of potential tenants, according to chief executive Bill Horncastle.
Izone features high-quality amenities to provide employees with a "work-life" balance. The "hub" is a central reserve, which in time will accommodate eateries and a crèche as well as provide green space for recreation and relaxation. "The Central Hub was a key point in our decision to purchase in the development. It"s about creating a workplace lifestyle which is well beyond what is offered in a lot of other industrial developments," Mr Horncastle said.
The third sale is to the CRT co-operative, which has bought a 1ha site facing the end of Izone Drive. CRT intends to open a South Island distribution centre on the site, which will include a seed processing and warehousing centre and a stock food manufacturing and packaging plant, according to Brent Esler, chief executive of CRT.
The scale of the development reflects in the lower cost structure which has enabled the developers to offer competitive contract prices ranging from $70 to $110 per m2, according to Izone development manager, RD Hughes. Director Robin Hughes said the pre-commitments highlighted the strength in the occupier market for well located commercial space. "Early purchases will reap the benefits as the development proves itself and land values rise," he said.
"With the amount of space available in Stage 3 of the development rapidly running out, we are already planning Stage 4," Mr Hughes said.