Izone has launched an innovative option for companies building new facilities.
3 November 10
Izone, New Zealand's largest industrial park, is uniquely positioned in the market as it is owned by the Selwyn District Council and backed by a very strong balance sheet.
In a demonstration of its scale and commitment to the long term, Izone has launched an innovative option for companies building new facilities – the ability to purchase additional land for future expansion but pay for it in five years time at today’s prices.
“We understand this is the first time an industrial development has meaningfully provided for the expansion needs of businesses as part of its overall marketing strategy,” says Izone development manager, Robin Hughes.
He says the offer recognises it is incredibly difficult for a company to accurately determine its long-term property needs and also that the cost of holding expansion land can be an unwelcome financial burden.
“The option involves setting aside an area of land, up to a third of the area initially purchased, on its own title and deferring settlement of the purchase of that separate title.”
“We’re using our strengths in a manner that helps future-proof the investment companies make at Izone.”
Approximately fifty percent of the 180 hectare, fully-zoned industrial park is already developed. Recently valued at $60 million, Izone features the largest building in the South Island – The Warehouse’s 30,000m² distribution centre. Other key land owners and tenants include CRT, PGG Wrightson Seeds and dairy company Westland Milk Products.
Selwyn, the fastest growing region in the country, offers lower land prices and substantially lower rates than in Christchurch, Wellington and Auckland. The local council chose to site Izone strategically at the hub of Canterbury’s main transport links – immediately adjacent to State Highway One, at the junction of the Midland and the Main South Trunk Lines, and 20 minutes from Christchurch International Airport.
The four-laning of the new southern motorway which commenced earlier this year will ultimately terminate at Izone’s planned new entrance, significantly reducing the current 40-minute drive to the Port of Lyttelton.
Selwyn’s continued growth is certain due to the Central Plains Water irrigation scheme which, when built, will add $1 billion to the local economy and create 700 food-processing jobs.
Izone is managed by experienced property developers R.D. Hughes Developments Limited. “Selwyn Council is to be congratulated for its foresight,” says Robin Hughes who is also R.D. Hughes Developments’ director. “There is an absolute determination for Izone to be designed and built to the highest of standards and the performance in the recent earthquake was a testament to that. While some buildings sustained minor damage, Izone’s infrastructure was totally unaffected.”
Given SDC’s ownership and the wider focus on benefiting the district, Mr Hughes says Izone is not just about selling land and moving on to the next customer.
“It’s about creating a business community and a healthy work environment. This year we’ve helped facilitate the establishment of the Izone Business Association and opened Cafe Izone, which was recently named the country’s ‘Best New Restaurant of the Year’ at the national Hospitality Association of New Zealand awards. An early child education centre is also planned.
“We really are in it for the long haul and we want to do business with companies who want the same.”