Investors herd to Hornby dairy food factory

The modern industrial food processing plant housing a bluechip company behind some of New Zealand’s best known dairy brands has been placed on the market for sale. The large facility on more than a hectare of freehold land sits at a prominent corner in the heart of the Christchurch industrial stronghold of Hornby.

The property for sale at 719 Halswell Junction Road is fully leased to NZX-listed subsidiary tenant Dairyworks which uses it as its main food processing and distribution factory.

The freehold land and buildings at 719 Halswell Junction Road, Hornby, are now being marketed for sale by deadline private treaty closing on Friday 3 December, through Bayleys Real Estate.

The property sits at the corner of Halswell Junction Road and Connaught Drive. It consists of a building of some 4096sqm on an approximately 11,110sqm freehold site within the Industrial Heavy zone under Christchurch’s district plan, allowing for a range of intensive industrial activities.

Established in Temuka in 2001, Dairyworks moved production to Christchurch in 2006 to meet growing demand. The company’s Alpine, Dairyworks, and Rolling Meadow brands are sold throughout New Zealand and the company also exports to Australia.

Dairyworks was recently purchased by Canterbury-based NZXlisted Synlait Milk.

Dairyworks’ tenancy at the Hornby facility generates net rental income of $606,573 per annum on a lease that runs through to 2029, with two further five-year rights of

renewal. The lease agreement incorporates two-yearly market rent reviews.

Bayleys Christchurch Industrial sales broker Nick O’Styke said the building was originally constructed in 1995 and had since been refurbished and reconfigured to provide a mix of contemporary offices, amenities and food processing areas with associated cool storage, distribution and loading spaces.

‘‘This modern and wellconfigured high-stud warehouse building represents an A-grade industrial facility, positioned on a substantial, well-located landholding,’’ he said.

The Halswell Junction Road building also has an A-grade Initial Evaluation Procedure seismic rating of 85 per cent of new building standard.

‘‘The highly functional site enjoys dual access via two entry

and exit points on Connaught Drive. It contains 35 on-site car parks and a generous concrete yard allowing easy movement of trucks onto and around the property.

‘‘The large yard area also offers the flexibility to add to the property in the future.’’

Bayleys Industrial and Logistics national director Scott Campbell said investor interest was expected from well beyond Christchurch.

‘‘COVID-19 has reinforced the

fundamental strengths of industrial property, which has continued to perform strongly, particularly when combined with tenants in essential industries such as dairy and food service.

‘‘An offering of this quality, in this strategic main centre location, with a blue-chip essential service tenant and strong lease covenant, is sure to turn heads among buyers seeking a passive investment of the highest quality.’’