As Christchurch continues to consolidate its reputation as a logistics and transport hub, strategically located land for such industrial use is rapidly diminishing.
The new 30ha Portlink Industrial Park in Christchurch’s Port Hills area is poised to meet the rapidly growing demand for industrial land near Lyttelton Port. Just launched onto the market by Arcus Developments Ltd, part of the Arrow Group, Portlink is the only available greenfield site of significant scale in the area.
Jonathan Lyttle and Ben Dwan, industrial specialists with Colliers International in Christchurch, said Portlink would cater for potential tenants and owners wanting to be a stone’s throw from Lyttelton, close to the CBD and on the doorstep of the main arterial routes.
“Portlink will suit third party logistics, distribution, freight forwarding, service companies and land hungry businesses.
“The timing is perfect. There are no other quality options that can meet substantial tenant requirements in this area. Portlink is the only industrial park available which can cater for operators wanting around 5000m² + buildings close to the Port.”
David Mortimer, a shareholder in Arcus and its managing director, said the development company bought the sprawling block at the foot of the Lyttelton Road Tunnel four years ago. Late last year it finally succeeded in its rezoning application from rural to Business 4 – allowing for a wide range of industrial uses.
“This will be a high quality industrial park with a high standard of amenities. It will be staff focused and socially responsible. We’ve worked hard alongside the Christchurch City Council and Ngai Tahu to ensure Portlink fits in with the environment and neighbouring residential area.”
“All of the large sites in the area have gone. Portlink is the only greenfield development option of substance available in the Woolston/Port Hills area.”
The growth of the thriving Port Hills industrial area in the past decade or so has drastically changed the area’s landscape with mixed industrial and third party logistics operators moving as close as possible to the bustling port. So scarce is land that the Lyttelton Port Company itself has now established an ‘inland port’ in the Portlink vicinity for the overflow of its container storage. This CityDepot operates 24 hours, five days a week. It was established as an empty container park storing, washing, repairing and pre-tripping containers. More recently LPC has used it for receiving and storing full containers going to or from the port. LPC purchased the business of NZ Express in 2005, which included the container depot business.
Lyttelton Port Company chief executive Peter Davie said LPC was supportive of Portlink’s rezoning application.
“The Port continues to grow. In the last seven years the volume of containers handled has doubled. This requires more area for container storage, washing and repair.
“Over the long term more land will be needed.”
This year the Port will handle approx 270,000 20ft TEU containers, compared with around 200,000 just five years ago.
As a long-term investor in Portlink, Arcus’ preference is for lease, but Mortimer recognises that some national operators, in particular, may want to own their own premises. Site sizes are flexible with a focus on large format.
“We’re able to tailor make sites for large end users to cater for their specific needs. Our experience is that tenants are drawn to developments such as Portlink because of the ability to meet individual requirements. Obviously it’s one of the clear advantages over brownfield sites.”
Mortimer expects to have consents in place by the third quarter of this year, paving the way for internal roads to begin before Christmas.
Lyttle and Dwan said there was increasing demand for businesses to be located close to Lyttelton.
“More and more operators are concerned with the cost of traffic movements. Transport and logistics costs are increasing, margins are decreasing. Companies need to be strategically located close to the Port and main arterial routes.”
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