One of New Zealand’s largest unlisted industrial property funds is seeking to raise $50 million to expand its footprint across the country, as investors flock to high-performance warehousing and logistics assets tailored for automation.
The $432 million FortHill Fund, backed by industrial developer Calder Stewart, holds more than 32 hectares of prime industrial real estate in Auckland, Canterbury and Otago. It has now opened a wholesale capital raise to support further acquisitions in key transport corridors.
Among its assets is the $68 million NZ Safety Blackwoods facility at Drury South Crossing –– the highest-value industrial property transaction in the second half of last year. Other blue-chip tenants include NZ Post, Winstone Wallboards, DHL, OfficeMax, Waste Management and Fletcher Easysteel.
FortHill general manager Nick Maier says investor appetite is returning to the sector.
“The research shows that with interest rates easing and prime rents increasing, investor capital is flowing back into industrial property.
“As a result of our direct access to off-market developments from New Zealand’s largest industrial builder, CalderStewart, we’re uniquely positioned to capitalise on this.
“These facilities cover over 144,000 square metres of lettable area and are in the country’s main logistics hubs.
“Most national operators need one shed in Auckland and one in Christchurch, close to major transport corridors. We’re focused on owning the best version of those – sites with strong infrastructure links, modern design, and long-term tenant appeal.”
According to the latest research from JLL, New Zealand’s industrial sector contributes 26% of GDP, with prime warehouse rental rates in Auckland rising more than 80% over the past decade. The rise of e-commerce and export demand is fuelling the need for facilities equipped for automation and efficiency.
“Tenants are increasingly investing heavily in automated systems and require buildings that support them.
“High-stud clearances, strong floor slabs, electrification and efficient layouts are all essential now. We’re seeing a shift from simply occupying space to using it as a platform for productivity,” Maier says.
FortHill is also rolling out a large-scale sustainability programme. Over 8000 rooftop solar panels are set to be installed across 20 buildings in what is believed to be one of New Zealand’s largest-ever solar retrofit projects. The panels are expected to generate more than 4 million kWh annually.
In partnership with ASB and Kiwi tech firm Tether, FortHill is also piloting AI-powered energy monitoring systems across 13 properties. The year-long trial aims to identify real-time energy usage trends and reduce tenant operating costs by up to 30%.
Maier says the PIE-compliant fund is forecasting a 6.1% gross yield for FY26 and has delivered uninterrupted quarterly distributions since its launch in 2019. The portfolio currently boasts a 100% occupancy rate and a weighted average lease term (WALT) of 8.2 years.
A cornerstone investor has already pre-committed $6.65m toward the current $50m capital raise.
