The administrators of Arrrow International are demanding the company sells its remaining 15.3 hectares of land in Portlink Industrial Park near Lyttelton.
Colliers International industrial sales and leasing director Sam Staite says all offers for the Portlink sites will be considered, given the administrators’ instructions.
Portlink is a 30-hectare industrial development housing the likes of Kathmandu’s national distribution centre, logistics company Online Distribution, and polymer manufacturer Elastomer Products.
Arrow bought the one-time rural block in 2006 through its subsidiary, Arcus Property Ltd, with the first titles issued in 2012. Around 70% of the developed titles in stages one to five have now been sold.
The sale by deadline private treaty closes May 1. It comprises eight developed titles ranging in size from 697sq m to 13,210sq m, approximately 2.8 hectares of semi-developed land plus approximately 9.7 hectares of raw undeveloped land.
Staite says there is significant interest in the Portlink catchment.
“Over the past two years, we’ve sold more than $100 million of investment product in the area including most recently Castle Rock Business Park for $53 million.
“There’s a perception that there’s a lot of available industrial land across Canterbury but it is extremely tightly held. Portlink is the closest available industrial land to the CBD and Lyttelton Port, and is home to a portfolio of well-established quality businesses.
“Christchurch’s industrial market, like the rest of New Zealand, is very strong, driven by low interest rates and the high levels of capital being invested in business growth and income producing assets. Our vacancy levels are dropping again and this is further fuelling demand for land and new builds,” Staite says.
Matt Currie, chief executive of development company Arcus, says Portlink has been a cornerstone asset of Arrow’s business.
“Portlink has provided Arrow with a solid pipeline of development and design and build work over the past 10 years. Over this time, major tenants including Kathmandu, Online Distribution, Elastomer Products and NZ Express Transport have seen the value of locating their businesses in this location.
“Earlier this year a small lot subdivision was undertaken with the intention of providing 800sq m to 3000sq m lots to smaller businesses. The majority of these lots have now been sold, but a small number remain.
“As a result of the Arrow International business being placed into voluntary administration, an opportunity now exists for a new owner or owners to take this business park forward,” Currie says.
