More than $500 million is set to be invested in expanding Christchurch’s Hornby Quadrant industrial precinct over the next five years, as part of a wider South Island logistics and manufacturing network.
The development will form part of a planned $5.5 billion, 860-hectare regional manufacturing and export logistics network linking Canterbury with major industrial projects in Otago and Southland.
The expansion is expected to support hundreds of jobs and comes amid a shortage of commercial land in Christchurch, with prices doubling to nearly $500 per square metre over the past five years.
Hornby Quadrant spans more than 150 hectares and is already a key distribution hub for food products and building materials across the South Island.
A new 30-hectare fourth stage of the development will see Calder Stewart partner with Mainland Group, United Steel and other operators to establish manufacturing and distribution facilities. Once complete, this stage alone is expected to have a value of more than $500 million.
The wider precinct is projected to be worth more than $3 billion when fully developed and is already home to major companies including Foodstuffs South Island, Fletcher Building subsidiaries, Sleepyhead, Penske, OJI Fibre Solutions, My Food Bag and Dairyworks.
The site is one of the last areas in Christchurch capable of supporting large-scale facilities of more than 40,000 square metres, with both lease and purchase options available.
Calder Stewart director of property Ben Stewart says limited land supply is becoming a constraint for industrial growth.
“While we have the ability to expand westward, much of the available land is not zoned or serviced, limiting options for businesses needing large industrial footprints,” Stewart says.
He says demand is being driven by increasing use of automation and a shift toward larger, consolidated facilities.
“We know that rapid advancements in automated search and retrieval technologies are incentivising companies to look for locations that can support the establishment of much larger and intensified operations,” he says.
The development is also expected to incorporate renewable energy, with potential to generate up to 70MW of rooftop solar power — enough to supply around 9350 homes.
Calder Stewart director Sam Stewart says Christchurch is attracting interest from both domestic and international firms looking to expand distribution operations in the South Island.
“With approximately 80 hectares of land remaining, our projections show Hornby Quadrant will be fully developed within the next decade,” he says.
