Arrow plight prompts sale of remaining Portlink land

Arrow plight prompts sale of remaining Portlink land in Christchurch

The administrators of Arrrow International are demanding the company sells the remaining circa 15.3 hectares of land it still owns in in its Portlink Industrial Park.

This follows the recent announcement that the development company is now in voluntary administration.

Given the administrators’ instructions, all offers for the Portlink sites will be considered, says Sam Staite, Director of Industrial Sales & Leasing at Colliers International in Christchurch.

Housing the likes of Kathmandu’s national distribution centre, logistics company Online Distribution, and polymer manufacturer Elastomer Products, Portlink is a 30-hectare industrial development near Lyttelton Port. Arrow bought the one-time rural block in 2006 through its subsidiary, Arcus Property Ltd, with the first titles issued in 2012. Approximately seventy per cent of the developed titles in Stages 1-5 have now been sold.

The sale by deadline private treaty, closing May 1, comprises eight developed titles ranging in size from 697sq m to 13,210sq m, approximately 2.80 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.

He says that having some titles available at Portlink immediately for development or sale offers the new owners an ability to de-risk the development quickly.

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.”

ENDS

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