A NZD 432 million fund linked to New Zealand’s largest industrial developer has launched a NZD 50 million capital raise to expand across the North and South Islands.
Research has shown an increasing demand for manufacturing and logistics infrastructure designed for automation.
The FortHill Fund is one of the country’s most significant unlisted industrial property funds, holding over 32 hectares of prime real estate across Auckland, Canterbury and Otago.
The portfolio includes the NZD 68 million NZ Safety Blackwoods building at Drury South Crossing, which was the highest value industrial property transaction in the second half of last year.
Its other tenants include blue-chip brands such as NZ Post, Winstone Wallboards, DHL, OfficeMax, Waste Management and Fletcher Easysteel.
According to the latest research from JLL, New Zealand’s industrial sector contributes 26 percent of GDP and continues to attract strong investor interest. The data showed rental values for prime properties are climbing sharply, particularly in Auckland, where warehouse rates have grown by more than 80 per cent over the past decade.
The sustained growth of e-commerce and export sectors is fueling demand for automated logistics and warehousing facilities.
Under a new solar upgrade programme, believed to be one of the country’s most significant ever rooftop solar retrofit projects, over 8,000 panels will be installed across 20 buildings in the portfolio, providing potential generation capacity of more than four million kWh per year.
As part of its sustainability initiative, FortHill has also partnered with ASB and New Zealand tech firm Tether to install AI-powered energy monitoring systems in 13 industrial facilities.
The year-long pilot has been designed to identify real-time energy usage patterns and reduce tenant operating costs by up to 30 percent.
Nick Maier, general manager of FortHill, said the wholesale fund has a first look at new industrial developments from Calder Stewart, offering a unique competitive advantage.
He said the fund is targeting further acquisitions in both Auckland and Christchurch.
“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,” said Maier.
“These facilities cover over 144,000m2 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.”
Maier mentioned that tenants have been 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. He has also seen a shift from simply occupying space to using it as a platform for productivity.
The PIE-compliant fund forecasts a 6.1 percent gross yield for FY26 and has delivered uninterrupted quarterly distributions since its 2019 inception.
It currently maintains a weighted average lease term (WALT) of 8.2 years and a 100 percent occupancy rate. The Fund’s cornerstone investor has pre-committed NZD 6.65 million to the new NZD 50 million raise.
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