Izone Drive Reaches Practical Completion
In late 2015, after negotiations with the Manager for the Trust Investments Property Fund (“Property Fund”), The Warehouse Limited (“TWL”) exercised its right under its Deed of Lease for its South Island Distribution Centre at Izone Industrial Park in Christchurch to be expanded.
We are pleased to advise that on 20 March 2017 Practical Completion for the building expansion was achieved. The project was very successful for all involved. TWL led the project, while the distribution centre continued to operate. Safety was a key focus for all parties during the works. The quality of the existing building has been mirrored in the new build. New smart technology has been added to the building with independently controlled LED lighting installed across the whole building. It is expected that the efficiency of the lighting system will reduce the operating cost for the centre. The building is now one of the largest industrial buildings in the South Island being just under 50,000sqms (5 hectares) on a 10 hectare site – it is truly an impressive property to walk around.
The Property Fund undertook some additional structural works in the existing building that sees the entire building meeting 100% of the New Building Standards for seismic, snow and wind loading – this is a significant achievement and a reflection on the quality of the building. We have proudly submitted the property into the Property Council of New Zealand – Property Industry Awards 2017.
In 2016 the Manager signalled to investors that due to the size of the completed building the property would be too large for the Property Fund to hold. The property when expanded is nearly 40% of the Property Fund and considering the weighting to one tenant, in one location, and in the industrial sector, the Manager looked for a suitable buyer for the property. The preference was to sell only a 50% share in the building after the development had been completed. We achieved the preferred outcome with New Zealand Methodist Trust Association (“NZMTA”) contracting to purchase the property. NZMTA is an ideal joint owning party – having similar values to our investors and just as importantly having a long term investment horizon. Settlement for the 50% share occurred on 19 April. Trust Management will continue to manage the property for both parties.
Under the Financial Markets Conduct Act this communication may be deemed to be an advertisement for an offer of units. Trust Investments Management Limited is the issuer of the units to be issued under the offer to which this advertisement relates. A product disclosure statement for the offer, which sets out the terms and conditions of the offer, is available, and can be obtained at www.trustmanagement.co.nz/investment-products.