FortHill Fund launches NZD $50m industrial property raise
The fund manages a portfolio valued at NZD $432 million, comprising more than 32 hectares of prime real estate that includes facilities for logistics and manufacturing tenants such as My Food Bag and Dairyworks. Among the assets is the NZD $68 million NZ Safety Blackwoods building at Drury South Crossing, noted as the largest industrial property transaction in the latter half of last year.
The fund's tenant list features organisations including NZ Post, Winstone Wallboards, DHL, OfficeMax, Waste Management, and Fletcher Easysteel, all of which operate large-scale logistics or industrial businesses.
Market demand
New research published by JLL has highlighted a marked growth in investor interest for New Zealand's industrial sector, which accounts for 26% of the country's GDP. Rental values for prime industrial properties are described as escalating significantly, especially in Auckland, where warehouse rates have increased by more than 80% over the past ten years. The report attributes much of this demand to sustained growth in eCommerce and export activities, with these trends supporting increased requirements for warehousing and manufacturing facilities capable of supporting automation.
The current expansion plans form part of a broader strategy to capitalise on these sector trends. FortHill is affiliated with Calder Stewart, identified as the largest industrial developer in New Zealand, and benefits from a first-look arrangement on new development opportunities.
Sustainability initiative
A significant component of the programme is the rollout of what is believed to be one of New Zealand's largest rooftop solar photovoltaic retrofits. Over 8,000 panels are set to be installed across 20 properties in FortHill's portfolio, with a generation capacity exceeding 4 million kWh annually.
In addition to solar installations, FortHill has partnered with ASB and local technology company Tether to implement artificial intelligence-driven energy monitoring systems. The pilot programme, which spans 13 industrial properties for one year, aims to monitor real-time energy use with the goal of reducing tenant operating costs by up to 30%.
Acquisition strategy
Nick Maier, General Manager of FortHill, says the wholesale fund has first look at new industrial developments from Calder Stewart, offering a unique competitive advantage. He says 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. 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. Tenants are 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. We're seeing a shift from simply occupying space to using it as a platform for productivity," he says.
Maier further noted that the PIE-compliant fund projects a 6.1% gross yield for the 2026 financial year and has delivered consistent quarterly distributions since its establishment in 2019. The fund currently maintains a weighted average lease term of 8.2 years and reports full occupancy. A cornerstone investor has pre-committed NZD $6.65 million as part of the new capital raise.
Follow us on:
Share on:
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
1News
6 hours ago
- 1News
How bad is the tariff news for NZ, really?
New Zealand has been hit with a higher tariff rate than Australia on exports to the US – but economists say the situation could have been worse. It was revealed today that New Zealand exports would have a 15% tariff applied, up from 10% announced earlier. Australia remains at 10%. Brad Olsen, chief executive at Infometrics, said that was a clear challenge for New Zealand. "There is now a wedge between us and Australia." ADVERTISEMENT There were other parts of the world that previously had a higher tariff rate that were now on the same level as New Zealand, such as Europe. "Wine, for example, under the original tariffs, we might have had a slight advantage. Now we don't." But he said it was not necessarily true that the country would have been better off had it negotiated a deal. He said New Zealand did not have a lot to "give up" in those negotiations, and it could have ended up being costly. "I'm a little bit surprised by comments, including from the opposition's trade spokesperson, that the Government failed to achieve a lower tariff rate. "The comments seem to make the implication that New Zealand could have found a way to come up with a trade agreement that might have given us a lower tariff rate. "That might be true, but we have no idea what we would have had to give up to achieve that… some of what had to be given up by other countries to get a 15% tariffs rate is consequential – Japan and other countries had to give up to half a trillion dollars of further investment into the US." ADVERTISEMENT US President signs an executive order for new tariffs on a wide swath of US trading partners to go into effect in seven days. (Source: 1News) He said the impact on New Zealand's trading partners might not be as bad as had been expected, which should prove positive for the economy. "It will be slightly more challenging to export to the US from a New Zealand point of view, but our trading partner activity might not be hit as bad as was feared in April. That's probably a net benefit for us." Mike Jones, chief economist at BNZ, said the increase was not unexpected given indications of the past few weeks. "It's obviously unhelpful for NZ exports into the US, particularly how we line up with those coming from Australia and the UK, given the lower 10% baseline tariff rate for those countries. "Beef and wine exports could be affected. It's interesting in this context that we've seen the NZD/AUD exchange rate fall a little today in the wake of the announcements." 'Quite myopic' ADVERTISEMENT Cranes and shipping containers are seen at a port in Busan, South Korea, Thursday, July 31, 2025. (Source: Associated Press) Kelly Eckhold, chief economist at Westpac, said he thought New Zealand was in roughly the same position as in April. "On one hand, the tariff is higher, so there is a bigger direct cost, but it's a bit lower for a lot of our trading partners, so it's better for the economy than would otherwise be the case." He said how the lingering elements of uncertainty played out over the coming weeks would be important. "The legal basis of these tariffs, whether they're going to be able to continue or need to be replaced with a different type of tariff, is an issue. And the sectoral tariffs have not yet really been negotiated. "While I don't think these things affect the sort of goods New Zealand trades with the US, there may be some impact on our trading partners." He said it seemed strange that the US was calculating tariffs based on which countries exported more than they imported. ADVERTISEMENT "The concept that US authorities have had of countries ripping them off by selling more stuff to America than they're been buying is quite myopic. "We're only talking about goods trade here, we buy a lot of services from the US. "In large part, the trade imbalance is a cyclical rather than a structural story. "In the last few years, the economy has been relatively weak compared to the US. We're not sucking in as many imports, and the exchange rate has been lower than would normally be the case, which has encouraged export revenues. "I would have thought trade policy metrics like tariffs would be determined on the basis of structural, not cyclical factors. "All those things could easily be the other way around in a few years' time."
Scoop
a day ago
- Scoop
A Night Out To Save Lives: Aerocool Rescue Helicopter Gala And Auction Evening
Press Release – Aerocool Rescue Helicopter This exclusive event will bring together the Coastal Bay of Plenty community to honour the critical missions carried out by the regions rescue helicopter – now totaling an extraordinary 5,632 missions to date. The Aerocool Rescue Helicopter Gala and Charity Auction, happening Friday 22 August 2025 in partnership with Westpac, comes with a dazzling incentive to support a truly life-saving cause. Incredible auction items are up for grabs, including: A brilliant 14-karat, gold 0.70ct laboratory-grown diamond ring, valued at NZD $3,499, generously provided by Michael Hill Fine Jewellers – Bayfair A signed and framed Richie McCaw 2015 Rugby World Cup #7 jersey and ball – thanks to Westpac and The Picture Frame Factory Shop – worth $1,000 • A luxe two-night retreat to Poronui Safari Camp for up to four guests, complete with top-tier accommodation and a $1,400 activity credit, total value $5,250 This exclusive event will bring together the Coastal Bay of Plenty community to honour the critical missions carried out by the region's rescue helicopter – now totaling an extraordinary 5,632 missions to date. It's an emergency service close to the hearts of many, with former patients and supporters set to attend this special evening. Among them is Geoff, who suffered a brain aneurysm while out on a scenic run with his wife and their dog, Pablo. In many cases, such medical events carry a 50% fatality rate. Knowing something was terribly wrong, Geoff's wife drove him straight to the nearest medical centre, where a passing doctor immediately recognised that Geoff was in serious danger and called 111. Geoff was rushed to Tauranga Hospital, but he wasn't out of danger. Far from it. He needed urgent medical surgery to survive – at Waikato Hospital, which was about an 1 hour, 20- minute drive away. Thankfully, the Aerocool Rescue Helicopter arrived swiftly and flew Geoff to Waikato Hospital in just 15 minutes. That flight helped save his life, enabling him to receive critical surgery as quickly as possible. Geoff recalled, 'I got to say to the crew…'you doing your job, to the best of your ability, has helped save my life.'' He is proud to support the Aerocool Rescue Helicopter, ensuring it can be there for others in times of urgent need – because you never know when you'll need it. The event will be hosted at the iconic Classic Flyers Aviation Museum in Mt Maunganui (9 Jean Batten Drive), guests will enjoy fine dining, bubbles on arrival, and live music by The Shy & Retiring Company Band. Adding to the sparkle, broadcasting legend Kerre Woodham, proudly sponsored by NZME & Newstalk ZB, will emcee the event. All proceeds will fund future rescue missions, helping the Aerocool Rescue Helicopter continue its vital work across the region. The night will feature several standout auction items, with bidding led by EVES award winning auctioneer Jordan Sievwright. And that's just the beginning. With many more exclusive experiences and items up for grabs, this is truly a night to remember. Come for the cause – stay for the celebration. Tables are selling fast! Don't miss your chance to secure a seat – choose between Standard or Platinum options. Tickets available for purchase here > auction/tickets Background: Philips Search & Rescue Trust (PSRT) is the charity responsible for fundraising and promotion of the North Island's largest pool of community rescue helicopters. PSRT was founded in 1985 after an endowment by Philips New Zealand Limited to mark a light aircraft accident near Turangi in which two Philips personnel lost their lives. Encompassing a fleet of rescue helicopters, the service provides air health and rescue services free of charge to the public on a no-fault basis. The rapid response is powered by an expert crew of Pilots, Air Crew Officers and Critical Care Flight Paramedics. In a life and death situation it is this speed and agility of the rescue helicopter that can make all the difference, with patients able to receive medical treatment as soon as the rescue helicopter arrives and continuing whilst en route to a medical facility. Philips Search & Rescue Trust fundraise for and support: Waikato Westpac Rescue Helicopter, Waikato, King Country, Coromandel Aerocool Rescue Helicopter, Bay of Plenty Coastal Region Greenlea Rescue Helicopter, Central Plateau and Lake's Region
Otago Daily Times
3 days ago
- Otago Daily Times
Placemakers Dunedin part of solar upgrade programme
A store on a landmark Dunedin site is getting a solar-powered upgrade. Placemakers Dunedin, in Burns St, is among 20 buildings across the country selected for the installation of more than 8000 solar panels in total. It is part of a rooftop solar retrofit programme FortHill Property, an industrial investment fund established by Otago-founded construction company Calder Stewart, will roll out across its entire portfolio. General manager Nick Maier said work on Placemakers Dunedin was expected to take place next year. "The type of system you'd expect at a building of that size would be between 25kW and 50kW. "That could be anywhere from 75 to 150 panels, just depending on the final design and the panels you select." The business estimated the programme would provide a potential generation capacity of more than 4 million kWh per year. It announced yesterday it had launched a $50 million capital raise from its $432m national industrial property fund to expand its portfolio across Otago, Christchurch and Auckland. Placemakers Dunedin was currently FortHill Property's only asset in Otago and they were "very excited" to be coming back into the market again, Mr Maier said. "The interest rate cycle is right, the property cycle, we think, is good timing — we are really keen to attract investment. "Often it's out of the business, off-farm, intergenerational family kind of activity. "We're really proud of our kind of unique connection with Calder Stewart, which was originally founded in Milton, and the ability to grow what is now a national-scale investment fund originally started from those kind of humble beginnings." It typically looked at investments anywhere between $5m and $50m, with a focus on industrial sheds, Mr Maier said. "What we can find, where we can find it — if it meets our criteria, then we get straight into it." While their preference was to target the capital raise towards the funding of new buildings, the extent to which that went towards any of its wider green initiatives was case by case dependent, he said. FortHill had also partnered with ASB and New Zealand tech firm Tether to install AI-powered energy monitoring systems in 13 industrial facilities as part of a year-long pilot designed to identify energy usage patterns and reduce tenants' operating costs by up to 30%.
