Business Insights | One Year On: The Strategic Sale That Set a New Benchmark for South Island Industrial Property

The South Island industrial property market is experiencing a period of exceptional occupier demand and growth potential.

Vacancy rates across key centres such as Queenstown, Invercargill and Nelson are at historic lows, with prime-grade industrial space almost entirely absorbed. Christchurch has seen a modest rise in vacancy due to tenant relocations and subleasing, but overall supply remains tight. This scarcity is driven by a combination of economic tailwinds, agribusiness expansion and infrastructure investment, all of which are fuelling demand for high-quality logistics and warehousing assets.

In this context, the sale of 32 Iport Drive in Rolleston stands out as a landmark transaction. Constructed in 2020 and located within the IPORT Business Park, the asset offered scale, covenant strength and direct integration with the inland Midland Port. 



Its sale in July 2024 for $65m to Booster KiwiSaver Scheme demonstrated that South Island industrial assets are not only viable for institutional investment but can also set new benchmarks for pricing and strategic relevance. One year on, the transaction continues to stand as a defining moment for the South Island’s industrial property market and a benchmark for institutional investment into regional New Zealand.

The property, a 30,000 square metre logistics facility developed by Carter Group for Lyttelton Port Company, was already recognised as a premium asset. Situated on 4.52 hectares of freehold land within the IPORT Business Park, the facility offers direct rail siding access and a shared boundary with the Midland Inland Port. This strategic location enables full intermodal freight capability, directly connecting the property into national logistics infrastructure.

Underpinned by a 17-year lease to Lyttelton Port Company, generating $3.95m in net annual rental income with CPI indexing and market rent reviews, the property presented a rare combination of scale, covenant strength and infrastructure integration. It was an investment opportunity that demanded a campaign capable of reaching the right capital.

CBRE was appointed as the exclusive sales agent, bringing together a trans-Tasman team led by Tim Rookes in Christchurch, Bruce Catley in Auckland and Chris O’Brien in Melbourne. The team’s strategy was to present the asset as a long-term infrastructure investment, rather than a traditional logistics facility. This approach was designed to appeal to institutional buyers seeking secure, inflation-protected income streams backed by essential infrastructure.

The campaign launched internationally in early 2024, inviting expressions of interest from both domestic and offshore investors. Despite a subdued economic environment and limited transactional benchmarks, the campaign attracted seven formal bids. Interest came from across New Zealand, Australia and Asia, validating the team’s strategic positioning and the asset’s international appeal.

Following a competitive selection process, KiwiSaver invest fund Booster out of Wellington was identified as the preferred buyer. As a new entrant to direct institutional-grade property, Booster viewed the acquisition as a strategic opportunity to diversify its KiwiSaver portfolio with long-term, infrastructure-linked assets. CBRE facilitated a complex negotiation in what were still uncertain economic times. The transaction was finalised in July 2024 for $63,750,000, with a re-baselining in April 2025 for a final consideration of $65,000,000 making it one of the largest industrial property sales ever recorded in the South Island.

The sale of 32 Iport Drive demonstrated that infrastructure-linked industrial assets in regional centres can command institutional attention and set new pricing benchmarks. It is also significant as Booster ’s first direct acquisition of institutional grade property. For CBRE, the deal reinforced its leadership in the commercial property sector, contributing to a period where industrial assets accounted for 41 percent of total transaction volume in the second half of 2024.

The success of the campaign was grounded in CBRE’s strategic asset positioning, national collaboration and a clear understanding of investor priorities. One year on, 32 Iport Drive is not only a cornerstone investment for Booster, but a case study in how superior campaign execution can elevate regional assets to the national and international stage.