Centuria NZ, the largest unlisted real estate funds manager in New Zealand, has closed its Shands Road Property Trust (“Trust”) five weeks early due to overwhelming investor demand for the re-development of Woolworths’ distribution centre in Christchurch.

Centuria NZ raised $25.7million from retail investors across the Christmas/New Year period for a single-asset vehicle underpinned by what will become the South Island’s largest industrial lease by value.

Woolworths has leased the current 30,000sqm distribution centre on Shands Road since 2002, but the supermarket chain has outgrown the facility. Subsequently, Centuria NZ acquired the neighbouring vacant land and lodged plans for a 17,000sqm extension, resulting in a new 15-year lease across the entire 47,000sqm facility.

Centuria NZ believes the unprecedented investor demand signifies a significant turning point in the local market, coinciding with the NZ Reserve Bank’s recent 50bps cash rate cut.

Mark Francis, Centuria NZ CEO, said, “This was a compelling investment opportunity as the redevelopment supports Woolworths with expanding its operations and distribution network in the South Island. Significantly, Woolworths also has the right to renew across the enlarged distribution centre until 2059, providing investors with a long-term income stream with built-in rental growth.

“The opportunity was well timed with the Reserve Bank’s recent Official Cash Rate cuts, which has given a shot in the arm to the New Zealand economy and a level of confidence to both businesses and investors.

“Centuria has a strong and long-established relationship with Woolworths and we are proud to work in unison with this key tenant customer to support its business needs.”

The Shands Road extension is another example of how Centuria has adapted facilities for the supermarket chain, having extended Woolworths’s Townsville, Queensland DC in 2020.

The Trust provides a 7.35% per annum forecast pre-tax cash distribution for the first three years from 1 April 2025, paid to investors monthly. Investment started from $25,000.

Centuria NZ is part of the ASX-listed Centuria Capital Group (ASX: CNI), which has over $20 billion in assets under management. Centuria NZ manage around $2.5 billion of these assets.

Across Australia and New Zealand, Woolworths is one of Centuria’s Top 10 tenants, accounting for 3% of the Group portfolio’s income. Woolworths lease industrial, retail and office assets from Centuria.

Woolworths will continue to operate from the existing Shands Road facility throughout the redevelopment project, with works expected to be completed in mid-2026.

The 10.5ha Shands Road site in is positioned in close proximity to both the State Highway 1 and the Christchurch Southern Motorway, providing excellent transport connectivity. It is located in Christchurch’s outer western suburb of Hornby, which is a key logistics precinct for the city.

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