Brookfield Inks $1bn New Zealand Logistics Deal

Brookfield has made a $1-billion vote of confidence in the New Zealand industrial sector, signing a joint-venture deal to supercharge the Ruakura Superhub.

The global alternative asset manager has entered into the long-term agreement with Tainui Group Holdings (TGH) for the asset at Hamilton on North Island.

The partnership will initially buy four industrial-logistics buildings tenanted by Kmart, Big Chill, Refrigafreighters and PBT Express on long-term ground leases.

The JV intends to develop out a further 70ha of logistics development assets at the 610ha intermodal logistics precinct for a forecast completion value of more than $NZ1 billion ($A926 million), and “will consider further investment opportunities that present strong risk-adjusted returns”.

Ruakura Superhub, which opened in September of 2022, is in New Zealand’s major supply chain corridor, servicing about 45 per cent of New Zealand’s population, 42 per cent of the nation’s freight and 55 per cent of the country’s GDP.

Site connectivity includes a 30ha inland port connected via rail to New Zealand’s two largest commercial ports—Auckland Port and Port of Tauranga—and direct access to State Highway 1.

Under the terms of the JV, all whenua [land] will remain in Waikato-Tainui ownership across the precinct. TGH will provide investment, property management and development services to the partnership.

▲ Inside the Kmart distribution centre, one of the assets acquired by the joint venture.

The chair of Te Arataura, the executive committee of Waikato-Tainui, Tukoroirangi Morgan said the JV reflected the strength of the Maori economy and “signals that the iwi is open for global business”

“As an iwi our horizon is intergenerational; we are about building a legacy for future generations. Brookfield, which we selected for its aligned goals, values and fit, understands that.”

The transaction is expected to close in the second quarter of this year.