ESR appeared on the latest CBRE list as being one of the largest developers of industrial projects being built in Auckland.
This month, the Herald reported on Graeme Hart’s Fernbrook also making headway into that South Auckland market.
ESR is now building at:
- 38-44 Dalgety Drive, Wiri, 3.1ha. Construction has started on a 30,000sq m warehouse, due to be completed at the end of this year, built by Apollo Projects;
- Druces Rd, Wiri, 1.9ha, 20,000sq m warehouse due to be completed this year, being built by Savory Construction.
Catton previously worked for global business Logos, starting there in 2019.
He moved to ESR when it bought Logos as part of an international deal.
“We’re now ESR and we’ve been in New Zealand under the ESR banner since 2019.″
Catton appeared in the Herald in 2021 in an article about a new $150m fresh produce distribution centre being built for Countdown in South Auckland.
That building at 11 Puaki Drive centralised Countdown’s fresh product operations in Auckland, replacing Palmerston North and Mt Wellington premises.
Back then, Catton was a senior development manager for Logos which was developing the site for AustralianSuper.
Logos was creating the Wiri Logistics Estate, which Catton said at the time would be owned by AS NZ Property Wiri Trust.
In his role at ESR, he is now counting how much that business has expanded in Auckland.
Previously, ESR built:
- The 23ha Wiri Logistics Estate, 3 Langley Rd, on the former shingle quarry owned by Winstones. ESR bought the property in June 2019. During the past six years, it developed into six buildings. Tenants include NZ Post, Primary Connect and Hilton Foods.
- The 15ha Ōtāhuhu Logistics Estate, Favona, purchased at the start of this decade from Toll, where trains and trucks meet. Four new buildings have been developed. Tenants include Team Global Express, which bought Toll, and ACFS Logistics, which is an Australian container company.
Combined, those properties were now valued at about $1b, Catton said.
He explained reasons for the growth.
“This is the continuation of expansion in the industrial market led by strong consumer demand. Businesses need more space. There has been a lot of growth, but a lot of businesses are trying to get more efficient.”
Catton is a New Zealander who formerly worked for Foodstuffs and Tramco.
CBRE said the airport corridor and East Tāmaki are the three most active precincts for industrial development.
“In Wiri, James Kirkpatrick, Fernbrook and ESR are the only developers building warehouses, with a combined development size of over 140,000sq m, to date all without precommitment,” it said.
In the airport corridor, three projects are under construction, two of which are cold storage buildings.
Auckland International Airport is building a 25,000sq m cold store for Foodstuffs.
Fife Capital is developing a 10,000sq m building for Refrigafreighters on Kirkbride Rd.
CBRE listed the ESR sites in its biggest industrial projects.
Top 10 industrial projects
- 358 Puhinui Rd, Wiri: 6.5ha floorspace by James Kirkpatrick Group;
- 38-44 Dalgety Drive, Wiri, 3.1ha by ESR Australia & New Zealand;
- 15 Maurice Paykel Place, East Tāmaki, 2.7ha for Fisher & Paykel Healthcare;
- 31 Prices Rd, Wiri, 25, 100sq m, Graeme Hart’s Fernbrook Investments;
- Te Kapua Drive, airport corridor, 2.4ha for Auckland International Airport;
- 2 Monahan Rd, Mt Wellington, 2.1ha, Goodman;
- 25 Druces Rd, Wiri, 1.9ha, ESR Australia & New Zealand;
- 10 Te Ahurea St, Hobsonville, 1.7ha, Waide Construction
- 11 Kirkbride Rd, airport corridor, 10,000sq m, Fife Capital;
- Spedding Rd, Whenuapai, 8500sq m, Property For Industry.
Some in the sector are now wondering if the industrial boom will continue, given the amount of development happening.
They expect the saturation point to be met soon, although vacancies in the premium Auckland industrial real estate sector are still only around 2%, compared to more than 20% for Auckland CBD secondary offices.
Anne Gibson has been the Herald’s property editor for 26 years, written books and covered property extensively here and overseas.
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