The Waikato region is a powerhouse of the dairy industry regardless of where your provincial parochialism sits. The NZ Diary Group, based in Hamilton, was one of the original cooperatives which evolved into Fonterra. So, while Fonterra’s HQ is based in Auckland, Hamilton remains a key operational base for the cooperative, with strong links to the agriculture sector.
A strategic move with TwentyTwo
When Fonterra decided to exit its London Street workplace, they appointed TwentyTwo, led by Dean Croucher and Steffi McKeown, to help identify and procure a new workplace for its Waikato operations.
Through a process of market engagement, Fonterra considered a range of options in Hamilton including new developments owned or leased, buildings requiring refurbishment and existing options. TwentyTwo supported Fonterra through this process, leading the market engagement, providing objective advice and analysis, and helping frame up the best way forward.
Selecting the right spaces
From this process, Fonterra has leased two offices within the Hamilton CBD to house its teams and business groups, both owned by a local property group, Stark Property.
South Bloc is an existing building that has been previously refurbished by Stark to provide contemporary office space. Fonterra will progressively occupy most of the building over the next two years as existing tenants vacate, with the first tranche completed in June 2024.
The second site, to be known as North Bloc, involves the substantial refurbishment of an existing building on the corner of London and Tristram Streets, currently occupied by Te Whatu Ora. An extensive redevelopment scheme has been developed by Stark’s team, with input from Fonterra and its consultant team, to provide a similar standard of workplace to South Bloc, with both buildings originally of a similar era and design. The base building and fitout design work is underway with on-site work commencing in early 2025 and occupancy planned for mid 2026. These two buildings provide a cost-effective and contemporary workplace solution.
Collaboration and negotiation
In both cases, TwentyTwo’s Advisory22 team led the commercial and lease negotiations with Stark, and worked alongside Gail Calder and Richard Graham, Russell McVeagh (David Butler and team) and TBIG (Jacob Bray and team) to put in place a comprehensive development agreement and leases to best match Fonterra’s requirements and commercial expectations.
Looking ahead
TwentyTwo continues to provide tenant representation and governance support through the delivery phase of both projects. Both solutions provide Fonterra with a medium to long-term solution in the Waikato region, with flexibility to adjust overtime as business needs evolve.
Dean Croucher, Principal and Managing Director of TwentyTwo, expresses pride in the ongoing relationship with Fonterra’s property team, emphasising the strategic and project-specific support they continue to provide.
