One of the highlights of the last couple of months has been closing out our involvement with Fonterra’s New South Island Distribution Centre, in Christchurch. Designed, built and delivered by Calder Stewart, for purchase on completion by Fonterra, this is a best practice example of how a project should be scoped, procured and delivered.
Background
In late 2022, TwentyTwo led a market search process across greater Christchurch to acquire industrial land (to build a new DC) or for a new facility to be developed by others. Through a thorough due diligence and evaluation process, working alongside Fonterra’s Property Team and other key advisers, several responses and options were shortlisted and considered. Calder Stewart Property, and Stage 4 of their Hornby Quadrant precinct, was selected as the preferred partner and preferred site.
Hornby Quadrant
Once selected, Dean Croucher and Steffi McKeown lead the commercial negotiations, development agreement and project establishment alongside Fonterra and Calder Stewart Property, Harkness Henry and Babbage.
Hornby Quadrant’s (Stage 4) (www.hornbyquadrant.co.nz) encompasses 30 hectares of prime heavy industrial land, titled and ready for development, being part of over 150 hectares of industrial land being developed into a preeminent industrial business park. Located close to Christchurch’s Southern Motorway and 10 kilometres south-west of Christchurch’s CBD, its proximity to Christchurch International Airport, Lyttelton Port and the Christchurch CBD made it a clear choice.
Design, Build, Deliver & Transfer
The agreement with Calder Stewart Property allowed Fonterra to acquire a large dual street site within the precinct and for Calder Stewart Property to design, build and deliver the new distribution centre for Fonterra to own on completion. This arrangement ensured Fonterra tapped into Calder Stewart’s development and construction expertise while being the ultimate owner of the asset on a pre-agreed competitive commercial basis.
TwentyTwo’s Added Value
In addition to leading the commercial transaction, Dean Croucher remained “at the table” throughout delivery providing independent advice and support to Fonterra, including being part of the project control group and supporting Fonterra with internal governance and reporting.
As Dean notes “the collaboration from all involved has been the key to the success of this project”, which has been delivered on time and within budget. “We’ve had a great team involved from the start – both client side and development side – with everyone out to do a great job and to value the working relationships and trust built. It’s rewarding to see all the effort from many people over many months translating into an outstanding built asset and a modern distribution facility, with specialist cool-stores and ambient spaces”.
Congratulations to Martin Leabourn, Samantha Lochery and Cam Mitchell-Sisler (Fonterra Property Team), and the team at Calder Stewart Property, particularly Mark Weaver, Amelia Wilson and Ben Stewart.
All images courtesy of Calder Stewart Property
