Land in Christchurch's Portlink Industrial Park

Portlink is a 30ha industrial park at Woolston, South-East of Christchurch City. Photo / Supplied

Administrators of Arrow International are demanding the company sell the remainder of about 15.3ha of land it owns in its Portlink Industrial Park at Woolston, says Sam Staite, director of industrial sales and leasing at Colliers International, Christchurch.

This follows the recent announcement that the development company is now in voluntary administration, Staite says.

Given the administrators' instructions, all offers for the Portlink sites will be considered, he says.

Housing the likes of Kathmandu's national distribution centre, logistics company Online Distribution, and polymer manufacturer Elastomer Products, Portlink is a 30ha industrial development relatively close to Port Lyttelton.

Arrow bought the one-time rural block in 2006 through its subsidiary, Arcus Property Ltd, with the first titles issued in 2012. About 70 per cent of the developed titles in Stages 1-5 have now been sold.

The sale, by deadline private treaty closing at 4pm on Wednesday May 1, comprises eight developed titles ranging in size from 697sq m to 13,210sq m; about 2.80ha of semi-developed land; plus some 9.7ha of raw undeveloped land.

Staite says there is significant interest in the Portlink catchment.

"Over the past two years, we've sold more than $100 million of investment product in the area including most recently Castle Rock Business Park for $53m.

"There's a perception that there's a lot of available industrial land across Canterbury but it is extremely tightly held. Portlink is the closest available industrial land to the CBD and Lyttelton Port, and is home to a portfolio of well-established quality businesses.

"Christchurch's industrial market, like the rest of New Zealand, is very strong, driven by low interest rates and the high levels of capital being invested in business growth and income producing assets. Our vacancy levels are dropping again and this is further fuelling demand for land and new builds."

Staite says that having some titles available at Portlink immediately for development or sale offers the new owners an ability to de-risk the development quickly.

Chief Executive of development company Arcus, Matt Currie, says Portlink has been a cornerstone asset of Arrow's business.

"Portlink has provided Arrow with a solid pipeline of development and design and build work over the past 10 years.

"Over this time, major tenants including Kathmandu, Online Distribution, Elastomer Products and NZ Express Transport have seen the value of locating their businesses there.

"Earlier this year a small lot subdivision was undertaken with the intention of providing 800sq m to 3000sq m lots to smaller businesses. The majority of these lots have now been sold, but a small number remain.

"As a result of the Arrow International business being placed in voluntary administration, there's an opportunity for a new owner or owners to take this business park forward."