FortHill Fund launches NZD $50m industrial property raise
The FortHill Fund has initiated a capital raise of NZD $50 million to support new industrial property acquisitions across Auckland, Christchurch, and Otago.
The fund manages a portfolio valued at NZD $432 million, comprising more than 32 hectares of prime real estate that includes facilities for logistics and manufacturing tenants such as My Food Bag and Dairyworks. Among the assets is the NZD $68 million NZ Safety Blackwoods building at Drury South Crossing, noted as the largest industrial property transaction in the latter half of last year.
The fund's tenant list features organisations including NZ Post, Winstone Wallboards, DHL, OfficeMax, Waste Management, and Fletcher Easysteel, all of which operate large-scale logistics or industrial businesses.
Market demand
New research published by JLL has highlighted a marked growth in investor interest for New Zealand's industrial sector, which accounts for 26% of the country's GDP. Rental values for prime industrial properties are described as escalating significantly, especially in Auckland, where warehouse rates have increased by more than 80% over the past ten years. The report attributes much of this demand to sustained growth in eCommerce and export activities, with these trends supporting increased requirements for warehousing and manufacturing facilities capable of supporting automation.
The current expansion plans form part of a broader strategy to capitalise on these sector trends. FortHill is affiliated with Calder Stewart, identified as the largest industrial developer in New Zealand, and benefits from a first-look arrangement on new development opportunities.
Sustainability initiative
A significant component of the programme is the rollout of what is believed to be one of New Zealand's largest rooftop solar photovoltaic retrofits. Over 8,000 panels are set to be installed across 20 properties in FortHill's portfolio, with a generation capacity exceeding 4 million kWh annually.
In addition to solar installations, FortHill has partnered with ASB and local technology company Tether to implement artificial intelligence-driven energy monitoring systems. The pilot programme, which spans 13 industrial properties for one year, aims to monitor real-time energy use with the goal of reducing tenant operating costs by up to 30%.
Acquisition strategy
Nick Maier, General Manager of FortHill, says the wholesale fund has first look at new industrial developments from Calder Stewart, offering a unique competitive advantage. He says the fund is targeting further acquisitions in both Auckland and Christchurch.
"The research shows that with interest rates easing and prime rents increasing, investor capital is flowing back into industrial property. As a result of our direct access to off-market developments from New Zealand's largest industrial builder, CalderStewart, we're uniquely positioned to capitalise on this. These facilities cover over 144,000m2 of lettable area and are in the country's main logistics hubs. Most national operators need one shed in Auckland and one in Christchurch, close to major transport corridors. We're focused on owning the best version of those - sites with strong infrastructure links, modern design, and long-term tenant appeal. Tenants are increasingly investing heavily in automated systems and require buildings that support them. High-stud clearances, strong floor slabs, electrification and efficient layouts are all essential now. We're seeing a shift from simply occupying space to using it as a platform for productivity," he says.
Maier further noted that the PIE-compliant fund projects a 6.1% gross yield for the 2026 financial year and has delivered consistent quarterly distributions since its establishment in 2019. The fund currently maintains a weighted average lease term of 8.2 years and reports full occupancy. A cornerstone investor has pre-committed NZD $6.65 million as part of the new capital raise.
