Tainui Group Holdings (TGH) and global alternative asset manager Brookfield Asset Management (Brookfield) have entered into a long-term joint venture (JV) to supercharge the development of Ruakura Superhub in Hamilton, New Zealand.
The JV will initially purchase four existing industrial/logistics buildings on long-term ground leases at Ruakura Superhub, which are tenanted by Kmart, Big Chill, Refrigafreighters and PBT Express.
The JV intends to develop out a further 70ha of logistics development assets at the intermodal logistics precinct with a forecast completion value of more than NZ$1 billion, and will consider further investment opportunities that present strong risk-adjusted returns.
Ruakura Superhub is in New Zealand’s major supply chain corridor, servicing around 45 per cent of New Zealand’s population, 42 per cent of the nation’s freight and 55 per cent of the country’s GDP. The site provides optimal connectivity and cost efficiencies, with a 30 hectare (ha) inland port connected via rail to New Zealand’s two largest commercial ports – Auckland Port and Port of Tauranga – and direct access to State Highway 1.
Tenants can also leverage sustainability benefits, which include the inland port facilitating cargoes off road and on to rail, a social procurement programme to create work and training opportunities for iwi members, and TGH’s track record in gaining high Green Star ratings for its buildings.
Under the terms of the JV, all whenua (land) will remain in Waikato-Tainui ownership across the full 610ha Superhub precinct. TGH will provide investment, property management and development services to the JV.
Chair of Te Arataura, the executive committee of Waikato Tainui, Tukoroirangi Morgan said:
“The new JV reflects the strength of the Maaori economy and signals that the iwi is open for global business. As an iwi our horizon is intergenerational; we are about building a legacy for future generations. Brookfield, which we selected for its aligned goals, values and fit, understands that. Together we will create real opportunities for economic growth that will reverberate for our people, Brookfield’s investors, and our city, region and country.”
Brookfield Co-Head of Australia and New Zealand Real Estate Ruban Kaneshamoorthy said:
“We are honoured to partner with TGH to further activate the major logistics and industrial precinct within Ruakura Superhub, bringing global capital at scale and unparalleled expertise as one of the world’s most active real estate investors.”
He continued: “A core pillar of our investments is to create meaningful benefit to the communities in which we operate. It is energising to invest alongside an organisation whose values are aligned with our own and where we share a drive to deliver long-term economic and social benefits such as job creation. Brookfield is a long-term investor in Aotearoa and we look forward to committing further capital to the country while working alongside local partners such as TGH. We’re encouraged by the New Zealand government’s approach to planning and infrastructure, which supports global investment in New Zealand.”
TGH Chair Hinerangi Raumati Tu’ua said:
“Our decision to partner with Brookfield is built on our experience over many years of partnering to bring in external capital, skills and networks to help us accelerate growth. Partnership is a proven strategy for TGH that has achieved success across a broad range of investments over the long term.”
She continued: “Our shared vision to invest at Ruakura Superhub will bring a suite of benefits to the Waikato and Aotearoa and in particular economic growth. TGH looks forward to a successful partnership with Brookfield and unlocking the full potential of the Superhub to deliver for our iwi over many generations.”
The Superhub has experienced strong growth over the past 30 months since its official opening in September 2022, including opening the first 12ha of the inland port and meeting high demand from national and global tenants for large, new-generation distribution centres.
The transaction is expected to close in the second quarter of 2025.