ACC is one of New Zealand’s biggest investors, holding $50.8b in funds last year, with the new deal said to be its biggest direct bet on the South Island – and the new partnership company saying it’s already hunting for more land.
Selwyn Mayor Lydia Gliddon said the Ahumahi company was a big vote of confidence in the Canterbury economy.
“This is exactly the kind of well-funded, long-term investment needed to support Selwyn’s growth and create more opportunities for businesses and jobs,” she said.
“The Two Chain Rd development also adds momentum to the proposed South Island intermodal freight hub, helping create a more efficient freight network with benefits extending well beyond our district.”
Existing industrial land in Hornby, one of the most sought-after industrial locations in Christchurch.
The partners behind Ahumahi say their investment makes sense as demand for big, serviced industrial sites in Greater Christchurch has outstripped supply for the past four to five years.
For ACC, it is a continuation of an investment strategy aimed to help fund the treatment costs of accidents in New Zealand into the future, with an independent review last year finding the insurer’s investment arm in good shape.
The new company said it plans to develop about 315 lots across the three sites, catering for everyone from small owner-occupiers to major logistics and warehousing operators.
Two Chain Rd is already zoned for industry, while Pound Rd in Hornby and Ryans Rd by the airport got fast-track approval for subdivision.
Christchurch businessman Philip Carter said the new company gives its three partners the scale needed to tackle bigger projects.
Carter Group’s Philip Carter said the partnership gave them the muscle to take on projects no one could easily do alone.
“Bringing the three organisations together gives us the scale and investment strength to pursue opportunities that would be difficult for any one of us to undertake alone,” he said.
ACC chief investment officer David Iverson said the deal aimed to secure long-term returns.
“This is a significant, long-term investment in high-quality industrial land and property, alongside two partners with deep development experience and a strong commitment to the South Island,” he said.
Te Rūnanga o Ngāi Tahu kaiwhakahaere Justin Tipa said the iwi invested to fund programmes for its people and the “generational development and prosperity” of Te Waipounamu.
“Ahumahi is a strong example of New Zealand-based capital coming together to support long-term growth and invest in the future of our communities and regional economies.”
Christchurch Mayor Phil Mauger said the plans would “give businesses room to grow, attract further investment and support new jobs”, while South Island Minister James Meager said strong economies need “land, infrastructure and capital”.