Ashburton Milk Powder Factory Blue‑Chip Investment

A cutting-edge, purpose-built milk powder factory leased long-term to a leading New Zealand producer of nutritional supplements is up for sale in the Ashburton Business Estate.

The large near-new manufacturing plant sits in Ashburton’s established industrial precinct, a critical service and distribution hub for one of the country’s most productive agricultural and food-processing strongholds.

The approximately 5,431-square-metre facility is underpinned by more than 1.1 hectares of freehold land. The site is fully leased to New Zealand Dairy Collaborative Limited (NZDCL) on a current lease that runs to 2036, with two further five-year rights of renewal.

NZDCL uses the latest systems to make cow, sheep and goat milk-powder-based products in a variety of packaging. It produces these on contract for domestic and overseas clients supplying diverse consumers, including infants and toddlers, sportspeople, pregnant women and the elderly.

The Ashburton factory offers new owners an annual net rental return of $723,132 plus outgoings and GST, with built-in annual growth of 2.5 percent.

The freehold property at 9 Ashford Avenue, Ashburton, is being offered to buyers by deadline private treaty closing on Thursday 21 May (unless sold prior).

The sale is being marketed by Nick O’Styke, Jesse Paenga and William Wallace of Bayleys Canterbury, as sole agents.

“Developed to a modern, high-quality specification, the property has been home to this standout agricultural tenant since 2021. This reflects both the calibre of the asset and its suitability for contemporary industrial operations,” O’Styke said.

“This large-scale manufacturing facility is well configured to support efficient warehousing, logistics, and operational requirements – aligning with the needs of national occupiers seeking scale, functionality and reliability within a regional centre.”

Paenga, Bayleys’ South Island Capital Markets director, tipped the sale to command significant interest from investors well beyond Canterbury.

“Underpinned by a substantial long-term lease commitment, with annual rental growth, and future rights of renewal, this is a blue-chip investment opportunity.

“Investors stand to gain from both immediate returns and confidence in its long-term performance. Such attributes are increasingly sought after in a current market where quality, tenanted industrial assets remain tightly held,” said Paenga.

Wallace, who is Bayleys’ Commercial South Island general manager, said the strategic position in central Mid Canterbury placed the facility on the South Island’s main north-south freight corridor.

“Ashburton’s central location ensures seamless integration into regional supply chains, supporting time-sensitive operations for food, storage and logistics businesses.

“Easy access to State Highway 1 and the Main South rail line spells peak efficiency for transport and distribution across Canterbury, Otago, and national markets,” Wallace said.

The site for sale forms part of the Business E zone under the Ashburton District Plan.

“Businesses here operate in the heart of a district that is a hive of New Zealand’s agricultural and food-processing productivity, where logistics, storage and distribution infrastructure play a vital role in supporting primary industry and export-driven activity.

“Ashburton’s industrial precinct is well-established. It harbours a dynamic concentration of trade, logistics, and service-based occupiers, reinforcing tenant demand and long-term occupancy fundamentals,” said Wallace.