Cracking Covenant Anchors New Drury Facility

A brand-new industrial property underpinned by a long lease to New Zealand’s largest egg producer has come to the market, offering investors access to a genuinely passive opportunity in the Drury South Crossing industrial precinct.

Purpose-built for Mainland Poultry as a large-scale egg grading and packaging facility under the Zeagold brand, the property at 26 Toiawaka Road delivers a rare 20-year lease secured by one of New Zealand’s most established food producers.

The facility has been designed to support Mainland Poultry’s long-term operational requirements and forms a critical part of the company’s national production and distribution network. Mainland has invested heavily in the building, adding specialised improvements that cement its commitment to the site and underlining how important this location is to the company’s vertically-integrated supply chain, which spans feed milling, chick rearing, egg production, processing, packaging and distribution.

Developed by Aintree Group, one of Drury South’s leading design-build companies, the facility comprises a 5,407sqm high-stud warehouse, ground and first-floor office accommodation and 47 car parks on a 9,864sqm freehold site zoned Business – Light Industry. The warehouse provides clear-span space with stud heights ranging from 10 to 11.8 metres, enabling full vertical utilisation and operational flexibility, along with extensive canopied areas. The building has been configured specifically around Mainland Poultry’s model, with substantial investment made into both the base build and internal improvements.

The property will be fully-leased to Mainland Poultry Limited for 20 years from 1 December 2026, the practical completion date, with two further ten-year rights of renewal extending the final expiry to 2066. The lease is guaranteed by the tenant’s parent entity and returns net annual income of $1,298,085 per annum plus GST, with fixed annual increases of three percent and market reviews every five years.

Greg Hall and Paul Steele of Bayleys South Auckland are facilitating the property’s deadline private treaty campaign closing Thursday 30 July unless sold prior.

Noting that investors are actively scoping assets with strong tenant covenants and long leases, Hall says the long-dated income profile and low-maintenance nature of the asset make it a straightforward hold for private and institutional investors seeking security and growth.

“Mainland Poultry is a nationally significant operator in the food production sector. Their investment in this facility shows how central Drury South is to their long-term operations and why this golden triangle location plays such an important role in their national network.

“The scale of the specialised improvements will give investors real confidence, and it’s clear the tenant has designed this facility to support its business for the long haul, which underpins the income stream.”

Positioned between the Drury and Ramarama interchanges, the property benefits from immediate access to State Highway 1 and sits within one of Auckland’s fastest-growing industrial corridors. Immediate neighbours include Freight Direct, Clutch Industries and a new industrial business park development, reinforcing the precinct’s role as a major logistics and production hub. The location provides efficient connectivity to Papakura, Takanini, Karaka and Pukekohe, with future infrastructure including the Drury Train Station set to further enhance accessibility.