Syndication of company near Lyttelton Port

7:00 PM Friday May 10, 2019 True Commercial

The Hilton Haulage warehouse and distribution centre is at Desi Place in Hillsborough. Photo / Supplied

A syndication offer has been announced which involves one of the best known names in South Island transport and logistics, Hilton Haulage.

This follows a decision by the company to sell its Desi Place warehouse and distribution centre in the Christchurch suburb of Hillsborough to enable it to drive business expansion.

The multiple warehouse site on main road to Lyttelton Port, is now being made available as a wholesale managed investment scheme with a minimum investment of $10,000.

Operating as the Desi Place Property Syndicate, it will be managed by Christchurch based Taurus Management Ltd. The initial forecast pre-tax cash distributions, paid monthly, is 8 per cent, while the weighted average lease term is 12 years.

Taurus managing director David Kitson says the Desi Place site is one of the largest distribution hubs close to the expanding Lyttelton Port:

“The 4.65ha site comprising seven warehouses, large sealed vehicle parking and container storage areas, transit and accessways and offices — all within 6km of the South Island’s busiest port.

“This is the second Hilton Haulage owned site offered as a wholesale managed investment scheme, following its Curries Rd site that was settled in October 2018. Together we are planning to manage the sale and lease-back of further properties in the future,” he says.

The Hilton Haulage CEO, Scott Crampton, says the company’s long term strategy is to maintain a key presence on a main route to Lyttelton, while exiting property ownership to support forecasted growth across the country.

“By releasing capital we can continue our focus on total logistics solutions for our clients and provide shareholders with a balanced mix of assets to drive value and returns,” he says.

Hilton Haulage Ltd was formed in the mid-1990s after a management buyout, having operated more than 25 years before that.

“The company changed to what is now known as Hilton Haulage Ltd Partnership following a 50 per cent stake being taken by Ngai Tahu Holdings.

Its location in Hillsborough, Christchurch, benefits from the continued expansion of Lyttelton Port, now undergoing a 10ha reclamation and building of a new container wharf, says Kitson.