NZ Post Signs Up for $ 100 Million + New Planned Parcel Handling Center at $ 600 Million Wiri Estate

The rapid rise in online shopping has prompted NZ Post to lease a venue with more than $ 100 million yet to be built the size of three rugby fields in South Auckland.

The state-owned company said the planned new 3.3ha building it would be in addition to their planned new Wellington “superdepot”.

A spokesperson said the Wellington and Auckland buildings were a response to the rise in online shopping.

“NZ Post is investing in infrastructure to meet the growing demand for online shopping and package processing and delivery. The investment program began in June with the commencement of construction of a new package super warehouse in Grenada, Wellington,” said the spokesman.

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“The program also includes a new processing center in Wiri, south of Auckland, due to open in 2023. The blessing of this site will take place in the next few weeks and construction will begin shortly thereafter,” said NZ Post.

The state-owned company is investing $ 170 million in its network to double its package processing capacity from 95 million packages a year to 190 million packages and the Minister of State Associated Enterprises, Shane Jones, announced the Wellington deposit in June. .

In May, Broadcasting Minister Kris Faafoi said that without government support, NZ Post would face having to make drastic cuts to its mail business to remain viable.

“Post revenue has fallen substantially, but the costs of providing the service New Zealanders expect have remained the same. The $ 150 million capital injection, along with the $ 130 million funding for mail services, it means we avoid significant cuts in their service and workforce and huge price increases for their customers, “Faafoi said at the time.

Last September, NZ Post reported a loss of $ 121 million in the 12 months ended June 30, compared to a gain of $ 13 million the previous year, when the bottom line was boosted by its participation in the Kiwibank earnings.

Tony Catton, New Zealand Senior Development Manager at Logos, Sydney-based property specialists, said his company would build the new facility.

The site would be worth about $ 600 million once several new buildings are built, said Catton, who previously worked on properties for supermarket giant Foodstuffs.

The Wiri Building adds to NZ Post’s existing handling center in Highbrook.

“This is an addition to the processing center network and will be for international parcel sorting and distribution to respond to anticipated growth in the New Zealand business, particularly online sales,” said Catton.

Logos plans to start work soon at the site owned by a pension fund, AustralianSuper.

Catton said Logos would build a 33,700-square-meter facility that NZ Post agreed to lease for 20 years starting in 2023.

Other companies have also signed up to lease unbuilt premises there.

Hilton Foods New Zealand has committed to a 25-year pre-lease for 15,700 square meter distribution and processing buildings.

Catton said development work began at Wiri last April.