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New property fund targets NZD $1 billion export-focused assets by 2030

A newly established wholesale property investment fund is launching with the acquisition of a coolstore facility in Hawke's Bay valued at NZD $24 million, with ambitions to build a NZD $1 billion portfolio by 2030. The Erskine Owen Veritas Property Fund's inaugural purchase is a 7,000 square metre smart coolstore leased long-term to Mr Apple, the subsidiary of Scales Corporation, which is among the largest vertically integrated apple exporters in New Zealand. The asset marks the fund's entry, under a 20-year triple net lease agreement. Portfolio growth The fund has revealed a strategy to reach NZD $1 billion in holdings within a five-year time frame, by diversifying across sectors such as infrastructure, healthcare, manufacturing, office and retail, targeting income-generating assets with strong links to export activities and environmental, social, and governance (ESG) considerations. "We chose this site as the fund's foundation because it ticks all the boxes. It is a core industrial logistics facility, under a long-term lease to a globally competitive exporter, located in a region that is vital to New Zealand's agri-economy. "We're focused on assets that help drive New Zealand's global competitiveness and that perform well in both stable and volatile markets. These are the kinds of buildings that don't go out of fashion, that provide reliable income and that help sectors like horticulture and agribusiness perform at the highest level," said Alan Henderson, Director at Erskine Owen. A capital raise to support the investment in the Groome Place coolstore is now underway. Henderson stated, "This is a Fund with a long-term growth and diversification strategy, which is intended to spread investment risk across sectors and locations. We are aiming to have $200 million in assets within 12 to 18 months and increase that to a billion dollars within four years after that. "The asset quality here speaks for itself. There's clear investor appetite for export-aligned infrastructure backed by strong tenant covenants," he added. Technology and efficiency The Hawke's Bay coolstore features advanced design and automation, including systems that reduce the time between orchard and packhouse by 25 percent. According to Mr Apple's Head of Coolstores, Logistics and Engineering, Michael Caccioppoli, these upgrades are significant for product quality and competitiveness in export markets. "This turnaround speed directly supports export quality, and by shortening the time from picking to cooling, we're able to preserve internal fruit integrity. "That means apples are fresher when they hit the ships. It improves shelf life, reduces quality complaints and lifts the eating experience for millions of consumers around the world, which is critical as we establish markets for new varieties," he said. In 2024, 72 percent of Mr Apple's exports comprised premium varieties such as Dazzle, Posy and NZ Queen, with a stated aim to expand that to 75–80 percent by 2027. The smart coolstore supports this goal by introducing optimised workflows, precision-controlled storage, and a 15 to 20 percent reduction in CO2 emissions compared with older facilities. The facility is operated by just eight staff, as automation and integrated systems allow for tight control of environmental variables, reduced handling, and lowered labour costs. Mr Apple processes approximately 3,000 bins of apples daily, using technology to accelerate throughput while protecting product quality. Caccioppoli highlighted the broader advantages of the advanced facility, stating, "The system helps protect margin and reduce risk in a volatile global freight market," he observed. Investor demand Henderson commented on current sentiment in the investment community, with more investors seeking reliable income and ESG-aligned assets with export relevance. "It reinforces our view that there is real demand for high-quality, income-generating assets in this sector. "The coolstore reflects the kind of high-performance infrastructure we're targeting - efficient, export-driven and future-ready," he said. The Erskine Owen Veritas Property Fund is now open to wholesale investors interested in income-producing infrastructure assets.