The property arm of Woolworths New Zealand has been granted overseas investment consent to secure a long-term lease on more than 10 hectares of land in Christchurch’s Hornby South, as part of a major expansion of its distribution operations.

General Distributors Limited, the property-owning and leasing vehicle for Woolworths New Zealand, received approval from Land Information New Zealand on 27 February under the Overseas Investment Act.

But the decision was released today.

The deal involves the acquisition of a leasehold interest in approximately 10.54 hectares of non-sensitive land. The total attributed value of the lease over its full term is $213.27 million.

The land is currently used for a Woolworths warehouse distribution facility. Under the new arrangement, the existing lease is being extended and varied to accommodate the retailer’s expanded operations on a larger site.

The vendor in the transaction is Shands Road Nominees Limited, acting as custodian for the Shands Road Limited Partnership, which is 100% New Zealand-owned.

Consent was granted after the applicant met the required investor test criteria under section 13(1)(c) of the Overseas Investment Act 2005.

The investment is categorised under the significant business assets pathway.