28 | Incentive boost sparks renewed interest The last release comprises four smaller lots of 5000-7000sqm, alongside two larger, 1.8-hectare sites from previous stages, available individually or combined for businesses requiring greater space. UPC Group T T Karen Phelps “We have fully serviced sites ready to go for design, build and lease requirements, so we can pull the trigger on developing these for clients very quickly.” REGIONAL DEVELOPMENT The Government’s newly announced Investment Boost tax incentive in the 2025 Budget is already generating renewed interest in industrial property investment, according to a leading Waikato-based company that has witnessed early signs of market recovery. Jonny Reid, managing director of UPC, the majority stakeholder behind Northgate Business Park, a 100-hectare industrial subdivision near Hamilton, believes the Budget announcement will serve as a catalyst for businesses hesitant about expansion and investment decisions. The Investment Boost scheme, which came into effect on 22 May, allows businesses to deduct 20% of new productive assets’ value from taxable income in addition to normal depreciation. “The Government is trying to stimulate growth, and it will have an impact as businesses start to invest in plant and equipment. We are seeing a few green shoots in the market, and people are seeing the advantage in purchasing now,” says Jonny. The business park, now in its fourth and final stage of development, offers a limited number of remaining lots ranging from 5000 to 20,000sqm. The last release comprises four smaller lots of 5000-7000sqm, alongside two larger, 1.8-hectare sites from previous stages, available individually or combined for businesses requiring greater space. In addition, UPC has retained a select number of lots for long-term investment and development within its own portfolio at sNorthgate Business Park, and will build custom warehouses for interested parties looking for a long-term lease solution. UPC’s development capabilities were demonstrated last year with the completion of what Jonny believes will be the largest clearspan warehouse in the area, a 14,000sqm distribution facility delivered ahead of schedule, for a major New Zealand corporate client. “When we look to build for a client, often they are on a tight timeline as they have outgrown their premises. So our relationship with contractors is key to be able to deliver to these timelines,” explains Jonny The company offers design-and-build solutions ranging from 3500 to 20,000sqm for businesses preferring lease arrangements rather than capital investment in land and buildings. UPC is able to deliver this through 8.5 hectares of land it retained specifically for design-and-build assets for long-term hold. “We have fully serviced sites ready to go for design, build and lease requirements, so we can pull the trigger on developing these for clients very quickly,” says Jonny. He says the location has proven attractive to Auckland-based businesses seeking cost-effective alternatives. The business park benefits from its position within the golden triangle of Auckland, Hamilton and Tauranga, with equal 110-kilometre distances to both the Ports of Auckland and Port of Tauranga. This positioning has been further enhanced by Ports of Auckland’s establishment of its Waikato Freight Hub on 33 hectares acquired in 2017, creating an integrated inland freight network. Situated just 40 minutes south of South Auckland, whether land or a lease option, Northgate offers substantial savings compared to the Auckland market, Jonny says. “A real advantage of the location is also its access to a growing workforce, supported by significant residential development in the surrounding area. It really has become a no-brainer for many businesses to invest in Waikato.” WILCO PRECAST LTD, 66 BOUNDARY ROAD, PAPAKURA TEL (09) 295 1060 WILCOWAIKATO, 52 EVOLUTION DRIVE, HOROTIU, TEL 07 829 9465 www.wilcoprecast.co.nz Wilco is proud to supply UPC Group with precast concrete components and has recently opened a branch in Horotiu, Hamilton, to continue our service of the Waikato and Bay of Plenty regions. Building upon a 60-year history at the company’s Papakura plant, our ongoing quality assurance system and commitment to quality principles and procedures provides for total customer satisfaction: high quality precast components and a smoother, faster construction process.
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