The Warehouse builds $18m mega distribution store

By Chris Hutching

Friday 17th May 2002

HIGH TURNOVER: Stephen Tindall turns the first sod in the distribution warehouse project

The Warehouse founder, Stephen Tindall, turned over the first sods for construction of an $18.5 million distribution facility with the help of 20-tonne digger at a ceremony near Christchurch this week.

The new distribution store at Rolleston, 25km south of Christchurch, will service the whole of the South Island and part of the lower North Island.

Believed to be the biggest single-level building in the South Island, it will occupy more than 3.2ha or more than six rugby fields on a 7ha site on the western side of the main trunk railway line at Rolleston. By comparison, The Warehouse's largest store in Christchurch is Eastgate, with 9291 sq m of retail space.

The warehouse is expected to be completed by early next year and will employ 100 people.

The Warehouse has bought the site and will build the distribution centre but it will then be sold to the Selwyn District Council in a lease-back deal. Selwyn District is one of the wealthiest districts in the country and its councillors are keen supporters of a range of economic developments. The $18.5 million price includes building and land costs of $13 million and internal fitout costs of $5.5 million.

Selwyn District mayor Michael McEvedy said The Warehouse's decision to locate at Rolleston is due in part to the council's economic development strategy and he expects it will be a catalyst for further development of the Rolleston Industrial Park, with The Warehouse being the first key-anchor tenant on the 120ha site.

Civic leaders, some with interests in property development, also hope the creation of the industrial park will create other employment opportunities in the dormitory town.

The Warehouse chose the Rolleston site because of its proximity to State Highway 1, Christchurch International Airport, the Port of Lyttelton and the major national rail link. In addition, the rates The Warehouse will pay will be about a quarter of what they would have been if the development was built in Christchurch.

"We expect around 20 containers a day through the distribution centre and up to 40 or more at peak times," Mr Tindall said.
A computer controlled tracking and distribution system - the first of its type in the South Island, according to Mr Tindall - will be installed at the site. It is already used at the company's Wiri site.

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