Caniwi Capital in $60M Tegel factory buy-up, signals $100M more to spend

Wellington-based private investment company Caniwi Capital has spent $60 million to buy two recently refurbished, long lease chicken processing plant leases from the Tegel chicken company, and says it has up to $100 million more to spend on other assets that fit is investment criteria..

The purchase means Caniwi is estimated to be one of the top four or five New Zealand-based buyers of domestic commercial property, says its founder, former investment banker Troy Bowker.

The two poultry processing plants are in Christchurch and New Plymouth, are on 25 year leases and have been recently refurbished and follow Bowker’s purchase of two commercial properties in the Wellington central business district in April, also for $60 million.

“We particularly like holding long term cashflow-based assets,” said Bowker, whose firm’s other major acquisition was Hamilton-based packaging and materials handling firm Stowers Containment Solutions, in 2010.

“We are long term holders of these assets for what we believe are superior yields than other similar investment opportunities,” said Bowker, who says there are no plans to list Caniwi.

“Caniwi is in the market for another $50 million to $100 million of assets that fit the investment criteria,” he said, with close attention being paid to the packaging sector to add to the Stowers acquisition.

“Stowers is performing very well and we like the packaging sector. Further acquisitions are planned.”

Bowker said both buildings had high earthquake ratings and had suffered only superficial damage in the 6.5 magnitude quake that rocked Wellington last Sunday evening.

In a statement issued by Caniwi, Colliers International sales broker Bill Leckie said “Caniwi Capiutal is one of the most active buyers of commercial property in New Zealand” with a reputatqion for a “fast moving negotiating style.”

(BusinessDesk)