Helius Therapeutics Ltd has secured an 8800m² property in East Tamaki for its first facility to cultivate, extract, research & manufacture medicinal cannabis.
The lease on 21 Ron Driver Place comes ahead of expected regulatory changes which would legalise the use of medicinal cannabis by mid-2020.
Helius co-founder JP Schmidt said yesterday the deal was an important step forward for the company: “We’re delighted to have secured this facility, which will set the standard for medicinal cannabis production in New Zealand. We’re operating in one of the fastest-growing industries in the world and this property underscores our commitment to leading this market in New Zealand.”
The site has 6500m² of warehouse to be used for cultivation and about 2000m² of office & laboratories. The agreement also allows for expansion into the 6500m² of an adjacent tenancy.
This will give Helius about 20,000m² of cultivation space, capable of growing 140,000 plants and producing 50 tonnes of cannabis material/year.
CBRE industrial & logistics national director Claus Brewer said the process pointed to a new use for large footprint industrial properties: “We’re already seeing in places like Colorado & California the impact legal cannabis manufacturing plants have had on the industrial property market. Whether it’s plant-based meat or more generic growing or processing facilities, the repurposing of industrial stock with low stud height or excess office space to indoor horticulture space could be the future of farming in urban environments, providing further opportunities for savvy landlords.”
CBRE East Tamaki agent Lewis Watson said the Helius deal was an example of repositioning that could benefit a number of older industrial properties: “The change of use allows investors to achieve rental returns comparable to newer builds, and the occupier to be able to achieve greater economic benefits from an older style facility.”
Attribution: Agency release.