Woolworths doubling down on Christchurch DC

1st April 2025 By Bridget O'Connell | bridget@propertyticker.co.nz | @propertyticker

Woolworths has been given the green light for a huge expansion of its key South Island distribution centre in Christchurch’s Hornby.

The grocery retailer’s property arm, General Distribution, has won Overseas Investment Office approval to lease 10.5 hectares of land in the Christchurch suburb in order to expand its ambient product DC.

The move would cost the supermarket more than $213m over the 15-year term of the lease agreement.

“The applicant already leases part of the land in Hornby South for its warehouse distribution facility,” said the OIO summary of its decision released on Monday.

“The distribution centre is being expanded onto the other part of the land and the existing lease is being varied and extended to reflect the larger site and facility.”

ASX-listed Woolworths currently has a 29,000 square metre DC on the site at 146 Shands Road for ambient products, which was opened in 2000 and upgraded in 2012.

It would continue to operate from the existing facility while it completes a new, modern 17,000 square metre warehouse extension on the adjacent site comprising vacant land at 166 Shands Road in order to meet its growing operational requirements.

This time last year, Woolworths opened its 11,000 square metre Christchurch Fresh Distribution Centre in Rolleston to service stores across the South Island with fresh and perishable product lines.

It was Woolworth’s fifth DC, alongside Hornby and three North Island DCs, with two located in Auckland and a $100m facility in Palmerston North, which opened in 2022.

Woolworths was also eyeing an expansion of its ambient national distribution centre in Auckland, with the business seeking consent to increase the floor area of its building at 60 Kerrs Rd, Wiri, from 27,000 square metres to 78,000 square metres to keep up with growing demand.