AI Spillover: Real-Estate Behind the Intelligence Boom
In October, the real estate narrative is shifting from speculation to infrastructure. The world’s attention on artificial intelligence has moved beyond algorithms and applications toward the tangible assets that make it possible. AI is not just code; it is capacity. Data centres, power grids, logistics nodes, and workforce housing have become the new foundations of growth.
The first wave of AI investment flooded mature markets, Silicon Valley, Singapore, Sydney, Tokyo, driving land and energy costs to record highs. The second wave is now spilling outward, seeking affordable capacity in regions that can still expand without premium pricing. This is where New Zealand and Malaysia enter the picture. Both are stable, strategically located, and early in their infrastructure cycles. That combination makes them uniquely positioned to capture high yields today and the capital re-rating that follows as AI demand matures.
The shift is not theoretical. Hyperscaler spending is accelerating, policy incentives are expanding, and regional supply chains are reconfiguring around where power, land, and people remain available. For investors, this creates a new map of opportunity, one defined less by population growth and more by connectivity, reliability, and yield.
This month’s edition examines:
How AI-driven infrastructure is reshaping global real estate flows
Why New Zealand’s monetary easing and energy profile offer quiet leverage in an expanding digital economy
How Malaysia’s logistics and industrial corridors are turning into the next AI-adjacent hubs of Southeast Asia
Where yield compression, capital inflow, and early-cycle positioning intersect in both markets
1. The Shift from Virtual to Infrastructure
Artificial intelligence is often perceived as intangible, algorithms and data in the cloud. But every model trained and every inference served depends on something concrete: servers, power, cooling, fibre, land, and logistics. In many ways, AI is just as much about real estate as it is about software.
AI Caps Demand for Infrastructure
Hyperscalers are pouring capital into data-centre campuses globally. Microsoft has committed USD 2.2 billion to Malaysia. Google is building its first Malaysian cloud region. In New Zealand, AWS launched its NZ region in September 2025, and Azure’s New Zealand North region went live in late 2024. These are not plans, they are operating capacity.
AI workloads demand density. A single AI cluster can draw megawatts of power and generate substantial heat, meaning sites must be engineered to serve at scale. The result: power, network, and cooling become gating constraints, not optional features.
Secondary layers of demand follow the core build. You can’t run a data centre alone. You need staging warehouses, component storage, last-mile logistics, and housing for engineers and staff. These are the identifying “spillover plays” that many investors still overlook.
Why the New Wave Matters
The first wave of global data-centre expansion has already reshaped the supply landscape. In primary markets like the United States, Singapore, and Sydney, capacity has tightened, land prices have surged, and rents for power-served industrial space have climbed to record levels. As those hubs reach saturation, the next logical move for both hyperscalers and investors is outward, to regions where energy, land, and regulatory space still exist. For countries such as Malaysia and New Zealand, this is not just opportunity, it is timing. Their value lies in lower entry costs, untapped grid capacity, and policy settings that can still support scale without overheating the market.
For real estate investors, this shift is more than thematic. It is a structural turning point in how returns are generated. The market is moving from chasing speculative appreciation to anchoring durable income in the physical layers that enable digital growth. Yield is again the foundation of value. The question is no longer who builds the next data centre, but who owns the properties that feed, power, and house the ecosystem around them.
There is also a broader macro dimension that cannot be ignored. The rise of AI is beginning to challenge traditional labour models, automating entire categories of routine work. If this structural displacement begins to suppress wage growth and consumption, central banks may respond by keeping interest rates lower for longer to stabilise demand. We are already seeing early signs of this policy recalibration in markets like New Zealand, where the Reserve Bank has started cutting the OCR as economic slack increases.
Lower rates, combined with sustained digital infrastructure spending, create an unusual alignment: falling funding costs alongside rising real asset demand. For income investors, this is a rare window. High-yield assets linked to technology infrastructure can now be acquired while margins are still wide, before rate compression lifts valuations. It is a moment where structural innovation and cyclical easing intersect, and those positioned early will be the ones compounding when the rest of the market catches up.
2. Spillover Is the Real Story: Where Infrastructure Meets Opportunity
When hyperscalers commit to a new region, headlines often focus on the data centre itself. The real opportunity, however, lies in the layers that surround it. Every major cloud investment sets off a chain reaction. Power grids are upgraded, logistics capacity expands, and new residential demand emerges to house the growing technical workforce. This is the spillover zone, and it is where long-term value often compounds quietly before markets catch on.
Malaysia: From Follower to Regional Anchor
Malaysia’s AI infrastructure story has accelerated rapidly in 2025. What began as a handful of announcements is now a nationwide build-out. Microsoft’s USD 2.2 billion investment into cloud and AI infrastructure includes new data centres in Kuala Lumpur and Johor, while Google’s USD 2 billion allocation will fund its first Malaysian cloud region and an adjoining data facility. Together, these two projects alone represent one of Southeast Asia’s most concentrated surges in digital infrastructure spending.
Johor, in particular, is emerging as the country’s technology capital. YTL’s Green Data Center Park in Kulai has already secured Nvidia as a partner to host one of the region’s largest GPU clusters. Construction is well underway, supported by fast-tracked approvals, improved land titling, and direct fibre expansion between Johor and Singapore. The Malaysian government’s RM 43 billion national grid modernisation plan, announced in mid-2025, underlines this shift. It ensures that growing data demand does not outstrip power supply, positioning Johor and Selangor as stable, high-capacity nodes within the regional network.
This transformation is not limited to the hyperscalers themselves. Warehousing, component staging, and industrial logistics are expanding in tandem. As the demand for servers and cooling equipment rises, firms need storage, assembly, and service hubs. Port Klang and Johor’s Senai-Seelong corridor have become critical for these flows, linking imported hardware directly to inland data parks. Residential and hospitality demand is rising in parallel, particularly for skilled contractors and technicians who rotate through these sites for months at a time. In short, the spillover is tangible: data investment is feeding directly into the physical economy.
New Zealand: Building Digital Infrastructure with Stability
New Zealand is moving at a different pace, but with the same structural logic. The launch of Amazon Web Services’ New Zealand region in September 2025 marked the country’s official entry into the global cloud infrastructure map. Microsoft’s Azure New Zealand North region had already gone live at the end of 2024, and Google’s planned data centre and Honomoana subsea cable are scheduled to come online by early 2026. For a small, open economy, this level of concurrent investment is unprecedented.
The appeal lies in New Zealand’s clean energy, predictable regulatory environment, and political stability. Hyperscalers can scale sustainably here without the energy intensity or congestion costs that now constrain Singapore or Sydney. Auckland has become the natural anchor, supported by its data corridor that stretches south through Manukau and north into Albany. Industrial and logistics properties located near motorway links, power-served land, and high-speed fibre routes are already seeing renewed interest. This early-stage ecosystem presents a distinctive opportunity: high-quality tenants, long leases, and a yield profile still in the six-to-eight percent range.
At the same time, the surrounding sectors are starting to respond. Warehouses are being repurposed into staging and maintenance facilities for hardware suppliers, while nearby residential developments are being adapted into short-stay and workforce accommodation. This is the secondary effect of AI investment: every gigawatt of computing power generates parallel demand for space, people, and services. New Zealand’s measured but consistent rollout of cloud infrastructure allows investors to enter this cycle early, before valuations reflect the new demand curve.
The Levers Behind the Spillover
The strongest value signals within this new landscape are coming from three structural levers. First is power and grid availability. Locations with secure access to high-capacity substations and renewable energy will lead the next phase of data expansion. Second is logistics and connectivity. The rise of just-in-time component delivery and the need for redundancy in cloud operations make warehousing, distribution, and backhaul critical. Third is workforce accommodation. Every technical facility needs an ecosystem of skilled labour and transient specialists, which fuels demand for managed housing and serviced apartments near key infrastructure zones.
These dynamics are unfolding in real time. In both Malaysia and New Zealand, the interplay between infrastructure and property has become more visible with each project announcement. What began as a technology story is now a real asset story, and the investors who recognise this early have the advantage. The spillover is no longer theoretical; it is measurable, visible, and already priced into the next wave of demand.
3. New Zealand: Macro Foundations for the Next Yield Cycle
New Zealand’s economic setting has shifted from restraint to recovery. The Reserve Bank’s October 2025 decision to lower the Official Cash Rate (OCR) to 2.5 percent marked a clear turning point after two years of tightening. The policy stance has moved from defending against inflation toward supporting growth. This transition is reshaping the investment landscape: lower funding costs are widening the spread between borrowing rates and rental yields, restoring confidence in leveraged strategies, and reopening the path for cap-rate compression across industrial, logistics, and managed-residential sectors.
Monetary Policy: A Gentle Easing Cycle
In its October statement, the RBNZ confirmed that inflation has returned to within the 1–3 percent target band, with headline CPI at 2.7 percent for the year to June. Core inflation is moderating as wage growth cools and labour-market tightness eases. The Bank signalled one more potential 25-basis-point cut in early 2026, which would bring the OCR to around 2.25 percent before holding steady through mid-year.
This gentle easing marks a deliberate shift toward a “low-for-longer” posture. Monetary conditions remain restrictive in real terms, but the direction is now supportive. For real-asset investors, this represents the first credible signal that the cycle has turned.
Inflation and Real Yields
Price pressure continues to unwind across most categories. Food inflation remains sticky at roughly 5 percent year-on-year, but rents are rising at their slowest pace in over a decade. Tradables inflation is easing as global freight and energy markets normalise. With the OCR at 2.5 percent and CPI at 2.7 percent, short-term real yields are close to zero, a neutral but stable setting that supports risk-asset re-rating.
From an investor’s view, this creates a unique window where nominal income yields of 6–8 percent clear inflation by several percentage points. That differential is the foundation for value restoration in income property.The crossover demonstrates improving real returns for income-producing assets.
Growth and Labour Market
After a shallow technical recession in 2024, output is again expanding. GDP grew 0.8 percent in the March 2025 quarter, reversing the prior year’s decline of 1.1 percent. Forecasts from the NZ Institute of Economic Research point to 1.5 percent annual growth through March 2026, followed by a modest strengthening as exports and construction rebound.
The labour market is loosening in an orderly way. Unemployment rose to 5.2 percent in June 2025, reducing wage pressure and stabilising operating costs. For the property sector, this equilibrium is healthy. It limits the risk of cost escalation in construction and maintenance while preserving employment-driven tenant demand.
Investor surveys show confidence gradually returning, led by institutions repositioning for the next cap-rate compression phase. Domestic capital, once sidelined by higher debt costs, is starting to re-enter income assets that can generate predictable cash flow.
Housing and Construction Supply
Residential construction has cooled without collapsing. 3,252 new dwellings were consented in July 2025, bringing the annual total to about 33,900 units, only 3 percent below the previous year. The decline in supply coincides with improving financing conditions, which often marks the beginning of a stabilisation phase.
The REINZ House Price Index was flat through August, up 0.1 percent year-on-year, while national median prices slipped 1.3 percent month-on-month. Transaction volumes remain modest, but vendor confidence is no longer deteriorating. Historically, similar conditions have preceded gradual price firming once rate cuts translate into easier credit and renewed buyer participation.
Sector Implications
Industrial and Logistics – These sectors are clear beneficiaries of easing capital costs and rising AI-related infrastructure demand. Occupancy in Auckland and Hamilton remains above 95 percent, and net effective rents have risen about 3 percent year-on-year. As data-centre and distribution networks expand, power-served warehousing is expected to see the first wave of cap-rate tightening.
Student and Workforce Housing – Supported by the return of international students and the influx of technical contractors tied to AI-infrastructure construction. This creates sustained occupancy for managed apartments and long-stay formats near educational and industrial nodes.
Aged Care and Healthcare – Demographic drivers remain robust, and lower borrowing costs are improving margins for operators expanding capacity. This segment is likely to attract institutional capital seeking stable yield under ESG mandates.
Office and Retail – Still lagging, but selective repositioning near transport hubs or mixed-use precincts could outperform as hybrid-work patterns stabilise and population inflows continue.
The Fairhaven View
The next cycle in New Zealand will be yield-led, not price-led. With the policy rate easing and inflation contained, investors are being paid to hold income again. The opportunity lies in acquiring dependable, cash-flow assets before valuation recovery broadens through 2026. If policy stays on course and external shocks remain limited, this gentle easing cycle may set the foundation for one of the most orderly re-ratings of New Zealand real assets in over a decade.
4. Malaysia: Yield Premium and the Early-Cycle Advantage
While New Zealand’s story is one of easing into stability, Malaysia’s strength lies in acceleration. The country is positioned at the front end of Southeast Asia’s infrastructure expansion, absorbing spillover from Singapore’s saturation and the global race to secure AI-ready capacity. The past eighteen months have seen a structural shift in both foreign investment and domestic confidence, driven by improving fiscal discipline, export recovery, and a surge of technology-linked inflows.
Monetary and Fiscal Landscape
Bank Negara Malaysia has held the Overnight Policy Rate steady at 2.75 percent since July 2025, marking over a year of stable policy. This reflects confidence that inflation is now well anchored. Headline CPI stood at 1.3 percent year-on-year in August 2025, near the lower end of the target range, after trending down steadily from above 3 percent in early 2024. The result is one of the widest real-yield spreads in the region, giving Malaysia’s income-producing assets a genuine pricing advantage.
For property investors, this macro equilibrium matters. A flat policy rate and subdued inflation mean that the real cost of holding leveraged assets has fallen, while nominal yields in the 6–8 percent range remain intact. This creates an environment where investors are paid to wait: cash flow covers debt comfortably, and future valuation uplift becomes a free option if monetary easing resumes in 2026.
Growth remains solid. GDP expanded 3.7 percent year-on-year in Q2 2025, driven by a rebound in manufacturing and continued strength in services, particularly logistics, tourism, and digital infrastructure. The government’s medium-term outlook calls for full-year expansion near 4 percent, supported by both domestic consumption and inbound capital linked to data-centre and industrial projects.
On the fiscal side, the consolidation trend continues. Federal revenue rose roughly 7 percent in the first half of 2025, helped by stronger petroleum income and higher collection from consumption-based taxes. The deficit is expected to narrow to around 4 percent of GDP this year. Importantly, spending quality has improved: allocations are being channelled toward digital infrastructure, transport links, renewable energy, and industrial upgrading, all of which reinforce property-linked demand.
Taken together, Malaysia’s macro balance now offers a rare mix of low inflation, stable rates, and pro-growth fiscal investment. This combination gives real-estate investors clarity on financing costs and confidence in medium-term rental durability. In effect, the macro backdrop is underwriting yield: the stability of the OPR, coupled with benign price pressure, ensures that income remains the most reliable driver of return in Malaysia’s current cycle.
Growth Drivers: Technology and Logistics Corridors
Malaysia’s momentum is anchored by major technology commitments. In 2025, Microsoft announced USD 2.2 billion in AI and cloud infrastructure investment, while Google committed USD 2 billion to its first Malaysian cloud region. YTL Power and Nvidia’s partnership in Johor’s Green Data Center Park added another layer, introducing one of Asia’s largest GPU clusters. Construction activity tied to these projects is already visible across Johor Bahru, Kulai, and the broader Iskandar region.
These developments are reshaping local industrial demand. Power-served land in Johor and the Klang Valley is now viewed as strategic inventory, not just for data-centre use but for component staging and supply-chain warehousing. Port Klang, one of Asia’s busiest container ports, is at full capacity with throughput up 8 percent year-on-year, pushing occupiers to secure space further inland in Pulau Indah and Shah Alam. Rental growth in the logistics segment averaged 5 percent over the past twelve months, outperforming regional peers.
Sector Positioning and Our Live Listings
The AI build-out is translating directly into real estate demand across Malaysia’s high-capacity corridors.
Industrial and Logistics – Johor & Port Klang
Johor’s Senai-Seelong and Port Klang’s Pulau Indah industrial parks are front-line beneficiaries. Occupancy rates exceed 90 percent, and yields in the 7 to 8 percent range remain achievable, roughly double those of comparable Singapore assets. The Johor warehouse in our live listings sits inside this corridor, drawing value from proximity to YTL-Nvidia’s GPU campus and direct highway access to Senai Airport. Likewise, the Pulau Indah facility in Port Klang captures throughput from server imports and hardware staging that feed Malaysia’s growing data-centre base.
Urban Mixed-Use and Workforce Housing – Kuala Lumpur Core
In Kuala Lumpur, demand for adaptive residential assets has risen around KL Sentral and Brickfields. These districts provide transient housing for data-centre contractors, digital-service staff, and multinational teams relocating from Singapore. The Brickfields mixed-use property in our listings leverages that flow, offering both hospitality and long-stay configurations suited to the evolving workforce pattern of the AI service economy.
Secondary Spillover – Penang & Kedah Technology Triangle
Penang remains Malaysia’s electronics manufacturing hub, and new semiconductor and chip-assembly expansions there indirectly boost logistics demand in the north. While we do not hold active listings in that region yet, it represents a potential next-cycle target once valuations broaden beyond Johor and the Klang Valley.
Investment Thesis and Yield Premium
Malaysia’s comparative advantage is its yield spread. Institutional-grade industrial assets here still trade at 6.5 to 8 percent net, while equivalent Singapore warehouses yield 3.5 to 4 percent. That differential reflects early-cycle risk but also early-cycle opportunity. As infrastructure investment solidifies and foreign tenancy deepens, yield compression of 100 to 150 basis points is plausible over the next three years.
The Fairhaven View
Malaysia stands at the early edge of an AI-driven property cycle. Where New Zealand offers monetary relief and predictable compounding, Malaysia provides the growth-yield premium that comes with capacity expansion and capital inflow. Both serve different risk appetites but the same narrative: income first, growth second.
For investors, the Malaysian market now represents a rare combination, institutional-grade assets with strong tenancy demand, still-high yields, and tangible exposure to one of the fastest infrastructure build-outs in the region.
5. Forward Outlook and Comparative Strategy
The global investment cycle is entering a more selective phase. The era of indiscriminate capital flows that chased growth at any price has given way to a search for yield that can be trusted. Within this environment, both New Zealand and Malaysia have emerged as credible, if contrasting, destinations for institutional and private capital looking to reposition ahead of the next expansion.
Where the Cycles Converge
Although the two markets stand at different points on the economic curve, their trajectories align in one important respect: both are entering the build-out phase of the digital-infrastructure economy. The technology sector’s physical footprint is expanding outward from mature hubs such as Singapore and Sydney, and early beneficiaries are countries with available power, affordable land, and predictable governance. New Zealand and Malaysia fit that description, each offering a distinct blend of policy stability, capacity, and return.
In New Zealand, the Reserve Bank’s shift toward a 2.5 percent policy rate has created the conditions for cap-rate compression to resume. Investors who acquire quality income assets now can lock in cash yields above six percent while positioning for valuation uplift once funding costs settle lower through 2026. The country’s transparent legal system and renewable-energy profile also make it an attractive host for data-driven industries that value ESG alignment.
Malaysia, in contrast, is at the expansionary stage of its cycle. With GDP growth near four percent and inflation below two, the macro setting allows strong real returns without monetary tightening. Its proximity to Singapore and the arrival of hyperscaler capital are compressing vacancy rates in logistics and industrial corridors from Johor to Port Klang. Yields of seven to eight percent remain available, but they are unlikely to persist once construction of large data-centre projects moves into full operation over the next eighteen months.
Comparative Advantage in an AI-Led Market
What links both jurisdictions is their exposure to the physical layer of artificial intelligence. Every major technology platform relies on energy, storage, and skilled labour, all of which require space. Data-centre construction generates demand for logistics warehouses, component staging, worker housing, and power-adjacent industrial estates. Investors who secure these assets before the broader market prices in the spillover effectively capture both income stability and appreciation potential.
In practical terms, this means allocating capital not toward speculative development but toward income-producing properties within the ecosystem of AI infrastructure. In Malaysia, that may be a warehouse within fifteen kilometres of the Johor data-centre cluster or a logistics facility servicing import routes through Port Klang. In New Zealand, it could be a South Auckland industrial park near cloud-region connectivity or student housing tied to the tech precincts in Christchurch. The principle is the same: own the enabling assets that will benefit as the digital economy scales.
Regional Interplay and Capital Flows
Cross-regional dynamics are strengthening this link. Singapore’s limited land and rising grid tariffs have already redirected several operators to Malaysia, while Australian and Japanese funds are starting to explore co-investment vehicles in New Zealand to balance their exposure. Capital that once viewed these markets as peripheral now sees them as essential nodes in the broader APAC infrastructure network.
For diversified investors, pairing allocations between the two markets can create a balanced portfolio: Malaysian assets deliver higher running yield and earlier cash recovery, while New Zealand holdings provide long-term security and steady compounding as the OCR eases.
The Fairhaven View
The next twelve to eighteen months represent a transitional window. Monetary policy in developed markets is shifting from defence to support, and the AI build-out is only in its first real wave of physical investment. In this environment, the most resilient portfolios will be those built around yield that compounds and infrastructure that scales.
At Fairhaven, our approach is to position ahead of that convergence. We focus on income-backed real estate within proximity to technology corridors, logistics infrastructure, and demographic demand anchors. In New Zealand this means stabili sed industrial, logistics, and housing assets ready for yield compression. In Malaysia it means high-yield industrial and mixed-use properties located at the frontier of the AI-infrastructure expansion.
The objective is straightforward: to capture dependable cash flow today and the valuation uplift that follows when the market recognises where the next growth nodes are forming.
6. Featured Listings: Strategic Entry Points in the AI-Driven Cycle
As the AI investment wave extends across Southeast Asia and Oceania, the opportunity for real estate investors lies not in speculation but in adjacency, owning the assets that support, supply, and sustain the infrastructure now being built.
The following listings illustrate how yield, location, and timing intersect across both Malaysia and New Zealand to create early positioning in an evolving, technology-led cycle.
Below are three listings we believe represent institutional-grade potential in the current cycle:
1. Johor – Industrial Warehouse (Senai-Seelong)
Asking Price: MYR 100 million
Asset Type: Industrial | Single-storey warehouse with 29 dock levellers and 1,200 Amp power supply
Land Size: ~3.2 ha
Built-Up Area: ~176,400 sq ft
Tenure: Freehold
Nearby Demand Drivers: Senai Airport Logistics Hub, YTL–NVIDIA data-centre corridor, Johor–Singapore high-connectivity zone
Notes:
A high-spec warehouse within Johor’s key industrial belt, this asset offers large-scale storage and logistics capacity suited for AI hardware, cloud infrastructure components, or regional distribution. The site’s substantial landholding and high-power supply position it as a strategic holding within the southern corridor now benefitting from hyperscaler spillover.
Investment Potential:
Estimated Net Yield: ~7.0–7.5%
Estimated NOI: ~MYR 7.0–7.5 million
Occupancy: ~90% (market indicative)
Exit Strategy: Institutional logistics fund or partial redevelopment for data-adjacent use
Key Advantage: Rare large freehold parcel with power capacity near Johor’s AI and logistics growth zone
2. Port Klang – Logistics & Distribution Facility (Pulau Indah Industrial Park)
Asking Price: MYR 55 million
Asset Type: Industrial | Two-storey office with single-storey detached factory
Land Size: ~163,786 sq ft (~3.76 acres)
Built-Up Area: ~110,000 sq ft
Power Supply: 1,000 Amp
Tenure: Leasehold (~88 years remaining)
Nearby Demand Drivers: Port Klang Free Zone, server import and staging operations, Klang Valley logistics corridor
Notes:
Located in one of Malaysia’s highest-throughput logistics zones, this modern facility is purpose-built for e-commerce, technology hardware, and import-distribution tenants. The property’s high ceiling clearance and loading infrastructure make it well suited for operators serving regional AI component supply chains.
Investment Potential:
Estimated Net Yield: ~6.8–7.2%
Estimated NOI: ~MYR 3.7–3.9 million
Occupancy: Full
Exit Strategy: Roll-up into regional logistics REIT or long-lease institutional sale
Key Advantage: Direct exposure to Malaysia’s core port-based logistics ecosystem with stable tenancy base
3. Kuala Lumpur – Hospitality / Co-Living Asset (Brickfields)
Asking Price: MYR 35 million
Asset Type: Hospitality / Residential hybrid | 3-storey hostel building with 96 beds
Land Size: ~35,379 sq ft
Built-Up Area: ~4,800 sq ft
Tenure: Freehold
Nearby Demand Drivers: KL Sentral transport interchange, tertiary education cluster, and corporate workforce accommodation
Notes:
Strategically located within walking distance of KL Sentral, this freehold hostel complex is fully renovated and furnished, designed to meet growing demand for affordable managed housing and transient workforce accommodation. Its accessibility and layout make it suitable for repositioning into long-stay, co-living, or student-accommodation use.
Investment Potential:
Estimated Net Yield: ~6.0–6.5% (stabilised)
Estimated NOI: ~MYR 2.1–2.3 million
Occupancy: ~85–90%
Exit Strategy: Reposition as managed co-living or corporate long-stay asset
Key Advantage: Transit-oriented freehold property in KL’s densest workforce hub with adaptive reuse potential
4. Manukau City – Industrial Building
Rated Valuation (RV): NZD 37.0 million
Asset Type: Industrial | Large-scale logistics/warehouse
Net Yield: ~6.0%–7.0%
Net Operating Income: ~NZD 2.2M–2.6M
Land Size: ~3.92 ha
Built-Up Area: ~14,208 m²
Nearby Demand Drivers: South Auckland logistics hub, motorway access, population growth corridor
Notes:
This large industrial facility sits at the heart of Manukau’s logistics and distribution belt, an area experiencing sustained demand from e-commerce and supply-chain operators. With occupancy at ~90%, the asset provides reliable income with scope for yield compression as OCR cuts filter through.
Investment Potential:
Net Yield: ~6.0%–7.0%
NOI: ~NZD 2.2M–2.6M
Occupancy: ~90%
Leveraged IRR (5-Year Hold): ~17–19% (illustrative)
Exit Strategy: Long-term hold or institutional acquisition
Key Advantage: Defensive sector, supply-constrained location, scale suitable for institutional buyers
5. Auckland – Industrial Facility
Asking Price: NZD ~50 million (estimated market guidance)
Asset Type: Industrial | Large-scale logistics and warehouse complex with integrated office component
Land Size: ~3 ha
Built-Up Area: ~20,200 m² NLA
Tenure: Freehold
Nearby Demand Drivers: Proximity to Auckland Airport and AWS cloud-region infrastructure
Notes:
Located within Manukau’s high-demand industrial belt, this property sits among key logistics and technology supply-chain operators that are expanding to service data-centre and e-commerce growth.
The site’s scale, power connectivity, and transport accessibility make it suitable for large-format warehousing, hardware staging, and distribution for hyperscaler support vendors. The surrounding Wiri–East Tamaki corridor has seen sustained rent growth of 4–6 percent year-on-year, driven by tightening supply and new digital-infrastructure investment.
Investment Potential:
Net Yield: ~6.0–6.8%
Net Operating Income (NOI): ~NZD 2.6–2.9 million p.a.
Occupancy: ~90 percent (current market average for comparable facilities)
Exit Strategy: Long-term institutional hold or inclusion in a logistics portfolio for REIT acquisition
Key Advantage: Positioned to benefit from Auckland’s emerging data-centre network and AI-infrastructure supply chain.
Want to discuss any of these opportunities further? Reach out to our team directly:
Contact Information :
Petrus Yen
Petrus@fairhavenproperty.co.nz
Daarshan Kunasegaran
Daarshan.Kunasegaran@fairhavenproperty.co.nz
Disclaimer:
The property details, financial figures, and projections provided in this article are based on publicly available information and internal estimates. They are intended for informational purposes only and do not constitute financial advice or an offer to invest. Projections such as IRR and equity multiples are indicative only and subject to change based on market conditions, financing terms, and execution strategy. Interested parties should conduct independent due diligence and consult with a qualified advisor before making any investment decisions. Fairhaven Property Group accepts no liability for decisions made based on the information presented herein.
