Site Tour

TIMEACTIVITY
10.00am
Transport departs Craigs Investment Partners
48 Shortland Street, Auckland CBD, 1010
Travel to Mount Wellington
10.30am
Bowden Road (Mount Wellington) visit to the Tokyo
Food and Daikin buildings
11.00am Travel to East Tamaki
11.15am
Springs Road (East Tamaki) visit to new Fisher &
Paykel Appliances building and MiTek site to be
developed
12.00pmDepart back to CBD
Auckland CBD
Mount
Wellington
78 Springs Road
East
Tamaki
30-32 Bowden Road

▪Current plans for the balance of the site (Stage
3) include a ~17,500 sqm warehouse with 500
sqm of office, 2,800 sqm of breezeway and
3,700 sqm of canopies and yard
▪Stage 3 has an estimated incremental cost of
~$50M, and is likely to be tenant-led
▪Based on current plans, once complete, all
three stages of the redevelopment of 78
Springs Road are expected to combine to
create over 70,000 sqm of 5 Green Star rated,
covered, workable industrial area
▪Design and Build Agreement to Lease signed with
MiTek, PFI to develop ~6,500 sqm of warehouse,
anchoring Stage 2, with the balance (~4,800 sqm
of warehouse) to be developed on a speculative
basis
▪Early works (demolition, earthworks etc) are
expected to begin in early 2025, with the project
expected to complete in late 2026
▪Stage 2 has an estimated total incremental cost of
around $42M, with a targeted yield on cost,
including land, in excess of 6%
▪Stage 1 of the project will see the delivery of a
25,500 sqm 5 Green Star rated warehouse for
long-term tenant Fisher & Paykel Appliances,
with an option to expand the warehouse to
30,000 sqm
▪The programme of works for Stage 1 is ahead
of schedule and on budget, with completion
now expected in October 2024
▪Stage 1 expected to deliver a yield on cost in
excess of 5.3%, ~$23M of remaining spend as
at 30 June 2024

▪Redevelopment of obsolete sites to a Green Star
standard with high site-coverage is a key part of
PFI’s strategy
▪PFI’s growing development pipeline now estimated
to be ~$388M of incremental development spend
▪30-32 Bowden Road and Stage 1 of 78 Springs
Road redevelopments nearing completion (lower site
coverage at Stage 1 of Springs Road reflects
expansion option)
▪Spedding Road provides the opportunity to invest
an additional ~$130M (including land), with works
expected to commence mid-to-late-2025
▪Early-stage concepts in place across other key
medium term brownfield opportunities
▪Partial redevelopment of the two Rosebank Road
properties (shaded red) new additions to the pipeline
▪All projects subject to meeting hurdle rates of return,
market conditions and availability of capital
PROPERTY
TOTAL
INCREMENTAL
SPEND
NLA ON
COMPLETION
(SQM)
SITE COVERAGE
ON COMPLETION
LEASE EXPIRY /
START OF
WORKS
30-32 BOWDEN ROAD
1
$10M
25,85066% Oct-36
78 SPRINGS ROAD – STAGE 1
1
$23M
28,820 56%Oct-39
78 SPRINGS ROAD – STAGE 2$42M
~16,900~74%Feb-25
78 SPRINGS ROAD – STAGE 3$50M
~22,200~74%Sep-26
SPEDDING ROAD ESTATE$130M
~40,000~70%Jul-25
304/318 NEILSON STREET$26M
~13,250~52%Jun-27
92-98 HARRIS ROAD$38M
~19,360~73%Nov-28
9 NESDALE AVENUE$27M
~12,290~74%Dec-29
686 ROSEBANK ROAD (PARTIAL)$14M
~10,000~68%Jul-26
670-680 ROSEBANK ROAD (PARTIAL)$28M
~12,800~85%Aug-27
TOTAL~$388M
~201,470
1
Remaining spend as at 30-Jun-24

SPEDDING ROAD - WHENUAPAI
ROSEBANK ROAD
NEILSON STREET
HARRIS ROAD
▪Partial redevelopment, two ~10,000sqm warehouses on completion
▪Incremental spend of ~$43M ($14M & $28M)
▪Earliest start dates of Jul-26 and Aug-27
▪~16,000sqm warehouse on completion
▪Incremental spend of ~$38M
▪Earliest start date of Nov-28
▪Land acquisition ($40.6M) now unconditional, 5% deposit now paid, titles expected mid-2025
▪Staged settlement at attractive entry price, further 45% payable on titles being received and
vendor works complete, remaining 50% payable in two instalments, 12 and 24-months following
titles
▪Early plans allow for ~40,000 sqm of covered workable area once complete, estimated total
project spend of ~$130M (including land)
▪In advanced discussions with prospective tenant for ~7,000 sqm of industrial facilities to kick off
Stage 1
NESDALE ROAD
▪~8,230sqm of warehouse on completion (~4,340sqm & 3,890sqm)
▪Incremental spend of ~$27M
▪Earliest start date of Dec-29
▪~9,600sqm warehouse on completion
▪Incremental spend of ~$26M
▪Earliest start date of Jun-27

OVERALL BENEFITS:
▪Meets increased tenant demand for low-carbon / climate-
resilient premises.
▪Offers modern, purpose-built facilities, attracting high-
quality tenants.
▪Improves the quality of PFI’s portfolio by creating state-of-
the-art facilities targeting Green Star ratings.
▪Enhanced returns via development margin, long leases
with embedded growth, lower levels of on-going capex,
resulting in attractive property-level IRRs.
▪Disciplined approach, targeting property-level IRR, AFFO
and NTA accretion on all projects.
BROWNFIELD DEVELOPMENT:
▪Helps manage expiring leases.
▪Optimises existing industrial sites
by increasing site coverage.
▪Capitalises on strategic locations
with essential infrastructure.
▪Key part of PFI’s plan transition to
a low-carbon / climate-resilient
portfolio.
GREENFIELD DEVELOPMENT:
▪Expands portfolio in
strategic locations.
▪Caters to the growing
demand for industrial space.

Source: CBRE “Auckland Property Market Outlook” June 2024
-
0.5%
1.0%
1.5%
2.0%
2.5%
3.0%
3.5%
4.0%
4.5%
-
100
200
300
400
500
600
Vacancy (%)
Vacant stock (000 m
2
)
Vacant stockTotal Stock
-
2,000
4,000
6,000
8,000
10,000
12,000
14,000
16,000
-
50
100
150
200
250
300
350
400
Total Stock (000 m
2
)
Annual Supply (000 m
2
)
Annual SupplyTotal Stock
ForecastForecast

-
$50
$100
$150
$200
$250
2010201120122013201420152016201720182019202020212022202320242025202620272028
Rent / m
2

(per annum)
Source: CBRE “Auckland Property Market Outlook” June 2024, rents reflect net effective market rents
~5% CAGR
Forecast
+3%
+4%
+5%

-
2.0%
4.0%
6.0%
8.0%
10.0%
-
$1,000
$2,000
$3,000
$4,000
$5,000
2010201120122013201420152016201720182019202020212022202320242025202620272028
Yield (%)
Capital Value ($ / m
2
)
Capital ValueYield
~9% CAGR
Source: CBRE “Auckland Property Market Outlook” June 2024
Forecast
+7%
+7%
+5%

13%
16%
21%
(3%)
11%
(1%)
5%
14%
12%
11%
(30%)
(20%)
(10%)
-
10%
20%
30%
2019202020212022202320242025202620272028
Income returnCapital return based on rent changeCapital return based on yield changeTotal return
0.0%
1.0%
2.0%
3.0%
4.0%
5.0%
6.0%
2019202020212022202320242025
OCRRBNZ Forecast - Aug-24 MPSMarket Pricing
1
Bloomberg, as at 29-Oct-24
1

132
124
75
100
125
150
Dec-20Dec-21Dec-22Dec-23
Market rent index (rebased to 100)
PFI propertiesMarket
Source: CBRE, PFI
1)Prime industrial face value rent / SQM
2)Excludes any developments or properties divested / acquired during the measurement period
3)As per 30-Jun-24 investment property valuations, rents reflect face market rents
4)As at lease signing
~
2

The interest rate hiking cycle has
peaked with inflationary pressures
easing.
Industrial property is positioned to
benefit from an easing monetary cycle.
PFI is strongly positioned to capitalise
on its development pipeline of ~$388M.
Attractive returns can be generated by
leveraging PFI’s development expertise
and experienced team.
Despite recent property sector
headwinds, underlying fundamentals of
industrial property remain sound:
vacancy remains low and reduced new
supply is expected to come to market.
PFI’s portfolio under-renting of ~16%
provides embedded growth.