That is not the case with Port Otago's property arm, Chalmers Properties, which is playing an increasingly vital role in the port's revenue stream.
Last year the division contributed $22million to Port Otago earnings before interest and tax, from investment property rentals, land sales in Hamilton and gains from sales of Dunedin ground leases.
Its ever increasing portfolio valuation added an unrealised gain of $22.8million. Dunedin and Auckland properties increased by almost $10million each and Hamilton chipped in $3million.
Chalmers Properties general manager David Chafer said returns had been underpinned by growth across what was an increasingly diversified industrial portfolio, particularly in Auckland and Hamilton, closing in on $150million and $50million respectively.
The 60-hectare Te Rapa Gateway industrial park, located just outside Hamilton, is the jewel in the Waikato crown.
During the year the company sold $22.7million of property in the development and began construction on a number of developments across almost five hectares of the latest stage of the development.
Mr Chafer said while the plan was to continue to sell limited parcels of land to owner-occupiers, the main focus at Te Rapa was to build and lease projects on "developed land."
He said the company had completed nine developments to date.
The strategy for Auckland, where the completed buildings in the portfolio were 100% tenanted, was simply to "hold and yield", he said.
The Auckland portfolio now includes the 8ha Oak Rd industrial park in Wiri, where Chalmers has recently broken ground on two office/warehouses of 5500sqm and 4400sqm combined.
Mr Chafer said construction was scheduled for completion in April next year.
In Dunedin, Chalmers Properties' holdings are primariliy across 60ha of industrial leasehold land, valued at $166.4million.
Last year Chalmers Properties sold several properties which were considered "non-strategic", on the basis that the future use of the land would generate value to the city through new construction and jobs.
Accordingly, $14.8million of land was sold, including the former Fonterra cold storage site in Kitchener St, while a 4500sqm harbourside slice of real estate in Fryatt St was given to the University of Otago.
In the harbour precinct, the company holds the interest in 31 "perpetually renewable" leases over a land area of 8.2ha.
Its remaining commercial investment in the harbour precinct was the three-level office building at 12 Wharf St, tenanted by software developers, and Ray White Real Estate.
To cater for the expected growth of the city, Chalmers did acquire a 3000sqm site next to its Steel & Tube property in Fryatt Street.
