Lands Trust Masterton chairman John Bunny said the trust was pleased to support the continued expansion and retention of FMG in Wairarapa.
"All three tenants on the site have been longstanding tenants who we have been able to work with to expand their businesses, while growing the community resources in our care."
Andrea Brunner, General Manager Distribution and Human Resources, said: "We're delighted that our existing landlord is able to develop a new building to meet our needs for, good quality office space with improved facilities for clients and employees.
"As a Kiwi-owned organisation we're committed to rural and provincial New Zealand and are proud to maintain a strong presence not only in Masterton, but also the Wairarapa."
The 2973sq m site, bounded by Church and Bannister Sts, underwent stage one of its development in 2007 with new 440sq m building built by the trust for Beaurepaires.
Stage two saw McKenzie's Carpet Court relocate from an earthquake-prone building in Lincoln Road to its current 1000sq m bulk store, retail showroom and offices showroom on the Church St side of the site.
Tenders are currently being sought for construction of the new building which is expected to begin next month.
Lands Trust Masterton is a 142-year-old public lands trust formed to own and manage surplus land not sold to Masterton's working class settlers.
Income from the trust's property rentals is distributed in the form of grants to assist educational, cultural and community activities within Masterton.
The original 165- value of the trust lands has now grown into an asset base of more than $60 million.
This concept has played a key role in the evolution of the town since 1871 and continues to do so today.
