28 & 30 Ree Crescent - Information Memorandum

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Introduction

Colliers as sole agents, have been appointed to market for sale 28 & 30 Ree Crescent, Cromwell.

This property is being offered For Sale by Deadline Private Treaty closing Tuesday 21 May 2024 at 4pm (unless sold prior).

For further information about the sales process please see page 16.

This information Memorandum provides preliminary information to assist interested parties with their assessment of the property. Further information is available via an online data room which can be accessed upon registration.

www.colliersotago.co.nz/67028323

Data room documents available:

• Information Memorandum

• Record of Title

• Land Information Memorandum

• Sale & Purchase Agreement

All enquiries, requests for information and arrangements to undertake inspections in relation to this opportunity are to be directed to the listing agent below.

Steve McIsaac

+64 21 680 304 steve.mcisaac@colliers.com

Executive Summary

vacant industrial lots with a total land area of 4,197m². Level in contour, these lots can be sold together or separately. The combined lots are fully fenced. (Note there are no buildings on the lots).

Investment Highlights

FULLY FENCED

Fully fenced and level in contour

GOOD TENANT MIX

Surrounded by a good mix of industrial tenants

LARGE VACANT LOT

Opportunity to be purchased separately or together

DEVELOPMENT OPPORTUNITY

Sites offer numerous development options

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Cromwell Market

Cromwell is predominately a community serving local rural indus tries that include substantial vineyard and horticulture industries, but is also b ecoming the freight/logistics hub for the wider region. It has a population of over 5,200 peo ple and has a full range of amenities including, 2 primary schools, a college, 2 medical ce ntres and an established town centre containing 2 supermarkets. While house prices have risen in recent times they still offer reasonable opportunities for owning your own ho me, which delivers a stable workforce. A number of people are investing in new homes within the area as there has been a number of residential subdivisions developed, with more planned. The recent announcement of the Rise and Shine gold mine at Bendigo by Santana Minerals is another exciting industry that Cromwell could benefit from.

Queenstown International Airport, a 40 minute drive, offers dire ct flights to major New Zealand cities and Melbourne, Sydney, Brisbane and Coolangatta in Australia. Dunedin is approximately 220 kilometers south east of Cromwell, and Inverc argill is 190 kilometers to the south. On the back of this we are seeing increasing values and rental levels across all property sectors within Cromwell. This is being driven by both the desire for local businesses to own their own commercial/industrial property and by investors looking to secure long term returns. Additionally with national businesses establishing in Cromwell to service the wider region, land values have been steadily increasing.

Queenstown industrial land values have increased to $1,800/m², resulting in an unaffordability situation for many enterprises in comparison to the relatively cost effective industrial land values in Cromwell. The most recent Cromwell industrial land sales have been at rates in the range of $450-$650/m².

Commercial property investment is becoming more desirable due to the growth in Cromwell and because investment options are limited in the financial marketplace. The solid appeal of a ‘bricks and mortar’ investment, provided the tenant covenant is considered robust, is an attractive proposition.

Cromwell commercial and service/industrial yields are now sitting around 5.50% – 6.50%.

The Offering

The sites represent a significant land holding and a rare opport unity for owner-occupiers, investors or developers in Cromwell’s Industrial precinct. With Cromwell quickly cementing its reputation as a service hub for the wider Queenstown Lakes and Central Otago region, this site offers development scale for numerous industrial uses. Located w ithin the Industrial Resource Area, the site is surrounded by a good mix of industrial tenant s. With a combined frontage of approximately 60m to Ree Crescent, the lots are only 140m from McNulty Road, which is the main access road for the industrial precinct. The combined lots are level in contour and fully fenced so ready for development. Alternatively, holding income could be g enerated from yard leasing.

Industrial lots of this size that are ready for development imm ediately are in short supply, making this an attractive option for both owner-occupiers and investor s alike.

Zoning

Town Planning Zone: Industrial Resource Area

The zoning requirements are contained within Section 9 of the Central Otago District Plan. Following is a summary of the zone rules, as such not all relevant standards might be included, only those that might be applicable in a lot development scenario. Purchasers will still need to undertake their own research into the District Plan requirements for developing a lot and we advise the engagement of a professional town planner to assist in this regard.

District Plan and Zoning requirements:

1. Any activity that fails to comply with the standards set out in Rule 9.3.5 as well Sections 12 – 15 of the District Plan shall be a restricted discretionary activity, if all the standards are complied with then no consent is required as the activity is ‘permitted’. These standards are discussed further below. Of note for developing industrial lots, owners should also be mindful of:

a. Retail: Retail activity (excluding retail activity at a service station) shall be ancillary to and form an integrated and complementary part of any industrial activity and shall not occupy more than 10% of the gross floor space of the building or 50m² , whichever is the greater.

b. Bulk and Location of Buildings: No front yards are required

Rear and side yards of 5 metres shall be provided where a site adjoins the Cemetery

Height: 10m or if located next to the Cemetery then the maximum height is 1.5 times the building setback from the Cemetery boundary (to a maximum of 10m). For example, if a building is located within 5m of the Cemetery its maximum height is 7.5m.

c. Noise:

On any day 7:00am - 10:00pm 65dBA L10, 10:00pm - 7:00am the following day 45dBA L10, 85dBA Lmax

Habitable spaces within buildings must achieve an indoor design sound level of 45 dBA.

d. Signage: rules on signage will apply.

e. Screening/Fencing: rules on screening will apply to any open space associated with a residential activity.

f. Off Road Loading: Off road loading facilities shall be provided for each site where this is an integral part of the activity. All such loading areas shall be so located that no vehicle or machinery engaged in any loading or unloading operation shall stand on or be required to manoeuvre on any part of a formed road.

g. Parking: Every activity shall make sufficient provision for vehicular parking in accordance with Table 12.3

2. Subdivision is a controlled activity.

3. Any activity that requires an offensive trade license under the Health Act 1956 is a discretionary activity.

4. Residential activities are not restricted in the industrial zone and can be undertaken without the need for consent so long as the standards mentioned above in point 1 are complied with as well as Sections 12 -15 of the District Plan. Note, there are specific requirements when it comes to residential activities with regards to ensuring they are designed to meet the expected noise outputs from the industrial zone and to screen any outdoor area from neighbouring activities.

For further information please refer to codc.govt.nz.

COMMERCIAL - INDUSTRIAL CARPARKING

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Deadline Private Treaty Sales Process

A deadline sale is the process of purchasing real estate throug h confidential submitted written offers. If you want to buy a property by deadline sale, you prepare your best offer and send it to the vendor’s Agent to consider alongside any other offers the vendor receives at any point in the deadline sale campaign.

The property is offered for sale with no price, with a deadline by which offers need to be submitted on the basis that the vendors reserve the right to ac cept an offer at anytime before the deadline sale closes.

Buying by deadline sale is a relatively simple process, with ad vantages for the purchaser as well as for the vendor. However, it’s not simply a matter of turning up on the day and writing down what you’d like to pay. It’s worth doing full due diligence early to know your rights and obligations and to ensure you feel comfortable with the process.

To help you better understand how deadline sales work, we’ve pu t together a list of key things you’ll need to do before submitting an offer.

• Arrange finance. This is very important. You need to be comfortable with the le vel at which you’re offering. It’s fine to put a finance clause into t he contract, but bear in mind that a vendor may favour the most straightforward offer on the day.

• Read the contract. The ‘Sale and purchase agreement’ is the contract signed by the potential purchaser at the time of submitting a deadline sa le offer. If your offer is accepted, it will then be signed by the vendor and become a binding contract. It contains a legal description of the property and terms of settlement. We recommend you engage legal advice before presenting an offer.

• Know the value. If you have been studying the market, you may have a good idea of what the property is worth. If you need help, your real esta te Sales Consultant can refer you to similar properties which have sold recently that a re a good comparison. Otherwise you could arrange for an independent valuation.

How to make an offer:

• Know the process. Talk to your Colliers Agent about exactly what will happen on and before the deadline sale closing day.

• Talk to your Colliers Agent when formulating your offer. They can assist you in looking at comparable sales and provide information enabling yo u to make an offer you’re comfortable is the current market value.

• Consider your conditions carefully. Where possible it’s best to minimise the conditions on a deadline sale offer, however it’s also advisable to not spend a large amount in advance when there is a chance your offer may not be s elected. Balance is the key.

Offers to be submitted to Colliers Sole Agents by 4pm, Tuesday, 21 May 2024.

Due Diligence

To assist in the assessment of this offering, comprehensive due diligence information is available via a secure documents link. For access to all documents you will be required to register in the data room.

• Information Memorandum

• Record of Title

• Land Information Memorandum

• Sale & Purchase Agreement

All enquiries, requests for information and arrangements for site inspections are to be directed to the Colliers sole agent:

Steve McIsaac

+64

21 680 304

steve.mcisaac@colliers.com