To be held on Tuesday 10 December 2024 at 11am (unless sold prior)
This property is being offered For Sale by Auction to be held on Tuesday 10 December 2024 at 11am (unless sold prior).
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 available on request. Colliers have been appointed exclusively to offer for sale
Data room documents available:
• Information Memorandum
• Record of Title
• Lease Documentation
• Land Information Memorandum
• Sale and Purchase Agreement
• Seismic Report
All enquiries, requests for information and arrangements to undertake inspections in relation to this opportunity are to be directed to the sole agents.
Steve McIsaac +64 21 680 304 steve.mcisaac@colliers.com
Barry Robertson +64 27 433 5941 barry.robertson@colliers.com
Address
Description
137 Glenda Drive, Frankton, Queenstown, 9300
A modernised industrial building, initially designed for two tenancies, with mezzanine office areas, and generous on-site parking
Tenure Freehold
Legal Description LOT 23 DP 301681
Certificate of Title OT6937
Land Area
Floor Area
1,410m² (more or less)
713m² (more or less)
Zoning General Industrial & Service Zone
Tenancy Whole building leased to Aotea Electric Queenstown Limited
Net Rental
Sale Process
$207,873 + OPEX & GST p.a.
For Sale by Auction to be held on Tuesday 10 December 2024 at 11am (unless sold prior)
Investment Highlights
STRONG TENANT
Established local tenant with national brand
8 YEAR LEASE + 2X4YR ROR
Fixed annual growth built into lease, with market reviews every 4 years plus annual CPI
PASSIVE INVESTMENT
The fully tenanted nature of the property means that investors are able to passively collect the net rental
PROMINENT ROAD FRONT SITE
Highly visible site on a busy road
TIGHTLY HELD AREA
Industrial property on Glenda Drive is tightly held, and in scarce supply
QUALITY BUILDING
Recently refurbished low maintenance building
137 Glenda Drive is a highly prominent site situated in the heart of Queenstown’s Trade hub.
The property is situated off the East side of Glenda Drive between Hawthorne Drive to the South and Margaret Place to the North positioning it in the heart of the Frankton industrial precinct. This area has a strong tenant mix and caters to a blend of showroom, trade, automotive, food processing and various other light industrial uses.
Frankton has established itself as Queenstown’s central trade hub. Given its ease of access to all surrounding areas of Queenstown, this area is highly desired by tenants - evidenced in strong rental growth and increase in land values as Queenstown has expanded.
Given its centrality and ease of access to all of the surrounding suburbs mentioned above, it has become increasingly desirable for businesses to have a presence here as the area continues to mature.
Glenda Drive is accessed via a large roundabout connecting to Hawthorne Drive which links to Glenda Drive and onto the north bound section of SH6. This extension provides a high quality eastern arterial connection to the large mixed use Remarkables Park and Queenstown International Airport to the south.
Queenstown Lakes Proposed District Plan
Effective Date: 27/08/2024
Zoning
Location and boundary indicative only
The property lies within the General Industrial and Service zone of Queenstown as defined by the Queenstown Lakes District Council District .
Page 1 of 3 Print Date: 08/10/2024 districtplan.qldc.govt.nz
The Zone seeks to ensure a range of site sizes are available, including for those Industrial and Service activities which require larger buildings and more space for the purpose of outdoor storage, manoeuvring of vehicles including heavy vehicles. Ancillary Office, Retail and Commercial activities are important in supporting Industrial and Service activities and are enabled. Activities and development that would not primarily result in sites being used for Industrial and Service activities are avoided. This includes new Office, Retail and Commercial activities.
Please note: It is the responsibility of interested parties to qualify and elaborate all relevant planning information noted above.
Queenstown Industrial Market
While most of New Zealand has seen a slow-down in their respective markets, Queenstown has remained resilient. Interest rate rises have been the biggest contributing factor to the slow-down, and while Queenstown has not been immune, it has performed markedly well in comparison to other markets over the same 2 year period.
In the industrial space, this can mostly be attributed to a shortage of available industrial land to develop, meaning the Queenstown market is mostly constrained to the available built product. Closely linked to this, the tenant demand for industrial space far outweighs the available supply, leading to the Frankton industrial market having the lowest vacancy rates on record. This shortage of industrial properties for lease, and the high cost of construction of new buildings, is resulting in rising rents.
The viability of new commercial and industrial properties is being challenged by increasing development costs, however, long term the ongoing population and tourism growth projections will result in continued demand for commercial and industrial space that will put pressure on rents to rise.
The Frankton Industrial market is tightly held and there is typically strong demand given the limited supply of property available in this area.
Strong demand for investment property in this area is illustrated in the six sales over the last 12months ranging from $M1.850 to $M3.300 , all within a tight Net Yield range of 4.09-4.90%.
The Building
Originally developed in 2001, the building was upgraded to provide offices and amenities over ground and first floor levels over 20022006.
The building has a ground floor area of 464m² and mezzanine/first floor of 249m².
A recent engineers report has assessed the building at 70%NBS.
Premises Breakdown
Foundations Concrete
Flooring Concrete, particle board
Exterior Walls Colorsteel
Framing Steel
Roofing Colorsteel, Translucent Panel
Stud Height 4.65m
Window Joinery Single glazed aluminium
Internal Lining Gibraltar board
Ceilings Gibraltar board
Services Fire Alarm System, Heat Pumps
Building Layout
The ground floor provides medium stud workshop warehouse space, and partitioned offices storeroom and toilet facilities.
The first-floor level has further partitioned offices and a meeting room. The balance of the site is in concrete, providing access and 20 car parks.
Lease Summary
Tenant
Premise
Aotea Electric Queenstown Limited
137 Glenda Drive, Frankton, Queenstown
Commencement Date 1 April 2024
Current Term 8 Years
Term Expiry 31 March 3032
Remaining Renewal Terms Two of four years
Current Annual Rent $207,873 plus outgoings and GST
Rent Reviews Annual CPI, Market 4 yearly
Rent Review Basis Market & CPI
Rachet Clause
The annual rent payable as from the relevant rent review date shall not be less than the annual rent payable immediately prior to that rent review, but subject to clause 50.
Business Use Electricians, electrical contracting, air conditioning and security systems or other such use as the Landlord may approve in writing.
Outgoings Outgoings recoverable from the tenant include:
• Rates or levies to any local or territorial authority
• Utility charges
• Rubbish collection charges
• Fire Service charges
• Insurance premiums, excess and related valuation fees
• Service contract charges
• Cleaning, maintenance and repair charges (excluding structural)
• The provisioning of toilets and other shared facilities
• Ground maintenance
• Yard and carpark area maintenance and repair charges
• Costs associated with the building warrant of fitness
Unrecovered outgoings include:
• Structural maintenance
Record of Title
RECORD OF TITLE
UNDER LAND TRANSFER ACT 2017
Search Copy
Identifier 6937
Land Registration District Otago
Date Issued 28 March 2002
Prior References
OT19B/446
OT19B/447
Estate Fee Simple Area 1410 square metres more or less
Legal Description Lot 23 Deposited Plan 301681
Registered Owners
Mountain View Property Investments Limited
Interests
Subject to a right to drain sewage in gross over part marked D on DP 301681 in favour of the Queenstown Lakes District Council created by Transfer 5007407.5 - 26.10.2000 at 9:00 am
The easements created by Transfer 5007407.5 are subject to Section 243 (a) Resource Management Act 1991
Subject to a right in gross to convey gas over part marked D on DP 301681 in favour of Shotover Park Limited created by Transfer 5396905.2 - 8.11.2002 at 9:00 am
Land Covenant in Transfer 5396905.2 - 8.11.2002 at 9:00 am
5396905.3 Encumbrance to Shotover Park Limited - 8.11.2002 at 9:00 am 5766098.3 Mortgage to The National Bank of New Zealand Limited - 15.10.2003 at 9:00 am
Lease Floor Plans
Aotea 1
2
Lease Floor Plans
Aotea L1 Office 115.2 sq m VOID
Floor
Auction Process
Summary of important things to know
• Buyers should register their interest with the agent and ask to be informed if another buyer makes an offer before the auction date.
• Auction bids are open so you know what everyone else is bidding . If you haven’t been to an auction before, it’s a good idea to attend o ne as a spectator so you can see how they work.
• If you win an auction, you are committed to purchase the property. You must pay the purchase deposit on the auction day.
• The auctioneer will not reveal the reserve price.
Please note:
• Auctions are unconditional, so you need to learn as much as you can about the property. Ask your lawyer or conveyancer to review and help you understand any information you get before the auction.
• If you want to bid for a property at an auction, your first step is to let the agent selling the property know that you are interested. The ag ent will have legal documents for you and your lawyer or conveyancer to revie w and sign. These documents include the auction rules and the sale an d purchase agreement.
• Because auctions are unconditional, you need to confirm your fina nce before you attend the auction
• If you want to change anything in the agreement or put any cond itions on the sale, you need to arrange it before the auction by using a document called a variation – your agent will be able to provide this fo r you.
Registering your interest
If you are interested in submitting an offer for the property, p lease formally register your interest with one of the Agents.
The Auction is to be held on Tuesday 10 December 2024 at 11am (unless sold prior).
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 please register your interest with one of the agents.
• Information Memorandum
• Certificate of Title
• Lease Documentation
• Land Information Memorandum
• Sale and Purchase Agreement
• Seismic Report
All enquiries, requests for information and arrangements for site inspections are to be directed to the Colliers sole agents:
