Colliers have been appointed exclusively to offer for sale 160 Glenda Drive,
This property is being offered For Sale by Deadline Private Treaty closing Thursday 22 August 2024 at 4pm (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.
Data room documents available:
• Information Memorandum
• Record of Title
• Lease Documentation
• Land Information Memorandum
• Sale and Purchase Agreement
All enquiries, requests for information and arrangements to undertake inspections in relation to this opportunity are to be directed to the sole agents.
James Valentine +64 21 777 772 james.valentine@colliers.com
Mark Simpson +64 27 4906 394 mark.simpson@colliers.com
Executive Summary
ADDRESS
DESCRIPTION
160 Glenda Drive, Frankton, Queenstown, 9300
A modern industrial building providing a high stud 2-bay warehouse with a small office area located on a leg-in site off Glenda Drive. The bays also boast a canopy which covers half of the yard at the front of the property. The property is fully tenanted, with a head lease to Calder Stewart who sublet part of it to Roofing Hub.
TENURE Freehold
LEGAL DESCRIPTION
LOT 81 DP 313044
CERTIFICATE OF TITLE 51375
LAND AREA
FLOOR AREA
ZONING
TENANCY
NET RENTAL
SALE PROCESS
450m² (more or less)
295m² (subject to survey)
General Industrial and Service Zone
Calder Stewart Shared Services Limited (Head Tenant)
$90,050 + OPEX & GST p.a.
For Sale by Deadline Private Treaty closing Thursday 22 August 2024 at 4pm (unless sold prior)
Investment Highlights
NATIONAL TENANT
Large national company with strong reputation.
FUNCTIONAL BUILDING CONFIGURATION
Suitable to a number of businesses across a range of industries.
INCOME GROWTH
Market rent reviews at regular intervals throughout the tenure of the lease.
PASSIVE INVESTMENT
The fully tenanted nature of the property means that investors are able to passively collect net rental.
TIGHTLY HELD AREA
Industrial property on Glenda Drive is tightly held, and in scarce supply
AFFORDABLE PRICE BRACKET
In comparison to other Queenstown commercial property options, this is an affordable option for investors.
location indicative only
The property is situated one site back from the road front, with access down a shared right-of-way. It is approximately halfway down Glenda Drive, positioning it in the heart of the Frankton industrial area. 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.
Zoning
location indicative only The property lies within the General Industrial and Service zone of Queenstown as defined by the Queenstown Lakes District Council District .
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.
Queenstown industrial yields in the wider Queenstown area from 2018 through COVID into 2022, generally ranged between 4.0% - 5.0%. Due to the aforementioned Reserve Bank policies leading to a rise in interest rates, the market has had to absorb stricter lending policies which has seen yields push out in major markets around New Zealand. Whilst Queenstown has been relatively resilient, we are starting to see yields pushing out by around 0.5% on previous levels.
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.
The Building
Built in 2015, this modern industrial building provides a functional layout that would lend itself well to a wide range of tenants across a number of industries. The warehouse/workshop area is one big open-plan space (currently there is a ¼ height inter-tenancy wall installed by the Head Tenant to separate the two businesses), comprised of 210m², with 2 full-height bays that open directly into the space. At the front of the building, there is 115m² yard used for car parking and access to the warehouse, with a 40m² canopy, allowing convenient access into the space regardless of weather conditions.
Premises Breakdown
(Floor areas are approximate and subject to measure)
2 rights of renewal of 5 years 31 March 2037
Market rent reviews every 2 years throughout tenure, with a 90% and 110% cap & collar for the market rent increases on the previous year’s rent.
Record of Title
RECORD OF TITLE
UNDER LAND TRANSFER ACT 2017
FREEHOLD
Guaranteed Search Copy issued under Section 60 of the Land Transfer Act 2017
Identifier 51375
Land Registration District Otago
Date Issued 08 April 2003
Prior References 6932 6940
Estate Fee Simple Area 450 square metres more or less
Legal Description Lot 81 Deposited Plan 313044
Registered Owners
Calder Stewart Properties Limited
Interests
Appurtenant to the part formerly Lot 81 DP 301681 are rights of way, rights to transmit electricity & telecommunications & rights to convey gas & water specified in Easement Certificate 5174204.8 - Produced 18.3.2002 at 9:25 am and Entered 28.3.2002 at 9:06 am
The easements specified in Easement Certificate 5174204.8 are subject to Section 243 (a) Resource Management Act 1991
Appurtenant hereto is a right of way and right to transmit electricity and telecommunications and convey gas and water created by Transfer 5547654.16 - 8.4.2003 at 9:00 am
The easements created by Transfer 5547654.16 are subject to Section 243 (a) Resource Management Act 1991
Subject to a right to drain stormwater in gross over part marked V on DP 313044 in favour of Queenstown Lakes District Council created by Transfer 5547654.18 - 8.4.2003 at 9:00 am
The easements created by Transfer 5547654.18 are subject to Section 243 (a) Resource Management Act 1991
Appurtenant hereto is a right of way and right to transmit electricity and telecommunications and convey gas and water created by Easement Instrument 5547654.19 - 8.4.2003 at 9:00 am
The easements created by Easement Instrument 5547654.19 are subject to Section 243 (a) Resource Management Act 1991 Land Covenant in Transfer 5659076.2 - Produced 16.7.2003 at 9:00 am and Entered 17.7.2003 at 9:00 am
5659076.3 Encumbrance to Shotover Park Limited - Produced 16.7.2003 at 9:00 am and Entered 17.7.2003 at 9:00 am
8553521.3 Mortgage to ANZ National Bank Limited - 9.8.2010 at 1:59 pm
12564131.4 Variation of Mortgage 8553521.3 - 1.11.2022 at 5:51 pm
12564131.6 Mortgage to Stewart Family Holdings Limited - 1.11.2022 at 5:51 pm
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, Thursday 22 August 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 please register your interest with one of the agents.
• Information Memorandum
• Certificate of Title
• Lease Documentation
• Land Information Memorandum
• Sale and Purchase Agreement
All enquiries, requests for information and arrangements for site inspections are to be directed to the Colliers sole agents:
