17 Murray Terrace - IM

Introduction

Colliers have been appointed exclusively to market for sale

17 Murray Terrace, Cromwell.

This property is being offered For Sale by Deadline Private Treaty closing Thursday 11 April 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.

colliersotago.co.nz/67024864

Data room link: propertyfiles.co.nz/17MurrayTerrace

Data room documents available:

• Information Memorandum

• Record of Title

• Lease Documentation

• Land Information Memorandum

• Draft Sale & 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.

Steve McIsaac

+64 21 680 304

steve.mcisaac@colliers.com

Executive Summary

17 Murray Terrace, Cromwell

DESCRIPTION

Located within the main town centre of Cromwell, the property comprises a 490sqm lot with a commercial building that has a footprint of approximately 300sqm. Occupied by two tenants, Coterra and Mayfair Pools, this property has good exposure to both vehicle and foot traffic as it fronts both Murray Terrace and the main Council carpark for the Cromwell Mall.

TENURE Freehold

LEGAL DESCRIPTION

CERTIFICATE OF TITLE

AREA

LOT 52 DP 18370

OT12B/268

Land 490m² | Floor 300m²

LOCAL AUTHORITY Central Otago District Council (CODC)

ZONING Business Resource Area

Capital Value - $1,160,000

RATEABLE VALUE (as at Oct 2022)

TENANTS

CURRENT CONTRACT RENT

LEASE EXPIRY

RATES (2023-24)

Land Value - $740,000

Improvement Value - $420,000

Tenancy 1 - Coterra (previously C Hughes & Associates)

Tenancy 2 - Pisa Pools Ltd (trading as Mayfair Pools & Spas)

$55,900 plus GST & Outgoings

Tenancy 1 - 31 March 2027

Tenancy 2 - 1 April 2025 with 1 x 2 years ROR (Final expiry 31 March 2027)

CODC $4,555.55

ORC $357.42

Investment Highlights

Great Exposure

Exposure to foot and vehicle traffic on three sides of the property

Two Tenants

Two leases in place, expiring on the same date

Location

Located in Cromwell CBD surrounded by Council carparking

Redevelopment Potential

Property offers redevelopment potential as Cromwell grows

The Property

This CBD property contains a commercial building that occupies the majority of the site. It is located on the southern side of Murray Terrace, on the northern extremity of The Mall. With the council carpark located on the property’s southern side this offers good exposure to both foot and vehicle traffic to three sides of the property.

The building is generally single level and is occupied under two tenancies, a surveying business and pool retailer/installer. The building has a floor area of just over 300sqm along with covered storage that has a combined area of circa 100sqm. Both tenancies face onto Murray Terrace and the pool tenancy has a yard accessed directly off Murray Terrace. The building was originally built as a funeral home and has had further building works to deliver the two tenancies.

The lot is of a irregular shape and has a frontage to Murray Terrace of just over 32m. The locality of the site offers good redevelopment options in the long term or the ability to add further floor space. The Cromwell Mall is destined for upgrade works as part of The Councils Long Term Plan from which the property would also benefit from.

The existing building offers the opportunity to generate holding income for a purchaser in the short term, while in the long term redevelopment of the site will generate a full investment return.

The property is zoned Business Resource Area under the Central Otago District Council District Plan.

Tenancy Schedule

Location

The Cromwell CBD Mall is the only major shopping precinct in Cromwell. Built in the early 1980s, The Mall offers day to day amenities for the wider Cromwell District.

The Mall is located just off the State Highway, by the Big Fruit. The property is situated on the northern edge of The Mall enjoying visibility to both foot and vehicle traffic.

The Mall provides commercial space for retailers, professional offices, cafes/takeaways, tavern, gym, library, and medical centre.

The local Council have over the years been working on a revamp of The Mall with the main aim being to open up the views, allowing more visibility into The Mall.

Zoning

Territorial authority

Central Otago District Plan status

Operative

Zone Business Resource Area

Zone description

This allows for a wide range of commercial land uses as permitted activities.

Extract from District Plan:

‘To enable the development of a wide range of activities within the Business Resource Area provided significant adverse effects are avoided, remedied or mitigated’.

Permitted activities

• Any activity that is not listed as either a controlled, discretionary (restricted), discretionary, or noncomplying activity and that complies with the rules and standards set out in Sections 11 to 15 of this Plan and the standards set out in Rule 8.3.6 is a permitted activity.

• The District Plan does not list specific uses as Permitted Activities. We advise that investigation be made to ensure any future proposed use would be allowed on the site - either a Permitted Use or with Resource Consent.

Development controls

• Maximum height shall be 10m, no front yards are required·, no side or rear yards are required except where the site adjoins a residential resource area.

* boundary indicative only

Cromwell Market

There has been high levels of interest for commercial property in Cromwell over recent times as it establishes itself as the service hub for the wider Lakes District and Central Otago regions. The vast majority of recent sales have been for industrial properties due to a lack of commercial buildings being available for sale/ occupation.

The Central Otago District Council have purchased properties within the vicinity of CBD as well as owners of existing properties within The Mall. This is in anticipation of the redevelopment of the The Mall. Cap rates from these sales have been below 5% while other market sales of investment properties have seen cap rates within range of 5% - 6%.

Long term we believe that investment properties will continue to be sought after by local investors and in particular adjoining land owners of properties in the CBD as Cromwell grows to service not only the local expanding population but also business servicing the larger Queenstown and Wānaka areas.

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 OT12B/268

Land Registration District Otago

Date Issued 17 August 1988

Prior References

OT11A/794

Estate Fee Simple

Area 490 square metres more or less

Legal Description Lot 52 Deposited Plan 18370

Registered Owners

Fireflycrom Limited

Interests

Subject to Section 8 Mining Act 1971

Subject to Section 5 Coal Mines Act 1979

11061301.3 Mortgage to ANZ Bank New Zealand Limited - 3.4.2018 at 9:58 am

boundary indicative only

Deadline Private Treaty Sales Process

A deadline sale is the process of purchasing real estate through 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 accept an offer at anytime before the deadline sale closes.

Buying by deadline sale is a relatively simple process, with advantages 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 put 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 level at which you’re offering. It’s fine to put a finance clause into the contract, but bear in mind that a vendor may favour the most straightforward offer on the d ay.

• Read the contract. The ‘Sale and purchase agreement’ is the contract signed by the potential purchaser at the time of submitting a deadline sale 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 estate Sales Consultant can refer you to similar properties which have sold recently that are 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 you 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 selected. B alance is the key.

Offers to be submitted to Colliers Sole Agents by 4pm, Thursday 11 April 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 and Interests

• Lease Documentation

• Land Information Memorandum

• Draft Sale & Purchase Agreement

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

Steve McIsaac

+64 21 680 304

steve.mcisaac@colliers.com

boundary indicative only