19 Margaret Place - IM

19 Margaret Place | Queenstown Information Memorandum For Sale by Deadline Private Treaty closing Thursday 4 August 2022 at 4pm (unless sold prior)

Accelerating success.

Introduction Colliers have been appointed exclusively to market for sale 19 Margaret Place, Queenstown.

This property is being offered For Sale by Deadline Private Treaty closing Thursday 4 August 2022 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.

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

colliersotago.co.nz/67019766 Data room link: propertyfiles.co.nz/ property/19MargaretPlace

Mary-Jo Hudson +64 21 667 880 maryjo.hudson@colliers.com

Data room documents available: • Information Memorandum • Certificates of Title and Interests • Lease Documentation • Land Information Memorandum • IEP Seismic Assessment • Sale and Purchase Agreement

Rory O’Donnell +64 27 445 3982 rory.odonnell@colliers.com

Contents

Executive Summary

3

Investment Highlights

4

Location

8

Zoning

9

Queenstown Industrial Market

10

The Building

12

Tenancy Schedule

14

Certificate of Title

16

Sales Process

20

Due Diligence

21

location indicative only

19 MARGARET PLACE QUEENSTOWN

Executive Summary ADDRESS

19 Margaret Place, Frankton, Queenstown 9300

DESCRIPTION

Fully leased road front industrial building comprising 3 separate warehouse tenancies plus common yard for parking located on a freehold site in the heart of the Frankton industrial area.

TENURE

Freehold

LEGAL DESCRIPTION

LOT 23 DP 19862

CERTIFICATE OF TITLE

OT11A/1235

LAND AREA

1,112m²

FLOOR AREA

967m² Floor areas are approximate and subject to survey measures.

LOCAL AUTHORITY

Queenstown Lakes District Council (QLDC)

ZONING

Industrial A Zone

OCCUPANCY

The property is fully leased to three separate tenants, being Southern Safety, Focal Queenstown and Pureland (Aotea Souvenirs).

NET RENTAL

$127,730 + OPEX + GST (see tenancy schedule)

RATEABLE VALUE

$2,760,000 (as at Sept 2021)

SALE PROCESS

For Sale by Deadline Private Treaty closing Thursday, 4 August 2022 at 4pm (unless sold prior)

3

19 MARGARET PLACE QUEENSTOWN

Investment Highlights

ADD VALUE OPPORTUNITY

FULLY LEASED | MULTI TENANTED

Under rented tenancies provide an opportunity for astute investors

Fully leased to three separate industrial tenants

SHORT WALT

AFFORDABLE PRICE RANGE

Short WALT enables refurbishment or redevelopment in the near future

Affordable price range in the context of Queenstown

Z LARGE LAND HOLDING

ZONING

1,112sqm in the heart of the Frankton Industrial area

Industrial A Zone.

General Industrial and Service Zone.

4

location indicative only

19 MARGARET PLACE QUEENSTOWN

Location The property is situated on Margaret Place off Glenda Drive, which is the main vehicle route through the well-established, yet still expanding, Frankton Industrial Area. This industrial area caters to a mix of showroom, trade, automotive, food processing, and various other light industrial uses.

Glenda Drive is accessed via a large roundabout connecting to the new Hawthorne Drive extension 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 Zone and Queenstown International Airport.

The geographically central location of Marget Place within the Wakatipu Basin, ensures it is easily accessible to Queenstown, Arrowtown and the Gibbston Valley.

It will conveniently serve the CBD, the town’s major developments including Remarkables Park, Five Mile, Queenstown Central, and all existing suburbs such as Kelvin Heights, Quail Rise, Lake Hayes, Millbrook, Kawarau Falls Station and Jack’s Point.

8

19 MARGARET PLACE QUEENSTOWN

Zoning

The property lies within the Industrial A Zone of Queenstown (map 31) as defined by the Queenstown Lakes District Council Operative District Plan.

Please note: It is the responsibility of interested parties to qualify and elaborate all relevant planning information noted above.

9

Queenstown Industrial Market Construction boom continuing to underpin business growth and confidence for occupiers of industrial and commercial property.

Critical shortage of land available for industrial development.

Currently industrial and commercial property has the lowest vacancy rate on record.

Shortage of industrial property for lease, and the high cost of construction of new buildings, resulting in rent increases.

Increases in land values expected to continue due to lack of supply in immediate area.

Viability of new commercial and industrial properties being challenged by increasing development costs.

Long term the ongoing population growth projections will result in a continued demand for commercial and industrial space that will put pressure on rentals to rise.

19 MARGARET PLACE QUEENSTOWN

The Building Built in the 1980’s, this road front industrial building is an incredibly functional space which caters to a range of businesses. Its L-shape means that all tenancies benefit from some form of profile onto Margaret Place, with a shared accessway making it a convenient location for both customers and suppliers to visit. The building is split into three tenancies, with the front unit being approximately 249sqm, the middle unit approximately 242sqm; and the back unit being 476sqm (more or less), giving the building a total lettable area of approximately 967sqm. Commission area yard for access parking by all tenants in the building.

Area Breakdowns Tenancy 1 – Purelands Limited • • • •

Office 55sqm Warehouse 139sqm Mezzanine 55sqm TOTAL 249sqm

Tenancy 2 – Focal Limited • • • •

Office 46sqm Warehouse 150sqm Mezzanine 46sqm TOTAL 242sqm

Tenancy 3 – Southern Safety Services Limited • • • •

Office 78sqm Warehouse 324sqm Mezzanine 74sqm TOTAL 476sqm

(Floor areas are approximate and subject to survey measure)

The building has a seismic assessment done, returning a 70% NBS rating. This is above the thresholds for Potentially Earthquake Prone and Potentially Earthquake Risk buildings.

12

Tenancy Schedule * Net Contract Rent $ p.a.

Approximate Lettable Area (m²)

Current Term Expiry

Tenancy

Tenant

1

Pureland Limited

$32,258

249

30 April 2025

2

Focal Limited

$33,000

242

15 Feb 2024

3

Southern Safety Services Limited

$62,472

476

31 May 2024

$127,730

967

TOTAL

* Contract rent excludes OPEX and GST.

14

ROR

Next Rent Review

Final Expiry

N/A

1 May 2024

30 April 2025

Market rent review every 2 years.

2 x 3yrs

16 Feb 2023

15 Feb 2030

Annual rent increase of 2%.

Market rent on renewal.

N/A

N/A

31 May 2024

Comments

15

19 MARGARET PLACE QUEENSTOWN

Certificate 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 Land Registration District Date Issued

OT11A/1235 Otago 14 November 1986

Prior References OT10B/735 Estate Area Legal Description

Fee Simple 1112 square metres more or less Lot 23 Deposited Plan 19862

Registered Owners Vadra Investments Limited Interests

16

19 MARGARET PLACE QUEENSTOWN

Identifier

OT11A/1235

Transaction ID 69401794 Client Reference acuebillas001

Guaranteed Search Copy Dated 15/06/22 10:25 am, Page 2 of 2 Register Only

17

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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 day.

•

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. Balance is the key.

Offers to be submitted to Colliers Sole Agents by 4pm, Thursday 4 August 2022.

19 MARGARET PLACE QUEENSTOWN

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

•

IEP Seismic Assessment

•

Sale and Purchase Agreement

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

James Valentine +64 21 777 772 james.valentine@colliers.com

Rory O’Donnell +64 27 445 3982 rory.odonnell@colliers.com

21

Mary-Jo Hudson +64 21 667 880 maryjo.hudson@colliers.com

19 Margaret Place Queenstown FOR SALE BY DEADLINE PRIVATE TREATY Closing 4pm, Thursday 4 August 2022 (unless sold prior) Colliers, Top Floor, 10 Athol Street, Queenstown

colliersotago.co.nz/67019766

DISCLAIMER: This Information Memorandum has been prepared solely for information purposes in order to assist interested parties in making an initial evaluation of the property and does not constitute advice nor purport to contain all of the information that a prospective purchaser may require. In all cases interested parties must conduct their own investigation and analysis of the property and the data set out in this Information Memorandum to satisfy themselves in all respects and not rely on the information in this Information Memorandum to make their purchasing decision. This Information Memorandum has been prepared in good faith and with due care by Colliers, but neither Colliers nor the Vendor accept responsibility hereunder for the accuracy of any part of the information contained in this Information Memorandum. Therefore the recipient/s of this Information Memorandum to the extent that they rely on the information contained herein do so entirely at their own risk. The Vendor and Colliers NZ Limited (and its brokers) expressly disclaim all liability for representations, express or implied, contained in, or for omissions from, this Information Memorandum or any other written or oral communication given to any prospective purchaser in the course of their evaluation and/or offer. This Information Memorandum does not constitute an offer for sale or purchase or otherwise.

Please be aware that Mortgagee Sales can present more risk to purchasers, we recommend you take advice from your lawyer in this respect.