1 Gorge Road - Information Memorandum

Colliers as exclusive agents, have been appointed to market for sale 1 Gorge Road, Queenstown.

This property is being offered For Sale by Auction, to be held on Tuesday 18 June 2024 at 11am.

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.

colliersotago.co.nz/67028617

Data room link: propertyfiles.co.nz/ property/1GorgeRoad

Data room documents available:

• Information Memorandum

• LIM

• Record of Title All enquiries, requests for information and arrangements to undertake inspections in relation to this opportunity are to be directed to the listing agents below.

Alastair Wood +64 27 436 2422 alastair.wood@colliers.com

Mark Simpson +64 27 490 6394 mark.simpson@colliers.com

Executive Summary

location indicative only

ADDRESS 1 Gorge Road, Queenstown

DESCRIPTION

1 Gorge Road comprises a 1970’s 12 unit motel complex inclusive of a 2 bedroom on-site managers unit. The complex layout provides for two separate buildings each built over two levels providing a total of 7 x studio units, 3 x 1 bedroom units and 2 x 2 bedroom units (inclusive of the managers unit), main reception and storage/laundry facilities. The total floor area of the complex is understood to be 507.5m². The full range of motel chattels and furniture is included.

TENURE Freehold

LEGAL DESCRIPTION SEC 4 BLK XIX QUEENSTOWN TN

CERTIFICATE OF TITLE

OT10D/498

Land Area: 1,012m² (more or less)

AREA

Floor Area: 507.5m² (more or less)

LOCAL AUTHORITY Queenstown Lakes District Council (QLDC)

ZONING High Density Residential

RATEABLE VALUE

SALES PROCESS

$4,760,000 (as at Sept 2021)

For Sale by Auction, at Colliers Queenstown on Tuesday 18 June 2024 at 11am

Investment Highlights

Prime Corner Site close to CBD

High profile corner location on the fringe of the commercial CBD, located on the first stage of the main arterial bypass through Queenstown.

Redevelopment Potential

Prime location for future redevelopment.

Vacant Possession / Inclusive of Chattels

Selling with vacant possession, but inclusive of the full range of motel chattels, fixtures and fittings, allowing the new owners immediate trading options.

Flexible Building Configuration

Well suited as either short term visitor accommodation or longer term rental or staff accommodation.

Generous Land Area

1,012m² corner site contained in one freehold title within High Density Residential Zone, offering multiple development options.

The Property

Developed in the 1970’s with subsequent renovations and additions, the property offers an average standard of motel accommodation commensurate with it’s age, in tidy condition. All the motel units have bathroom and cooking facilities. The two buildings have an estimated gross floor area of 507.5m² split across 2 levels. Given the close proximity of the site to Queenstown’s main commercial precinct and the high visibility of the site, the property offers a range of opportunities:

• Redevelopment for visitor accommodation, or potentially as mixed use commercial, (commercial is currently non-complying under the High Density residential zone and would require a notified resource consent).

• Utilise the property ‘‘as is’’ for short term visitor accommodation, long term residential or staff accommodation.

The property is fully furnished with the exception of linen and offers the following accommodation:

Front Block:

• Managers Apartment - 2 Bedroom

• Unit 3 - Studio

• Unit 4 - 1 Bedroom

• Unit 5 - 2 Bedroom

• Unit 6 - 1 Bedroom

• Unit 7 - 1 Bedroom

Rear Block:

• Unit 10 - Studio

• Unit 11 - Studio

• Unit 12 - Studio

• Unit 13 - Studio

• Unit 14 - Studio

• Unit 15 - Studio

Other Amenities:

• Reception plus managers laundry & storage

• Common guest laundry

• Lock up storage shed

• Communal on site carparking

Zoning

Location

The property is situated on a high profile regular shaped corner site of 1,012m² (more or less), with main frontage onto both Gorge Road and Turner Street. Queenstown’s new by-pass route targeted for completion by the end of 2024 will terminate at the intersection of Henry Street and Gorge Road, giving the site even greater exposure.

The elevated site is located on the fringe of Queenstown’s main commercial precinct, towards the western end of Shotover Street, offering westerly aspected lake and mountain views from the upper floors of the motel complex.

Gorge Road is a key access route between Queenstown’s CBD and business zones as well as providing direct access to Arthur’s Point, Coronet Peak ski area and Arrowtown. A full range of amenities are available in the Queenstown Town Centre located only a short walk away from the property.

Surrounding use in the immediate area is mainly residential, adjoining with the commercial precinct including retail, hospitality, professional services, service stations and visitor accommodation.

Zoning

High-Density Residential

The property is currently zoned High-Density Residential, which provides for efficient use of land within proximity to town centre that is easily accessible by public transport, cycle, and walkways.

Under the current zoning, site coverage is permitted to 70% site coverage and 7 to 8 metres height.

Proposed zone changes recently notified provides for a greater height maximum to 16.5 metres.

Over $1.5* billiOn in lOcal infrastructure and develOpment prOpOsed fOr the QueenstOwn lakes district

Queenstown Market Overview

Queenstown continues to buck the national trend with residential values holding during the first half of 2023, a reflection of increasing migration into Queenstown, a lack of supply and stable demand. Queenstown’s key economic divers, tourism, construction and migration have rebounded strongly post Covid.

The following is a snapshot of the economic drivers for Queenstown:

QueenstOwn internatiOnal airpOrt annual Passenger arrival & dePartures

2.393 M 2.410 M Ye december 2019 dec 2023

At cApAcity, Queenstown

hAs 1 local resident per 34 international visitors

emplOyment grOwth in QueenstOwn lakes district averaged 4.6%p.a. over the last 10 Years comPared to 2.1% nationwide adventure Capital of the World overseas visitor arrivals increased bY 14% From 2022. reFlecting aPProximatelY 310,000 in additional overseas visitors From June 2022 to June 2023.

3.4 M

Forecast domestic & international visitors

Forecasts predict that domestic visitors will double and international visitors will nearly triple in the next 10 years

76.93 Million

2023)

QUEENSTOWN MEAN SECTION AND DWELLING* SALE PRICE AND

PRICE GAINS

As further background, the following is an extract from Tony Alexander’s regional commentary on the Queenstown Lakes area:

It pays to keep in mind when considering the housing market in Queenstown that the factors in play are very different from the rest of the country. Land is scarce, prices are high, population growth is strong, international tourism strength plays a big role, desire for retirement and internal migration to the region can fluctuate significantly, and offshore buying can at times be an influential factor. The Queenstown market is frequently described as cyclical.

Bearing in mind these market characteristics we note that during the September quarter house sales in the Queenstown Lakes District fell some 21% (seasonally adjusted) after rising by about the same percentage in the June quarter. Volatility tends to be typical and can be pronounced. The annual rate of sales in the district has been trending up since 2000 with brief interruptions due to the GFC and the Covid pandemic.

What have prices been doing?

The following graph shows three month rolling changes in house prices in the district since the start of 2020.

From early-2022 as other regions saw prices falling, they largely stopped soaring in Queenstown Lakes District. Now, over the June quarter average prices rose by 0.3% compared with a 1.5% fall nationwide.

Over the September quarter prices have jumped 5% versus rises of 1.8% around all of the country. Price rises in the district look likely to continue given the high probability that internal migration to the area will continue, economic growth will be well supported by inbound tourists, and land supply is not increasing at a rapid pace.

Queenstown Economic Overview Queenstown Hotels & Hospitality Overview

QueenstOwn lakes district gdp is prOvisiOnally up 5.9%

the Year to sePtember 2023

comPared to a Year earlier as at september 2023, prOvisiOnal gdp was $3,928 million

Annual average & change September 2022 – September 2023

Queenstown-Lakes District

New Zealand GROSS DOMESTIC PRODUCT GROWTH (PROVISIONAL)

Source: Infometrics & Queenstown Lakes Labour Market Snapshot, QLDC

nZd 210

revenue Per available room revPar (Ye dec 2023)

Tourism

nZd 297

average dailY rate

The hotel sector is heavily reliant on both domestic and international holidaymakers. The recovery to date has been primarily led by the domestic market, however the reopening of international borders has seen a strong return of overseas arrivals. A strong sign of the recovery is shown with the recent announcement that annual passenger numbers for Queenstown airport for the year ended December 2023, exceeded the total for 2019.

Supply

70.86% occuPancY

Strong trading conditions in the years prior to the pandemic, saw increased development activity within the market. In the five years prior to 2021, ten new hotels opened adding 1,012 rooms to the market. Recent openings included the Holiday Inn Remarkables Park and Sudima Queenstown. There are also two hotel projects that have commenced construction, set to deliver an additional 100+ rooms to the market, of which both hotels are targeting the luxury segment of the market.

boundary indicative only

Record of Title

RECORD OF TITLE

UNDER LAND TRANSFER ACT 2017

FREEHOLD

Limited as to Parcels

Guaranteed Search Copy issued under Section 60 of the Land Transfer Act 2017

Identifier OT10D/498

Land Registration District Otago

Date Issued 17 February 1988

Prior References

OT222/42

Estate Fee Simple Area 1012 square metres more or less

Legal Description Section 4 Block XIX Town of Queenstown

Registered Owners

B & R Limited

Interests

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 18 June 2024 at 11am.

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: propertyfiles.co.nz/property/1GorgeRoad

• Information Memorandum

• LIM

• Record of Title

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

Alastair Wood

+64 27 436 2422

alastair.wood@colliers.com

Mark Simpson

+64 27 490 6394

mark.simpson@colliers.com