20 Ballarat Street | Queenstown Information Memorandum For Sale by Deadline Private Treaty closing 4pm Tuesday 4 October 2022 at Colliers (unless sold prior) Accelerating success.
This property is being offered For Sale by Deadline Private Treaty closing Tuesday 4 October 2022 at 4pm (unless sold prior). For further information about the sales process please see page 24. 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 www.colliersotago.co.nz/67020140registration. Colliers as sole agents, have been appointed to market for sale 20 Ballarat Street, Queenstown. Introduction Data room documents available: • Information Memorandum • Certificates of Title and Interests • Outgoing Schedule • IEP Earthquake Assessment • Lease Documentation • Land Information Memorandum All enquiries, requests for information and arrangements to undertake inspections in relation to this opportunity are to be directed to the listing agent below. Alastair Wood +64 27 436 alastair.wood@colliers.com2422 James Valentine +64 21 777 james.valentine@colliers.com772
Executive Summary 3 Investment Highlights 6 Location 8 Zoning 9 Ballarat Street Retail Mix 10 The Premises 12 Lease Terms 14 Rental Breakdown 17 Queenstown Market 18 Certificate of Title 20 Sales Process 24 Due DiligenceContents25
LOCAL AUTHORITY Queenstown Lakes District Council (QLDC)
ADDRESS 20 Ballarat Street, Queenstown DESCRIPTION Prime retail frontage to the Mall and secondry frontage to Cow Lane, a two level modernized freehold building located in the heart of Queenstown’s CBD. Currently occupied by a single restaurant / bar tenant with a high standard of interior fit out.
RENT INCOME Contract Rent $265,000p.a. plus GST and outgoings (please refer to the “disclosure letter” as included in the dataroom)
RENT REVIEWS Every 18 months to market rent, next rent review subject to renewal due 1 July 2023
ZONING Queenstown Town Centre Zone
TENURE Freehold LEGAL DESCRIPTION Section 12 Block I Town of Queenstown
SALES PROCESS For Sale by Deadline Private Treaty closing 4 October 2022 at 4pm (unless sold prior)
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OUTGOINGS Rates Insurance$18,218$9,728 per annum incl GST RATEABLE VALUE $8,500,000 exclusive of GST (as at September 2021)
CERTIFICATE OF TITLE OT413/19 AREA Land 227m² (more or less) Floor 233m² (ground 205m² first 28m² plus decking)
Executive Summary
location indicative only
Rare
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Well located within The Mall Queenstown, a high foot traffic area in the CBD Land Area 227m² (more or less)
Dominant frontage to Ballarat Street (The Mall) - additional entrance and frontage to Cow Lane
Contemporary Building Design, refurbishedcompletelyin2015
opportunity to acquire a freehold commercial property in tightly held Queenstown CBD SCARCE PROPERTY HOLDING
Investment
Floor Area 233m² (subject to measure)
BUILDINGCONTEMPORARYDESIGN
ABSOLUTE PRIME LOCATION SIZABLE AREA DOMINANT FRONTAGE ON THE MALL Quality surrounding mix of established national/international retail brands and food & beverage outlets QUALITY RETAIL MIX
Highlights
location indicative only This prime Queenstown CBD property is located in the established Ballarat Street precinct only metres from the lakefront and the rest of downtown AdjoiningQueenstown.and adjacent uses include similar commercial buildings occupied as restaurants, offices, retail and food and beverage related uses. Ballarat Street has for a long time been one of the three top retail and hospitality locations within Queenstown’s CBD.
The property offers great potential for “as is” or alternatively upon lease expiry, reconfiguring the premises into ground floor retail or alternatively two tenancies, one retail tenancy fronting The Mall and the balance a bar/restaurant with access off Cow Land, occupying the rear ground floor, first floor and deck Queenstown’sarea.
Location
CBD has long been renowned for its tightly held and desirable ownership, largely due to the proven long term capital growth. Accordingly, it is rare to have the opportunity to acquire such an asset in such a prime location on a freehold title. Council is also currently underway with the first stage of a Town Centre street upgrade jointly funded by the Government’s ‘Shovel Ready’ fund ($35m) and Queenstown Lakes District Council ($25m), this will significantly upgrade services and infrastructure within the down town commercial CBD center. https://www.qldc.govt.nz/media/2lgpz10k/render-plan-arterial.pdf
Zoning
The property lies within the “Queenstown Town Centre Zone” of Queenstown Central (map 36) as defined by the Queenstown Lakes District Council Operative District Plan. More information can be sourced from www.qldc.govt.nz (Section 10 – Town PleaseCentres).note: It is the responsibility of interested parties to qualify and elaborate all relevant planning information noted above.
Ballarat Street Retail Mix
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PotentialStorageBathroom
Premises
External Mall Dining – The premises has had the benefit of an outdoor seated licence area from Council.
The
Age – originally circa 1960’s build over three stages, with a first floor and deck added circa mid 1990’s. Internally the premises had a complete internal refurbishment and updgade in 2015, and a more recent refresh in 2020. The property now offers a comparatively high standard of restaurant and bar Constructionfitout.
Internal Layout – Rectangular in shape with an approximate frontage to The Mall and Cow Lane at circa 7 metres and an overall depth at circa 30 metres. The ground floor layout provides for a front entrance and dining area adjoining the main bar, with a large central kitchen area down one side adjoining a second dining area, with a rear internal stair well to the first floor, opposite toilets and a separate second dining area adjoining Cow Lane. The first floor provides further toilets, a staff room area and a deck overlooking Cow Lane.
– Concrete floor slab supporting concrete block and slab exterior side walls, with a well presented and attractive retail / restaurant façade onto The Mall with a large glass verandah below a parapet roof façade. The rear entrance onto Cow Lane offers a plaster and timber widow joinery façade, with the first floor plaster exterior and iron roofing.
Lease Terms Deed of Lease dated: 22/12/2003 (ADL Fourth Edition 2002) Tenant: Avanti Restaurants (2001) Limited Commencement Date: 1st July 2002 Term: Five years Deed Of Renewal 2007 Deed of Renewal & Variation 2010 Deed of Renewal & Variation 2014 One further term of 4 years from July 2016 followed by 2 further rights of renewal of 3 years, with a final expiry of 30 June 2026 Deed of Renewal & Deed of Variation 2019 One further term of 3 years, final expiry 30 June 2029 Deed of Assignment dated 2019 Assignee – Le Viet Group Queenstown Ltd Deed of Renewal dated 2020 Renewed for 3 years through until 30 June 2023. Redevelopment Clause: Clause 47-48 Of the original lease gives the Landlord the right redevelop the premises and/or extend the first floor. Rental Valuations: $265,000 plus GST as at January 2022 (please refer to the “disclosure letter” as included in the dataroom). Annual Property Outgoings recoverable under the lease: Queenstown Council Rates = $18,218.96 GST Inclusive Otago Regional Council rates = $1.87 – $6.89 Warrant of fitness costs = $1,700 Insurance costs = $9,728
m² $/m² Total ground floor 205 $1,250 $256,250 first floor 28 $312 $8,736 balcony 14 Total $264,986 Rental Breakdown Contract Rent $265,000 Please refer to the “disclosure letter” as included in the dataroom
As Queenstown, and in particular the CBD, emerges from the impacts of Covid 19, we are seeing a return of confidence from investors in the medium to long term security and growth prospects of Queenstown’s Commercial Property sector. After an initial period during 2020 of adjustments in CBD rents and some vacancies, we are now seeing a return of retail leasing activity and interest from quality tenants including the Australasian retail brands. The majority if CBD rents are now back to pre Covid rents and the area is enjoying very strong winter tourist Therenumbers.have been recent sales in the CBD representing yields of less than 4%. This supports the low yields historically achieved in the CBD as a result of the scarce and tightly held nature of the downtown Pleasearea. contact us should you wish to view further details on historical sale evidence within Queenstown. Market
Queenstown
Certificate of Title
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• 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:
• 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.
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.
• 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, 4 October 2022.
• 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.
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.
• Know the process. Talk to your Colliers Agent about exactly what will happen on and before the deadline sale closing day.
Deadline Private Treaty Sales Process
• 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.
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.
20 BALLARAT QUEENSTOWNSTREET25To 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 dataroom. • Information Memorandum • Certificates of Title and Interests • Outgoing Schedule • IEP Earthquake Assessment • Lease Documentation • Land Information Memorandum All enquiries, requests for information and arrangements for site inspections are to be directed to the Colliers sole agent: Alastair Wood +64 27 436 alastair.wood@colliers.com2422 Due Diligence James Valentine +64 21 777 james.valentine@colliers.com772
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advice nor purport to contain all of the information that a prospective purchaser may require. In all cases interested
offer.
Information
for information purposes in order to assist interested parties in making an initial evaluation of the property and does not
Information
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purchasing decision.
Information
This Information Memorandum has been
Information Memorandum to satisfy themselves in all respects and not rely
must conduct their own investigation and analysis of the property and the data
Please be aware that Mortgagee Sales can present more risk to purchasers, we recommend you take advice from your lawyer in this respect.
implied,
Colliers,
20 Ballarat QueenstownStreet FOR SALE BY DEADLINE PRIVATE TREATY closing 4pm, Tuesday 4 October 2022 (unless sold prior) Colliers, Top Floor, 10 Athol Street, colliersotago.co.nz/67020140Queenstown Alastair Wood +64 27 436 alastair.wood@colliers.com2422 James Valentine +64 21 777 james.valentine@colliers.com772
accept
DISCLAIMER: prepared solely constitute parties set this on their This Memorandum has been prepared in good faith and with due care by but neither Colliers nor the Vendor responsibility hereunder for the accuracy of any part of the information contained in this Memorandum. Therefore the recipient/s of this Memorandum to the extent that they rely on the information contained do so entirely at their own risk. The Vendor and Colliers NZ Limited (and its brokers) expressly disclaim all liability for representations, express or contained in, or for omissions from, this Memorandum or any other written or oral communication given to any prospective purchaser in the course of their evaluation and/or This Information Memorandum does not constitute an offer for sale or purchase or otherwise.
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the information in this Information Memorandum to make
