236 Glenda Drive | Queenstown Information Memorandum For Sale by Deadline Private Treaty
closing 4pm, Thursday 9 November 2023 (unless sold prior)
Accelerating success.
Introduction Colliers have been appointed exclusively to offer for sale the Freehold Going Concern at 236 Glenda Drive, Queenstown.
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 • Certificate of Title • Business Documentation • Land Information Memorandum • Sale and Purchase Agreement • Plans & Resource Consent • Plan & Schedule All enquiries, requests for information and arrangements to undertake inspections in relation to this opportunity are to be directed to the sole agents. Barry Robertson +64 27 433 5941 barry.robertson@colliers.com Steve McIsaac +64 21 680 304 steve.mcisaac@colliers.com
Contents
Executive Summary
3
Investment Highlights
4
Location
8
Zoning
9
Queenstown Industrial Market
10
The Premises
12
Business Overview
14
Certificate of Title
16
Due Diligence
21
Location indicative only
236 GLENDA DRIVE QUEENSTOWN
Executive Summary ADDRESS
236 Glenda Drive, Frankton, Queenstown, 9300
DESCRIPTION
A modern, purpose-built car wash facility, situated on a prominent corner, 1,404m² site with frontages to Glenda Drive and Hawthorne Drive, in Frankton’s developing service industrial precinct.
TENURE
Freehold
LEGAL DESCRIPTION
LOT 2 Deposited Plan 501603
CERTIFICATE OF TITLE
OT750071
LAND AREA
1,404m² Car wash facility - 304m²
FLOOR AREA (NLA)
Car valet buildings - 40m² Office - 15m²
ZONING
General Industrial and Service Zone - under the QLDC Proposed District Plan
RATEABLE VALUE
$2,650,000 (as at 1 Sept 2021) (Land & Buildings only)
RATES
QLDC $7,232.52 OCR $826.61
INSURANCE PREMIUM
$13,131.08 for property & business
SALES PROCESS
For Sale by Deadline Private Treaty closing at 4pm, Thursday, 9 November 2023 (unless sold prior)
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236 GLENDA DRIVE QUEENSTOWN
Investment Highlights
HIGH PROFILE POSITION
FREEHOLD GOING CONCERN
Extensive frontage to both Glenda Drive and Hawthorne Drive which is the main arterial route linking Frankton Flats
Established business with ability to grow profits
REDEVELOPMENT OPPORTUNITY
NEW BUILDINGS & PLANT
Buildings/business can be relocated to develop further
Modern automated and self-wash equipment
TIGHTLY HELD AREA
BUSINESS OPPORTUNITY
Scarce freehold Industrial property on Glenda Drive.
Ability to grow business with additional income streams
4
Location indicative only
236 GLENDA DRIVE QUEENSTOWN
Location The property is positioned on one of Queenstown’s most prominent corner sites, at the intersection of Glenda Drive and Hawthorne Drive, North. Glenda Drive, which is the main vehicle route through the well established yet still expanding Frankton industrial precinct, caters for a mix of showroom, trade, automotive, food processing and various other light industrial uses. Hawthorne Drive is a recently developed main arterial route linking State Highway 6 via a roundabout, at the Five Mile and Queenstown Central shopping centres to Remarkables Park Zone and Queenstown International Airport. The geographically central location of Glenda Drive within the Wakatipu Basin ensures it is easily accessible to Queenstown, Arrowtown and the Gibbston Valley. It serves 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 Jacks Point. 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.
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236 GLENDA DRIVE QUEENSTOWN
Zoning
The property lies within the Industrial A Zone of Queenstown as defined by the Queenstown Lakes District Council Operative District Plan. This zone caters for a mix of showroom, retail, printing, automotive, food processing and various other light industrial uses. Please note: It is the responsibility of interested parties to qualify and elaborate all relevant planning information noted above. The property has been subject to a number of Resource Consent to establish the current business activity: RM160729 - issued 11th November 2016 - to construct and operate a commercial car and pet wash facility with associated landscaping and signage. RM170534 - issued 17th July 2017 - to change the design and layout of the approved car and pet wash facility, and to enable the construction of buildings, and a firewall. RM180053 - issued 19th February 2018 - to change the size of the proposed signage pylons and for signage lettering. RM220479 - issued 17th July 2022 - for the construction of 2 carports.
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Queenstown Industrial Market The Queenstown industrial market has remained buoyant following the exceptional growth experienced over the period throughout 2019 - mid 2022. Where much of the rest of the country has seen turbulence amidst a rising interest rate environment, a complete lack of supply, of both leasing and sale stock, has meant that Queenstown has bucked national trends, with values still relatively stable. With Industrial vacancy rates at 2% through Frankton, and having been this way since early 2021, we have seen significant rental growth in the industrial sector. This, alongside a land of any new industrial stock coming online, sees rents continuing to rise. Closely linked to this, land values in Frankton have grown on a similar trajectory, evidenced by sale transactions north of $2,000/m². Trades and tourism businesses continue to be the predominant tenants looking for space as they benefit from Queenstown’s post-pandemic years. Taking a longer-term view, we expect that population growth and a lack of available land will continue to drive demand through the Frankton industrial sector.
236 GLENDA DRIVE QUEENSTOWN
The Premises Improvements Extensive underground drainage and water recycling systems have been installed, a purpose-built car wash facility, office, carports, plus sealed yard and boundary landscaping. Car Wash There is a purpose built modular building supplied by Istobal from Spain, which we understand can be relocated. There are three self-wash bays and two automatic drive through bays, plus a plant room. Construction comprises concrete nib foundations walls , steel columns and lean to beam walls and bracing and ribbed galvanised steel roof. The plant room and walls are sandwich-panel sections. Valet Facility This comprises two lean-to steel structures with open sides used as a undercover car valet area. Dog Wash & Vaccums/Fragrance Machines Office This has a galvanised steel structure, insulated steel sandwich panel walls with aluminium window frames. The layout comprises an open office and bathroom with shower, toilet and handbasin. Site works An extensive underground system provides water to the car wash buildings, allows for treatment, and recycling of water and discharge of waste to the connected wastewater system. There are concrete pads for the car wash facility and the balance of the site is asphalt. There is concrete edging and landscaping around the perimeter of the site , with dual vehicle access from Glenda Drive.
Premises Breakdown
Car Wash Facility
304m²
Car Valet Facility
40m²
Office
15m²
Total Floor Area
359m²
(Floor areas are approximate and subject to measure) 12
Business Overview The car wash land was purchased in August 2015, and the business commenced operation in March 2018. While initially forecasting the first 3 years as a start-up period, the business became profitable in Year one, way ahead of expectations. The owners ran the business in the first year, as having never owned a carwash before, were keen to understand the idiosyncrasies of this new business, and ensure the desired level of service was delivered. Operating a car wash in a remote, seasonal and alpine location created a number of challenges, so the site, plant and skills have been modified over the years to tailor the business operation to the local environment. Whilst initially envisaged as a “hands off” business, the owners discovered very quickly that customer interaction was key to growing turnover, as on-site assistance is greatly appreciated and builds business loyalty. Not only were they able to orient customers on how to use the facilities on-site, but also able to educate them into caring for their vehicles, equipment and cleaning up when they made a mess, to ensure the next customer enjoyed a great cleaning experience. The site is manned 7 days a week during the working hours of the day, yet is open 24 hours a day, 365 days a year. Cameras and phone apps control most of the equipment on-site, which means that any out of hours issues can be resolves as they arise. The site contains 3 self-service bays, and 2 automatic car wash bays, one a soft brush car wash, and the other a touch free wash. In addition, there are 4 vacuums, 2 fragrance/valet dispensers, a cloth dispenser, and a dog wash. The most recent addition is the valet facility. Covid lockdowns dramatically changed the face of Queenstown, and turnover slowed proportionately, hence the business diversified into offering an on-site car detailing .This commenced in November 2020 with one person, who in time has become the site manager, now with 3 staff under his management, valeting cars but also caring for car wash customers, and keeping the site functioning. The inclusion of the car valet/detailing service has meant the business site now operates with a fully funded site manager and team of 3, not requiring daily input from the owner. Business revenues comprises automatic and self-service car wash, valet services plus dog wash and vacuuming. Sales are made by on-site payment through the purchase of car wash tokens, (change/token machine on site) credit/debit cards or cash. In addition, a local discount is offered for businesses to purchase bulk tokens, minimum of 100, and these are on a 7-day payment term offering an 8% discount. Approximately 10% of the above sales are made through this local discounted offering and are mainly local car rental companies or trade related businesses. 14
Opportunities for Growth The following are not limited and are just a few initial ideas from the current owners. Automatic Car Washes – Pricing, currently there is 3 tier pricing, the latest trend in larger centres is to just give one option, being the top wash only. Self-Serve Bays – Timing reduced per $1, currently all options selected have the same time allocation, but programming opportunities exist to give less time when chemicals are used over just water. Alternatively, more time can be programmed to be more generous at lower peak times, to spread the day out for longer washing periods. Valet/Detailing Services Currently the valet menu is being reviewed, with the opportunity to remove lower priced options to assist with better staff utilisation, and profitability, and this should be in place by November 2023. The business currently offers limited mobile services, however with additional staff now trained there is the ability to offer this as a regular service over summer months. Online bookings helped the business to become the number one preferred valet location for car dealers, private individuals, and companies alike, so there is the ability to target more of these enterprises. In addition, valet services can be offered at the weekends, which there is constant demand for. Vacuums, Fragrance Machines, Dog Wash Prices have not changed for these services in 5 years so opportunity exists to improve margins in this area. Vending machines are currently being investigated as these seem to offer significant margins once capital costs have been recovered. Other With technology improvements there are a vast number of “add on” services out there that can be easily “bolted on” to this business, from laser light car washing experiences, lava flow chemical applications, club card annual memberships etc etc, the list is endless.
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236 GLENDA DRIVE QUEENSTOWN
Certificate of Title
16
236 GLENDA DRIVE QUEENSTOWN
17
Valet Facility
Auto Car Wash
18
Vaccum & Fragrance Machines
Entrance from Glenda Drive
19
236 GLENDA DRIVE 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
•
Business Documentation
•
Land Information Memorandum
•
Sale and Purchase Agreement
•
Plans & Resource Consent
•
Plan & Schedule
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
Barry Robertson +64 27 433 5941 barry.robertson@colliers.com
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236 Glenda Drive Queenstown FOR SALE BY DEADLINE PRIVATE TREATY closing 4pm, Thursday 9 November 2023 (unless sold prior) Colliers, Top Floor, 10 Athol Street, Queenstown Barry Robertson +64 27 433 5941 barry.robertson@colliers.com
Steve McIsaac +64 21 680 304 steve.mcisaac@colliers.com
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.