Sherwood - Information Memorandum

For Sale by Negotiation

CONTEN TS

The Offering

Property Overview

Location

Investment Highlights

Title Information

Property Configuration

Hotel Rooms

Core Buildings

Sherwood - Management

Development and Expansion possibilities

THE OFFERING

The Sherwood property (land and buildings) is being offered for sale with the existing hotel management and hospitality operation in place.

This is an opportunity to acquire a destination property on over 1.5 hectares of strategically located lake-view land in Queenstown, New Zealand with growth and development potential, and a successful operator at the helm.

QUEENSTOWN

Located in the South Island of New Zealand, in the original all-seasons mountain destination of Queenstown.

LAKE & MOUNTAINS

Set on an elevated hillside spanning three acres, Sherwood overlooks picturesque Lake Whakatipu and The Remarkables Mountain Range.

COMMUNITY HOTEL

Sherwood brings people together with music, art and food through an outward-facing hospitality platform, on-site accommodation, wellbeing, workspaces, and boutique retail.

We call it a ‘Community Hotel’.

A LIFESTYLE PRECINCT

Hotels and restaurants are, really, only as good as the things that happen in them and the people they attract. Sherwood is a place for community as well as visitors, so Sherwood has spent the last decade offering those things that locals were missing in the knowledge it will provide a richer, more authentic experience for travellers too.

“IF MICK JAGGER WERE TO SHACK UP IN THE SOUTH ISLAND OF NEW ZEALAND, IT WOULD BE AT SHERWOOD. A WILD BLEND OF ROCK N ROLL, WILDERNESS RETREAT AND ECO-DESIGNED ACCOMMODATION.”

Rhiannon Taylor - In Bed With Me

SUSTAINABILITY

Sustainability has been embedded at the core of the business since its inception, making Sherwood one of Australasia’s most sustainable hotels.

Sherwoods solar array of 248 multi-crystalline panels was one of the largest private installations at the time and makes a significant contribution to the power demands of the hotel operation.

THE GARDEN

Sherwood Garden adjoins the hotel on just over an acre of Lakeview land and supplies the restaurant with an ever growing amount of vegetables, berries, flowers, and herbs for the hyperseasonal menu.

In addition to being a garden with one of the finest views in Queenstown it is a zoned landholding suitable for expansion of the hotel and facilities - with enough space to keep the amenity of the garden as well as construct an additional 40+ rooms if desired.

STRATEGIC LOCATION

The highly strategic location is set mid-way between the city centre and the airport, offering easy access to town as well as proximity to the Frankton transportation hub and adjoining retail precincts.

The hotel is less than 5 minutes drive or 15 minute bicycle from Queenstown City Centre, and 5 minutes drive from Queenstown Airport.

A bus service runs every fifteen minutes with buses stopping directly opposite the hotel.

Both Coronet Peak and The Remarkables ski areas are a 30 minute drive from the property.

Queenstown CBD

SHERWOOD

INVESTMENT HIGHLIGHTS

78 Room hotel with strong following and expansion potential to reach 120+ rooms.

Established award winning hospitality and accommodation operator.

Unique market positioning anchored by cultural, environmental, and social capital.

Diverse product offering attracting a broad demographic from younger independent travellers, families and film crew, to creatives, and adventurers.

135 seat indoor restaurant, bar and commercial kitchen and 70+ seat courtyard.

Workshop reception and function venue catering for up to 100 pax gatherings.

Resilient New Zealand and Australian core customer base, Underpinned by multiple revenue streams including accommodation, hospitality, entertainment and events, wellbeing, co-working.

Ample on-site parking and direct access to core bus services and lakeside cycleway.

Productive vegetable garden amenity and future development site on over an acre of Lakeview land.

Opportunity to substantially grow hotel room rate and F&B capacity by investing in hotel room upgrades and executing select commercial area expansion plans.

Strategic fully serviced central land holding of approximately 1.5 hectares

Favourable zoning with access and amenity suitable for commercial or residential uses.

TITLE INFORMATION

Location Queenstown, South Island, New Zealand

Address 554 to 558 Frankton Road & 6 Golden Terrace

Legal Description Lot 2 DP 361132 & units 1-80 thereon

Lot 3 DP 361132

Tenure Freehold

Property Size

Lot 2 10,800 m2

Lot 3 4,718 m2

Zoning Low Density Residential with Visitor Accommodation overlay

Liquor Licence On-site and off-site liquor licence

PROPERTY CONFIGURATION

Land

Hotel Rooms x 78

Existing Hotel

Total Underlying Land Area [1.5ha] 15,518 m2

Core Buildings

2 bed

1.5 bed

Unit 1: Darth

Ground: Office / BOH

Upper: 4 Bed Apartment

Unit 1B:

Unit 1A: Workshop Courtyard

SPA, SAUNA & GUEST LAUNDRY

RecepCon / Workshop

Restaurant Courtyard

Unit 2:

RESTAURANT & CONFERENCE ROOM

Ground: Restaurant

Upper: Office / Wellbeing Studio

GARDEN & FUTURE DEVELOPMENT SITE

ROOM EXPERIENCE

HOTEL ROOMS

78 rooms of hotel accommodation traverse the humble luxury of a lakeside studio to the communal comfort of one and two, catering for travelers seeking atmosphere and authenticity.

Sherwood offers a unique setting to unwind and reconnect with self and nature.

The 78 rooms of accommodation traverse the humble luxury of a lakeside studio to the simple comfort of one, two and four bedroom apartments, catering for travellers seeking atmosphere and authenticity.

The simple, elegant, yet cosy rooms are stocked with bespoke, natural products and feature work by local artists, craftspeople and producers.

The simple, elegant and cosy rooms are stocked with bespoke, natural products and feature work by local artists, craftspeople and boutique producers.

STANDARD STUDIOS

PREMIUM STUDIOS

TWO BEDROOM APARTMENTS

CORE BUILDINGS

RESTAURANT

Specialising in modern New Zealand cuisine that reflects a sense of place, the kitchen team takes inspiration from the beautiful surrounds and the bounty offered up by the changing season.

Sherwood has been recognised as New Zealand’s best hotel restaurant and one of only two in the country to have received a coveted Chef’s Hat.

Over 50% of the restaurant turnover comes from the local community and off-site visitors.

Hospitality has always been in Sherwoods bones. Harking back to a time when Queenstown’s few good restaurants were exclusively in hotels, Sherwood has started a renaissance of sorts with visitors and locals dining and celebrating together throughout the seasons.

RESTAURANT COURTYARD

Seating 135 people indoors, the restaurant opens to an open air courtyard with seating for a further 70 diners.

Two recently constructed pergolas provide covered outdoor seating and a central open fireplace acts as a casual gathering point in the evenings for locals and visitors alike.

MEETING ROOMS & OFFICE STUDIOS

Co-working, boardroom and film production facilities are provided within the core buildings and are in easy reach of hospitality and wellbeing services to satisfy the needs of people and organisations that seek to mix business and pleasure.

WELLBEING & COMMUNITY

WELLBEING & COMMUNITY

An in-house wellbeing studio offers a simple programme of yoga, pilates, massage and sauna to both guests and locals alike.

An in-house wellbeing studio offers a simple programme of yoga, pilates, massage and sauna.

While a tightly curated calendar of educational workshops, live music, and community events connect guests to the heart of our local community.

The yoga studio and massage rooms are located in the core building above the hospitality area and the sauna is located in the workshop zone.

While a tightly curated calendar of educational workshops, live music and community events connect guests to the heart of our local community.

RECEPTION & WORKSHOP

AMENITIES

Hotel amenities have been curated to answer the needs of an active Queenstown visItor whatever the season.

amenities have been curated to the needs of an active Queenstown visItor whatever the

Mountain bike, ski-tuning workshops

Mountain bike, ski-tuning workshops and hire facilities cater to those here for alpine adventure.

facilities cater to those here adventure.

Co-working, boardroom and film

Co-working, boardroom and film production facilities satisfy the needs of those that mix business and pleasure.

production facilities satisfy the needs

Hotel amenities have been curated to answer the needs of an active Queenstown visitor whatever the season.

Mountain bike, ski-tuning workshop and hire facilities cater to those seeking alpine adventure and is located adjacent to the hotel reception and courtyard function

WORKSHOP COURTYARD & FUNCTION VENUE

A generous and private courtyard zone facilitates functions of up to 100 people that can be run in parallel to a full restaurant service. There is an option to serve a function in the workshop and courtyard beverages from the workshop bar.

When not being used for a function, the workshop courtyard provides a spacious amenity area for hotel guests.

SHERWOOD MANAGEMENT

OPERATOR

Sherwoood has built its reputation over the last ten years to earn its place in Queenstown’s hospitality, accommodation, and cultural landscape.

The hotel brand has delivered a strong and differentiated market position to date built from a simple human insight.

Nobody wants to feel like a tourist.

For todays traveller authenticity has become the new luxury. And authenticity takes time.

Sherwoods community focus offers guests the greatest luxury of all - a truly authentic travel experience - paired with some of the most enjoyable human rituals we know.

TEAM

TEAM

From the two department heads (Accom + F&B) with over 35 years of experience running some of New Zealand’s best hospitality and hotel experiences.

Sherwood benefits from a senior management team across hotel and F&B with over 40 years of experience running some of New Zealand’s best hospitality and hotel experiences.

To one of New Zealand’s most talented chefs, and the team of dynamic and committed hospitality professionals that support them; Sherwood’s team has the drive and capacity to scale.

With one of New Zealand’s most talented chefs and a team of dynamic and committed hospitality professionals supporting them, the Sherwood Team has the drive and capacity to further enhance and expand the operation.

A single-minded focus on organisational culture has built one of the strongest and most dedicated teams in our market.

A single-minded focus on organisational culture has built one of the strongest and most dedicated teams in our market.

GUEST MIX

The hotel’s positioning attracts a highly desirable and resilient guest profile in a fast-growing and underserved sector of the market.

GUEST MIX

85% of guests are FIT’s

70% from urban NZ / Australia

The hotels’ positioning attracts a highly desirable and resilient guest profile in a fastgrowing and under served sector of the market.

Strong LOHAS focus

85% of guests are FIT’s

70% from urban NZ / Australia

65%+ of restaurant trade is local

50%+ of restaurant trade is local

35%+ of bookings are direct and commission free.

35% + bookings are direct and commission free

High Level of repeat custom and referral

High level of repeat custom and referral

SOCIAL

SOCIAL

16,000 engaged followers across social channels +

27,000 engaged followers across social channels

10,000 unique subscribers receiving quarterly newsletters

35,000 unique subscribers receiving monthly newsletters

Day to day life here is a rich source of content and Sherwood chooses to communicate with past, present, and future guests, and the larger digital world through social media and PR which has resulted in a steady increase in followers and direct bookings.

BRAND

BRAND

The hotel brand has delivered a strong and differentiated market position to date.

The brand has been carefully managed over the years and is perfectly placed to support the next phase of growth and on-site development at the property.

Further brand refinement is currently underway to capitalise on significant market growth with a focus on expressing authentic luxury to underscore a continued lift in ADR and drive direct bookings.

The digital platforms and physical collateral have recently been refined and implemented including the Sherwood website, on-site way finding, staff uniforms, and in-room communications.

Existing Sherwood branded retail products include drink bottles, caps and beanies, umbrellas, and tote bags. A recent collaboration has resulted in a locally produced Sherwood branded beer and on-site bottled wine and growlers of beer can be purchased for off-site excursions or in-room consumption.

Future plans include a Sherwood journal and recipe book,

Current work includes; redesign of the website, wayfinding, signage and brand collateral - both in and ex-room.

SHERWOOD STRUCTURE

• Sherwood Management ltd is the manager and operator of the complex including the hotel room letting business and f&B business.

• The F&B business pays rent to Manor Holdings Ltd for use of the core facilities buildings including the restaurant space.

• The hotel room letting business pays rent to Manor Holdings Ltd for use of the core facilities buildings including reception, internal common areas, workshop, offices, workers accommodation, and back of house areas

• Net Profit from the Hotel Room letting business after rent and all operating and ownership costs is paid to the hotel room owner.

• Management Fees from the Hotel Room letting business and Net Profit from the F&B business are retained by the operator and paid to QP Management Ltd.

For Sale

For Sale

ON - SITE EXPANSION

HOSPITALITY EXPANSION

N

The development of Sherwoods hospitality areas results in additional year-round dedicated indoor function space and weather-proofed outdoor seating and covered areas to cater to the increasing demand for venue hire.

Completion of the restaurant courtyard would include an external verandah and associated seating, a maitre’d station, an upgraded facade and glazing design, re-configuration of the restaurant entry, and seated booths to replace an existing section of high-tables.

Relocate recepCon Proposed 2025/26

Install seaCng and pergola

OpCon for open air tent as guest amenity and for funcCons Proposed 2025/26

68+ pax seated capacity

100+ pax standing

Restaurant Booths & Glazing Consented + 0 seats (replacement)

Re-fit workshop as funcCon venue. OpCon for separate kitchen and w/c Proposed 2025/26 80 pax seated capacity

Restaurant Verandah Consented + 30 seated capacity

Restaurant Courtyard Pergola Completed 2024 + 32 pax seated capacity

15 May 2024

Manor Holdings Limited VIA EMAIL

Attention: Adam Smith

Dear Adam,

RESOURCE MANAGEMENT PLANNING REPORT

SHERWOOD - QUEENSTOWN

Introduction

We refer to the request to provide a resource management planning report (report) for the site located at 6 Golden Terrace, Queenstown.

The report will provide an overview of the development potential for the site in terms of the relevant statutory planning controls, with specific attention being giving to the following planning considerations:

• Operative District Plan

• Proposed District Plan

• Proposed District Plan – Urban Intensification Variation

The site has the legal description of Lot 3 Deposited Plan 361132. The site has a total area of 4718m².

Site Description

The vacant sloping site is located between Frankton Road (State Highway 6A) and Goldfields Heights. Future vehicle access to the site will need to be obtained from Goldfields Heights.

Minor earthworks have been undertaken on the site in the past for a bike pump track, while the site has been used as a produce growing area. A creek runs through the extreme eastern area of the site.

Sherwood Hotel adjoins the site to the east, while standalone residential dwellings adjoin the western site boundary.

Reticulated Services

There are Council reticulated services that traverse through the site, as illustrated below:

These services consist of a stormwater main, sewer line and stormwater channel.

Operative District Plan

As the relevant provisions within the Proposed District Plan (PDP) are now deemed operative, the Operative District Plan is now not a relevant consideration.

Proposed District Plan

Overview

Under the PDP, the site is contained within the Lower Density Suburban Residential Zone (LDSRZ). The site is also contained within a Visitor Accommodation Sub-Zone (VASZ).

The relevant planning map from the PDP that indicates the LDSRZ and VASM is indicated below:

The LDRZ provides for both traditional and modern suburban densities and housing forms. Visitor accommodation is an anticipated activity within the VASZ.

Activities (Land Use)

As a permitted activity, the LDSRZ provides for one residential unit per 450m² (net area). Via a Restricted Discretionary Activity resource consent, residential density can go down to one residential unit per 300m² (net area). Residential units provided at a density less than 300m² (net area) will require a non-complying activity resource consent.

It is noted that the PDP defines ‘net area’ as follows:

Means the total area of the site or lot less any area subject to a designation for any purpose, and/or any area contained in the access to any site or lot, and/or any strip of land less than 6m in width

Visitor accommodation within the VASZ requires a restricted discretionary activity resource consent. Subject to compliance with the subject development standards (addressed below), visitor accommodation within the VASZ will not be subject to either public or limited notification, and no affected persons approvals will be required to be obtained in order to obtain a non-notified resource consent for this activity.

It is noted that there are no limits on the number of ‘visitor accommodation units’ that can be provided within the VASZ (either self-contained or not). The ultimate limit on such units are the development standards within the LDRZ (i.e. building coverage/height).

It is noted that commercial activities less than 100m² requires a restricted discretionary activity.

Development Standards

The development standards listed below apply to both residential and visitor accommodation activities.

It is noted that the PDP now does not require on-site car parking to be provided when a site is developed for either residential or visitor accommodation uses. However, if on-site parking is required, then the Transport Standards within the PDP will need to be adhered to.

Subdivision

If seeking to create vacant lots within the LDSRZ, the minimum net lot area shall be 600m². It is noted that each lot shall be required to provide a square with the minimum dimension of 15m by 15m.

Despite the above requirements, the minimum lot size and minimum square dimensions shall not apply in the LDSRZ where each allotment to be created, and the original allotment, all contain at least one established residential unit (established meaning a Building Code of Compliance Certificate has been issued or alternatively where a Building Code of Compliance Certificate has not been issued, construction shall be completed to not less than the installation of the roof).

Proposed District Plan - Urban Intensification Variation

In late 2023, the Council notified the PDP Urban Intensification Variation (Variation).

The Variation seeks to implement Policy 5 of the National Policy Statement for Urban Development (NPS-UD), which directs councils to enable more height and density in certain locations. The Variation also aims to implement the wider directive of the NPS-UD, to ensure well-functioning urban environments that meet the changing needs of our diverse communities and future generations

The primary implication for the site is that the Council is seeking to rezone the site from the LDSRZ to the Medium Density Residential Zone (MDRZ).

The MDRZ has the purpose of providing land for residential development at greater density than the LDSRZ.

From a residential density perspective, subject to compliance with other development standards, the MDRZ provides as a permitted activity three residential units per site. Four or more residential units require a restricted discretionary activity resource consent.

Unlike the current MDRZ which prescribes a residential density of one residential unit per 250m² net area, the Variation provisions for the MDRZ eliminates any density restrictions (i.e. there are no density limits – development is governed by the subject development standards). It is noted that the Variation has no effect on the VASZ and the anticipated visitor accommodation use within the VASZ. As stated above, the number of visitor accommodation units are governed by the development standards in the MDRZ (i.e. there is no limit on the number of such units).

The development standards for the Variation MDRZ that apply to both residential and visitor accommodation activities are as follows:

Based on the notified provisions of the Variation that seek to change the zoning of the site from LDSRZ to MDRZ (and the proposed amendments to the existing MDRZ provisions), the site has significantly greater development potential for both residential and visitor accommodation uses when compared to the current LDSRZ provisions.

The key ‘extra’ development standards within the MDRZ when compared to the LDSRZ include:

• No density limit on residential development.

• Greater building height.

• Increased building coverage.

• Reduced minimum landscaped permeable coverage.

• Reduced building setbacks.

• Reduced maximum building lengths

In terms of subdivision of vacant lots, the Variation seeks to maintain a 250m² (net area) minimum lot size and a minimum square of 10m by 12m.

Despite the above requirements, the minimum lot size and minimum square dimensions shall not apply in the MDRZ, where each allotment to be created, and the original allotment, all contain at least one established residential unit (established meaning a Building Code of Compliance Certificate has been issued or alternatively where a Building Code of Compliance Certificate has not been issued, construction shall be completed to not less than the installation of the roof).

The Variation is still in the early phase of the required process under the Resource Management Act 1991. Below is what has occurred to date, and what is still required for the Variation:

• The primary submission closed in October 2023.

• The further submission period will run between the 16th of May 2024 to the 14th of June 2024.

• Potentially, the Council hearings will occur at the end of 2024 and into early 2025.

• Council decisions could be released in the 3rd quarter of 2025, with the appeal period to the Environment Court occurring afterwards.

• On the basis that there appeals to the Environment Court, the mediation/hearing process will occur during 2026 to 2027.

Should you have any questions in relation to this report, please give me a call.

Yours Sincerely

Scott Freeman DIRECTOR

SOUTHERN PLANNING GROUP