11am Thursday 2 May 2024 at Colliers Queenstown (unless sold prior)
Accelerating success.
25
Sutherland Lane | Queenstown
Information Memorandum For Sale by Auction
Introduction
Colliers as sole agents, have been appointed to market for sale 25 Sutherland Lane, Queenstown.
This property is being offered For Sale by Auction, to be held on Thursday 2 May 2024 at 11am (unless sold prior).
For further information about the sales process please see page 20.
Auction to be held at: Colliers, Top Floor, 10 Athol Street, 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 which can be accessed upon registration.
colliersotago.co.nz/67028220
Data room documents available:
• Information Memorandum
• Building plans
• Leases
• LIM
• Certificate of Title & Interests
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 2422
alastair.wood@colliers.com
James Valentine
+64 21 777 772
james.valentine@colliers.com
Executive Summary 2 Investment Highlights 4 Location 6 Zoning 8 The Property 9 Lease Summary 11 Queenstown Industrial Market 12 Certificate of Title 14 Auction Process 18 Due Diligence 19 Contents
Executive Summary
ADDRESS
DESCRIPTION
25 Sutherland Lane, Queenstown
Situated on a well positioned 396m² corner land parcel with high visibility, 25 Sutherland Lane is a near-new industrial property configured with 2 tenancies, leased to Dominator Doors and Queenstown Insulation
TENURE Freehold
LEGAL
CERTIFICATE OF TITLE
AREA
LOCAL AUTHORITY
ZONING
RENT INCOME
826783
Floor Area 240m²
Land Area 396m² (more or less)
Queenstown Lakes District Council (QLDC)
Industrial Zone C
Dominator Doors - $42,215 p.a. plus GST + outgoings
Queenstown Insulation - $28,187 p.a. plus GST + outgoings
Total rental income - $70,402+ GST + outgoings
COMBINED RATEABLE VALUE (as at 1 September 2021)
TENANTS
SALES PROCESS
Land Value
Improvements Value
Rateable Value $690,000 $670,000 $1,360,000
Two Apples Limited T/A Dominator Garage Doors Central Otago
Queenstown Insulation Supplies Limited
For Sale by Auction at Colliers Queenstown on Thursday 2 May 2024 at 11am (unless sold prior)
25 SUTHERLAND LANE QUEENSTOWN 3
DP
DESCRIPTION LOT 2
521947
Investment Highlights
Modern Building
Constructed in 2019 and built to 100% of code, this property presents a low risk option for investors looking to purchase a passive asset with income
Prominent Street Position
Well positioned with strong street frontage onto Glenda Drive makes this property attractive to prospective tenants, owneroccupiers, or investors
Fully Tenanted with Holding Income
Fully tenanted with two leases returning $70,402 + GST in net rent to assist incoming purchasers
Tightly Held Area
Freehold industrial property offerings through Frankton are scarce
Attractive Tenancy Size
The size of the site and building appeals to the Queenstown tenant market, readily leasable and configured to provide good internal flexibility for a larger single tenant if required
Affordable Commercial Asset
Relative to the Queenstown commercial property market, this asset is in an affordable price bracket for investors
25 SUTHERLAND LANE QUEENSTOWN 4
Location
25 Sutherland Lane is positioned close to the Airport end of Glenda Drive, with a strong corner site presence in the industrial hub of Glenda Drive.
The Glenda Drive area has established itself as Queenstown’s central trade hub. Given its ease of access to all surrounding areas of Queenstown, this area is highly desired by tenants - evidenced in significant rental growth and increase in land values as Queenstown has expanded. The industrial area caters to a mix of showroom, trade, automotive, food processing and other light industrial uses.
Sutherland Lane, off 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 the subject property 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.
location indicative only
Zoning
Industrial Zone C
The property lies within the Industrial C 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.
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location indicative only
The Property
25 Sutherland Lane is a well designed building, constructed in 2019 over an Industrial zoned 396m² corner site with good profile onto Glenda Drive and Sutherland Lane.
The building was purpose-built for the current tenants, comprising of 2 x 97.5m² warehouses, as well as a 45m² mezzanine office space tenanted by Dominator Garage Doors, giving tenants a place to meet with clients and base their office staff from.
At the front of the property, there are 2 roller doors for each tenancy that lead to a sealed yard/parking area. There is an additional roller door on the Sutherland Lane side of the property, giving easy access to the Dominator Garage Doors warehouse for truck loading and unloading. Floor plans for the building can be found in the dataroom.
25 SUTHERLAND LANE QUEENSTOWN 9
Lease Summary
Landlord Brian Philip Ingham & MGC Trustees Limited as Trustees of the Philip Ingham Family Trust Tenant Dominator Garage Doors Queenstown Insulation Commencement Date 1 July 2019 1 July 2019 Net Rental $42,215 + GST $28,187 + GST Lease Term 10 years 3 years Rights of Renewal 1 further term of 10 years 1 further term of 3 years Rent Review 2% fixed annually with market checks on renewal (if exercised) 2% fixed annually with market checks on renewal (if exercised)
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 less than 1% through Frankton, and having been this way since early 2021, we have seen significant rental growth in the industrial sector. This, alongside a lack 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 longerterm view, we expect that population growth and a lack of available land will continue to drive demand through the Frankton industrial sector.
RECORD OF
TITLE UNDER
LAND TRANSFER ACT 2017 FREEHOLD
Search Copy issued under Section 60 of the Land Transfer Act 2017
25 SUTHERLAND LANE QUEENSTOWN 14
Register Only Guaranteed Search Copy Dated 05/03/24 5:29 pm, Page of 1 2 Transaction ID 2635955 Client Reference acuebillas001
Certificate of Title
Identifier 826783 Land Registration District Otago Date Issued 10 August 2018 Prior References 377442 Estate Fee Simple Area 396 square metres more or less Legal Description Lot 2 Deposited Plan 521947 Registered Owners MGC Trustees Limited and Brian Philip Ingham Interests Appurtenant hereto is an easement for the installation of power cables and a maintenance access strip over part Sections 98, 99 and 100 Block I Shotover Survey District (GN 333152) created by Gazette Notice 333152 - 22.10.1968 at 10.59 am 7716084.1 Consent Notice pursuant to Section 221 Resource Management Act 1991 - 18.2.2008 at 9:00 am 11181116.2 Consent Notice pursuant to Section 221 Resource Management Act 1991 - 10.8.2018 at 4:41 pm Subject to a right (in gross) to convey telecommunications and computer media over part marked B on DP 521947 in favour of Chorus New Zealand Limited created by Easement Instrument 11181116.3 - 10.8.2018 at 4:41 pm The easements created by Easement Instrument 11181116.3 are subject to Section 243 (a) Resource Management Act 1991 Subject to a right of way over part marked B on DP 521947 created by Easement Instrument 11181116.4 - 10.8.2018 at 4:41 pm Appurtenant hereto is a right of way created by Easement Instrument 11181116.4 - 10.8.2018 at 4:41 pm The easements created by Easement Instrument 11181116.4 are subject to Section 243 (a) Resource Management Act 1991 Subject to a right (in gross) to convey electricity over part marked B on DP 521947 in favour of Aurora Energy Limited created by Easement Instrument 11181116.5 - 10.8.2018 at 4:41 pm The easements created by Easement Instrument 11181116.5 are subject to Section 243 (a) Resource Management Act 1991 Subject to a right (in gross) to convey water and a right to drain water and sewage over part marked B on DP 521947 in favour of Queenstown Lakes District Council created by Easement Instrument 11181116.6 - 10.8.2018 at 4:41 pm The easements created by Easement Instrument 11181116.6 are subject to Section 243 (a) Resource Management Act 1991 Land Covenant in Easement Instrument 11181116.7 - 10.8.2018 at 4:41 pm
Guaranteed
25 SUTHERLAND LANE QUEENSTOWN 15 Identifier 826783 Register Only Guaranteed Search Copy Dated 05/03/24 5:29 pm, Page of 2 2 Transaction ID 2635955 Client Reference acuebillas001 boundary lines indicative only
25 SUTHERLAND LANE QUEENSTOWN 16
25 SUTHERLAND LANE QUEENSTOWN 17
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 Thursday 2 May 2024 at 11am (unless sold prior).
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 dataroom.
• Information Memorandum
• Building plans
• Leases
• LIM
• Certificate of Title & Interests
All enquiries, requests for information and arrangements for site inspections are to be directed to the Colliers sole agent:
Alastair Wood
+64 27 436 2422
alastair.wood@colliers.com
James Valentine
+64 21 777 772
james.valentine@colliers.com
25 SUTHERLAND LANE QUEENSTOWN 19
25 Sutherland Lane Queenstown FOR SALE BY AUCTION 11am, Thursday 2 May 2024 (unless sold prior) at Colliers Queenstown, Top Floor, 10 Athol Street, Queenstown colliersotago.co.nz/67028220 James Valentine +64 21 777 772 james.valentine@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. Alastair Wood +64 27 436 2422 alastair.wood@colliers.com
