27 Glenda Drive - Information Memorandum

Introduction

Colliers as sole agents, have been appointed to market for sale

27 Glenda Drive, Queenstown.

This property is being offered For Sale by Deadline Private Treaty closing Thursday 2 November 2023 at 4pm (unless sold prior).

For further information about the sales process please see page 16.

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/67025676

Data room documents available:

• Information Memorandum

• Building plans

• Tenancy schedule

• Leases

• LIM

• Certificate of Title & Interests

• Outgoings Schedule

All enquiries, requests for information and arrangements to undertake inspections in relation to this opportunity are to be directed to the listing agent below.

Executive Summary

ADDRESS 27 Glenda Drive, Queenstown

DESCRIPTION

27 Glenda Drive is a well-built, split-risk industrial investment. The building is comprised of 4 highly specced units on a single Freehold Title. There is an approved consent to Unit Title these in the future. The site is 996m² in total, with the buildings comprising circa 760m² of this and the balance being car parking/ yard.

TENURE Freehold (fee simple)

LEGAL DESCRIPTION LOT 14 DP 488377

CERTIFICATE OF TITLE 700268

AREA

Floor Area 760m² Land Area 996m² (more or less)

LOCAL AUTHORITY Queenstown Lakes District Council (QLDC)

ZONING Industrial Zone E

RENT INCOME

COMBINED RATEABLE VALUE (as at 1 September 2021)

TENANTS

Contract Rent $280,950 p.a. plus GST + outgoings (as at 2 October 2023)

SALES PROCESS

• High Performance Academy Limited

• Armor Demolition Limited

• Ground Anchor Systems Limited

• Remarkables Motorcycles Limited

For Sale by Deadline Private Treaty closing Thursday 2 November 2023 at 4pm (unless sold prior)

Investment Highlights

Split Risk Investment

Four tenants providing multiple revenue streams gives security around rental income

100% NBS Rating

Constructed in 2019, and built to 100% of code, the property has an NBS rating of 100%

Tightly Held Area

Freehold industrial property offerings through Frankton are scarce

Fully Tenanted Investment

Four tenants, returning a net rental of $280,950 + GST*

Unit Size Mix

Units range in size, making them attractive to a number of tenants across many industries

Future Consent to Unit Title

The vendor has obtained consent to unit title the units, giving astute investors an opportunity to realise the upside in the future

Location

27

Glenda Drive 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 tenantsevidenced 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.

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 Glenda Drive 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.

Glenda Drive is positioned on a rear site, with access down a shared right of way. It is positioned at the “top” of Glenda Drive, in close proximity to local shopping centres and trade amenities.

Zoning

Industrial Zone E

The property lies within the Industrial E 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.

The Property

Comprised of four modern industrial units, 27 Glenda Drive presents a rare investment opportunity for investors. Given the freehold nature of the property, with multiple units and tenancies, there are very few comparable properties in Queenstown. Across the property, the units are returning a net rental of $280,950 + GST. There is a gross floor area of 760m².

The sizes of the individual units give investors confidence that these are attractive to a wide range of tenants across a number of industries. As a piece of market commentary, much of the tenant demand we see is in the sub-300m² market, with this type of product being most desirable to tenants in Queenstown.

There are 14 car parks associated with the property - with Units 1, 2 & 3 having 3 car parks each, and Unit 4 having 5.

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 below 1% 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 longerterm view, we expect that population growth and a lack of available land will continue to drive demand through the Frankton industrial sector.

Certificate of Title

RECORD OF TITLE UNDER LAND TRANSFER ACT 2017 FREEHOLD

Search Copy

Identifier

700268

Land Registration District Otago

Date Issued 26 August 2015

Prior References 667407

Estate Fee Simple Area 996 square metres more or less

Legal Description Lot 14 Deposited Plan 488377

Registered Owners Peter Campbell Limited

Estate Fee Simple - 9/50 share Area 465 square metres more or less

Legal Description Lot 16 Deposited Plan 488377

Registered Owners Peter Campbell Limited

Interests

Land Covenant in Easement Instrument 7098676.33 - 3.11.2006 at 9:00 am (affects Lot 16 DP 488377) Land Covenant in Easement Instrument 7098676.35 - 3.11.2006 at 9:00 am (affects Lot 16 DP 488377)

9705299.11 Surrender of the land covenant in Easement Instrument 7098676.35 over Lot 1 DP 472825 marked YC, WA on DP 472825 and over Lot 2 DP 472825 marked LE,LH,LI,LJ,LK,LL,LM,LO,LP,LQ on DP 472825 appurtenant hereto10.6.2014 at 12:11 pm

10135189.10 Consent Notice pursuant to Section 221 Resource Management Act 1991 - 26.8.2015 at 10:47 am (affects Lot 16 DP 488377)

10135189.13 Consent Notice pursuant to Section 221 Resource Management Act 1991 - 26.8.2015 at 10:47 am (affects Lot 14 DP 488377)

Subject to Section 241(2) Resource Management Act 1991 (affects DP 488377)

Subject to a right (in gross) to drain sewage and water and a right to convey water over part Lot 16 DP 488377 marked O on DP 488377 in favour of Queenstown Lakes District Council created by Easement Instrument 10135189.28 - 26.8.2015 at 10:47 am

The easements created by Easement Instrument 10135189.28 are subject to Section 243 (a) Resource Management Act 1991

Subject to a right (in gross) to convey telecommunications and computer media over part Lot 16 DP 488377 marked O on DP 488377 in favour of Chorus New Zealand Limited created by Easement Instrument 10135189.29 - 26.8.2015 at 10:47 am

The easements created by Easement Instrument 10135189.29 are subject to Section 243 (a) Resource Management Act 1991

Identifier 700268

Subject to a right (in gross) to transmit electricity over part Lot 16 DP 488377 marked O on DP 488377 in favour of Electricity Southland Limited created by Easement Instrument 10135189.31 - 26.8.2015 at 10:47 am

The easements created by Easement Instrument 10135189.31 are subject to Section 243 (a) Resource Management Act

1991

Land Covenant in Easement Instrument 10135189.36 - 26.8.2015 at 10:47 am (affects Lot 14 DP 488377)

10135189.47 Encumbrance to Shotover Park Limited - 26.8.2015 at 10:47 am

Fencing Covenant in Transfer 10196862.3 - 28.9.2015 at 5:27 pm

10557190.2 Mortgage to ANZ Bank New Zealand Limited - 14.9.2016 at 11:05 am

Identifier

700268

ID 1669696

Reference msaker001

am,

Deadline Private Treaty Sales Process

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.

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.

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.

• 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.

• 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.

• 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:

• Know the process. Talk to your Colliers Agent about exactly what will happen on and before the deadline sale closing day.

• 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.

• 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, Thursday 2 November 2023.

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

• Tenancy schedule

• Leases

• LIM

• Certificate of Title & Interests

• Outgoings Schedule

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

James Valentine +64 21 777 772

james.valentine@colliers.com

Tim Thomas

+64 22 543 3210

tim.thomas@colliers.com

Rory O’Donnell

+64 27 445 3982 rory.odonnell@colliers.com

Mark Simpson

+64 27 490 6394

mark.simpson@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.