Queenstown Ice Arena
29 Park Street, Queenstown Gardens
Introduction
Colliers have been appointed exclusively to market for sale the leasehold interest and business of the Queenstown Ice Arena, 29 Park Street, Queenstown.
The business and improvements are being offered For Sale by Deadline Private Treaty, closing 4pm, Thursday 5 September 2024.
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/67030079
Data room link: propertyfiles.co.nz/ property/29ParkStreet
Data room documents available:
• Information Memorandum
• Ground Lease documentation
• Seismic report (ISA)
• LIM
• Record of Title
• NDA - for release of financials
All enquiries, requests for information and arrangements to undertake inspections in relation to this opportunity are to be directed to the listing agents below.
Mark Simpson
+64 27 490 6394
mark.simpson@colliers.com
Rory O’Donnell
+64 27 445 3982 rory.odonnell@colliers.com
Executive Summary
ADDRESS
DESCRIPTION
TENURE
29 Park Street, Queenstown
The Queenstown Ice Arena is an iconic Queenstown hospitality and activity business located in the beautiful surroundings of Queenstown Gardens, a few hundred metres from the CBD and adjoining the Wakatipu lakefront.
Being offered for sale is the leasehold interest and business, which includes the Ice Arena buildings, plant, equipment and associated business assets secured by a long term ground lease to the Queenstown Lakes District Council (QLDC) with final expiry of 31 August 2050.
This established and profitable business comprises the ice rink and café/bar operation which has experienced a growing income stream with potential to grow the business further. The existing vendors have contributed significant investment into the ongoing development and improvement of the business and associated ice rink assets since purchasing it in 2010.
Leasehold (Ground Lease to Queenstown Lakes District Council - QLDC)
LEGAL DESCRIPTION Lot 1 DP 25870
CERTIFICATE OF TITLE 558601
Land Area: 4,855m² (more or less)
AREA
LOCAL AUTHORITY
ZONING
RATEABLE VALUE
SALES PROCESS
Floor Area: 2,510m² (more or less)
Queenstown Lakes District Council (QLDC)
Reserve land status for Community Purposes
$5,107,000 (at 1 September 2021 - includes land value)
For Sale by Deadline Private Treaty, closing 4pm 5 September 2024 (unless sold prior)
Investment Highlights
Unique Year Round Queenstown Activity Venue
From ice skating, hockey, speed skating, and curling to bumper cars, frisbee golf, a garden bar and special events. This is the largest ‘in town’ flexible open span venue.
Prime Queenstown Gardens Location Close to CBD
A unique location in the heart of Queenstown Gardens adjoining the lakefront on the fringe of the commercial CBD with good access and parking.
Profitable Business
Established profitable activity and hospitality business which is home to the current NZIHL league championsThe Sky City Stampede.
Flexible Building Configuration
The unique design and flexible configuration of the Ice Arena building provides multiple opportunities to expand events beyond the ice to generate additional revenue.
Generous Land Area
Occupying 4,855m² (more or less) of prime land within the beautiful Queenstown Gardens with dedicated parking.
The Property
This unique Central Queenstown property known as the Queenstown Ice Arena was originally built in 1966. The original outdoor rink was then demolished and a brand new indoor ice rink was constructed in 1996 at great expense by the previous owners.
The existing vendors purchased the property in 2010 and have progressively upgraded and extended the ice arena building over the last 10+ years, injecting in excess of 2.5 million of capital, improving the property and business.
Construction comprises reinforced concrete foundations and floor slab, curved steel portal framing with timber infill, aluminium and timber joinery with a galvanized iron roof. Portacom style changing rooms have been added to the northern side of the main complex, providing modern team changing and gear storage facilities for the Ice Hockey teams.
The property is well maintained and in good condition. There is an ongoing maintenance programme specific to the ice arena use, but also keeping the buildings up to a quality standard.
Internally the property is configured to provide the entrance lobby/office, café and toilets with a commercial kitchen, gear hire reception and rear storage, ice rink, plant room, changing rooms, Zamboni garage, and workshop.
The Queenstown Ice Arena’s outdoor rink prior to being demolished in 1996
The Queenstown Ice Arena today, a completely new indoor ice facility constructed in 1996
The Business
Exclusively located in the Queenstown Gardens, the iconic Queenstown Ice Arena continues to be a core part of the community since 1966. During the day, a combination of unique indoor activities for all ages and abilities; with Ice Skating, Ice Bumper Cars and Frisbee Golf running seven days a week. Early mornings and evenings comprise Figure Skating, Speed Skating and Ice Hockey training & sold out games. The Queenstown Ice Hockey club, various independent hockey leagues, speed skating, and figure skating clubs are the main users of the facilities outside day time public skating hours. As a result the ice arena is very busy place in winter often opening at 6:30am and closing after 10:00pm.
The arena is also home to the Sky City Stampede, the current NZIHL champions with a loyal following over the 10 home games held each winter plus playoffs. It is also home to the Wakatipu Wild, Queenstown’s womens national league team, who were NZWIHL champions in 2022 and runners up in 2023. The NZWIHL finals tournament will be held at the facility in Sept 2024 with large crowds expected.
The venue is also utilised for number of other evening events and games nights. The on-site, fully licensed Cafe & Bar operates during all opening hours; supplemented with the outdoor beer garden ‘The Garden Bar ‘opening during the Summer Season. The existing business is well established and provides for consistent turnover and profitability, while at the same time providing a unique and well supported community facility.
The unique design of the building and existing ground lease allow for various alternative uses of the facility including but not limited to: electric go-karts, a gymnasium, a swimming/hot pool complex, a child care facility, a retail outlet for sporting equipment/souvenirs, a venue at which concerts, festivals, trade shows, auctions, and other community functions may be held, along with other such recreational uses that the lessor (QLDC) may agree to.
For a summary of the history behind the rink, its current owners and some video footage click here: https://www.queenstownicearena.co.nz/our-story
The business has recently been structured to allow the venue to be made available for special events. The most recent of these was the China Amway conference in late 2023, whereby the Arena was booked exclusively for a period of 7 Weeks for their delegates to enjoy skating, shows, dinner, and entertainment. An advanced multi-million dollar audio visual experience was set up with images projected onto the ice and other surfaces around the facility for a stunning effect. The facility has also had previous approval for a 1,200 person capacity event for Harley Davidson, this shows the property has an opportunity to expand the events component of the business.
See a snapshot of what’s possible here: https://queenstownicearena.wixsite.com/events
The business currently employs 9 Full-time staff and 4 Part-time which fluctuates during the season. There are some specialty skilled staff required to run the rink operation and plant/machinery, but full training and staff transfer are available to purchasers of the business as required.
Full financials are available upon completion of the NDA contained in the dataroom, or available from the appointed Colliers agents.
Current operations this season
Ice Bumper Cars
Ice Skating
Frisbee Golf Rental
Fully Licensed Cafe & Bar
The Garden Bar - Outdoor Beer Garden
Early Morning/Evening Ice Hockey Trainings
Early Morning Figure Skating Trainings
Speed Skating Trainings
Ticketed & Free to watch Ice Hockey Games
Regional/National Figure Skating Competitions
Regional/National/International Ice Hockey Tournaments
National Training Camps for all sports
Private Venue & Ice Bookings
TV & Film Bookings
Rental Ice Skates (300+ pairs available)
Skate sharpening (state of the art machine just purchased)
Skating aid hire (fun seals, penguins, and snowmen assist skaters of all ages)
Pro shop and merchandise sales
Arcade games x 2
School group lessons (almost all local primary schools attend a 6 week learn to skate program in winter)
Private individual and group skating lessons
The Lease
The property is subject a registered long term ground lease between the vendors (as lessee) and QLDC (as lessor). A summary of the key terms & conditions is as follows:
Note- a full copy of the lease is available to download in the online dataroom.
COMMENCEMENT DATE
TERM
1 September 2010
33 years
RIGHT OF RENEWAL 1 x 7 years
FINAL EXPIRY
CONTRACT RENT
31 August 2050 (including renewal)
$71,087p.a. Plus GST and Outgoings (for YE 31 March 2024) based on 5% of 2023 YE gross annual turnover)
5 yearly (Next review 1 September 2025)
RENT REVIEWS
Zoning
Zoning
Queenstown CBD
Queenstown Ice Arena
Queenstown International Airport
Queenstown Gardens
Location
Nestled in the heart of Queenstown’s iconic central gardens, this elevated lakefront site spans an expansive 4,855m² more or less. Located within walking distance of Queenstown CBD and within the beautiful Queenstown Gardens, bowling and tennis club, this unique location ensures easy access and convenience, as well as a steady stream of pedestrian traffic. The site offers plenty of customer parking and features a new bus stop on Park Street, just a minute’s walk from the facility’s front entrance.
Surrounding uses in the immediate area are mainly high-density residential and visitor accommodation, adjoining the main commercial precinct which includes retail and hospitality.
The Queenstown CBD is within 500m and Queenstown International Airport is within 7.5km along Frankton Rd with full service shopping and supermarkets also in Frankton. This area also connects to State Highway 6 running North to South connecting Central Otago to the rest of the South Island.
location indicative only
Zoning
Reserve Land Status for Community Purposes
The property is currently situated on Reserve Land and zoned for Community Purposes, which enables recreational activities while protecting and maintaining the surrounding area including Queenstown Gardens.
The Ground Lease terms and conditions include reference to ensure uses meet certain standards for community based benefits and accessibility.
Note: it is the responsibility of all interested parties to obtain their own independent advice regarding the allowable uses and any associated restrictions of the venue.
Location indicative only
boundary indicative only location indicative only
Queenstown Development Pipeline
Over $1.5* billiOn in lOcal infrastructure and develOpment prOpOsed fOr the QueenstOwn lakes district
Queenstown Market Overview
Queenstown continues to buck the national trend with residential values holding during the first half of 2023, a reflection of increasing migration into Queenstown, a lack of supply and stable demand. Queenstown’s key economic divers, tourism, construction and migration have rebounded strongly post Covid.
The following is a snapshot of the economic drivers for Queenstown:
QueenstOwn internatiOnal airpOrt annual Passenger arrival & dePartures
2.393 M 2.410 M Ye december 2019 dec 2023
At cApAcity, Queenstown
hAs 1 local resident per 34 international visitors
emplOyment grOwth in QueenstOwn lakes district averaged 4.6%p.a. over the last 10 Years comPared to 2.1% nationwide adventure Capital of the World overseas visitor arrivals increased bY 14% From 2022. reFlecting aPProximatelY 310,000 in additional overseas visitors From June 2022 to June 2023.
3.4 M
Forecast domestic & international visitors
Forecasts predict that domestic visitors will double and international visitors will nearly triple in the next 10 years Total visitor
2.76 Billion (YE March 2024)
QUEENSTOWN MEAN SECTION AND DWELLING* SALE PRICE AND
PRICE GAINS
As further background, the following is an extract from Tony Alexander’s regional commentary on the Queenstown Lakes area:
It pays to keep in mind when considering the housing market in Queenstown that the factors in play are very different from the rest of the country. Land is scarce, prices are high, population growth is strong, international tourism strength plays a big role, desire for retirement and internal migration to the region can fluctuate significantly, and offshore buying can at times be an influential factor. The Queenstown market is frequently described as cyclical.
Bearing in mind these market characteristics we note that during the September quarter house sales in the Queenstown Lakes District fell some 21% (seasonally adjusted) after rising by about the same percentage in the June quarter. Volatility tends to be typical and can be pronounced. The annual rate of sales in the district has been trending up since 2000 with brief interruptions due to the GFC and the Covid pandemic.
What have prices been doing?
The following graph shows three month rolling changes in house prices in the district since the start of 2020.
From early-2022 as other regions saw prices falling, they largely stopped soaring in Queenstown Lakes District. Now, over the June quarter average prices rose by 0.3% compared with a 1.5% fall nationwide.
Over the September quarter prices have jumped 5% versus rises of 1.8% around all of the country. Price rises in the district look likely to continue given the high probability that internal migration to the area will continue, economic growth will be well supported by inbound tourists, and land supply is not increasing at a rapid pace.
Queenstown Economic Overview Queenstown Hotels & Hospitality Overview
QueenstOwn lakes district gdp is prOvisiOnally up 5.9%
the Year to sePtember 2023
comPared to a Year earlier as at september 2023, prOvisiOnal gdp was $3,928 million
Annual average & change September 2022 – September 2023
Queenstown-Lakes District
New Zealand GROSS DOMESTIC PRODUCT GROWTH (PROVISIONAL)
Source: Infometrics & Queenstown Lakes Labour Market Snapshot, QLDC
nZd 210
revenue Per available room revPar (Ye dec 2023)
Tourism
nZd 297
average dailY rate
The hotel sector is heavily reliant on both domestic and international holidaymakers. The recovery to date has been primarily led by the domestic market, however the reopening of international borders has seen a strong return of overseas arrivals. A strong sign of the recovery is shown with the recent announcement that annual passenger numbers for Queenstown airport for the year ended December 2023, exceeded the total for 2019.
Supply
70.86% occuPancY
Strong trading conditions in the years prior to the pandemic, saw increased development activity within the market. In the five years prior to 2021, ten new hotels opened adding 1,012 rooms to the market. Recent openings included the Holiday Inn Remarkables Park and Sudima Queenstown. There are also two hotel projects that have commenced construction, set to deliver an additional 100+ rooms to the market, of which both hotels are targeting the luxury segment of the market.
boundary indicative only
Record of Title
Deadline Private Treaty Sales Process
A deadline sale is the process of purchasing real estate through 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 accept an offer at anytime before the deadline sale closes.
Buying by deadline sale is a relatively simple process, with advantages 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 put 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 level at which you’re offering. It’s fine to put a finance clause into the 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 sale 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 estate Sales Consultant can refer you to similar properties which have sold recently that are 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 you 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 selected. Balance is the key.
Offers to be submitted to Colliers Sole Agents by 4pm, Thursday 5 September 2024.
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 data room: propertyfiles.co.nz/property/29ParkStreet
• Information Memorandum
• LIM
• Record of Title
• Non – disclosure agreement (NDA) – required to be executed to release financials
• Summary of capital improvements and expenditure by the current vendors
• Deed of Lease (Ground Lease) and associated documents
All enquiries, requests for information and arrangements for site inspections are to be directed to the Colliers exclusive agents:
Mark Simpson
+64 27 490 6394
mark.simpson@colliers.com
Rory O’Donnell
+64 27 445 3982
rory.odonnell@colliers.com
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