34 Brecon Street Information Memorandum

Introduction

Colliers have been appointed exclusively to market for sale 34 Brecon Street, Queenstown.

This property is being offered For Sale by Deadline Private Treaty closing 9 March 2023 at 4pm (unless sold prior).

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 & Property Description

• Resource Consent & Plans

• Consented Development Plans & Hotel Metrics

• QLDC Road Swap Information

• Planning Report & Maps

• Site Plans & Road Upgrade Information

• Land Information Memorandum

colliersotago.co.nz/67021961

Data room link: propertyfiles.co.nz/ property/34_Brecon_St

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

Executive Summary

ADDRESS

34 Brecon Street, Queenstown

DESCRIPTION

A 3909m² site, currently containing a Mini-Golf business, strategically situated in Upper Brecon Street, Queenstown, only 300m from the CBD. The site is included in the Town CentreLakeview Zone and has current Resource Consent for a 393 room hotel & commercial building

TENURE Freehold

LEGAL DESCRIPTION LOT 1 DP 27703

CERTIFICATE OF TITLE OT19B/260 (freehold)

LAND AREA

3909m² (more or less) - See land swap agreement

LOCAL AUTHORITY

ZONING

OCCUPANCY

OUTGOINGS

Queenstown Lakes District Council (QLDC)

Queenstown Town Centre-Lakeview Sub-Zone

Queenstown Mini Golf - operated by owner

QLDC Rates $44,916.25

ORC Rates $7,195.95 for 2022-23 year

RATEABLE VALUE $23,850,000 as at 01/09/2021

SALE PROCESS

For Sale by Deadline Private Treaty closing Thursday 9 March 2023 at 4pm (unless sold prior)

Investment Highlights

PRIME LOCATION

Close to CBD, Lakeview Development & Skyline Gondola

ZTOWN CENTRE ZONING

Zoned for commercial / visitor accommodation uses

RARE PROPERTY HOLDING

HOTEL CONSENT

Existing consent for 393 room hotel and retail complex

STREET UPGRADE FLEXIBILITY

Land swap agreement provides multiple street frontages

Brecon Street upgrade & landscaping nearing completion

Location

34 Brecon Street is located on the South side of the street, in the section between Man Street and the Skyline Gondola. This world-class tourism attraction, which includes a gondola, luge rides, restaurant, bar and meeting facilities, hosts over 900,000 guests a year and is responsible for major pedestrian and vehicle traffic in the area.

The Lakeview Holiday Park is located to the West of the site and contains a number of single and two-storey accommodation buildings and amenities buildings.

This section of Brecon Street, known as Upper Brecon Street is experiencing substantial commercial and tourism property development, subsequent to part of a $M50 local authority utilities and street upgrade.

The property is only 300m from the CBD via an award-winning landscaped stair/ramp access for Lower Brecon Street by the Sofitel Hotel.

• Skyline Enterprises are midway through a $M100 upgrade programme for the iconic Skyline Gondola which includes a 300-capacity car park building, a new base building, a new 10-seater gondola, and a new top building including a 600-seat theatre.

• Centuria NZ are constructing a new 5*, 61-suite Radisson Hotel at the corner of Man Street and Brecon Street.

• Upper Village, a recently completed development comprising 4,927sqm on a 3,285sqm site adjacent with 9 retail and entertainment tenancies over two levels.

• The 15-room Dairy Guest House has recently been purchased by the Naumi Hotel group from Singapore and recently reopened after an extensive upgrade.

• An adjoining 810sqm site has recently been aggregated for further tourism activity development.

• Lakeview Development - this 2-stage, billion-dollar development, nearby on Queenstown’s former campground was recently granted fast-track consent. On completion, the development can provide circa 450 residential apartments,79 ‘coliving’ units, 600 hotel rooms, and a retail precinct.

34 Brecon St FOR SALE

i-Fly Building

Dairy Guest House

Access to Lower Brecon Street

Radisson Hotel development

Skyline Gondola

34 Brecon St FOR SALE

QLDC Land Swap Summary

Land Swap Agreement

The vendor and the Queenstown lakes District Council have agreed on a land swap for the Cemetery Road Adjustment (see plan).

The land area will remain the same and the lane swap will exchange likefor-like land parcels.

The land swap has been Gazetted and can be carried out any time. The benefits to 34 Brecon Street are access from the new Cemetery Road and a wider East aspect over Central Queenstown and distant mountain ranges.

Zoning & Resource Consent

Zoning

The property is zoned Queenstown Town Centre, Lakeview sub-zone which provides predominantly for visitor accommodation and commercial activities.

Resource Consent

RM180507 was issued by the Queenstown Lakes District Council on the 28th June 2019.

This enables the establishment of a seven-level visitor accommodation activity and associated commercial activities on the site.

The maximum height of the consented buildings is 23m. In total two hotels comprising 393 guest rooms and 12 ground floor commercial tenancies are approved within four buildings on the site.

These activities are envisaged to include tourism, service, retail and dining activities, including licensed premises, and will have frontages onto the central piazza and Brecon Street.

A planner’s report is available setting out in more detail the above consent and other options for the site.

Proposed Redevelopment Plans

Artist impressions only

Hotel Metrics

Queenstown Tourism Market

Most indicators show New Zealand’s tourism industry has bounced back closer to 2019 levels than many analysts’ had predicted.

Monthly domestic tourism electronic card transactions reached $M931 in November, up 18% on the same month in 2019, with Otago (+30%) one of the highest. For the same period, international tourism spend was only down by 3%.

Total passenger movements through Queenstown airport for the six months ending December, were only marginally behind the 2019 peak of 1.258M at 1.225M. These figures were boosted by flight numbers from Australia for the winter 2022 season back to 2019 levels and the return of Virgin with daily flights from Melbourne, Sydney and Brisbane from November.

On an international level, Emirates has announced that a A380 Airbus will resume Dubai-Christchurch flights from 26 March to compliment the Auckland service, which has been operating since late last year. America’s Delta Airline has started flying Auckland-Los Angeles, and many Chinese airlines are returning, including China Southern Airlines operating two flights a week between Guangzhou-Auckland, while Air New Zealand now also flies to Shanghai three times a week.

The New Zealand Government is assisting the industry with several initiatives, including a $M400 Recovery Package, $M200 Tourism Communities Plan and a $M54 Innovation plan. Half of the 36,000 working holiday visa recipients have arrived, helping to alleviate the tourism worker shortfall.

Queenstown visitor accommodation providers have reported strong business over the summer, although some are still constrained by worker shortages.

The most recent hotels statistics for the quarter ended December shows an Average Daily Rate of $286 compared to $265 for the same period in 2019.

Occupancies over the same period averages 64.3%, with 2019 at 85%.

Commercial Market

QLDC are currently underway with the first stage of a Town Centre street upgrade, jointly funded by the Government’s ‘Shovel Ready’ fund ($35m), and Queenstown Lakes District Council ($25m). This will significantly upgrade services and infrastructure within the Rees Street, Brecon Street, Upper and Lower Beach St, and Park Street areas. Furthermore, this enhancement program will transform these core pedestrian streets of the downtown area into more attractive, functional, user-friendly walkways through the CBD.

Many building owners, and both existing and new tenants have taken the opportunity upgrade and/or relocate over this period.

A major development was the re-opening of O’Connell’s Pavilion in November after a two year rebuild, with DFS as the major tenant over 2 floors, and a food court at a lower level. There has also been new interest from major overseas brands, with R W Williams taking over the prime Rees/Beach St corner, Tommy Hilfiger and Calvin Klein moving into the former BNZ building and Partridges Jewellers moving to larger premises in Rees St. There is also a new mens fashion store opening in the former ASB building in nearby Camp Street.

There has been a record 9 CBD sales since mid-2021 ranging in value from $M2.700 to $M32.500, and all within a tight yield range of 3.16-4.25%.

Queenstown Mini Golf

This business has been trading on this site for over 30 years and is one of Queenstown’s most popular family attractions.

The business benefits from the high pedestrian flow in this area, primarily the peak 900,000 visitors to the Skyline Gondola and associated attractions.

The business was purchased by the vendor in 2019 and turnover has ranged from $260,000300,000 per annum.

Certificate of Title

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 9 March 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 please register your interest with one of the agents.

• Information Memorandum

• Certificate of Title & Property Description

• Resource Consent & Plans

• Consented Development Plans & Hotel Metrics

• QLDC Road Swap Information

• Planning Report & Maps

• Site Plans & Road Upgrade Information

• Land Information Memorandum

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

Barry Robertson

+64 27 433 5941

barry.robertson@colliers.com

Steve McIsaac

+64 21 680 304

steve.mcisaac@colliers.com

34 Brecon Street Queenstown

FOR SALE BY DEADLINE PRIVATE TREATY

Thursday 9 March 2023 at 4pm (unless sold prior)

Colliers, Top Floor, 10 Athol Street, Queenstown

colliersotago.co.nz/67021961

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.