36 Camp Street | Queenstown Information Memorandum For Sale by Negotiation Accelerating success.
Introduction
Colliers has been appointed exclusively to market for sale 36 Camp Street, Queenstown.
This property is being offered For Sale by Negotiation.
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.
colliersotago.co.nz/67023032
Data room link: propertyfiles.co.nz/ property/36CampStreet
Data room documents available:
• Information Memorandum
• Certificates of Title and Interests
• Pre Contract Disclosure Document
• Outgoings Schedule
• Lease Documentation
• Survey Plans of Tenancies
• Land Information Memorandum
• IEP Seismic Assessment
• Sale & Purchase Agreement
All enquiries, requests for information and arrangements to undertake inspections in relation to this opportunity are to be directed to the sole agents.
Mary-Jo Hudson +64 21 667 880
maryjo.hudson@colliers.com
Rory O’Donnell +64 27 445 3982
rory.odonnell@colliers.com
Executive Summary 3 Investment Highlights 4 Tenancy Schedule 6 The Building 9 Location 10 Zoning 12 Retail Mix 13 Queenstown Market 14 Record of Title 16 Photos 19 Sales Process 20 Due Diligence 21 Contents
location indicative only
Executive Summary
ADDRESS
36 Camp Street, Queenstown
DESCRIPTION
The property comprises a fully leased, single unit title with frontage to Camp Street, positioned between the corners of Camp Street & Shotover Street; and Camp Street & Beach Street. Two separate retail tenancies leased to Gong Cha Ltd and Happy Travels NZ Ltd.
TENURE
LEGAL DESCRIPTION
Unit Title
Unit H and 1/6 share of Accessory Unit M and 1/4 share of Accessory Unit K Deposited Plan 19945
CERTIFICATE OF TITLE OT19A/563
NET LETTABLE FLOOR AREA 186.30m²
LOCAL AUTHORITY
ZONING
OCCUPANCY
OUTGOINGS
Queenstown Lakes District Council (QLDC)
Queenstown Town Centre Zone
Two tenancies with current rental income of $287,000 p.a plus OPEX & GST
$21,971.06 p.a + GST
RATEABLE VALUE $6,600,000 (as at 1 Sept 2021)
SALE PROCESS For Sale by Negotiation
36 CAMP STREET QUEENSTOWN 3
Investment Highlights
PRIME LOCATION
Prime location within Queenstown CBD
FULLY LEASED
Two separate retail tenancies
BUILT IN GROWTH
Built in growth through both CPI and Market reviews within each lease
GROWTH REGION
Queenstown Lakes District continues to be one of the fastest growing regions in New Zealand
SEISMIC STRENGTH
Assessed seismic strength of more than 67% NBS
36 CAMP STREET QUEENSTOWN 4
Happy Travels
Gong Cha
Tenancy Schedule
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Tenant Tenancy Tenancy Net Lettable Area (sqm) Current Term Expiry Rights of Renewal Gong Cha Limited Shop 4 81.50 30-Jun-24 2 x 5 yrs Happy Travels NZ Limited Shop 5 104.80 31-Oct-27 1 x 10 yrs TOTAL 186.30 ** Rent excludes OPEX & GST.
7 Final Expiry Next Rent Review Date Current Contract Rent $pa ** Current Contract Rent $/m² Comments 30-Jun-34 1-Jul-24 $125,000.00 $1,407.74 Biannual CPI reviews from 1/7/20; Biannual Market Reviews from 1/7/21. 31-Oct-37 1-Nov-23 162,000.00 $1,545.80 Biannual CPI reviews from 1/11/18; Biannual Market Reviews from 1/11/19; Market review due 1/11/23. $287,000.00
36 CAMP STREET QUEENSTOWN 8
The Building
The unit title accommodates two separate retail tenancies, leased to Gong Char Limited and Happy Travels Limited.
The unit title forms part of a Body Corporate which includes the balance of the building on the corner of Beach Street and Camp Street, comprising five further unit titles in that block. The subject property forms a 1/6 share of the total.
The Happy Travels portion of the Unit Title is single level while the Gong Cha portion has other tenancies above which are separate unit titles and do not form part of the subject property for sale.
The property has an assessed seismic strength of more than 67% NBS. Engineering Assessment available in dataroom.
Surveyed Area of Individual Tenancies as follows:
Shop 4 Gong Cha Limited 81.50m² Shop 5 Happy Travels NZ Limited 104.80m² Total Estimated Rentable Area 186.30m² 36 CAMP STREET QUEENSTOWN 9
Location
The property is situated at 36 Camp Street in Queenstown CBD. This is considered a prime retail location downtown with the property enjoying exposure to a high volume of passing foot and vehicle traffic. The property is positioned within CBD Queenstown’s retail ‘Golden Square’, the prime retail precinct bound by Ballarat Street, Rees Street, Shotover Street and Camp Street (and Beach Street inside that ‘square’). A good mix of surrounding businesses including retailers, tourism providers & information centres lie within close proximity. The newly opened DFS Galleria at O’Connells is located close by on the corner of Beach Street and Camp Street. In addition the subject property is positioned close to the junction of Shotover and Camp Streets, a key intersection at the entrance to the downtown area. Shotover street is the main arterial route through Queenstown CBD.
The Queenstown International Airport is located at Frankton approximately 8kms to the north-east. Dunedin is approximately 280kms south-east of Queenstown and Invercargill, 190kms to the South.
Queenstown’s CBD has long been renowned for its tightly held and desirable ownership largely due to the proven long term capital growth. Accordingly, it is rare to have the opportunity to acquire such an asset in this prime retail location of downtown Queenstown.
Council is nearing completion of a major upgrade to the downtown area. This town centre improvement has transformed Beach, Rees and Brecon Streets into much more attractive, functional pedestrian ways.
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Zoning
The property lies within the Queenstown Town Centre Zone of Central Queenstown (map 36) as defined by the Queenstown Lakes District Council Operative District Plan.
More information can be sourced from www.qldc.govt.nz (Section 10 – Town Centres).
Please note: It is the responsibility of interested parties to qualify and elaborate all relevant planning information noted above.
36 CAMP STREET QUEENSTOWN 12
36 Camp St FOR SALE
36 CAMP STREET QUEENSTOWN 13
Retail Mix
Queenstown Market
As Queenstown, and in particular the CBD, emerges from the impacts of Covid 19, we are seeing a return of confidence from investors in the medium to long term security and growth prospects of Queenstown’s Commercial Property sector.
New Zealand’s tourism industry has bounced back closer to 2019 levels than many analysts had predicted. Queenstown has been at the forefront of this growth with total passenger movements through the 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 back to 2019 levels. Queenstown visitor accommodation providers, tourism operators, retailers and hospitality operators have all reported strong business over the summer, although some business’s are still constrained by worker shortages.
After an initial period during 2020/2021 of adjustments in CBD rents and some vacancies, we are now seeing a strong return of leasing activity with a number of new national and international retailers having entered the market which is putting upward pressure on rentals with effectively no vacancy in Queenstown’s prime retail precinct.
Over the last two years there has been a total of ten CBD sales which is a higher level of sales activity than what has historically averaged out at just over two CBD sales per annum between 2000 through to 2019. Interestingly even with the higher number of sales activity post covid the selling yields have remained resilient with all ten transactions selling at passing yields under 4%. This supports the low yields historically achieved in the CBD as a result of the scarce and tightly held nature of the downtown area and the strong belief in future capital growth.
Please contact us should you wish to view further details on historical sales evidence within Queenstown.
location indicative only
Record of Title
Identifier
RECORD OF TITLE
UNDER LAND TRANSFER ACT 2017
UNIT TITLE
Search Copy
OT19A/563
Land Registration District Otago
Date Issued 17 July 2000
Prior References OT11C/1283
Estate Stratum in Freehold
Legal Description Unit H and 1/6 share of Accessory Unit M and 1/4 share of Accessory Unit K Deposited Plan 19945
Registered Owners
Graeme Macdonald Young as to a 1/5 share
Supplementary Record Sheet OT11C/1286
Betty Lenore Young, Graeme Macdonald Young and Hamish Alexander Scott as to a 4/5 share
The above estates are subject to the reservations, restrictions, encumbrances, liens and interests noted below and on the relevant unit plan and supplementary record sheet
36 CAMP STREET QUEENSTOWN 16
Identifier OT19A/563 36 CAMP STREET QUEENSTOWN 17
Identifier
OT19A/563
SUPPLEMENTARY RECORD SHEET UNDER UNIT TITLES ACT 1972
Search Copy
Identifier
OT11C/1286
Land Registration District Otago
Date Issued
22 September 1987
Plan Number DP 19945
Subdivision of Section 2 Block VI Town of Queenstown and Part Section 1 Block VI Town of Queenstown
Prior References
Unit Titles Issued
Interests
OWNERSHIP OF COMMON PROPERTY
Pursuant to Section 47 Unit Titles Act 2010 -
(a) the body corporate owns the common property and
(b) the owners of all the units are beneficially entitled to the common property as tenants in common in shares proportional to the ownership interest (or proposed ownership interest) in respect of their respective units.
The above memorial has been added to Supplementary Record Sheets issued under the Unit Titles Act 1972 to give effect to Section 47 of the Unit Titles Act 2010.
OT10A/491
OT19A/560 OT19A/561 OT19A/562 OT19A/563
OT19A/565
OT19A/564
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19
Photos
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
• Certificates of Title and Interests
• Pre Contract Disclosure Document
• Outgoings Schedule
• Lease Documentation
• Survey Plans of Tenancies
• Land Information Memorandum
• IEP Seismic Assessment
• Sale & Purchase Agreement
All enquiries, requests for information and arrangements for site inspections are to be directed to the Colliers sole agents:
Mary-Jo Hudson
+64 21 667 880
maryjo.hudson@colliers.com
Rory O’Donnell
+64 27 445 3982
rory.odonnell@colliers.com
36 CAMP STREET QUEENSTOWN 21
Colliers, Top Floor, 10 Athol Street, Queenstown
colliersotago.co.nz/67023032
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.
36 Camp Street Queenstown FOR SALE BY NEGOTIATION
