61 Beach Street | Queenstown Information Memorandum For Sale by Deadline Private Treaty
closing 26 May 2022 at 4pm (unless sold prior)
Accelerating success.
Introduction Colliers have been appointed exclusively to market for sale 61 Beach Street, Queenstown.
This property is being offered For Sale by Deadline Private Treaty closing 26 May 2022 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.
All enquiries, requests for information and arrangements to undertake inspections in relation to this opportunity are to be directed to the sole agents. Mark Simpson +64 27 490 6394 mark.simpson@colliers.com
colliersotago.co.nz/67018806 Data room link: propertyfiles.co.nz/ property/61BeachStreet
Alastair Wood +64 27 436 2422 alastair.wood@colliers.com
Data room documents available: • Information Memorandum • Certificates of Title and Interests • Outgoings Schedule • Lease Documentation • Land Information Memorandum • IEP Seismic Assessment
Rory O’Donnell +64 27 445 3982 rory.odonnell@colliers.com
Mary-Jo Hudson +64 21 667 880 maryjo.hudson@colliers.com
Contents
Executive Summary
3
Investment Highlights
5
Proposed Redevelopment Plans
8
Zoning
11
Location
12
Retail Mix
13
Queenstown Market
14
The Building
16
Tenancy Schedule
18
Certificate of Title
20
Sales Process
24
Due Diligence
25
location indicative only
61 BEACH STREET QUEENSTOWN
Executive Summary ADDRESS
61 Beach Street, Queenstown
DESCRIPTION
The property comprises a 3 level commercial building located on a prime Queenstown CBD site opposite the Earnslaw Reserve and Whakatipu Lakefront. The property comes with comprehensive concept plans for redevelopment, retaining the existing building structure offering the incoming owners a number of options including retaining the property ‘as is’.
TENURE
Freehold
LEGAL DESCRIPTION
LOT 1 DP 16721
CERTIFICATE OF TITLE
OT8A/1015
LAND AREA
228m² (more or less)
FLOOR AREA
650m² (gross), 625m² (net lettable) Floor areas are approximate and subject to survey measures.
LOCAL AUTHORITY
Queenstown Lakes District Council (QLDC)
ZONING
Queenstown Town Centre Zone
OCCUPANCY
Three tenancies currently leased on month to month terms to provide redevelopment flexibility. Current holding income $3,550 per month.
INDICATIVE MARKET RENT
$323,780 p.a. plus GST & OPEX (refer tenancy schdule) Should be used as a guide only.
OUTGOINGS
$40,524 p.a. (budgeted)
RATEABLE VALUE
$8,030,000 (27 August 2021)
SALE PROCESS
For Sale by Deadline Private Treaty closing Thursday, 26 May 2022 at 4pm (unless sold prior)
3
61 BEACH STREET QUEENSTOWN
Investment Highlights
Z ABSOLUTE PRIME LOCATION
TOWN CENTRE ZONING
Absolute prime Queenstown CBD, overlooking Earnslaw Park & Queenstown Bay waterfront.
Commercial zoning with 12m height.
RARE PROPERTY HOLDING
REFURBISHMENT OPTION
625m² of net lettable floor area over 3 levels.
Concept plans and consents in progress for major refurbishment option (Warren and Mahoney).
FLEXIBILITY
STREET UPGRADE
Options to re-lease “as is” or re-purpose / redevelop.
Major Beach Street upgrade & landscaping nearing completion.
4
location indicative only
G
61 BEACH STREET QUEENSTOWN
Proposed Redevelopment Plans THE LOOKOUT BUILDING QUEENSTOWN
Artist impression only
8
9464 / THE LOOKOUT BUILDING ———
THE LOOKOUT BUILDING
GROUND FLOOR
LEVEL 1
———
UP
STAIR
UP
STAIR DN
SVR
RISER
RISER
LEVEL 0 1 1 : 10 0
ACC. WC
WC
WC
WC WC
TOILETS
LIFT DB KITCHEN
RAMP
ADJACENT BUILDING
SERVERY / BAR
LIFT
ADJACENT BUILDING
ADJACENT BUILDING
STORE
CIRC
STAIR
RESTAURANT
STAIR
UP
ACC. ENTRY DN
UP
2 1
2 1
ENTRY
ENTRY
SLIDING DOOR
TERRACE
ENTRY
UP
ENTRY GLAZED CANOPY
GLAZED CANOPY
THE LOOKOUT BUILDING
GLAZED CANOPY OVER
GLAZED CANOPY OVER
———
LEVEL 0 3 1 : 100 ——— 02
LEVEL 2
TEAM ——— WARREN AND MAHONEY
9464 / THE LOOKOUT BUILDING ———
TEAM ——— WARREN AND MAHONEY
MEZZANINE
PLANTER
RISER
RISER
STAIR DN
RISER
ACC. WC
WC
WC
OPENING WINDOWS
WC WC
MEZZANINE BAR AREA
TOILETS
DN VOID
LIFT
LIFT OVERRUN
STORE GLASS BALUSTRADE
ADJACENT BUILDING
MEZZ OVER
UP
ENTRY
DN
BAR
BAR BELOW
BAR
STAIR WALL CUT DOWN TO 1500h
UT BUILDING
(approximately 611m² net lettable)
ADJACENT BUILDING
T BUILDING
Proposed Redevelopment Floor Plans
ADJACENT BUILDING
G
61 BEACH STREET QUEENSTOWN
TERRACE
PLANTER
PLANTER
PLANTER
TEAM ——— WARREN AND MAHONEY
9
——— 04
9464 / THE LOOKOUT BUILDING ———
TEAM ——— WARREN AND MAHONEY
10
61 BEACH STREET QUEENSTOWN
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.
11
61 BEACH STREET QUEENSTOWN
Location The property enjoys an absolute prime position opposite the lakefront in the heart of Queenstown’s CBD. The surrounding area comprises a wide range of hospitality businesses and retail brands. Earnslaw Park located directly across from the subject property, provides an attractive ‘green space’ outlook and enables stunning and extensive views out over the park to Lake Whakatipu and beyond from the upper floors. The property has good frontage to Lower Beach Street. 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 absolute prime location of downtown Queenstown. Council is 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 (outside the subject), 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. The Lower Beach Street section is nearing completion.
https://www.qldc.govt.nz/media/2lgpz10k/render-plan-arterial.pdf https://www.qldc.govt.nz/your-council/major-projects/queenstown-town-centre-streetupgrades
12
61 BEACH STREET QUEENSTOWN
Retail Mix
Tiki Corner
61 Beach St FOR SALE
13
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. After an initial period during 2020/2021 of adjustments in CBD rents and some vacancies, we are now seeing a return of retail leasing activity and interest from quality tenants including the Australasian retail brands. There have been five very recent investment sales in the CBD representing yields of less than 3.5%. 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 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
61 BEACH STREET QUEENSTOWN
The Building The building was originally built in the late 1980’s over two levels, with the third level and mezzanine added in the mid 2000’s. There are two ground floor retail tenancies, a vacant restaurant space on the first floor (fully fitted out as a working restaurant) and two tenancies with mezzanine floors on the upper level. The building has a total gross floor area at approximately 650m². The building has had a detailed seismic assessment completed in 2018 in preparation for the proposed renovations. It is rated Category C, between 34 – 67%. The full detailed assessment is available in the data room. Estimated Rentable Area of Individual Tenancies (subject to measure): Ground Retail
Jones & Herlihy (Fine Art) Ltd
77m²
Ground Retail
Ka Huaniui a Tahuna (WTPA)
80m²
Ground Floor
Entrance & Storage
39m²
First Floor
Bar / Restaurant Space
185m²
Second Floor
Gojie Ltd (WTPA occupy 1/2 fl)
188m²
Mezzanine
Gojie Ltd (WTPA occupy 1/2 fl)
56m²
Total Estimated Rentable Area
625m²
16
Tenancy Schedule Net Rent p.a.
Per Month
Net Rentable Area
Level
Tenant
Ground Retail
Jones & Herlihy (Fine Art) Ltd
$21,600
$1,800
77
Ground Retail
Ka Huaniui a Tahuna (WTPA)
$11,400
$950
80
Ground Floor
no rent charged
First Floor
Bar / Restaurant Space
vacant
Second Floor
Gojie Ltd (WTPA occupy 1/2 fl)
$9,600
Mezzanine
Gojie Ltd (WTPA occupy 1/2 fl)
39
TOTAL
185
$800
188
56
$42,600
$3,550
625
* Indicative market rental is an estimate only with no guarantees this is achievable. It is the responsibility of interested parties to obtain their own independent advice and assessment in this regard.
18
* Indicative Market Rent p.a.
$/m²
Lease Start Date
Terms
$77,000
$1,000
1/01/2022
monthly
• ground floor left side plus opex
$80,000
$1,000
16/08/2021
monthly
• ground floor right side + 1/2 second floor & 1/2 mezzanine (201.8m²) gross lease incl of opex
$19,500
$500
• recessed entrance to retail and stairwell area
$64,680
$350
• vacant
$65,800
$350
$16,800
$300
$323,780
$518
7/03/2021
Background
monthly
19
• occupies 1/2 1st floor and 1/2 mezzanine (122m²)
61 BEACH STREET QUEENSTOWN
Certificate of Title
20
61 BEACH STREET QUEENSTOWN
21
22
23
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, 26 May 2022.
61 BEACH STREET QUEENSTOWN
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 and Interests
•
Outgoings Schedule
•
Lease Documentation
•
Land Information Memorandum
•
IEP Seismic Assessment
All enquiries, requests for information and arrangements for site inspections are to be directed to the Colliers sole agents:
Mark Simpson +64 27 490 6394 mark.simpson@colliers.com
Alastair Wood +64 27 436 2422 alastair.wood@colliers.com
Rory O’Donnell +64 27 445 3982 rory.odonnell@colliers.com
Mary-Jo Hudson +64 21 667 880 maryjo.hudson@colliers.com
25
61 Beach Street Queenstown FOR SALE BY DEADLINE PRIVATE TREATY Closing 4pm, Thursday 26 May 2022 (unless sold prior) Colliers, Top Floor, 10 Athol Street, Queenstown
colliersotago.co.nz/67018806
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.