633 Frankton Rd, Queenstown - IM

Introduction

Colliers as sole agents, have been appointed to market for sale 633 Frankton Road, Queenstown.

Colliers is pleased to offer a unique opportunity to purchase a 1.0153 hectare of prime lakefront development land.

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 can be accessed via an electronic data room at www.propertyfiles.co.nz/property/633FranktonRoad

Colliers website link: www.colliersotago.co.nz/67019986

For further information please contact the nominated brokers;

Mary-Jo Hudson +64 21 667 880 maryjo.hudson@colliers.com

Rory O'Donnell +64 27 445 3982 rory.odonnell@colliers.com

Steve McIsaac +64 21 680 304 steve.mcisaac@colliers.com

Executive Summary

Address 633 Frankton Road, Queenstown

Summary

The property comprises a 1.0153 hectare vacant block of development land with frontage to the Frankton Arm of Lake Wakatipu extending approximately 120.28 metres; and a frontage to Frankton Road of approximately 108.65 metres. The property is zoned High Density Residential providing for high density residential development and visitor accommodation. The site has a right of way access off Frankton road along the east side boundary. The single title comprises two separate Lots with Lot 6 of 3527m² fronting the lake; and Lot 3 comprising 6626m², fronting Frankton Road. The property lies within approximately 5km of Queenstown CBD. Development along Frankton Road includes a range of High Density residential development and visitor accommodation constructed post 2000; or standalone housing built in the 60s-90s, many of which are now being demolished to make way for high density development which the zoning now permits. The moderate sloping contour of the land enables terraced, high density development from Frankton Road down to the Lakefront. The property enjoys spectacular 180 degree views over the Frankton Arm toward The Remarkables and surrounding alpine landscape.

Vendor SKYCITY Investments Queenstown Limited

Legal Description Lot 6 Deposited Plan 369635 and Lot 3 Deposited Plan 343088

Record of Title 282768

Tenure Freehold

Site Area 10,153m²

Zone High Density Residential under Queenstown Lakes District Council

Rateable Value $17,600,000 (as at 1 Sept 2021)

Sales Process For sale by Negotiation

Investment Highlights

Prime lake front position on Frankton Road

NATURAL

Moderate contour and natural terraces

GOOD ACCESS

Direct access off Frankton Road

DEVELOPMENT OPTIONS

Zoning enables a wide range of high density development options

INCREDIBLE VIEWS

Spectacular 180 degree views of Lake and surrounding Mountain range including The Remarkables

CLOSE TO QUEENSTOWN CBD

Located within approximately 5km of Queenstown CBD

TERRACES

LAKE FRONT

Land Description

The property comprises a prime lakefront development site with a total land area of 1.0153 hectares. The site is irregular in shape with a southern boundary adjoining the lakefront reserve of approximately 120.28 metres, a northern boundary adjacent to Frankton Road of approximately 108.65 metres and an average depth of approximately 86 metres.

The site falls to the south from Frankton Road down to the lakefront reserve in a moderate contour with a combination of natural and excavated terracing creating building platforms that step down the site toward the lakefront. The site obtains spectacular lake views across the Frankton Arm toward Kelvin Heights with impressive views of the Remarkables Mountain Range in the background.

Frankton Road is a limited access road with the main access to the site located in the north-eastern corner of the block. The property is connected to all major utility services including electricity, water, telecommunication, gas and sewerage.

The Queenstown Lakes District Council Hazards Map indicate the following in relation to 633 Frankton Road:

• The property is not registered as a contaminated site

• Land is classified as an ‘A Domain’ for seismic liquefaction susceptibility

• The property is not situated on any known alluvial fan areas

Location

The property is situated below Frankton Road, mid-way between Central Queenstown and Frankton, on the lakefront of the Frankton Arm of Lake Wakatipu. This specific position on Frankton Road combined with the moderate sloping contour, and natural terracing down to the foreshore helps provide superior winter sun over other locations both to the east and west of the subject site which are more shaded by Queenstown Hill. Additionally having transit approved access is of significance given the time and costs associated with gaining such an approval for a limited access road.

Surrounding properties include completed Stage 1 of the Alpine Village development directly to the east which comprises a mix of 1, 2 & 3 bedroom apartments that were developed between 2005-2008. Adjoining the site's west boundary is 5499m² steep partially excavated development site. Historically the majority of large scale apartment development along the Frankton Road lakefront occurred prior to the 2008 Global Financial Crisis and included developments such as The Rees, The Club, The Shore, Alpine Village and Marina Baches. Since this period there has been limited large scale apartment/townhouse development with the majority of development over the last five years typically being smaller scale (< 15 apartments) focused on 3 - 4 bedroom apartments for second home / holidays houses ranging in value from $1.5m - $2.5m. 633 Frankton Road is the largest remaining vacant lakefront development site along Frankton Road.

A full ranges of amenities are available in the Queenstown Town Centre located 5 km to the west and the growing Frankton retail hub located 4 km to the east which includes Five Mile, Queenstown Central and Remarkables Park shopping centres. Also located at Frankton is the Queenstown International Airport.

As one of the most popular tourist destinations in New Zealand, Queenstown and the surrounding southern lakes has over 2,700,000 visitors (pre-covid) each year with over half arriving through the Queenstown International Airport. The Queenstown urban population is currently estimated at 16,000, however the average day population (Pre Covid) accounting for the tourist is estimated at over 40,000.

Queenstown Market

The Covid pandemic and its subsequent health and economic impacts are creating unprecedented challenges and uncertainty across the world, with New Zealand and Queenstown far from immune. The main impact to the Queenstown market has been absorbed in our tourism sector which, prior to Covid 19 was a key driver behind the growth in the Queenstown property market. Prior to the implementation of travel restrictions, total visitor numbers to Queenstown peaked at approximately 2.7 million per annum, however due to international travel restrictions and reduced airline capacity, visitor numbers have fallen substantially. Currently we are in transition phase of borders opening which started with the ‘trans-Tasman border’ opening from April 2022 progressing to full border opening from the end of July 2022. We are now in the middle of the New Zealand ski season and we have seen strong visitor demand both domestically and internationally, but growth is being hindered by a lack of available work force across all sectors.

To date the local Queenstown residential and commercial property market has performed relatively well throughout Covid, however we are experiencing some headwinds both domestically and internationally that are having a negative impact on market sentiment. Development land has been a sector more impacted by market sentiment and we have seen some reluctance from banks to finance large-scale new developments without a strong equity position from the developer and a robust level of pre-sale commitment. Regarding 633 Frankton Road, this is the largest remaining lakefront development site with appropriate zoning for high density development making this a unique opportunity in the Queenstown market.

Zoning

The Queenstown Lakes District Council is currently in the process of undertaking a staged plan review. This process is now well advanced with a significant number of the appeals to the Proposed District Plan having now been resolved. As such the Proposed District Plan now holds greater relevance than the existing Operative District Plan for any new development proposals.

Regarding 633 Frankton Road the following is a summary of the site and zone standards under the Proposed District Plan. There are some Operative District Plan provisions that could still be relevant and should be referenced as part of due diligence. For full detail on both the Operative and Proposed District Plan High Density Residential zone rules please go to www.qldc.govt.co.nz. We would also recommend seeking advice from a qualified Resource Management Planner regarding specific development options.

Building Coverage 70%

Landscape permeable surface

At least 20%

Density Up to 3 residential units per site permitted

Each unit can have a 70m² flat attached to it.

Subdivison 450m² minimum lot size

Setbacks 4.5m from the State Highway road boundary Otherwise 2m

Building Length 30m for building facades above ground floor level

Recession Planes No recession planes apply for sloping sites

Discretionary Assume site is captured by the rules for sloping sites (* see further note).

Depending on the extent of the infringement, infringements of height rules tend to be limited notified but are sometimes publicly notified at QLDC, particularly where they affect one of the many Outstanding Natural Landscapes which cover much of the district.

Non-complying Includes overhanging or cantilevered parts of buildings and excludes uncovered terraces, swimming pools or decks not more than 1m above ground level

Non-complying

Restricted discretionary for extra units. Non-complying for more than one flat per unit.

Restricted discretionary or noncomplying

Restricted discretionary

Restricted discretionary

n.a.

Discretion includes wide range of design matters including residential zone design guides.

RD status below 450m² applies when subdividing around existing development (or a bundled consent)

Matters of discretion include external appearance, location and visual dominance of the building(s) as viewed from the street(s) and adjacent properties

Assume site is captured by the rules for sloping sites

SUMMARY OF KEY PROPOSED DISTRICT PLAN RULES AND STANDARDS

Sound Insulation and Mechanical Ventilation

Residential or visitor accommodation buildings within 80m of a State Highway are to be designed to achieve an Indoor Design Sound Level of 40dB LAeq24h.

Non-complying Compliance is to be demonstrated by submitting a certificate to Council from an acoustic engineer

Visitor accommodation (including licensed premises within a visitor accommodation development)

Residential Visitor Accommodation and Homestays

Restricted discretionary n.a. Matters of discretion include location, nature and scale of the activity; parking and access, landscaping; noise generation and mitigation; hours of operation; external appearance of the buildings, including design, materials and lighting; design measures to limit the impact on adjoining residential activities.

Permitted if within standards

Transport Residential development exceeding 50 residential units, or 100 units of visitor accommodation or 150 rooms, or is a high traffic generating activity

Parking 0.25 parks per studio unit/flat and one bedroom unit/flat. 0.5 per unit/flat for all other units.

Restricted discretionary activity

Restricted discretionary activity

Requires an integrated transport assessment showing how public transport, active travel network and road network planning have been integrated in the development.

Restricted discretionary activity

Minimum parking requirement rules need to be removed from district plans before the end of February 2022

* A “Sloping site” is a site where the land beneath a development is on a slope that is greater than 6 degrees (i.e. greater than 1 in 9.5) measured over the extremities of each building elevation, in any direction.

Certificate of Title

RECORD OF TITLE UNDER LAND TRANSFER ACT 2017 FREEHOLD

Guaranteed Search Copy issued under Section 60 of the Land Transfer Act 2017

Identifier

282768

Land Registration District Otago

Date Issued 13 December 2006

Prior References 176774 176775

Estate Fee Simple Area 1.0153 hectares more or less

Legal Description Lot 6 Deposited Plan 369635 and Lot 3 Deposited Plan 343088

Registered Owners

SKYCITY Investments Queenstown Limited

Interests

476672 Gazette Notice declaring State Highway No. 6 (Queenstown-Frankton) to be a limited access road - 21.4.1977 at 11.00 am

Subject to a right of way, rights to convey telecommunications, computer media, water, gas and electricity and rights to drain water and sewage over part lot 3 DP 343088 marked A, B, C and AD and rights to convey telecommunications, computer media, water, gas and electricity over part lot 3 DP 343088 marked AE on DP 343088 created by Easement Instrument 6520959.3 - 4.8.2005 at 9:00 am

Appurtenant hereto are rights of way, rights to convey telecommunications, computer media, water, gas and electricity, rights to drain water and sewage created by Easement Instrument 6520959.3 - 4.8.2005 at 9:00 am

Some of the easements created by Easement Instrument 6520959.3 are subject to Section 243 (a) Resource Management Act 1991

Subject to a right (in gross) to convey electricity over part lot 3 DP 343088 marked B and C on DP 343088 to Aurora Energy Limited created by Easement Instrument 6520959.4 - 4.8.2005 at 9:00 am

The easements created by Easement Instrument 6520959.4 are subject to Section 243 (a) Resource Management Act 1991

Land Covenant in Transfer 6561731.42 - 6.9.2005 at 9:00 am

6562272.1 Encumbrance to Mountain Lake Holdings Limited - 6.9.2005 at 9:00 am

Subject to Section 241(2) Resource Management Act 1991(affects DP 369635 )

Appurtenant to lot 3 DP 343088 is a right of way,rights to convey telecommunications,computer media,water.gas,electricity and rights to drain water & sewage and appurtenant to lot 6 DP 369635 are rights of way,rights to convey telecommunications,computer media,water,gas,electricity and rights to drain water & sewage created by Easement Instrument 7159983.4 - 13.12.2006 at 9:00 am

The easements created by Easement Instrument 7159983.4 are subject to Section 243 (a) Resource Management Act 1991

Land Covenant in Transfer 7258635.4 - 2.3.2007 at 9:30 am

8367045.1 Removal of the right of way marked U, U1 and W on DP 343088 created by Easement Instrument 6520959.3 as appurtenant hereto pursuant to Section 70 Land Transfer Act 1952 - 9.12.2009 at 3:31 pm

Transaction ID 66610790

Client Reference acuebillas001

Due Diligence

Due diligence material is available for download from a secure electronic data room operated by Colliers Otago at www.propertyfiles.co.nz/ property/633FranktonRoad

Access to the data room will be provided upon acceptance of a confidentiality statement and Vendor approval.

The following information is available in the data room:

• Information Memorandum

• Record of Title (to be updated prior to settlement)

• LIM Report

Additional information may be added from time to time.

Experts

Mary-Jo Hudson

Commercial Broker | Sales Consultant

021 667 880

Professional Summary

Mary-Jo has more than 20 years commercial property experience, with the last 12 years operating in the wider Queenstown market, including Wanaka. Mary-Jo’s specialty is commercial leasing and investment sales with a particular emphasis on retail.

Mary-Jo joined Colliers, Queenstown Office in 2010 and works closely with Tenants, Landlords and Developers as a commercial broker. Mary-Jo has a thorough understanding of the local market place and in the time she has been with the Queenstown office, has established a reputation for results.

Business & Educational Background

Mary-Jo's prior experience includes leasing of Queenstown’s expanding town centre development at Remarkables Park from 2003 – 2009, comprising 11,500sqm of commercial space during that period.

Steve McIsaac Rory O'Donnell

Commercial Broker | Sales Consultant

027 445 3982

Areas Of Expertise

Rory has been active in Commercial Real Estate in the Southland/Otago markets for the past 20 years, specialising in the sale of larger scale and off plan sales. He has also transacted larger retail lease transactions including a number of Countdown and Fresh Choice new design build projects. His knowledge and experience bring a specialised skillset to design build projects and off plan sales. Working extensively within the commercial sector Rory’s clients will testify to his extensive knowledge and energy he has brought to projects and transactions.

An Associate Member of the Real Estate Institute of New Zealand (AREINZ) and shareholder of the Colliers Otago business, his extensive networks provide valuable connections to buyer, sellers and tenants alike.

Commercial Broker | Sales Consultant

021 680 304

Professional Summary

The Tourism team at Colliers International Queenstown have a thorough understanding of the market and performance of tourism assets to ensure that clients achieve true worth from their investments when it comes time to sell.

Located in New Zealand’s Tourism capital, they know the value of top performing Tourism assets.

Even though tourism is one of the major economic drivers of New Zealand, tourism assets are not normally top of mind when looking for either investment or development property. Therefore it is important that the true value of tourism assets is well understood to achieve the maximum value when selling in this unique market sector.

Areas Of Expertise

Steve has over 25 years of knowledge and experience in the New Zealand property market, the last 15 years of which have been based in Queenstown, involved in the resort development and tourism sector.

Steve’s areas of specialisation are brokerage and consulting on tourism assets, along with development opportunities. His main geographic focus is in the South Island.

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.