71-72 The Mall | Cromwell Information Memorandum For Sale by Deadline Private Treaty Accelerating success. closing 27 March 2024 at 4pm (unless sold prior)
Introduction
Colliers have been appointed exclusively to market for sale 71-72 The Mall, Cromwell.
This property is being offered For Sale by Deadline Private Treaty closing Wednesday 27 March 2024 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.
colliersotago.co.nz/67027466
Data room link: propertyfiles.co.nz/ property/71TheMall
Data room documents available:
• Information Memorandum
• Certificate of Title and Interests
• Lease Documentation
• Land Information Memorandum
• Initial Seismic Assessment
• Draft 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.
Rory O’Donnell
+64 27 445 3982
rory.odonnell@colliers.com
Steve McIsaac
+64 21 680 304
steve.mcisaac@colliers.com
Executive Summary 4 Investment Highlights 6 The Building 8 Tenancy Schedule 9 Location 10 Zoning 11 Cromwell Market 12 Certificate of Title 14 Sales Process 18 Due Diligence 19 Contents
Executive Summary
71-72 The Mall, Cromwell
DESCRIPTION
The premise has a total floor area of 268sqm with prime retail frontage into the main entrance/carpark to Cromwell’s main Commercial Precinct known as ‘The Mall’ together with an internal secondary frontage into the Mall.
TENURE Freehold
LEGAL DESCRIPTION
CERTIFICATE OF TITLE
LOTS 41-42 DP 18369
OT13A/262
OT14B/506
AREA Land 289m² | Floor 268m²
LOCAL AUTHORITY Central Otago District Council (CODC)
ZONING Business Resource Area
Capital Value - $1,540,000
RATEABLE VALUE (as at Oct 2022)
Land Value - $760,000
Improvement Value - $780,000
TENANT Central Otago Business Ltd t/a Cromwell Brew Bar
CURRENT CONTRACT RENT $77,458.63 plus GST & Outgoings
LEASE EXPIRY 31 August 2024 with 1 x 6 year ROR
CODC $6,330.30
RATES (2023-24)
ORC $428.54
71-72 THE MALL CROMWELL 4
71-72 THE MALL CROMWELL 5
Investment Highlights
Outdoor Courtyard
Outdoor seating area along property frontage
Long Lease Tenancy
Lease commenced 2018 with final expiry 2030
- 100% NBS
Frontage
frontage to the
area 6
IEP
Good Retail
Single Level Building 19m
main Mall carpark
The Building
Under consideration is a 1980’s single level commercial building located on the northern side of The Mall situated on an irregular 289sqm Freehold Site. The premise has a total floor area of 268sqm with prime retail frontage into the main entrance/carpark to Cromwell’s main Commercial Precinct known as ‘The Mall’ together with an internal secondary frontage into the Mall. The Property is currently leased to Central Otago Business Ltd t/a Cromwell Brew Bar at $77,458.63 plus GST & Outgoings with one final lease renewal for 6 years due 31 August 2024 with final expiry 31 August 2030. The Current Rating Valuation is $1,540,000 as at 1 October 2022.
8
Tenancy Schedule
Address
71-72 The Mall, Cromwell
Central Otago Business Ltd t/a Cromwell Brew Bar
Tenancy
Current
Auckland District Law Society
Note - Passing Rent is the current contract rent for the property per lease.
* Approximate Net Lettable Area only.
Tenant
Net Lettable Area (m²)*
268m²
Term Expiry
Expiry
Contract Rent (Gross) $77,458.63 +
and Outgoings
31 August 2024 Final
31 August 2030 Current
GST
Comments
Lease
9
Location
The Cromwell CBD Mall is the only major shopping precinct in Cromwell. Built in the early 1980s, The Mall offers day to day amenities for the wider Cromwell District.
The Mall is located just off the State Highway, by the Big Fruit. The Mall is situated on the northern edge of The Mall enjoying visibility to both foot and vehicle traffic.
The Mall provides commercial space for retailers, professional offices, cafes/takeaways, tavern, gym, library, and medical centre.
The local Council have over the years been working on a revamp of The Mall with the main aim being to open up the views, allowing more visibility into The Mall.
10
Zoning
Territorial authority
Central Otago District Plan status
Operative
Zone Business Resource Area
Zone description
This allows for a wide range of commercial land uses as permitted activities.
Extract from District Plan:
‘To enable the development of a wide range of activities within the Business Resource Area provided significant adverse effects are avoided, remedied or mitigated’.
Permitted activities
• Any activity that is not listed as either a controlled, discretionary (restricted), discretionary, or noncomplying activity and that complies with the rules and standards set out in Sections 11 to 15 of this Plan and the standards set out in Rule 8.3.6 is a permitted activity.
• The District Plan does not list specific uses as Permitted Activities. We advise that investigation be made to ensure any future proposed use would be allowed on the site - either a Permitted Use or with Resource Consent.
Development controls
• Maximum height shall be 10m, no front yards are required·, no side or rear yards are required except where the site adjoins a residential resource area.
* boundary indicative only
11
Cromwell Market
There has been high levels of interest for commercial property in Cromwell over recent times as it establishes itself as the service hub for the wider Lakes District and Central Otago regions. The vast majority of recent sales have been for industrial properties due to a lack of commercial buildings being available for sale/ occupation.
The Central Otago District Council have purchased properties within the vicinity of CBD as well as owners of existing properties within The Mall. This is in anticipation of the redevelopment of the The Mall. Cap rates from these sales have been below 5% while other market sales of investment properties have seen cap rates above 5%.
Long term we believe that investment properties will continue to be sought after by local investors and in particular adjoining land owners of properties in the CBD as Cromwell grows to service not only the local expanding population but also business servicing the larger Queenstown and Wānaka areas.
Certificates of Title
RECORD OF TITLE
UNDER LAND TRANSFER ACT 2017
Identifier OT13A/262
Land Registration District Otago
Date Issued 14 November 1989
Prior References
OT11A/787
Estate Fee Simple
Area 53 square metres more or less
Legal Description Lot 42 Deposited Plan 18369
Registered Owners
Victoria Louise Lawrence, Joanna Elaine Flanagan and Elaine Evelyn Lawrence
FREEHOLD Search Copy
Interests 645510 Transfer creating the following easements - 17.10.1985 at 9.20 am Type Servient Tenement Easement Area Dominant Tenement Statutory Restriction Party wall Lot 42 Deposited Plan 18369 - herein E Transfer 645510 Lot 43 Deposited Plan 18369 - CT OT10B/713 Party wall Lot 43 Deposited Plan 18369 - CT OT10B/713 F Transfer 645510 Lot 42 Deposited Plan 18369 - herein 71-72 THE MALL CROMWELL 14
Identifier OT13A/262 Register Only Search Copy Dated 20/02/24 3:58 pm, Page of 2 2 Transaction ID 2538178 Client Reference msaker001 71-72 THE MALL CROMWELL 15
Certificate of Title
RECORD OF TITLE
UNDER LAND TRANSFER ACT 2017 FREEHOLD
Search Copy
Identifier OT14B/506
Land Registration District Otago
Date Issued 13 March 1992
Prior References
OT10C/1077
Estate Fee Simple
Area 236 square metres more or less
Legal Description Lot 41 Deposited Plan 18369
Registered Owners
Victoria Louise Lawrence, Joanna Elaine Flanagan and Elaine Evelyn Lawrence
Interests
Subject to Section 11 Crown Minerals Act 1991
Subject to Part IV A Conservation Act 1987
643699.1 Transfer creating the following easements
Type Servient Tenement Easement Area Dominant Tenement Statutory Restriction Party wall Lot 41 Deposited Plan 18369 - herein B Transfer 643699.1 Lot 40 Deposited Plan 18369 - CT OT10B/587 Party wall Part Lot 40 Deposited Plan 18369 - CT OT10B/587 A Transfer 643699.1 Lot 41 Deposited Plan 18369 - herein 71-72 THE MALL CROMWELL 16
Identifier OT14B/506 Register Only Search Copy Dated 20/02/24 3:59 pm, Page of 2 2 Transaction ID 2538194 Client Reference msaker001 71-72 THE MALL CROMWELL 17
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 d ay.
• 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. B alance is the key.
Offers to be submitted to Colliers Sole Agents by 4pm, Wednesday 27 March 2024.
20 4 THE MALL CROMWELL
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
• Lease Documentation
• Land Information Memorandum
• Initial Seismic Assessment
• Draft Sale & Purchase Agreement
All enquiries, requests for information and arrangements for site inspections are to be directed to the Colliers sole agents:
Rory O’Donnell
+64 27 445 3982
rory.odonnell@colliers.com
Steve McIsaac
+64 21 680 304
steve.mcisaac@colliers.com
71-72 THE MALL CROMWELL 21
71-72 The Mall Cromwell FOR SALE BY DEADLINE PRIVATE TREATY Closing 4pm, Wednesday 27 March 2024 (unless sold prior) Colliers, Top Floor, 10 Athol Street, Queenstown colliersotago.co.nz/67027466 Steve McIsaac +64 21 680 304 steve.mcisaac@colliers.com Rory O’Donnell +64 27 445 3982 rory.odonnell@colliers.com 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.
