Colliers have been appointed as sole agents to market for sale 7 Wolter Crescent, Cromwell.
This property is being offered For Sale by -
Asking price $665,000 plus GST.
This is an outstanding opportunity to purchase a fully leased 1,087 sqm industrial property with excellent future redevelopment opportunities.
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.
Geoff McElrea
+64 27 577 9607
geoff.mcelrea@colliers.com
Steve McIsaac
+64 21 680 304
steve.mcisaac@colliers.com
Data room documents available:
• Information Memorandum
• Certificate of Title
• CODC District Plan
Executive Summary
Address 7 Wolter Crescent
Description
The property comprises a freehold regular shaped 1,087m2 freehold site that has a circa 1980’s commercial building providing functional office space. The property is currently fully leased to Wooing Tree Vineyard Limited. The property is zoned Industrial Resource Area under the Central Otago Operative District Plan that caters for a wide range of uses.
Tenure Freehold
Legal Description Lot 3 Deposited Plan 301949
Area 1,087m2 (more or less)
Certificate of Title 7827 - see attached copy to reference interests registered on the title
Zoning
Industrial Resource Area under the Central Otago Operative District Plan
Tenant Wooing Tree Vineyard Limited
Rental Income
Outgoings
Rateable Value
$31,200 plus GST (net lease - all outgoings payable by the tenant)
Approximately $7,281 plus GST per annum
$680,000 (as at 1 October 2022)
Sale Process For sale - asking price $665,000 plus GST
Investment Highlights
FULLY LEASED
Fully leased entry level investment opportunity
Established local tenant ESTABLISHED TENANT
REGULAR SHAPED SITE
Land area 1,087m² with a frontage of approximately 29 metres to Wolter Crescent
DEVELOPMENT OPPORTUNITY
Site offers numerous redevelopment options and currently has only 14% site coverage
The Offering
The property represents an attractive entry level investment op portunity with future redevelopment opportunities. With Cromwell quickly ceme nting it’s reputation as a service hub for the wider Queenstown Lakes and Central Otago region, this property offers a great opportunity to be part of t his growth. Located centrally within the Industrial Resource Area, the property is surrounded by established local and national businesses.
Cromwell is predominantly a community serving not only growing local rural industries that include substantial vineyard and horticulture b locks, but also the rapidly growing freight/logistics hub for the wider region. It has a population of over 5,200 people and has a full range of amenities includin g, 2 primary schools, a college, 2 medical centres and an established town c entre containing 2 supermarkets. While house prices have risen in recent times t hey still offer reasonable value for owning your own home, which delivers a sta ble workforce. A number of people are investing in new homes within the area as there has been a number of residential subdivisions recently developed, with mor e planned.
Queenstown International Airport, a 40 minute drive, offers dire ct flights to major New Zealand cities and Melbourne, Sydney, Brisbane and Coolanga tta in Australia.
Dunedin is approximately 220 kilometers south east of Cromwell, and Invercargill is 190 kilometers to the south.
The Building
The building provides a single level structure that was originally built circa 1980’s with some subsequent modernisation. Layout provides for four offices, two meeting/training rooms, along with a staff room.
The building provides a floor area of approximately 153m 2 .
Construction comprises of concrete foundations, painted hardboard exterior with corrugated iron elements, aluminium single glazed window and door joinery. Interior linings comprise of painted plasterboard walls, predominantly soft board ceilings and a combination of tile, carpet and vinyl floor coverings.
Amenities include a kitchenette and two toilets with a hand basin.
Heating is provided by heat pumps.
There is a small courtyard adjoining the building along with gravel and part chip seal access and parking areas.
Lease Terms
Tenant Wooing Tree Vineyard Limited
Guarantor Stephen Farquharson and Thea Farquharson
Term Two years from 1 September 2024
Original Commencement Date 1 September 2022
Final Expiry 31 August 2026
Annual Rent $31,200 plus GST
Rent reviews Every two years from the commencement date
The zoning requirements are contained within Section 9 of the Central Otago District Plan. Following is a summary of the zone rules, as such not all relevant standards might be included, only those that might be applicable in a lot development scenario. Purchasers will still need to undertake their own research into the District Plan requirements for developing a lot and we advise the engagement of a professional town planner to assist in this regard.
District Plan and Zoning requirements:
1. Any activity that fails to comply with the standards set out in Rule 9.3.5 as well Sections 12 – 15 of the District Plan shall be a restricted discretionary activity, if all the standards are complied with then no consent is required as the activity is ‘permitted’. These standards are discussed further below. Of note for developing industrial lots, owners should also be mindful of:
a. Retail:
Retail activity (excluding retail activity at a service station) shall be ancillary to and form an integrated and complementary part of any industrial activity and shall not occupy more than 10% of the gross floor space of the building or 50m² , whichever is the greater.
b. Bulk and Location of Buildings:
No front yards are required
Height: 10m
c. Noise:
On any day 7:00am - 10:00pm 65dBA L10, 10:00pm - 7:00am the following day 45dBA L10, 85dBA Lmax
Habitable spaces within buildings must achieve an indoor design sound level of 45 dBA.
d. Signage:
Rules on signage will apply.
e. Screening/Fencing: rules on screening will apply to any open space associated with a residential activity.
f. Off Road Loading: Off road loading facilities shall be provided for each site where this is an integral part of the activity. All such loading areas shall be so located that no vehicle or machinery engaged in any loading or unloading operation shall stand on or be required to manoeuvre on any part of a formed road.
g. Parking: Every activity shall make sufficient provision for vehicular parking in accordance with Table 12.3
2. Subdivision is a controlled activity.
3. Any activity that requires an offensive trade license under the Health Act 1956 is a discretionary activity.
4. Residential activities are not restricted in the industrial zone and can be undertaken without the need for consent so long as the standards mentioned above in point 1 are complied with as well as Sections 12 -15 of the District Plan. Note, there are specific requirements when it comes to residential activities with regards to ensuring they are designed to meet the expected noise outputs from the industrial zone and to screen any outdoor area from neighbouring activities.
For further information please refer to codc.govt.nz.
COMMERCIAL - INDUSTRIAL CARPARKING
Travellers
Supermarket
Service
Industrial storage, internal or external except warehouses
Cromwell Market Overview
The strategic position of Cromwell as an access ‘pivot’ for the Queenstown and Wānaka markets with its availability of industrial/service land at reasonable prices and the significant Viticulture and Horticulture development in the locality has meant significant incremental increases in property values over the last decade. With its strategic location and proximity to Wānaka and Queenstown, Cromwell is becoming an important hub servicing the Lakes District and surrounding Central Otago towns.
Cromwell had benefited from (now historical, prior to March 2020) strong growth in Queenstown tourism and the property market. Significant price increases in the Queenstown residential property market has seen home ownership become beyond the reach of a number of people. Some have left the district, but others have decided to relocate to Cromwell where residential housing is seen as more affordable option. A number of these people commute to Queenstown on a daily basis whilst others have found employment or relocated businesses to Cromwell. The permanent population is increasing, and this has boosted the local economy and now with international tourism at record levels again in Queenstown, Cromwell stands to further benefit from this.
On the back of regional growth we are seeing increasing values and rental levels across all property sectors within Cromwell. This is being driven by both the desire for local businesses to own their own commercial/industrial property and by investors looking to secure long term returns. Additionally with national businesses establishing in Cromwell to service the wider region, land values have been steadily increasing.
Queenstown industrial land values have increased to around $2,000/m², resulting in an un-affordability situation for many enterprises in comparison to the relatively cost effective industrial land values in Cromwell. The most to recent Cromwell industrial land sales have been at rates in the range of $500$625/m².
Commercial property investment is becoming more general due to the growth in Cromwell and because investment options are limited in the financial marketplace. The solid appeal of a ‘bricks and mortar’ investment, provided the tenant covenant is considered robust, is an attractive proposition.
Cromwell is experiencing more demand from commercial property investors as the town grows. Demand is expected to continue as the region grows, especially if large projects such as gold mining in nearby Bendigo gets approval.
Certificate of Title
RECORD OF TITLE UNDER LAND TRANSFER ACT 2017 FREEHOLD
Search Copy
Identifier 7827
Land Registration District Otago
Date Issued 14 September 2001
Prior References 1857
Estate Fee Simple
Area 1087 square metres more or less Legal Description Lot 3 Deposited Plan 301949
Registered Owners
Kirsty Jane Hewitt, Peter McLeod Hewitt and Dunmore Trustees (2019) Limited
Interests
Subject to Section 11 Crown Minerals Act 1991
Subject to Part IV A Conservation Act 1987
Subject to a right to supply electricity in gross over part marked EW on DP 301949 in favour of Dunedin Electricity Limited created by Transfer 5010508.2 - 13.10.2000 at 10:29 am
Subject to a right to supply electricty in gross over part marked BQ & BP and a right to establish and maintain a transformer site in gross over part marked BQ on
5083429.2 - 14.9.2001 at 1:14 pm
Some of the easements created by Transfer 5083429.2 are subject to Section 243 (a) Resource Management Act 1991
Subject to a right to drain water over part marked BW and a right to convey telecommunications over part marked BP & EW on DP 301949 specified in Easement Certificate 5083429.3 - 14.9.2001 at 1:14 pm
The easements specified in Easement Certificate 5083429.3 are subject to Section 243 (a) Resource Management Act 1991
Fencing Covenant in Transfer 5094199.2 - 11.10.2001 at 2:41 pm
Appurtenant hereto is a right to drain stormwater and right to convey water created by Transfer 5697941.19 - 17.8.2003 at 9:00 am
The easements created by Transfer 5697941.19 are subject to Section 243 (a) Resource Management Act 1991
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 our agents.
• Information Memorandum
• Certificate of Title
• CODC District Plan
All enquiries, requests for information and arrangements for site inspections are to be directed to the Colliers sole agents:
