9 Hobart St - Information Memorandum

Boundary indicative only

9 Hobart Street Queenstown Information Memorandum For Sale by Deadline Private Treaty

closing 18 March 2024 at 4pm (unless sold prior)

Accelerating success.

Introduction Colliers have been appointed exclusively to market for sale 9 Hobart Street, Queenstown.

This property is being offered For Sale

by Deadline Private Treaty closing Monday 18 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/67027005 Click HERE to view the property video.

Data room link: propertyfiles.co.nz/ property/9HobartStreet Data room documents available: • Information Memorandum • Certificate of Title and Interests • Land Information Memorandum • Planners Report • 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.

Alastair Wood +64 27 436 2422 alastair.wood@colliers.com Tim Thomas +64 22 543 3210 tim.thomas@colliers.com

Contents

location indicative only

Executive Summary

2

Investment Highlights

4

The Property

6

Zoning

10

Queenstown Development Pipeline

12

Queenstown Market Overview

14

Queenstown Economic Overview

17

Queenstown Hotels & Hospitality Overview

17

Certificates of Title

20

Sales Process

24

Due Diligence

25

9 HOBART STREET QUEENSTOWN

Executive Summary 9 Hobart Street, Queenstown

DESCRIPTION

Located in Queenstown’s lower dress circle, within close proximity to the lakefront, an easy stroll to the Queenstown gardens and CBD. First time to market since 1938, the well established 1479m² site offers incredible development options, zoned Medium Density Residential, with a proposed rezoning to High Density Residential. The modernised 1930’s house provides 3-bedrooms, 3-bathrooms, with separate kitchen dining and lounge, sunroom and day room over two levels and detached garaging. Land bank or develop now, sites like this are rarely available

TENURE

Freehold

LEGAL DESCRIPTION

PT SEC 7 BLK XXXIX QUEENSTOWN TN

PT SEC 8 BLK XXXIX QUEENSTOWN TN

CERTIFICATE OF TITLE

OT8B/19

OT311/122

LAND AREA

986m² (more or less)

493m² (more or less)

Total site 1479m² FLOOR AREA

202m²

LOCAL AUTHORITY

Queenstown Lakes District Council (QLDC)

ZONING

Medium Density Residential, proposed High Density Residential (refer planers report)

RATEABLE VALUE (as at 1 Sep 2021)

+ garage

Capital Value - $5,560,000 Land Value - $4,880,000 Improvement Value - $680,000

2

9 HOBART STREET QUEENSTOWN

3

Investment Highlights

Development Opportunity

Easy Sloping Contour

Prime Central Queenstown, high value range surrounding properties, would lend towards single dwelling, multi unit development or tourism accommodation

Gently sloping across the site towards the lake

Close Proximity to CBD / Lake

Sizable Area

Queenstown’s ‘dress circle’ easy walk to Lake, Queenstown Gardens & CBD

Combined land area of 1,479m²

Advantageous Proposed Zoning Change to High Density Residential

in two titles

Impressive and Established Trees Well developed and landscaped site

70% site coverage, 16.5 meter height (subject to proposed zone change)

4

The Property 9 Hobart Street First time to market since 1938, the property is located within Queenstown’s premier “dress circle”, a short stroll towards the Queenstown Gardens, Lakefront, Frankton walking track, Queenstown’s CBD, hosting international standard retail, hospitality and tourism activities. The site itself offers numerous development opportunities over an established 1479m² site of easy sloping contour, with a proposed High Density Residential zoning. The prime high end location offers various development opportunities, land bank and make use of the character three bedroom modernised home, or develop now into high end housing, multiple townhouses or visitor accommodation. The section benefits from established circa 90 year old trees and established landscaping. Gently contoured the site offers impressive surrounding mountain views and elevated lake views from the first floor of the house. Sites like this rarely become available in this location, don’t wait another 86 years.

6

7

8

9

Zoning

location indicative only

10

Medium Density Residential - Operative Plan Development Standards

Description

Rule Status

Building Coverage

Up to 45%

Permitted

Over 45%

Restricted Discretionary

One residential unit per

Permitted

250m² net site area More than one residential

Restricted Discretionary

Building Density

Landscape Coverage Building Height Building Length Road Setback Other Boundary Setbacks

unit per 250m² net site area At least 25% of the site Permitted Less than 25% of the site

Restricted Discretionary

Up to 8m

Permitted

Over 8m

Non-complying

Above ground floor, exceeding 24m 3m or more

Restricted Discretionary

Less than 3m

Restricted Discretionary

1.5m or more

Permitted

Less than 1.5m

Restricted Discretionary

Permitted

Proposed High Density Urban Intensification Variation as notified 24 August 2023

Development Standards

Proposed Description

Proposed Rule Status

Building Height

Up to 16.5m

Permitted

Over 16.5m

Restricted Discretionary

From 8m above ground level a 60 degree recession plane applies to all boundaries, other than the southern boundary of the site where a 45 degree recession plan applies.

1.5m

Restricted Discretionary

Recession Plane (applicable to all buildings)

Boundary Setbacks Building Height Setback

Restricted Discretionary

Additional 2m setback from Restricted Discretionary all boundaries shall apply to the area of buildings that exceed 10m height from ground level.

Please refer JE & A Planning report, interested parties should also seek their own independent advice.

11

Queenstown Development Pipeline

1 5 3

2

L o catio ns indicat ive only

4

6

Over $1.5* billion in local infrastructure and development proposed for the Queenstown

Lakes District

7

1 Queenstown Skyline Gondola 2 Lakeview Precinct Development 3 Brecon Street Hotel 4 Radisson Hotel 5 Queenstown Town Centre Arterial Road 6 Queenstown Town Centre Street Upgrades 7 Project Manawa

Queenstown Market Overview Queenstown continues to buck the national trend with residential values holding during the first half of 2023, a reflection of increasing migration into Queenstown, a lack of supply and stable demand. Queenstown’s key economic divers, tourism, construction and migration have rebounded strongly post Covid.

The following is a snapshot of the economic drivers for Queenstown:

Queenstown International Airport Annual Passenger

Arrival & Departures

YE December 2019

Dec 2023

2.393 M

2.410 M

Employment growth in Queenstown Lakes District averaged

4.6%p.a.

over the last 10 years compared to 2.1% nationwide

3.4 M Forecast domestic &

international visitors

Adventure Capital of the World

At capacity, Queenstown has 1 local resident per 34 international visitors

14

Overseas visitor arrivals increased by 14% from 2022. Reflecting approximately 310,000 in

additional overseas visitors from June 2022 to June

2023.

QUEENSTOWN-LAKES DISCTRICT POPULATION PROJECTION

Auckland

Population (residents)

90,000 IGH

80,000

H

70,000

Mediu

m

Low

60,000 50,000 40,000 30,000

2018

2023

2028

2033

2038

2043

Forecasts predict that domestic visitors will double and international visitors will nearly triple in the next 10 years

2048

Wellington

Christchurch Visitor spending Queenstown RTO area

76.93 Million

Queenstown

(YE March 2023)

Dunedin 15

Source: New Zealand Government & StatsNZ

QUEENSTOWN MEAN SECTION AND DWELLING* SALE PRICE AND VOLUME

As further background, the following is an extract from Tony Alexander’s regional commentary on the Queenstown Lakes area:

2020 F M A M J J A S O N D 2021 F M A M J J A S O N D 2022 F M A M J J A S O N D 2023 F M A M J J A S

PRICE GAINS It pays to keep in mind when considering the housing market in Queenstown that the factors in play are very different from the rest of the country. Land is scarce, prices are high, population growth is strong, international tourism strength plays a big role, desire for retirement and internal migration to the region can fluctuate significantly, and offshore buying can at times be an influential factor. The Queenstown market is frequently described as cyclical.

Bearing in mind these market characteristics we note that during the September quarter house sales in the Queenstown Lakes District fell some 21% (seasonally ANNUAL RESIDENTIAL REAL ESTATE SALES - QUEENSTOWN adjusted) after rising by about 12 Month total the same percentage in the June quarter. Volatility tends to be 1600 typical and can be pronounced.

1400 The annual rate of sales in the 1200 district has been trending up since 2000 with brief interruptions 1000 due to the GFC and the Covid 800 pandemic.

600 What have prices been doing?

400 The following graph shows three 200 month rolling changes in house 0 93’ 95’ 97’ 99’ 01’ 03’ 05’ 07’ 09’ 11’ 13’ 15’ 17’ 19’ 21’ 23’ prices in the district since the start of 2020.

From early-2022 as other regions saw prices falling, they largely stopped soaring in Queenstown HOUSE PRICE INFLATION Lakes District. Now, over the June % 3 month change - Queenstown Lakes quarter average prices rose by 0.3% compared with a 1.5% fall 12.0 nationwide.

10.0 8.0 Over the September quarter prices 6.0 have jumped 5% versus rises of 4.0 1.8% around all of the country.

2.0 0 Price rises in the district look -2.0 likely to continue given the high -4.0 probability that internal migration -6.0 to the area will continue, economic -8.0 growth will be well supported by -10.0 inbound tourists, and land supply is not increasing at a rapid pace.

16

Queenstown Economic Overview Queenstown Lakes District GDP is provisionally up

As at September 2023, provisional GDP was

5.9%

$3,928

the year to September 2023 compared to a year earlier

Million

GROSS DOMESTIC PRODUCT GROWTH (PROVISIONAL) Annual average & change September 2022 – September 2023 Queenstown-Lakes District

New Zealand

0%

1%

2%

3%

4%

5%

6%

7%

S o ur ce : I n f om e t r i c s & Qu e e n stown Lake s Lab ou r M arke t Sna psho t, QLDC

Queenstown Hotels & Hospitality Overview NZD 210 R A R evenue per

vailable

oom

RevPAR (YE Dec 2023)

NZD 297 Average Daily Rate

70.86% Occupancy

Tourism

Supply

The hotel sector is heavily reliant on both domestic and international holidaymakers.

The recovery to date has been primarily led by the domestic market, however the reopening of international borders has seen a strong return of overseas arrivals.

A strong sign of the recovery is shown with the recent announcement that annual passenger numbers for Queenstown airport for the year ended December 2023, exceeded the total for 2019.

Strong trading conditions in the years prior to the pandemic, saw increased development activity within the market. In the five years prior to 2021, ten new hotels opened adding 1,012 rooms to the market. Recent openings included the Holiday Inn Remarkables Park and Sudima Queenstown. There are also two hotel projects that have commenced construction, set to deliver an additional 100+ rooms to the market, of which both hotels are targeting the luxury segment of the market.

17

Location indicative only

*L o c a t i o n i ndicativ e o nly

Certificates of Title RECORD OF TITLE UNDER LAND TRANSFER ACT 2017 FREEHOLD Search Copy

OT8B/19 Land Registration District Otago Identifier

Date Issued

24 April 1979

Prior References OT9/124 Estate Area Legal Description

Fee Simple 986 square metres more or less Section 7 Block XXXIX Town of Queenstown

Registered Owners Walter John Rutherford and Timothy Morris Black Interests

Transaction ID 2295695 Client Reference msaker001

Search Copy Dated 09/01/24 12:06 pm, Page 1 of 2 Register Only

9 HOBART STREET QUEENSTOWN

Identifier

OT8B/19

Transaction ID 2295695 Client Reference msaker001

Search Copy Dated 09/01/24 12:06 pm, Page 2 of 2 Register Only

21

RECORD OF TITLE UNDER LAND TRANSFER ACT 2017 FREEHOLD Search Copy

OT311/122 Land Registration District Otago Identifier

Date Issued

19 October 1943

Prior References OT10/256 Estate Area Legal Description

Fee Simple 493 square metres more or less Part Section 8 Block XXXIX Town of Queenstown

Registered Owners Walter John Rutherford and Timothy Morris Black Interests 7413008.1 Mortgage to Southland Building Society - 14.6.2007 at 1:48 pm

Transaction ID 2295689 Client Reference msaker001

Search Copy Dated 09/01/24 12:06 pm, Page 1 of 2 Register Only

9 HOBART STREET QUEENSTOWN

Identifier

OT311/122

Transaction ID 2295689 Client Reference msaker001

Search Copy Dated 09/01/24 12:06 pm, Page 2 of 2 Register Only

23

9 HOBART STREET QUEENSTOWN

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, Monday 18 March 2024.

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9 HOBART STREET QUEENSTOWN

Due Diligence To assist in the assessment of this offering, comprehensive due diligence information is available via a dataroom link. For access to all documents please register your interest with one of the agents, or go online propertyfiles.co.nz/property/9hobartstreet.

•

Information Memorandum

•

Certificate of Title and Interests

•

Planners Report

•

Land Information Memorandum

All enquiries, requests for information and arrangements for site inspections are to be directed to the Colliers sole agents:

Alastair Wood +64 27 436 2422 alastair.wood@colliers.com

Tim Thomas +64 22 543 3210 tim.thomas@colliers.com

25

9 Hobart Street Queenstown FOR SALE BY DEADLINE PRIVATE TREATY closing Monday 18 March 2024, 4pm colliersotago.co.nz/67027005

Alastair Wood +64 27 436 2422 alastair.wood@colliers.com

Tim Thomas +64 22 543 3210 tim.thomas@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.