Aoraki Alpine Lodge | Mount Cook Information Memorandum Accelerating success. For Sale by Expressions of Interest closing 28 March 2024 at 4pm (unless sold prior)
Introduction
Colliers have been appointed exclusively to market for sale
Aoraki Alpine Lodge, Mount Cook.
This property is being offered For Sale by Expressions of Interest closing 28 March 2024 at 4pm (unless sold prior).
The offering comprises both the accommodation business and the buildings/improvements that the business operates from.
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/67027343
Data room link: propertyfiles.co.nz/ property/AorakiAlpineLodge
Data room documents available:
• Information Memorandum
• DOC Concession Documentation
• Land Information Memorandum
• Draft Sale & Purchase Agreement
• CA for access to financials
All enquiries, requests for information and arrangements to undertake inspections in relation to this opportunity are to be directed to the sole agents.
Barry Robertson
+64 27 433 5941 barry.robertson@colliers.com
Steve McIsaac
+64 21 680 304 steve.mcisaac@colliers.com
Executive Summary 2 Investment Highlights 6 Aoraki Mount Cook National Park 8 Mount Cook Village 10 Mount Cook Tourism 11 Zoning 12 Lease Summary 14 Tourism Market 16 Photo Gallery 18 Sales Process 22 Due Diligence 23 Contents
Executive Summary
Aoraki Mount Cook Alpine Lodge
ADDRESS
SITE AREA
107 Bowen Drive, Mount Cook Village
706m²
LEGAL DESCRIPTION PT RES 2652 MT COOK VILLAGE BLK XIV MUELLER SD
LAND TENURE
CONCESSION SITE RENTAL FEE
ZONING
COMMUNITY SERVICE CONTRIBUTION
MACKENZIE DISTRICT COUNCIL RATES (2023/2024)
Department of Conservation Authority Lease commencing from January 2004 for 31 years. First right of refusal at end of term.
Currently 4.5% of gross annual revenue paid annually
Park / Reserve (National Park)
Paid to DOC for providing water supply, sewerage, storm water, street lights, roading & snow clearing, landscape maintenance, industrial fire bridge, waste management & river control. $29,500 + GST (2023/2024 year) includes staff accommodation contribution.
$4,485.90
DESCRIPTION
RATEABLE VALUE (as at 1 July 2023)
A modern two level building, circa 560m², containing 16 ensuite rooms, common dining / kitchen / lounge, manager accommodation, reception / admin office, laundry / store, outdoor deck and car parking. Built in 2005, construction includes tilt slab panels, coloursteel roofing, & aluminium joinery.
Capital Value - $2,400,000
Land Value - $210,000
Improvement Value - $2,190,000
AORAKI ALPINE LODGE MOUNT COOK 2
First
Floor
AORAKI ALPINE LODGE MOUNT COOK 3
Ground Floor
LAND TENURE
SEC 20 BEING PT RES 2652 MT
2652 MT
$3,500 + GST p.a per property $3,500 + GST p.a per property
Department of Conservation Lease for 30 years from November 2017. First right of refusal at the end of term.
ZONING Park / Reserve (National Park)
COMMUNITY SERVICE CONTRIBUTION FEE
MACKENZIE DISTRICT
Paid to DOC for providing water supply, sewerage, storm water, street lights, roading & snow clearing, landscape maintenance, industrial fire bridge, waste management & river control. (included under lodge levies)
DESCRIPTION
RATEABLE VALUE (as at 1 July 2023)
3 Pilots Road is a 1970’s weatherboard dwelling, approximately 110m² providing 3 bedrooms, 2 living & 1 bathroom.
Capital Value - $390,000
Land Value - $195,000
Improvement Value$195,000
7 Pilots Road is a 1970’s weatherboard duplex, approximately 120m² over 2 units with 2 bedrooms each.
Capital Value - $370,000
Land Value - $195,000
Improvement Value - $175,000
Pilots Road Mount
7 Pilots Road Mount
SITE AREA 1100m² 1100m²
Staff Accommodation ADDRESS 3
Cook Village
Cook Village
LEGAL DESCRIPTION
COOK
SD
VILLAGE BLK XIV MUELLER
RENTAL FEE
SEC 21 BEING PT RES
COOK VILLAGE BLK XIV MUELLER SD CONCESSION SITE
COUNCIL RATES (2023/2024)
$796.10
$819.80
AORAKI ALPINE LODGE MOUNT COOK 4
AORAKI ALPINE LODGE MOUNT COOK 5
Staff
Investment Highlights
Opportunity
& Profitable Business
Mountain Views
Owner-Occupier
Established
Spectacular
Accommodation Included
Ensuite Rooms & Kitchen and Lounge
to all Village Amenities 6
16
Close
AORAKI MOUNT COOK NATIONAL PARK
Aoraki Mount Cook National Park is located in the South Island of New Zealand, 3-4 hours drive from Queenstown or Christchurch. Situated on the eastern flank of the Southern Alps, it contains New Zealand’s highest mountain, Aoraki/Mount Cook and includes most of New Zealand’s peaks over 3,000m.
The subject property is situated in the Mount Cook Village, 6km from the Mount Cook Airport. Aoraki Mount Cook Alpine Lodge is centrally located in Mt Cook Village on Bowen Drive, in close proximity to the Department of Conservation Visitor Centre and the Old Mountaineers Cafe.
Traditional hiking/climbing and snow-based adventures have been supplemented in recent years by new activities including mountain biking, Night Sky viewing and Glacier Lake Tours.
Aoraki Mount Cook National Park is regarded as the jewel in New Zealand’s Crown and has a long history of tourism and tourist services dating back to the late 1800’s. The area is synonymous with alpine climbing in New Zealand, being the home of the big mountains including the iconic Aoraki/Mount Cook.
An increase in demand for accommodation all year round has been experienced by all operators in the National Park, and the pressure on facilities and activities has led to discussions to consider park and ride controls for visitors as part of the National Park management plan review, currently underway.
The only village within the National Park is Mount Cook Village. The tranquil village is located in the Tasman Valley below the Tasman Glacier. To minimise human impact on the environment, accommodation levels are limited and land within the village is occupied by way of long term leases/concessions granted by the Department of Conservation (DOC).
8
Map 1 Overview National Park Management Plan Aoraki/Mount Cook
0 4 8 2 km Greymouth Quee nstown Aorak i/Mou nt Cook Natio nal Park boundar y Cons er vation par k Natio nal par k
e cially protec te d area
rve
wardship area 9
Sp
Rese
Ste
MOUNT COOK VILLAGE
At Mount Cook Village the Department of Conservation (DOC) acts as the leading local authority, assuming responsibility for rubbish collection, water supply, sewage, and roading. Other usual council services are provided by Mackenzie District Council. All land within the Mount Cook Village is owned by the Crown (Administered by DOC) and security of tenure is provided by way of long term leases/concessions.
Essentially the village is divided into three sections, commercial, visitor accommodation, and residential. Visitor accommodation properties are limited in number and include, The Hermitage, YHA Mount Cook, Aoraki Court Motel, Mount Cook Backpacker Lodge, Mount Cook Chalets, Mount Cook Motels, and the subject property. Just outside the village is Unwin Lodge and Glentanner Park Centre. It is estimated that approximately 300 rooms are available to tourists (this doesn’t include the various DOC huts located in the National Park).
Amenities within the Village include the Old Mountaineers Cafe, DOC Visitor Centre, Sir Edmund Alpine Centre, primary school, fuel depot and activity booking centres. Locals tend to visit Twizel or Tekapo for groceries. Air services are provided from Mount Cook Airport and Glentanner Aerodrome.
10
MOUNT COOK TOURISM
Annual visitor numbers pre-covid were typically over 1 million per year and with the ongoing recovery in tourism numbers post-covid, we would expect similar numbers of tourists in the short-term. The type of tourists visiting the National Park has changed over recent years. This is in part due to the wider offering of activities, especially with access further into the park. A good example of this is the Hooker Valley walk which passes the Mueller and Hooker Glacier Lakes, now recording 70,000 plus visitors over it per year.
Commercial visitor activities have expanded to include guided walks, motor boat and kayak trips on glacier lakes, scenic flights and heli hikes, 4WD tours and star gazing. The newest activity is the A2O Cycle Trail that starts within the Park itself. With New Zealand’s tourism market attracting tourists from a wide number of countries, this is also reflected in the visitors to Aoraki Mount Cook National Park.
Countries of origin that are strong in numbers are India and China, while visitors from Taiwan, Hong Kong, Korea, and Germany are prominent. Small numbers of South Americans, Philipinos, and Thai’s are emerging as new visitor groups. Numbers of Australian visitors have remained steady, while domestic numbers remain below international numbers.
With the expansion of tourism activities, this should entice visitors to stay longer in the National Park. With the limited nature of tourism accommodation within Mount Cook Village, demand should remain strong for existing providers.
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Zoning
Aoraki Mount Cook Lodge
12
Staff Accommodation
Map 12 Village zoning plan National Park Management Plan Aoraki/Mount Cook 0 200 400 100 m Roads Buildi ngs Cultu ral Activitie s Ove r l a ys Ove rnig ht Accom mo dation Ex clu de d Pe de str ian Pathways Amenity Area B oundary Stream bou ndar y P r o p o s e d Z o ne s Amenity O pe n Space Protec te d Eco log ical Commerc ial Commu nity Resid ential Resid ential - DOC Par k Ad ministration Visitor Accom mo datio n 13
Lease Summary
Lodge
CONCESSION NUMBER CA-121646
LESSOR
Minister of Conservation
CONCESSIONAIRE Aoraki/Mount Cook Alpine Lodge Limited
DATED
16th November 2006
18th September 2006 - Variation 17th January 2008 - Variation
LAND 706m²
CONCESSION ACTIVITY To build & operate an alpine style lodge
TERM
31 years from 1st January 2004
RENEWAL First right of refusal
FINAL
EXPIRY 31st December
FEE 4.5% of gross annual revenue CONCESSION FEE REVIEW 2024, 2027, 2030 2033
SERVICES LEVY $29,500 incl staff houses
CLAUSES (VARIATIONS) Remove Schedule 2 Clauses 4,5,6 which relate to costs of village development 14
2034 CONCESSION
COMMUNITY
SPECIAL
3 Pilots Way
CONCESSION NUMBER
54178-ACC
LESSOR Minister of Conservation
CONCESSIONAIRE Aoraki/Mount Cook Alpine Lodge Limited
DATED 3 November 2017
LAND 1100m²
CONCESSION ACTIVITY Staff Accommodation
TERM 30 years from 3rd November 2017
RENEWAL Nil
FINAL EXPIRY 2 November 2047
CONCESSION FEE $3,500pa plus GST
CONCESSION FEE REVIEW Three yearly
COMMUNITY SERVICES LEVY
Included in lodge fees
7 Pilots Way
CONCESSION NUMBER
50802-ACC
LESSOR Minister of Conservation
CONCESSIONAIRE Aoraki/Mount Cook Alpine Lodge Limited
DATED 3 November 2017
LAND 1100m²
CONCESSION ACTIVITY Staff Accommodation
TERM 30 years from 3rd November 2017
RENEWAL Nil
FINAL EXPIRY 2 November 2047
CONCESSION FEE $3,500pa plus GST
CONCESSION FEE REVIEW Three yearly
COMMUNITY SERVICES LEVY Included in lodge fees
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Tourism Market Overview
Aoraki Mount cook National Park which contains New Zealand’s highest mountain and surrounded by glacial lakes is one of New Zealand’s main tourism icons.
Traditional hiking/climbing and snow-based adventures have been supplemented in recent years by new activities including mountain biking, night sky viewing and glacier lake tours.
Latest monthly figures show visitor arrivals to New Zealand have reached 80% of pre Covid levels, reaching 303,400 for the month of November 2023.
On an annualised basis overseas visitors were 2.9 million, or 71% of the 2019 total of 3.89 million.
An indication of recent accelerated growth is a recent Queenstown Airport release which confirmed for the year ended December 2023, 2,410,615 passengers moved through the airport, which was more than the 2019 figure of 2,393,310. Of the 2023 total 839,000 or 34% were international visitors.
Aoraki National Park reached a milestone 1 million visitors mid - 2019, and recent market indicators confirm recent growth back to these levels.
Expressions of Interest Sales Process
The property is offered for sale via Expressions of Interest with a deadline for offers submitted by 4pm (NZST) Thursday 28 March 2024 (unless sold prior).
Offers can be emailed directly to one of the exclusively appointed Colliers team listed below, or delivered in a sealed addressed envelope to:
Colliers Otago
Top Floor
10 Athol Street Queenstown New Zealand
22 AORAKI ALPINE LODGE MOUNT COOK
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
• Lease Documentation
• Land Information Memorandum
All enquiries, requests for information and arrangements for site inspections are to be directed to the Colliers sole agents:
Barry Robertson
+64 27 433 5941 barry.robertson@colliers.com
Steve McIsaac
+64 21 680 304 steve.mcisaac@colliers.com
AORAKI ALPINE LODGE MOUNT COOK 23
Aoraki Alpine Lodge Mount Cook FOR SALE BY EXPRESSIONS OF INTEREST Closing Thursday 28 March 2024, 4pm (unless sold prior) colliersotago.co.nz/67027343 Steve McIsaac +64 21 680 304 steve.mcisaac@colliers.com Barry Robertson +64 27 433 5941 barry.robertson@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.