Aoraki Alpine Lodge | Mount Cook Information Memorandum For Sale by Negotiation
Accelerating success.
Introduction Colliers have been appointed exclusively to market for sale Aoraki Alpine Lodge, Mount Cook.
This property is being offered For Sale by Negotiation.
Data room link: propertyfiles.co.nz/ property/AorakiAlpineLodge
The offering comprises both the accommodation business and the buildings/improvements that the business operates from.
Data room documents available: • Information Memorandum • DOC Concession Documentation • Land Information Memorandum • Draft Sale & Purchase Agreement • CA for access to financials
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.
colliersotago.co.nz/67027343
Mark Simpson +64 27 490 6394 mark.simpson@colliers.com Michael Lough +64 21 030 4270 michael.lough@colliers.com
Contents
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
Due Diligence
25
AORAKI ALPINE LODGE MOUNT COOK
Executive Summary Aoraki Mount Cook Alpine Lodge
ADDRESS
107 Bowen Drive, Mount Cook Village
SITE AREA
706m²
LEGAL DESCRIPTION
PT RES 2652 MT COOK VILLAGE BLK XIV MUELLER SD
LAND TENURE
Department of Conservation Authority Lease commencing from January 2004 for 31 years. First right of refusal at end of term.
CONCESSION SITE RENTAL FEE
Currently 4.5% of gross annual revenue paid annually
ZONING
Park / Reserve (National Park)
COMMUNITY SERVICE CONTRIBUTION
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.
MACKENZIE DISTRICT COUNCIL RATES (2023/2024)
$4,485.90
DESCRIPTION
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.
RATEABLE VALUE (as at 1 July 2023)
Capital Value - $2,400,000 Land Value - $210,000 Improvement Value - $2,190,000
2
AORAKI ALPINE LODGE MOUNT COOK
Ground Floor
First Floor
3
AORAKI ALPINE LODGE MOUNT COOK
Staff Accommodation
ADDRESS
3 Pilots Road Mount Cook Village
7 Pilots Road Mount Cook Village
SITE AREA
1100m²
1100m²
LEGAL DESCRIPTION
SEC 20 BEING PT RES 2652 MT SEC 21 BEING PT RES 2652 MT COOK VILLAGE BLK XIV COOK VILLAGE BLK XIV MUELLER MUELLER SD SD
CONCESSION SITE RENTAL FEE
$3,500 + GST p.a per property $3,500 + GST p.a per property
LAND TENURE
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
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)
MACKENZIE DISTRICT COUNCIL RATES (2023/2024)
$819.80
DESCRIPTION
3 Pilots Road is a 1970’s 7 Pilots Road is a 1970’s weatherboard dwelling, weatherboard duplex, approximately 110m² approximately 120m² over 2 units providing 3 bedrooms, 2 living with 2 bedrooms each. & 1 bathroom.
$796.10
Capital Value - $390,000 RATEABLE VALUE (as at 1 July 2023)
Land Value - $195,000 Improvement Value $195,000
4
Capital Value - $370,000 Land Value - $195,000 Improvement Value - $175,000
AORAKI ALPINE LODGE MOUNT COOK
5
Investment Highlights
Owner-Occupier Opportunity
Established & Profitable Business
Staff Accommodation Included
Spectacular Mountain Views
16 Ensuite Rooms & Kitchen and Lounge
Close to all Village Amenities
6
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
Greymouth
Queenstown
Aoraki/Mount Cook National Park boundary Conservation park National park Specially protected area Reserve Stewardship area
Map 1 Overview 0
National Park Management Plan Aoraki/Mount Cook
9
2
4
8 km
G
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.
11
Zoning
Aoraki Mount Cook Lodge
Staff Accommodation
12
Proposed Zones Amenity Open Space
Pedestrian Pathways
Protected Ecological Commercial
Stream boundary Amenity Area Boundary
Community
Buildings Roads
Residential
Overlays
Residential - DOC Park Administration
Overnight Accommodation Excluded
Visitor Accommodation Cultural Activities
Map 12 Village zoning plan 0
National Park Management Plan Aoraki/Mount Cook
13
100
200
400 m
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 2034
CONCESSION FEE
4.5% of gross annual revenue
CONCESSION FEE REVIEW
2024, 2027, 2030 2033
COMMUNITY SERVICES LEVY
$29,500 incl staff houses
SPECIAL CLAUSES (VARIATIONS)
Remove Schedule 2 Clauses 4,5,6 which relate to costs of village development 14
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
15
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.
AORAKI ALPINE LODGE MOUNT COOK
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:
Mark Simpson +64 27 490 6394 mark.simpson@colliers.com
Michael Lough +64 21 030 4270 michael.lough@colliers.com
25
Aoraki Alpine Lodge Mount Cook FOR SALE BY NEGOTIATION
colliersotago.co.nz/67027343
Mark Simpson +64 27 490 6394 mark.simpson@colliers.com
Michael Lough +64 21 030 4270 michael.lough@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.