Colliers as sole agents, have been appointed to market for sale Lot 6, DP 529943 Hansen Road, Frankton, Queenstown.
This property is being offered For Sale by Deadline Private Treaty closing Thursday 17 October 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 which can be accessed upon registration.
colliersotago.co.nz/67030558
location indicative only
Data room documents available:
• Information Memorandum
• LIM
• Title
• Zoning Plans
• Proposed Roading Changes
• Power Realignment Estimates
• Sale & Purchase Agreement
All enquiries, requests for information and arrangements to undertake inspections in relation to this opportunity are to be directed to the listing agent below.
Rory O’Donnell
+64 27 445 3982
rory.odonnell@colliers.com
Mary-Jo Hudson +64 21 667 880
maryjo.hudson@colliers.com
Executive Summary
ADDRESS
DESCRIPTION
Lot 6 DP 529943 Hansen Road, Frankton, Queenstown
The property comprises an elevated, undulating block of freehold land with access off Hansen Road. Hansen Road is a minor road extending off SH6 just east of ‘BP Corner’, the main Frankton intersection at the gateway to Queenstown. This position is geographically central to the wider Queenstown area. Extensive views including Frankton Flats and the surrounding alpine landscape. Lake views to the west from near the southern boundary. The land falls in an undulating fashion from the north to the southern boundary, with more steeper sections at the southern end. Power lines for Aurora bisect the block near the northern and southern boundaries. Split zoning including Medium Density Residential and Business Mixed Use enables a wide range of development options.
TENURE Freehold
LEGAL DESCRIPTION Lot 6 DP 529943
CERTIFICATE OF TITLE 860237
LAND AREA 3.1396 hectares
LOCAL AUTHORITY Queenstown Lakes District Council (QLDC) ZONING Split Zoning: 1.9770 hectares Medium Density Residential 1.1626 hectares Business Mixed Use (Approximate areas only)
SALES PROCESS
For Sale by Deadline Private Treaty, closing Thursday 17 October 2024 at 4pm (unless sold prior)
Property Highlights
Zoning
Split zoning including Medium Density Residential & Business Mixed Use allowing for multiple development options.
Central Location
Geographically central location to the wider Queenstown area.
Generous Land Area
Elevated, undulating site of 3.1396 hectares on a freehold title.
Remarkable Views
Impressive views over Frankton Flats, Lake Wakatipu to the west, The Remarkables mountain range to the south and Coronet Peak to the north.
LOT 6 DP 529943
State Highway 6
locations indicative only
Remarkables Residences
Queenstown Central Retail Centre
Five Mile Shopping Centre
Industrial
Precinct
International Airport
Remarkables Primary School
Five Mile Villas
Queenstown
Remarkables Park & Wakatipu High School
Frankton Flats Overview
This development opportunity is located amidst one of Queenstown’s fastest growing commercial areas. Over the past few years, there has been a noticeable shift in population and businesses away from the Queenstown CBD, into the Frankton area. The site is located within close proximity of Queenstown International Airport, the commercial centres at Five Mile, Queenstown Central and Remarkables Park, Frankton Industrial Precinct, plus schools servicing the wider community.
This site forms part of a wider commercial & residential development, with significant capacity for commercial and residential expansion on this north side of SH6 from the BP service station corner to the Shotover River.
The Property
The site is an elevated undulating block of land facing south east. From the elevated north end of the site, the land falls in an undulating fashion toward the south boundary with steeper sections at the southern end. The site enjoys impressive views out over the commercial development on the Frankton Flats, Queenstown Airport and the surrounding alpine landscape including The Remarkables. From the southern end of the block, extensive views to the west out over the Frankton Arm of Lake Wakatipu. Overhead power lines (for Aurora) bisect the block near the northern and southern boundaries. Open, clear paddock land over most of the Medium Density Residential zoned land while the southern Business Mixed Use land is mainly scrub land.
The property is located on Hansen Road directly above the commercial hub comprising Country Lane and the Aurora substation. Hansen Road is a minor road extending off State Highway 6, just east of the main intersection for SH6 southbound and SH6 northbound, known as ‘BP Corner’, Frankton. The location is at the gateway to Queenstown and geographically central to the wider Queenstown area. The property is positioned within approximately 3km of Queenstown International Airport.
boundary indicative only
Zoning
Lot 6 DP 529943 (Site):
Note - Copies of the images and plans set out in this zoning section are provided in the dataroom.
1. The Site is split zoned Business Mixed Use Zone (BMU) identified in dark red (estimated area of 1.1626ha); and Medium Density Residential Zone (MDR) id entified in orange (estimated area of 1.977ha). Refer image 1.
2. The Site is also partly within the Queenstown Airport Outer Control Noise Boundary (see Image 1 - the orange line running through the Site identifies this boundary). The consequence is that ‘Activities Sensitive to Aircraft Noise’ within this boundary are ‘prohibited’ (meaning consent cannot be applied for). These activities are: any residential activity, visitor accommodation activity, residential visitor accommodation activity, homestay activity, community activity and day care facility activity as defined in the Queenstown Lakes Proposed District Plan including all outdoor spaces associated with any education activity.
3. Image 2 shows the site in its wider context, including the Buzz Stop/Country Lane complex:
4. The BMU Zone is very broad, and at a high level provides for:
• Commercial, business, retail and residential uses that supplement the activities and services provided by town centres.
• All new buildings require at least restricted discretionary consent, but a number of activities could be (in general terms) ‘anticipated’, trade supplies, community activities, office and retail.
• Building coverage – 75%
• Building height – 12m (permitted) or up to 20m (as a restricted discretionary activity)
• Commercial activities less than 100m² GFA are restricted discretionary (beyond this need to apply for non-complying consent).
5. The Site is also within the Frankton North structure plan area, which means:
• Subdivision must be in accordance with the structure plan (see Image 3). In general terms, this mostly relates to planning for the new road corridor and ensuring no new road frontage connections onto the SH6 (access to the subject property must be off Hansen Road), all subdivision which complies with the structure plan is a restricted discretionary activity
• BMU portion – no minimum subdivision size
• MDR portion – minimum 250m² subdivision
• Warehousing and Lock-up Facilities (including vehicle storage) are a prohibited activity
6. The MDR Zone, at a high level provides for:
• Primarily residential land uses, but may also support limited non-residential activities where these enhance residential amenity or support an adjoining Town Centre, and do not impact on the primary role of the zone to provide housing supply. The main forms of residential development anticipated are terrace housing, semi-detached housing and detached townhouses on small sites of 250m² or greater.
• 3 residential units per site as a permitted activity (and 4 as a restricted discretionary), subject to compliance with the relevant standards including a maximum density of one unit per 250m²
• Building coverage - 45%
• Building height – 8m above existing ground level (beyond this, need to apply for noncomplying consent)
• 3m setback from roads and 1.5m from other boundaries;
• Commercial activities less than 100m² GFA are restricted discretionary
Image 1 - Indicative outline only
Image 2 - Indicative outline only
Buzz Stop / Country Lane
Zoning (continued)
7. The Aurora Distribution Centre also runs through the Site (the grey dashed lines running through the Site shown on Image 3), which has additional setback limitations of 8m for buildings (unless you get Aurora’s consent, refer to the NZ Electrical code of practice for electrical safe distances). The 8m setback is indicated on Image 3, of the Frankton North structure plan. Buildings within 45m of the boundary of Transpower’s Frankton Substation are a Controlled Activity.
8. The Council has notified the Urban Intensification Variation to the Queenstown Lakes Proposed District Plan (PDP). This Variation seeks to amend the PDP by increasing heights and densities in residential and business zones, close to the commercial centres in Queenstown, to enable intensification of development. The Variation is currently notified and submissions are being processed and summarised.
• In the BMU Zone, an increase in discretionary building height from 12m to 16.5m at Frankton North and a relaxation and simplification of setback and sunlight access standards for sites that adjoin a residential zone
• In the MDR Zone an increase height limit to 11m +1m (for pitched roofs) in most locations and relaxation and simplification of recession plane standards. [increased from 8m], removal of maximum site density standard of 1 per 250m², but maintain minimum lot area of 250m², amendment of minimum lot dimensions from 12m x 12m to 10m x 12m and new outdoor living space and outlook space standards.
Interested parties are recommended to seek their own Town Planning advice as part of their due diligence process.
Image 3- Indicative outline only
LOT 6
DP 529943
Proposed Roading Changes
Planned changes to State Highway 6 Frankton-Ladies Mile Highway announced by NZ Transport Agency Waka Kotahi (NZTA) and Queenstown Lakes District Council (QLDC) through Kā Huanui a Tā huna will include a series of Traffic Lights from the BP corner to Hardware Lane, including Hansen Road in a new realigned position. See plan opposite showing an indication of the location of planned traffic lights. Hansen Road will be realigned just south of the subject property & Buzz Stop, providing a new T-intersection with SH6 (refer position of Hansen Road Link noted as ‘Realigned Hansen Road’ on plan opposite). More detailed plans for these changes are provided in the dataroom.
Design changes mean the Joe O’Connell Drive and the new Hansen Road Link will become T-intersections with SH6 Frankton-Ladies Mile Highway. Once built, right turns out of Hansen Road Link onto SH6 will be prevented until traffic lights are installed. Until traffic lights are installed, vehicles coming out of Hansen Road Link will initially need to turn left and change direction at the Five Mile roundabout, 400m away.
The planned changes described will improve access in and out of Hansen Road once complete. Long term, traffic lights will provide a more controlled and safer intersection at Hansen Road.
www.nzta.govt.nz/projects/queenstown-package/
Frankton corridor improvements (Hardware Lane to SH6/SH6A intersection)
Record of Title
RECORD OF TITLE UNDER LAND TRANSFER ACT 2017 FREEHOLD
Guaranteed Search Copy issued under Section 60 of the Land Transfer Act 2017
Identifier
860237
Land Registration District Otago
Date Issued 10 May 2022
Prior References 332749 OT16C/178
Estate Fee Simple
Area 3.1396 hectares more or less
Legal Description Lot 6 Deposited Plan 529943
Registered Owners
Lynley Grace Hansen and Walter John Rutherford as to a 1/4 share
Lynley Grace Hansen, Walter John Rutherford and Tarbert Trustees (2022) Limited as to a 1/4 share
Lynley Grace Hansen, Walter John Rutherford and Tarbert Trustees (2022) Limited as to a 1/4 share
Lynley Grace Hansen, Walter John Rutherford and Tarbert Trustees (2022) Limited as to a 1/4 share
Interests
383282 Compensation Certificate pursuant to Section 17 Public Works Act 1948 - 17.3.1972 at 1.41 pm
Subject to a right (in gross) to convey electricity over part marked J on DP 529943 in favour of Aurora Energy Limited created by Easement Instrument 8927750.2 - 28.3.2018 at 12:54 pm
Land Covenant (in gross) in favour of Queenstown Airport Corporation Limited created by Covenant Instrument 11848603.1 - 17.12.2020 at 8:33 am
Subject to a right of way over part marked V on DP 529943 created by Easement Instrument 11417590.6 - 10.5.2022 at 9:27 am
The easements created by Easement Instrument 11417590.6 are subject to Section 243 (a) Resource Management Act 1991
Land Covenant in Covenant Instrument 11417590.12 - 10.5.2022 at 9:27 am
Land Covenant in Covenant Instrument 11717383.8 - 23.6.2022 at 4:09 pm
Queenstown Market
Economic activity in the Queenstown Lakes District grew 3.8% in the year to March 2024, according to Infometrics provisional GDP estimates. Nationally, GDP grew by only 0.2%. The Queenstown Lakes District continues to outperform the rest of the country with 4.4% GDP growth in the March 2024 quarter.
Growth in employment of Queenstown Lakes District residents continue to accelerate, up to a record 11.1% in the year to March 2024, likely enabled by the record population growth of 8.0% in the year to June 2023.
Building consents are down by 11% for the year ended March 2024; however, this is considerably better than the national drop of 25% over the same period.
We have seen a significant decrease in sales volume over the past eighteen months compared to the previous comparable period. House values in the Queenstown Lakes District grew by 1% in the March 2024 quarter, with low sales volumes and a glut of listings creating a buyer’s market. The average house price in the district was $1.78 million; approximately 12.2 times the average household income for the district.
Projected future demand is expected to remain steady as the population increases. Statistics New Zealand estimates average annual growth of 1.3% for the Queenstown Lakes District between 2023 and 2048. These numbers are slightly lower for the district than the Queenstown Lakes District Council’s projected demand figure of 1.8% using a projection period of 2021 to 2051.
As international visitors have been coming back into the market, we have seen an increasing number of residential landlords switching from the relative security of a long-term tenant to the higher financial returns and flexibility from shortterm accommodation. This movement has created an ‘accommodation crisis’ for long-term renters within Queenstown, with fewer rental properties available and rapid increases in rents. Residential rents had a 12.3% increase in the year ended March 2024 in the Queenstown Lakes District, compared to a 6.7% increase nationwide.
Queenstown Airport has revised its forecasts for passenger and aircraft movements upwards as tourism recovery progresses. Around fifty aircraft movements (take-offs and landings) are expected per day by 2025, which is comparable with pre-Covid aircraft movement levels in 2019. Risks to Queenstown’s tourism recovery include a diminished guest experience due to factors including road works disrupting the town centre and low availability of staff. The lack of seasonal workers is a major frustration for tourism and hospitality operators.
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, Thursday 17 October 2024 (unless sold prior).
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 you will be required to register in the dataroom.
• Information Memorandum
• LIM
• Title
• Zoning Plans
• Proposed Roading Changes
• Power Realignment Estimates
• Sale & Purchase Agreement
All enquiries, requests for information and arrangements for site inspections are to be directed to the Colliers sole agent:
