1 Onslow Road - Information Memorandum

1 Onslow Road, Lake Hayes Estate Information Memorandum

For Sale By Deadline Private Treaty closing at 4pm Tuesday 28 November 2023 (unless sold prior)

Introduction Colliers, as sole agents, have been appointed to market 1 Onslow Road, Lake Hayes Estate, Queenstown for sale.

This property is being offered For Sale

by Deadline Private Treaty, closing Tuesday 28 November 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/67026010

Tim Thomas +64 22 5433 210 tim.thomas@colliers.com

Data room documents available: • Information Memorandum • Record of Title & Unit Title Details • Land Information Memorandum • Lease Documents • Code Compliance Certificate All enquiries, requests for information and arrangements to undertake inspections in relation to this opportunity are to be directed to the listing agents below. Note, inspections are by appointment only.

Rory O’Donnell +64 27 445 3982 rory.odonnell@colliers.com

Contents

Executive Summary

4

Investment Highlights

6

Location & Zoning

7

Queenstown Market

8

The Property

10

Gallery

11

Tenancy Schedule

12

Plans

14

Record of Title

16

Deadline Sales Process

18

Due Diligence

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3

Executive Summary Address

1 Onslow Road, Lake Hayes Estate, Queenstown

Offering

A good quality, two level commercial building near Queenstown in the residential area of Lake Hayes Estate. This unique building comprises five separate tenantable areas comprising three retail areas and two office or accommodation areas above.

Vendor

MCS Holdings Lake Hayes Limited

Record of Title

548712

Legal Description

LOT 23 DP 440375

Tenure

Freehold

Area

Land 1,113m² Floor 373m² (approx)

Building Age

2011 - 2014

Zoning

Low-Density Residential

Rateable Value (as at 1 Sept 2021)

$3,280,000

Rates

Commercial QLDC $7,546.44 Commercial ORC $774.63 4

Residential QLDC $3,673.31 Residential ORC $383.34

5

Investment Highlights

ESTABLISHED FOOD & BEVERAGE OPERATOR

MODERN COMMERCIAL BUILDING

Few Beers Limited trading as The Hayes Bar & Grill

Estimated replacement cost in excess of $2.5m (building only)

HIGH PROFILE CORNER SITE

AMPLE OFF-STREET PARKING

1,113m² site being the only commercial offering in Lake Hayes Estate

18 car parks included with the

6

property

location indicative only

Location Lake Hayes Estates is accessed off the Frankton to Lake Hayes Road (SH6) and is located approximately 11 kilometres northeast of Central Queenstown, and approximately 500 metres south of Lake Hayes. It is an established subdivision with Nerin Square at its centre, and the property being positioned on the southern side of the square.

The closest amenities are located in Lower Shotover and Frankton, including primary schooling, shopping and recreational facilities. Further amenities are located in Queenstown, another 6km to the west.

Zoning Th property is included in the Low-Density Residential Zone under QLDC’s Operative District Plan. The District Plan includes low-density zoning that is within identified urban growth boundaries, and includes land that has already been developed.

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Queenstown Market Queenstown has become a destination of choice for people relocating from cities around New Zealand, as well as returning Kiwis from overseas. The region’s world-renowned lifestyle opportunities have made Queenstown highly attractive to may work-from-homers looking to move for better quality of life.

Queenstown Airport has revised its forecasts for passenger and aircraft movements upwards as the tourism recovery progresses. Around 50 aircraft movements (take offs and landings) are expected per day by 2025, comparable with pre-Covid aircraft movement levels in 2019.

In the commercial property market activity, rents and values are returning to pre-Covid levels, with confidence still strongly apparent. Recent sales transactions are recording strong yields, with no apparent discount for future interest rate risk being factored in, further signalling long-term confidence in the region’s growth.

In particular, Lake Hayes Estate and Shotover Country are home to an estimated 1,700 to 1,800 homes, and 6,500 people, creating a large catchment area for the food and beverage offering, The Hayes.

Both residential areas have experienced consistent property value growth over recent years with a median sales price over the last 12 months in excess of $1.3m for both areas.

The demand for commercial spaces in these areas is expected to remain strong, driven by the region’s popularity as a tourist destination and its appeal to a diverse demographic. As such, investing in commercial real estate in these neighbourhoods is likely to yield favourable returns over the long term.

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9

The Property

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A 373m² commercial property on a 1,113m² site

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Conveniently located in central Lake Hayes Estate

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Low-density residential zoning

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Ample off-street parking

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Significant outdoor area including dining area

•

Modern building over two levels

The building comprises 5 separate tenantable areas, comprising 3 retail areas, and 2 residential units above, one of which is currently being used as a commercial office space. The current lease is over the entire property to a single tenant, who sub-leases the first floor units.

The building is of an attractive Colonial style and incorporates Cedar timber weatherboards, some plastered walls and schist stone to the entrance.

The property is also consented to be separately Unit Titled into 3 separate Units. PU2 being the Goodstays subleased space and the 2 upper-level residential apartments. The Landlord has 3 years from 8 Sept 2023 to complete this subdivision under the current consent.

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Gallery

11

Tenancy Schedule Few Beers Limited trading as The Hayes Bar & Grill

Commencement Date

23 December 2023

Initial Term

10 years

Initial Expiry Date

23 December 2033

Rights of Renewal

2 x 5 years

Final Expiry Date

23 December 2043

Rent Reviews

3% increases annually with market reviews every 3 years

Current Net Rental + GST

$164,800.00 p.a.

Management Fee

4% - $6,592 + GST p.a.

Total Rent

12

$171,392 + GST p.a.

13

Plans

14

15

Record of Title

16

??

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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.

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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.

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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.

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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, Tuesday 28 November 2023 (unless sold prior).

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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 Record of Title & Unit Title Details Land Information Memorandum Lease Documents Code Compliance Certificate

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

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Tim Thomas

Rory O’Donnell

+64 22 5433 210 tim.thomas@colliers.com

+64 27 445 3982 rory.odonnell@colliers.com

1 Onslow Road, Lake Hayes Estate, Queenstown FOR SALE BY DEADLINE PRIVATE TREATY closing 4pm, Tuesday 28 November (unless sold prior) Colliers, Top Floor, 10 Athol Street, Queenstown colliersotago.co.nz/67026010 Tim Thomas +64 22 5433 210 tim.thomas@colliers.com

Rory O’Donnell +64 27 445 3982 rory.odonnell@colliers.com

Accelerating success.