Accelerating success. 38 Ngapara Street Alexandra Information Memorandum For Sale by Negotiation Asking Price $1,050,000 plus GST (if any)
Introduction 2 Executive Summary 3 Investment Highlights 4 Location 5 Zoning 6 Market Insights 7 Property Summary 8 Tenancy Schedule and Leases 10 Record of Title 13 Due Diligence 14 Contents
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Record of Title Identifier 18B/886 Area 5,220 sqm more or less
Local Authority Central Otago District Council
Tenure Freehold
Legal Description Lot 1, Deposited Plan 26407
Address 38 Ngapara Street, Alexandra
For sale by negotiation is an attractive 5,220 sqm industrial zoned site with six older style industrial buildings located thereon, together with associated sealed yards and fencing. The property is situated in Alexandra’s original industrial precinct near what is now the Central Otago Rail Trail, around one kilometre north of the Town Centre.
Executive Summary
Description An attractive 5,220 sqm industrial zoned site with six older style industrial buildings.
Zoning Industrial Resource Area Rentals $48,565.22 plus Outgoings plus GST
Sale Process For Sale by Negotiation Fixed Price $1,050,000 plus GST
Ratings of between 40% to 100%
Expansive Land Holding
Industrial Resource Area CODC
Potential to add more
Potential to improve some buildings and increase rentals
Expected growth on the back of Cromwell and Queenstown
Older improvementsstyle
Investment Highlights
5,220 square metres
Industrial Zoning
Expanding Demand
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InitialProcedureEvaluation(IEP)
Six Buildings
Location
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Located off Ngapara Street toward the northeast of the Alexandra Township approximately two kilometres from the Town Centre. Ngapara Street comprises light industrial / service properties and a camping ground / holiday park to the northern end. Alexandra is largely a service town, with a population of around 5,000 permanent residents and is situated in Central Otago approximately 95 kilometres southeast of Queenstown.
Local Authority Area Central Otago District Council Planning Scheme
Industrial Resource Area
include: Subdivision plus any extension, upgrade or expansion that changes or increases the intensity or scale of the effects of a use that has status as a scheduled activity, or any other community facility lawfully established prior to the notification of this plan.
1. Retail activity 2. Bulk and location of buildings 3. Noise 4. Screening 5. Signs 6. Off road loading 7. Car Parking 8. ControlledLightspillactivities
• 1 car park per 100m2 of gross floor area or 1 per 2 staff members whichever is the greater.
TheReasonIndustrial
Rules Rules include:
• No front yards are required, side and rear yards only required where the site adjoins a residential or Business Resource Area.
Any activity that is not listed as either a controlled, discretionary (restricted) or discretionary activity and that complies with the rules and standards set out in Sections 12 to 15 of the Plan, and the standards set out in Section 9.3.5 is a permitted activity.
Zoning
Zoning
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Resource Areas are areas within which environmental standards are set at a lower level than in other resource areas. The standards set out in Section 9.3.5 will ensure that existing amenity values are maintained, and adjoining resource areas are not adversely affected. These standards relate to the following matters:
An overview of the main planning related controls over the subject property are outlined as follows:
• Maximum height for buildings is 1.5 times the distance from the boundary of any adjacent Resource Area or 10 metres whichever is the lesser.
Operative District Plan 2008
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(Woolworths NZ group) supermarket chain is currently building a 3000sqm supermarket in Centennial Avenue through to Ventry Street. Additionally, GWD Toyota have completed their new Alexandra dealership on the corner of Centennial Avenue and Brandon Streets.
There are a growing number of investors willing to purchase in the current environment, with some growth considered ‘due’ in the Alexandra market, after a prolonged period of reasonably static values. Over the last three to four years industrial land value levels in nearby Cromwell have increased to between $450/sqm to $550/sqm with closer to $600/sqm being obtained when fronting McNulty Road. We expect this will have a flow on effect to the Alexandra industrial market.
Alexandra is primarily a rural service township, being the gateway to Central Otago. The local economy is underpinned by farming and horticulture activities with more recently the development of extensive vineyard areas and to a lesser extent cherries. In recent years it has benefited from the Central Otago Cycle Rail Trail that extends from Middlemarch to Clyde. Tourist activities in the Alexandra locality include wine tasting, boating and fishing on nearby Lake Dunstan and activities associated with former gold mining in the Countdownarea.
A new residential subdivision is planned for the area between Dunstan and Boundary Roads with some 71 lots becoming available. We understand that some 200 sites will eventually be developed in this area. This will go some way to alleviate the shortage of vacant sites available within the town.
Market Insights
An older style building dating to the circa 1930 period, clad in timber weatherboards and providing a workshop area, office and basic amenities. Corrugated iron roof, some hardboard interior wall Estimatedlinings. gross lettable area of 250.2 sqm plus a mezzanine of 23 sqm.
Building 4 Small Workshop
A smaller specialist building of concrete block masonry construction in average condition. Corrugated steel roof. Estimated Total Area 24.5 sqm.
Site Improvements
A modernised (approx. 1940’s) building providing general office accommodation together with staff room and amenity areas. Carpeted floors to part of the offices. Around 80 sqm of this building is shared between the other tenancies to provide kitchen and bathroom amenities. Concrete flooring with predominantly concrete block walls to a painted plaster finish with a corrugated steel roof over. Single glazed aluminum joinery. Part plasterboard and part Pinex ceilings. Two heat pumps.
Building 1 Office Block
Building 5 Larger Workshop
A structure dating around the 1980 period. Galvanised metal sheathing, good stud height and three roller doors. Estimated Total Area 267.7 sqm.
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The subject six buildings share a large 5,220 sqm site with expansive areas of concrete yard.
Building 3 Spannerworx
Building 6 Low stud Smaller workshop
A 1960’s era low stud workshop with three steel roller doors providing vehicle access. Construction includes part concrete block and the balance in corrugated steel. The lease includes shared use of the Building 1 amenity areas plus shared yard to provide access. Approximate gross lettable area of 132 sqm with around 731 sqm of yard.
Yards are extensive and have predominantly concrete surfaces with part asphalt and chip seal surfaces. Other site improvements include some timber boundary fencing and some wire security fencing.
Property Summary
Also an earlier building dating to the 1930 period and providing service facilities for larger vehicles, it incorporates a 1 tonne gantry. Attached is a steam cleaning bay. Timber framed clad in a timber weatherboard cladding with a corrugated iron roof. The south eastern wall has been replaced in corrugated ApproximateColorsteel.grosslettable area of 381.9 sqm with around 1,316 sqm of yard.
Subject to measurement the offices provide an area of around 152.8 sqm plus use of the adjoining amenities plus good car parking. (232.8 sqm in total)
Building 2 Dangerous Goods Shed
The property is legally described as all that parcel of land containing 5,220 sqm more or less being Lot 1, Deposited Plan 26407. This is contained in Record of Title Identifier
our perusal of the Record of Title that the property is subject to the following interests:
WeOwnershipnotefrom
Property Summary
Building CapacityAssessedSeismic%NBS Office B1 60% GoodsDangerousB2 >100% Drilling Store B3 >100% Workshop - B4 40% Workshop - B5 45% WorkshopSpannerworx-B6 >100%
We do not believe that these encumbrances have a detrimental impact on value.
LEGAL DESCRIPTION
• Subject to an easement to drain sewage and to convey water.
our perusal of the Computer Freehold Register that the property is in the registered proprietorship of Penman Property (1992) Ltd with a mortgage registered to Bank of New Zealand.
We have been provided with an Initial Evaluation Procedure (IEP) Seismic Assessment by Opus International Consultants Limited. The building scores were as follows:.
• Subject to Section 11 Crown Minerals Act 1991.
We18B/886.notefrom
• Subject to Part IV A Conservation Act 1987.
SEISMIC STUDY
The building currently has two tenancies operating on a month to month basis plus a recently completed lease to RJ Sam Brown for Building 6. Heads of Terms have been agreed for Buildings 3 and 4 subject to Lessor improvements.
Current Tenancy Schedule
Leases
Premises:
Spannerworx Automotive Limited (EXPIRED) Building 3
Business Use: Mechanical Workshop
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Rights of Renewals:
Outgoings: All standard Outgoings as per a Sixth Edition ADLS Deed of Lea
Annual Rental: $12,000 Plus GST until 6 November 2016 and $15,000 Plus G thereafter.
Final Expiry: 6 November 2024 (not renewed 7 November 2021)
Proportion of Outgoings: 100%
Tenancy Schedule & Leases
Rent Reviews: On each renewal (3 yearly)
That part of the Landlord’s premises at 38 Ngapara Stre Alexandra as is outlined in green on the attached plan.
Lease Term & Commencement: 3 years from 7 November 2015.
We have been provided with a signed copy of the Deed of Lease dated 9 November 2015 between Penman Property (1992) Limited as Landlord and Spannerworx Automotive Limited as Tenant, which is summarised below:
Two further terms of 3 years each.
Premises: The entire Building 6 of approximately 132 sqm located within Ngapara Street, Alexandra (Lot 1 DP 26407) plus the surround yard of approximately 731 sqm and highlighted yellow.
Business Use: Industrial warehouse storage and workshop.
Final Expiry: 6 November 2024 (not renewed 7 November 2021)
RJ Sam Brown (2014) Limited – Building 6
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Lease Term & Commencement: 3 years from 1 May 2022
Proportion of Outgoings: 12.3%
Outgoings: All standard Outgoings as per ADLS Deed of Lease.
Rent Reviews: Market Reviews two (2) yearly from 30 October 2018
Proportion of Outgoings: 100%
Premises: That part of the Landlord’s premises at 38 Ngapara Stre Alexandra as is outlined in green on the attached plan.
Business Use: Mechanical Workshop
Rights of Renewals: Two further terms of 3 years each.
We have been provided with a signed copy of the Deed of Lease dated 8 September 2017 between Penman Property (1992) Limited as Landlord and Spannerworx Automotive Limited as Tenant, which is summarised below:
Final Expiry: 30 April 2028
Spannerworx Automotive Limited (EXPIRED) – Building 4 (front)
Annual Rental: $16,000 plus GST.
Outgoings: All standard Outgoings as per a Sixth Edition ADLS Deed of Lea
Rent Reviews: CPI rent reviews each and every anniversary of t Commencement Date that is not a renewal date. Upon dates renewal the rent shall be increased by the greater of CPI increa or Market Rental level.
Rights of Renewals: One (1) further term of 3 years.
Annual Rental: $4,000 Plus GST
Lease Term & Commencement: An initial term commencing 1 September 2017 and expiring November 2018.
Total operating expenses are approximately $23,208.45 which includes rates and equates to approximately $17.48 per sqm.
$520.00
Inc. GST Exc. GST inspectionsBuilding
Other Outgoings
BWOF fees $200.00
ORC rates $279.92 $243.41 CODC Rates $3,819.09 $3,320.95 $4,284.36 Insurance $18,924.09
Operating Expenses
Total Outgoings Excl. of GST $23,208.45
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Record of Title
Mobile: +64 27 431 3278
• Land Information Memorandum
Email: doug.reid@colliers.com
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• Record of Title and Interests
• Information Memorandum
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.
Due Diligence
• Lease Documentation
• Sale & Purchase Agreement
All enquiries, requests for information and arrangements for site inspections are to be directed to the Colliers sole agent:
Doug Reid
Disclaimer: The opinions, estimates and information given herein or otherwise in relation hereto are made by Colliers and affiliated companies in their best judgement, in good faith and as far as possible based on data or sources which are believed to be reliable. The material contained herein is not intended to substitute for obtaining individual advice from Colliers or another advisor able to provide the services of a qualified professional person. Colliers, its officers, employees and agents expressly disclaim any liability and responsibility to any person whether o reader of this publication or not in respect of anything and of the consequences of anything done or omitted to be done by any such person in reliance whether wholly or partially upon the whole or any part of the contents of this publication. COPYRIGHT Colliers. All rights reserved. No part of this work may be reproduced or copied in any form or by any means (graphic, electronic or mechanical, including photocopying, recording, recording taping, or information retrieval systems) without the written permission of Colliers. Top Floor, 10 Athol Street Queenstown, 9300 03 441 0790 colliersotago.co.nz Accelerating success 38 NgaparaAlexandraStreet FOR SALE BY NEGOTIATION ASKING PRICE $1,050,000 plus GST (if colliersotago.co.nz/67020522any)
