56 Sunderland Street, Clyde Information Memorandum
Asking Price $2,000,000 plus GST (if any)
Accelerating success.
For Sale - Clyde Central, 56 Sunderland Street, Clyde Asking Price $2,000,000 plus GST (if any)
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.
https://www.propertyfiles.co.nz/56SunderlandSt
Data room documents available:
• Information Memorandum
• Certificates of Title and Interests
• Land Information Memorandum
• Prior Resource Consent Documents
• NDA - for financial information
All enquiries, requests for information and arrangements to undertake inspections in relation to this opportunity are to be directed to the listing agent below.
Mark Simpson
+64 27 490 6394
mark.simpson@colliers.com
Rory O’Donnell
+64 27 445 3982
rory.odonnell@colliers.com
Executive Summary
Introduction
This Information Memorandum provides a high-level summary to assist with a purchaser’s assessment of the property and the business Freehold Going Concern (FHGC). Upon signing and returning the Confidentiality Agreement, contained in the secure online data room, access will be given to further due diligence information, including the business financial summary.
Summary
Clyde Central is an established boutique accommodation complex, located on the edge of the historic Clyde Town Centre. With a total site area of 2,491m² in 5 titles, with 7 units, a 3-bedroom residence, and associated buildings, this is a property with solid growth potential and options to expand. In addition the option exists to purchase the adjoining residential 830m² section which has consent for a 4 unit apartment development.
Since taking ownership in 2019, the existing owner has completed a full re-brand of the business, re-positioning it as a boutique accommodation service offering for Clyde to take advantage of the growing FIT tourism sector (see www.clydecentral.co.nz).
This has extended to include implementing new online systems to allow full off-site management and booking system, the addition of full bike storage facilities, and refurbishment of the historic character building to provide a character Schist building for breakfast and other hosted guest events. A comprehensive maintenance and refurbishment programme has also been initiated, with the first 2 units completed in 2022 to include new fit out, re-lining, insulation, painting, and heating.
The property has also been connected to the new town sewage system, decommissioning the old septic tanks.
Accordingly, the property is well-positioned to take advantage of the ongoing economic and tourism growth expected for Clyde.
FHGC INVESTMENT
Real Estate & Business providing solid holding income
LOCATION
Prime location close to Clyde’s main street and cycle trails
TIGHTLY HELD GROWTH AREA
Scarce freehold property in Clyde in separate titles able to be split
DEVELOPMENT POTENTIAL
Rare opportunity to acquire an established accommodation complex with future development potential
Adjoining 830m² section also available ADDITIONAL VACANT SECTION
Property & Business Features
Established profitable business showing growing returns, experienced management and online booking systems in place to allow full off-site management (current manager lives off-site)
7 Units offering accommodation for up to 29 guests
3 bedroom residence - currently utilised as additional accommodation
Associated buildings including stables and historic schist building
Outdoor entertainment and BBQ area, bike station and secure storage
Total land area of 2,491m²
Summary of Accommodation
These retro style accommodation units were originally constructed in the late 1970’s. Construction comprises (mostly) concrete foundations, concrete block walls, a mixture of timber and aluminium joinery and tile roofing. Two of the units have been recently fully refurbished, with the balance in good condition, commensurate with its age.
One Bedroom Unit (x1)
Number of Rooms 1 room
Number of Beds 1 queen bed
Unit has a self-contained kitchen (microwave, kitchen, oven), coffee machine, TV, lounge and dining furniture and bathroom.
Maximum occupancy: 2 people
Two Bedroom Units (x2)
Number of Rooms 2 rooms
Number of Beds 1 queen bed & 2 singles
Spacious unit with open plan kitchen and living area, self-contained kitchen and bathroom.
Maximum occupancy: 5 people
Premium Two Bedroom Unit (x3)
Number of Rooms 2 rooms
Number of Beds 1 queen bed & 2 singles
Renovated in winter 2022, unit has self-contained kitchen, dining and lounge area with a sofa bed, and bathroom with separate toilet.
Maximum occupancy: 5 people
Family Room (x1)
Number of Rooms 1 room
Number of Beds 1 queen bed & 2 singles
Unit has an open studio area with a queen bed and two king singles in a second bedroom, includes a TV and fully equipped kitchen.
Maximum occupancy: 4 people
Central Residence (Three Bedroom House)
Number of Rooms 3 rooms
Number of Beds 2 queen beds & 2 singles (inc. ottoman pull-out)
This unit used to be the Manager’s residence, ideal for families, groups and friends.
Maximum occupancy: 8 people
Clyde Central Boutique Motel
Clyde Central is an established 7 unit boutique accommodation complex that allows guests the freedom to come and go as they please, whilst having the comfort and services available to make their stay both enjoyable and private.
Since purchasing the property and business in 2019, the owner has implemented new technology and systems to allow remote management and self check in/check out for guests.
The property is run as a boutique accommodation experience rather than a traditional motel. Core to its values are ‘offering the unexpected’ which includes a range of services, luxury continental breakfast in the historic stone stables, outdoor seating with BBQ and outdoor fire area.
The Manager/owner lives off-site and operates a modern online booking system (Seekom) which sends automated pre/post arrival information via text to the guest. All booking system and emails are mobile phone compatible. The complex has been well set up for bikers with secure storage and e-bike charging, maintenance area, tools and wash down equipment. The hosts also offer bike transfers on request, plus have strong relationships with cycle and tour group agencies. More detail on these arrangements is available on request.
In terms of financial performance, the owner has continually improved the offering and financial results since taking over the business in November 2019. With the exception of the Covid lockdown and recovery periods, this has shown improved occupancy, room rates, turnover and profitability. Financial reports are available on signing of the NDA downloaded from the secure data room here: https://www.propertyfiles.co.nz/56SunderlandSt
Business Summary
The following summarises occupancy over the last 2 years and projected to March 2024: Room Rates:
Premium Units (Units 4, 5 & 6):
($175 off season)
Other Units: $195 ($165 off season)
Additional Pax: $30
Breakfast: $20
Apr - mid Aug 2023 (winter)
Projected Nov - Dec 2023 80%
Projected Jan - Mar 2024 90%
Employment Contracts - all staff are employed on accommodation.nz parttime contracts.
Key Subscriptions (able to be transferred or cancelled):
• Booking.com
• Trip Advisor
• Seekom (Property Management/Booking System)
*Note: The owner has chosen to operate a reduce offering over the winter period. This can easily be amended to suit a new owners preferences.
Clyde is fast becoming one of the most desirable ‘must visit’ towns in the lower South Island. It has experienced significant growth in visitors since 2020, both domestic and international. Visitor spend for the Central Otago Region has also grown more than 35% in the 10 years since 2012 to NZD$194m.
Historic Clyde has continued to develop its tourism and activity infrastructure to now provide a quality selection of cafes, restaurants, tourism activities and boutique accommodation to support the growing visitor numbers. In addition to the existing great rides - The Otago Central Rail Trail, and Roxburgh Gorge Clutha Gold Trail, the development of the 55km Lake Dunstan Cycle Trail which opened in May 2021 (see: Lake Dunstan Trail - Cycling and Walking Trail | Central Otago) and is turning out to be one of the most popular in the country. With over 80,000 cyclists riding the track in its first year, the track has been critical to this next chapter in the economic development of the Central Otago / Clyde area after 160 years of gold mining, sheep farming, horticulture, hydro-electricity and wine making.
Clyde Central Boutique Motel is therefore well positioned to benefit from this growth given its strategic central location off the beaten track and site size allowing expansion, making it a very strong real estate and business growth proposition for a new owner.
Clyde Tourism Market
Location - Off the Beaten Track
CLYDE BARS & RESTAURANTS
DUNSTAN CYCLE TRAIL
Clyde is nestled in the South Island’s growing Central Otago region, steeped in history, surrounded by vineyards and the Southern Alps, it’s a haven for outdoor enthusiasts, with opportunities for hiking, biking and water activities. The town’s well-preserved historic sites and museums provide insight into the Central Otago Gold Rush era.
The Clyde town centre boasts charming cafés and restaurants, with easy access to the surrounding cycle trails, making it an ideal destination for those seeking both adventure and cultural experiences.
Clyde Attractions
Legal Description
Identifier Legal Description Area (m²)
OT8B/298 Section 22 Block XI Town of Clyde 379m²
OT143/55 Allotment 4 DP 1803 1,199m²
OT7B/857 Section 21 Block XI Town of Clyde 288m²
OT7B/856 Section 20 Block XI Town of Clyde 258m²
OT8B/322 Section 23 Block XI Town of Clyde 367m²
2,491m² (more or less)
OT4A/71 (Vacant site) Section 24-26 Block XI Town of Clyde 830m²
Zone
Territorial Authority Central Otago District Council
Plan Status Operative District Plan 2008
Zoning Residential Resource Area & Heritage Precinct
Objectives
To manage urban growth and development to maintain and enhance the build character and amenity values of those parts of the district that have been identified as the Residential Resource Area, as well as the social, economic and cultural well-being, and health and safety of the residents and communities within those areas. As per Resource Management Act 1991, residential dwellings are a ‘permitted activity’. This is a low density residential area that provides for family homes.
Environment
We have not been provided with an environmental audit of the property and we are not aware of any potential environmental concerns.
We have a Land Information Memorandum (LIM) relating to the property available within the secure data room. We recommend that the LIM is reviewed during any due diligence being undertaken.
Note: It is the responsibility of interested parties to complete their own independent investigations of the property.
Zoning
Due Diligence
To assist in the assessment of this offering, comprehensive due diligence information is available via a secure documents linkhttps://www.propertyfiles.co.nz/56SunderlandSt . For access to all documents you will be required to register in the data room.
• Information Memorandum
• Certificates of Title and Interests
• Land Information Memorandum
• Prior Resource Consent Documents
• NDA - for financial information
All enquiries, requests for information and arrangements for site inspections are to be directed to the Colliers sole agent:
Mark Simpson
+64 27 490 6394 mark.simpson@colliers.com
Rory O’Donnell
+64 27 445 3982 rory.odonnell@colliers.com
Asking Price $2,000,000 plus GST (if any)
Mark Simpson +64 27 490 6394 mark.simpson@colliers.com
Please be aware that Mortgagee Sales can present more risk to purchasers, we recommend you take advice from your lawyer in this respect. Rory O’Donnell +64 27 445 3982 rory.odonnell@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.
