Cromwell Industrial Estate - Information Memorandum

Cromwell Industrial Estate Cemetery Road, Cromwell Information Memorandum Deadline date closing 16th September 2021 (No prior offers considered)

cromwellindustrial.co.nz

Introduction Colliers have been appointed as master sole agents, to market for sale Cromwell Industrial Estate, Cemetery Road, Cromwell.

10 Lots are being offered for sale by Deadline date commencing 12 August 2021, closing 16 September 2021 (no prior offers accepted).

This Information Memorandum provides preliminary information to assist interested parties with their assessment of the Lots on offer. Further information is available via an online data room available on request.

24 McNulty Road Cromwell Monday - Friday: 9am - 5pm colliersotago.co.nz

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All enquiries, requests for information and arrangements to undertake inspections in relation to this opportunity should be directed to the sole agents.

Alternatively you can contact your preferred Cromwell Agency, if desired.

Steve McIsaac +64 21 680 304 steve.mcisaac@colliers.com Marie Hendren +64 21 904 561 marie.hendren@colliers.com

Contents

Executive Summary

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The Developer

6

Location

6

Pricing

7

Planning Overview

10

Cromwell Spatial Framework

12

Cromwell Industrial/ Commercial Market

14

Growth Projections

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Deadline Date Sales Process

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Due Diligence

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Executive Summary Cromwell Industrial Estate (CIE) A new modern subdivision adding to Cromwell’s existing business base is under construction, a short drive away from the town centre. This carefully considered master-planned industrial estate will allow owner-occupiers and investors a rare opportunity to secure land at an affordable price point in today’s progressive market.

Construction of the first 4 Lots is underway and they have been pre-sold.

The next release is Lots 5-14 and they are currently being marketed by Colliers. Lot sizes range from 5001,033sqm, with larger lots becoming available in future releases. Titles are expected to issue in mid 2022.

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ADDRESS

Cemetery Road, Cromwell

TENURE

Freehold

LEGAL DESCRIPTION

Proposed Lots 5 – 14

CERTIFICATE OF TITLE

Due mid to late 2022

LAND AREA OPTIONS

500sqm – 1,033sqm

LOCAL AUTHORITY/ DEVELOPER

Central Otago District Council (CODC)

ZONING

Industrial Resource Area

DEVELOPER

Central Otago District Council

10

30

50

100

TU R TO N

© Eliot Sinclair and Partners Ltd. This drawing and all its information is only to be used for the intended purpose and it is not to be modified or used for any other purpose without the written consent of Eliot Sinclair & Partners Ltd. All rights reserved.

BR OD RI

Original 0 A4 size mm

582 m²

18.3

22.0

20.0

36.4

5

829 m² 0.9

36.4

3

4

Plotted: Jul.26, 2021 at 11:21AM from G:\Jobs\50\502463\Acad\Concept Design\502463_Concept Design Stage 2_Option 3_FOR EXPORT.dwg by GPC

3135 m²

1923 m²

SOLD

Under Offer

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2

1871 m²

2999 m²

SOLD

SOLD

OAD R Y R ETE

NOTE

CEM

All areas and dimensions are subject to survey and consent.

Name Designed

-

Drawn

G Crouchley

Drg. Chk

-

Design Review

Approved

R Mulligan

Date

Project Title

-

Project No.

CEMETERY ROAD

502463

CROMWELL

26.07.2021 Drawing Title

Date

20.0

6

727 m²

22.8

27.0

8

22.0

22.0

25.0

36.4

22.0

1

28.5

17.0

9

500 m²

30.7

22.0 1

7.

17.0

9.7

7

800 m²

22.8

9.7

6

DUNN

2.

9

581 m²

36.4

20.0

27.0

14

7.

26.2

E K LIN

10

13

L=9.74 L= 8.8 4

30.7

1033 m²

22.0

558 m² 1 L=

600 m²

20.5

L

2

11

ENT=13.81

8.5

27.0

24.9

CRESC

14.3

600 m²

ETBAC ING S1.7

UILD 5 m B22.1

12

ROAD

L=7.93

27.9

0

Set No.

C3

40

20

Sht No.

2.01

Meters

Rev.

A

RELEASE 1

Date

26.07.2021

Drawing Status

Scales

FOR INFORMATION

1:1250 [A4]

20 Troup Drive, PO Box 9339, Tower Junction, Christchurch 8149, Phone: 03 379-4014, info@eliotsinclair.co.nz

www.eliotsinclair.co.nz

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The Developer The development of the Cromwell Industrial Estate is being undertaken by Central Otago District Council. Through their strategic planning process they have recognised demand exists for further industrial land to meet Cromwell’s projected growth. Being a major owner of development land on the fringe of the Cromwell urban area allows CODC to respond to the market as needed. Being developed by Council gives buyers comfort that a quality outcome will be delivered.

Location Located south west of Cromwell Town Centre, Cromwell Industrial Estate is connected to the existing industrial precinct as well as being close to the State Highway network, that connects Cromwell to Queenstown and Wanaka.

Located opposite the pit entry to Highlands Motorsport Park, the Estate will benefit from planned expansion of the immediate roading network in the future.

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Pricing Release Two is now available, with the below 10 lots available for sale by Deadline date closing 16 September 2021 (no prior offers accepted). All prices are plus GST (if any). All prices are plus GST (if any).

LOTS

AREA (SQM)

SEEKING OFFERS OVER

5

829

$373,000

6

727

$325,000

7

800

$360,000

8

582

$290,000

9

500

$250,000

10

1033

$444,000

11

600

$300,000

12

600

$300,000

13

585

$305,000

14

581

$337,000

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8

Boundary indicative only

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Planning Overview

Town Planning Zone: Industrial Resource Area The zoning requirements are contained within Section 9 of the Central Otago District Plan. Following is a summary of the zone rules, as such not all relevant standards might be included, only those that might be applicable in a lot development scenario. Purchasers will still need to undertake their own research into the District Plan requirements for developing a lot and we advise the engagement of a professional town planner to assist in this regard.

District Plan and Zoning requirements: 1. Any activity that fails to comply with the standards set out in Rule 9.3.5 as well Sections 12 – 15 of the District Plan shall be a restricted discretionary activity, if all the standards are complied with then no consent is required as the activity is ‘permitted’. These standards are discussed further below. Of note for developing industrial lots, owners should also be mindful of:: a. Retail: Retail activity (excluding retail activity at a service station) shall be ancillary to and form an integrated and complementary part of any industrial activity and shall not occupy more than 10% of the gross floor space of the building or 50m2 , whichever is the greater.

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b. Bulk and Location of Buildings: No front yards are required Rear and side yards of 5 metres shall be provided where a site adjoins the Cemetery Height: 10m or if located next to the Cemetery then the maximum height is 1.5 times the building setback from the Cemetery boundary (to a maximum of 10m). For example, if a building is located within 5m of the Cemetery its maximum height is 7.5m. c. Noise: On any day 7:00am - 10:00pm 65dBA L10, 10:00pm - 7:00am the following day 45dBA L10, 85dBA Lmax Habitable spaces within buildings must achieve an indoor design sound level of 45 dBA. d. Signage: rules on signage will apply. e. Screening/Fencing: rules on screening will apply to any open space associated with a residential activity. f. Off Road Loading: Off road loading facilities shall be provided for each site where this is an integral part of the activity. All such loading areas shall be so located that no vehicle or machinery engaged in any loading or unloading operation shall stand on or be required to manoeuvre on any part of a formed road. g. Parking: Every activity shall make sufficient provision for vehicular parking in accordance with Table 12.3 2. Subdivision is a controlled activity.

3. Any activity that requires an offensive trade license under the Health Act 1956 is a discretionary activity.

4. Residential activities are not restricted in the industrial zone and can be undertaken without the need for consent so long as the standards mentioned above in point 1 are complied with as well as Sections 12 -15 of the District Plan. Note, there are specific requirements when it comes to residential activities with regards to ensuring they are designed to meet the expected noise outputs from the industrial zone and to screen any outdoor area from neighbouring activities.

For further information please refer to codc.govt.nz.

Table 12.3 Carparking

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Cromwell Spatial Framework Future Land Use

Cromwell Industrial Estate

12 Source: CODC Cromwell Spatial Framework Report 2019

Existing Land Use

Cromwell Industrial Estate

Source: CODC Cromwell Spatial Framework Report 2019

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Cromwell Industrial/Commercial Market The strategic position of Cromwell as an access ‘pivot’ for the Queenstown and Wanaka markets with its availability of industrial/service land at reasonable prices and the significant Viticulture and Horticulture development in the locality has meant significant incremental increases in property values over the last decade. With its strategic location and proximity to Wanaka and Queenstown, Cromwell is becoming an important hub servicing the Lakes District and surrounding Central Otago towns.

Cromwell had benefited from (now historical, prior to March 2020) strong growth in Queenstown tourism and the property market. Significant price increases in the Queenstown residential property market has seen home ownership become beyond the reach of a number of people. Some have left the district, but others have decided to relocate to Cromwell where residential housing is seen as more affordable option.

A number of these people commute to Queenstown on a daily basis whilst others have found employment or relocated businesses to Cromwell. The permanent population is increasing, and this has boosted the local economy.

On the back of this we are seeing increasing values and rental levels across all property sectors within Cromwell. This is being driven by both the desire for local businesses to own their own commercial/industrial property and by investors looking to secure long term returns. Additionally with national businesses establishing in Cromwell to service the wider region, land values have been steadily increasing.

Queenstown industrial land values have increased to around $1,500/m², resulting in an unaffordability situation for many enterprises in comparison to the relatively cost effective industrial land values in Cromwell. The most to recent Cromwell industrial land sales have been at rates in the range of $400-$550/m².

Commercial property investment is becoming more desirable due to the growth in Cromwell and because investment options are limited in the financial marketplace.

The solid appeal of a ‘bricks and mortar’ investment, provided the tenant covenant is considered robust, is an attractive proposition.

Cromwell commercial and service/industrial yields are now sitting around 5.50% – 6.50%.

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General Market Projections: •

A two-level market will continue to develop, where strong tenant covenant and lease terms underpin property values mainly for newer properties, versus property with weaker tenant covenants in older aged buildings, meaning softer market demand and value.

•

Further investment activity in the Cromwell market and strengthening of the market for new tenancies, especially from national companies establishing regional service/distribution centres.

•

Strengthening in investment yields due to low supply of investment offerings. These will be dependent on tenant covenant and lease duration and reflective of the current low mortgage interest rates.

•

Increasing tenant demand, and rental growth as a cost effective alternative to Queenstown and Wanaka

•

Continuing demand from local businesses (especially the construction and trade industries) to secure their own property from which to operate their business. With projected population growth, construction related businesses will secure more work locally and lessen the need to travel to Queenstown and Wanaka.

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Growth Projections The up-and-coming Cromwell area offers excellent value and growth potential. Over the 2014 to 2017 period the rate of population growth in the Cromwell Ward increased from 2.4% to 4.8% per annum and was the highest growth area within Central Otago. Current residential growth projections from 7,750 in 2018 to 9,450 in 2028 are supported by between 1654 – 2125 residential development sections zoned and proposed within the Cromwell Ward.

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Source: CODC Cromwell Spatial Framework Report 2019

Cromwell 2050 Estimated Residential Yields

Source: CODC Cromwell Spatial Framework Report 2019

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18

Boundary indicative only

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Deadline Date 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 by the closing date of the deadline sale campaign.

Each of the 10 Lots are offered for sale with a price guide as to “Offers over”, with a deadline by which offers need to be submitted. The vendor will not accept any prior offers on the 10 Lots.

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 homework to know your rights and obligations, 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 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.

• 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. Balance is the key.

• Offers to be submitted to Colliers Master Agents by 4pm, 16th September 2021.

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Due Diligence To assist in the assessment of this offering, comprehensive due diligence information is available online via iDeals data room. Documents available in the data room include: • Information Memorandum • Details of covenants • Site Plan

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

Steve McIsaac +64 21 680 304 steve.mcisaac@colliers.com

Marie Hendren +64 21 904 561 marie.hendren@colliers.com

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Cromwell Industrial Estate FOR SALE – 10 LOTS Closing 4pm 16th September 2021 Colliers, Cromwell Office cromwellindustrial.co.nz

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.

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