Unit 5, 24 Hawthorne Drive, Frankton Information Memorandum May 2022
For Sale & Lease
Introduction Colliers have been appointed as sole agents, to market for sale Unit 5, 24 Hawthorne Drive, Frankton.
This property is being offered For Sale by Enquiries over $1,850,000 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 available on request. Ref: 67018998
Data room documents available: • Information Memorandum • Record of Title • Outgoings Schedule • Lease Documentation • Land Information Memorandum • Sale & Purchase Agreement All enquiries, requests for information and arrangements to undertake inspections in relation to this opportunity are to be directed to the sole agent. Doug Reid +64 274 313 278 doug.reid@colliers.com
Contents Executive Summary
4
Investment Highlights
5
Location
6
Planning Overview
7
The Building
9
Lease Details
10
Market Summary
12
Record of Title
14
Due Diligence
17
5/24 HAWTHORNE DRIVE FRANKTON
Executive Summary Address
Unit 5, 24 Hawthorne Drive, Frankton
Description
Commercial building containing two ground floor retail premises. Prime location in growing tourism hotspot. Total net lettable area of 115.1 sqm.
Tenure
Freehold
Legal Description
UNIT 005 DP 497990 - HAVING 2/9 SH IN AUS 46-48 DP 497990
Record of Title
736962
Lettable Area
115.1m²
Local Authority
Queenstown Lakes District Council (QLDC)
Zoning
Remarkables Park Zone - activity area 5
Lease - Shop 6 -Shop 5
Franks & Go Ltd - $50,083.85 p.a plus outgoings plus GST Vacant
Sales Process
Offers over $185,000,000 plus GST (if any)
Lease Process
For Lease by Negotiation
Location indicative only 4
5/24 HAWTHORNE DRIVE FRANKTON
Investment Highlights
CORNER PREMISES
RARE SMALLER SIZED TENANCY
GROWING TOURISM LOCATION
Extensive glazing to two frontages
Shop 5 Net Lettable Area of 56.1 sqm Shop 6 Net Lettable Area of 59.0 sqm Total = 115.1 sqm
Ongoing redevelopment in surrounding area with proposed convention centre nearby
ONSITE PARKING 2/9th share of 19 car parks
GROUND FLOOR RETAIL / UNIT TITLE
Modern good quality building
5
OWNER OPERATOR POSSIBILITIES Opportunity to create business from fully owned site
Location The subject Unit 5 property is located within the Ramada Remarkable Suites complex to the east of the Remarkables Park Town Centre on the corner of Hawthorne Drive and Red Oaks Drive. Surrounding properties are predominantly commercial and recently developed hotels with the Queenstown International Airport nearby to the north. SH6 Frankton – Ladies Mile Highway is a short distance to the north. The Remarkables Park area is a growing tourism location with the recent construction of a number of new hotels and managed apartment developments. The developers of Remarkables Park are currently constructing a Technology Hub nearby and have also proposed a gondola base building to access the Remarkables Skifield and a Convention Centre in the area.
location indicative
Planning overview
The property lies within the Remarkables Park Zone - activity area 5. More information can be sourced from www.qldc.govt.nz (Section 12 – Special Zones). Please note: It is the responsibility of interested parties to qualify and elaborate all relevant planning information noted above.
location indicative only
5/24 HAWTHORNE DRIVE FRANKTON
8
5/24 HAWTHORNE DRIVE FRANKTON
The Building Under consideration is an attractive corner retail unit located on the Ground Floor of the Ramada Remarkables Suites within Remarklables Park Frankton. The Ramada Remarkables Suites is a modern hotel located in Frankton in close proximity to the Remarkables Park Shopping Centre. Unit 5 comprises a two shop tenancies on the north-western corner of the building having good profile to the main vehicular entrance to the hotel. The subject units are fully lined, with one comprising a restaurant fitout and the vacant corner premises with fitout as a retail store. Surrounding tenancies include a physio, café, pizza shop, Thai restaurant, laundromat and library. The subject unit has frontage to the north-west and to the south-west which opens into the common area of Ramada Suites. Each shop has a courtyard accessory unit to the north-west. The Ramada Suites is a four-storey complex comprising of steel framing and concrete tilt panel with the subject unit on the ground floor. Unit 5 is located on the north-western corner of the building. Unit 5 has a 2/9th share of 19 car parks are available to the front of the Ramada complex on Accessory Units 46 and 47 and on the western side of the subject is a large Remarkables Park car park. Shop 5 has a Net Lettable Area of 56.1 sqm and Shop 6 a Net Lettable Area of 59.0 sqm.
9
Shop 6
Lease Details
PREMISES
The following current lease is in place for Shop 6, while Shop 5 remains for lease. Details of the Shop 6 lease are as follows;
That part of principal unit 5 shown outlined in red on the attached plan and marked unit 6 comprising 7I sqm (more or less) together with 8 sqm (more or less) (subject to final survey) outdoor undercover terrace area and being part of the development known as Ramada Remarkables, Remarkable Park, Queenstown.
CARPARKS
Non exclusive rights to use two (2) undesignated carparks in the Landlord’s carpark in common with other tenants and in si fees (subject to clause 35,1 of the Lease)
TENANT
Franks & Go Limited
ANNUAL RENTAL
$50,083.85 Plus GST
DOCUMENTATION
Executed Deed of Lease dated 24 August 2016 and a subsequent Deed of Assignment dated 11 April 2018
TERM
Eight (8) years
COMMENCEMENT DATE
1 October 2016
EXPIRY
30 September 2024
OPTION
Two (2) further terms of four (4) years each
FINAL EXPIRY
30 September 2032
REVIEW STRUCTURE
Market upon renewal and annual CPI. On CPI and market review dates, whichever is greater. Rental shall not be less than the rental of the immediately preceding 12 month period.
OUTGOINGS
A fair proportion as determined by the Landlord acting reasonably. Estimated at $2,166.00 at commencement.
Lease Plan
5/24 HAWTHORNE DRIVE FRANKTON
11
5/24 HAWTHORNE DRIVE FRANKTON
Market Summary The Queenstown commercial property market is currently in a rejuvenation phase with significant infrastructure and roading upgrades underway providing a positive boost to the local economy in what is otherwise difficult times for tourism and CBD hospitality businesses in particular. This coupled with a temporary loss of international tourists, has seen some vacancies appear in both the retail and office markets, however the majority of these are focused around the CBD or have leased up, helped by low supply going into Covid.
There is limited vacancy in the immediate area which also provides a solid base to grow rents and value as the area recovers from the impacts of covid and investor confidence returns.
In summary, investor confidence is strong for the medium to long term prospects for Queenstown as a commercial investment location, with the short term covid effects being factored into buyer pricing with a slightly guarded sentiment.
12
5/24 HAWTHORNE DRIVE FRANKTON
13
5/24 HAWTHORNE DRIVE FRANKTON
Record of Title
14
5/24 HAWTHORNE DRIVE FRANKTON
15
5/24 HAWTHORNE DRIVE FRANKTON
16
5/24 HAWTHORNE DRIVE FRANKTON
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 please register your interest with one of the agents. • Information Memorandum • Record of Title and Interests • Outgoings Schedule • Lease Documentation • Land Information Memorandum • Sale & Purchase Agreement All enquiries, requests for information and arrangements for site inspections are to be directed to the Colliers sole agent:
Doug Reid +64 27 431 3278 doug.reid@colliers.com
17
Unit 5, 24 Hawthorne Drive, Frankton FOR SALE BY ENQUIRIES OVER $1,850,000 Plus GST (if any)
Ref: 67018998 Doug Reid +64 27 431 3278 doug.reid@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.
Please be aware that Mortgagee Sales can present more risk to purchasers, we recommend you take advice from your lawyer in this respect.