Information Memorandum
NPD Cromwell | 2 Old Saleyard Road
Cromwell, Central Otago
NPD Cromwell | 2 Old Saleyard Road, Cromwell
Act quickly to secure this freehold, highprofile investment opportunity, providing you with the security of a new 15 year lease to national fuel supplier NPD and excellent annual rental growth.
This Information Memorandum provides information to assist interested parties with their assessment of the property, is produced as a general guide only and does not constitute valuation advice nor an offer for sale or purchase. All parties should undertake and rely on their
own due diligence investigations and not rely on the information contained in this document to make their purchasing decisions.
All enquiries, requests for information and arrangements to undertake inspections in relation to this opportunity are to be directed to the sole agents.
Mark Simpson | Director | Commercial Broker
Mobile: +64 27 490 6394
Email: mark.simpson@colliers.com
Sam Staite | Director of Industrial
Mobile: +64 21 738 245
Email: sam.staite@colliers.com
The property is offered for sale by Auction to be held 10am, Wednesday 9 April 2025 (unless sold prior). Auction venue is Colliers Auction Room, 24 McNulty Road, Cromwell.
State Highway
Executive summary
Key property information
Address
2 Old Saleyard Road, Cromwell, Central Otago
Vendor
Avondale Group Limited
Legal description
Lot 1 DP 523865 | CT reference: 834690
Land area
4,011 sqm
Tenure
Freehold
Zone
Industrial Resource Area under the Central Otago District Council Operative District Plan
Lease term
15 years plus renewals
Annual rental
$184,000 per annum + Outgoings + GST
Rent reviews
Annual 2.25% increases with market reviews on renewal (cap and collar)
The opportunity
This prime investment opportunity is superbly positioned at the entrance to Cromwell’s growing Industrial Precinct with huge profile to State Highway 6, the main road to Queenstown.
The regular shaped corner site comprises a freehold title of 4,011sqm, featuring extensive highway frontage of approximately 54m and to McNulty Rd of approximately 60m. There is dual access from both McNulty Rd and Old Saleyard Road .
The property supports Cromwell’s largest and most modern ‘selfserve’ service station which opened its doors in June 2020.
It falls within the Industrial Resource Area zone under the Central Otago District Councils operative district Plan, which allows for a range of industrial trade related uses, with Retail Service Station activity an approved use under the zone.
Given the huge traffic flows which pass this site, along with strong projected population and residential growth within the area,
the site is strategically positioned at the centre of this activity. Accordingly, NPD have signalled their long term commitment to the site with a new 15 year lease, plus rights of renewal to push their total potential lease term out to 50 years.
Investment highlights
Freehold site of 4,011 sqm
SH
Positioned on State Highway 6
New fifteen year lease with renewals
Annual rental $184,000 pa + Outgoings + GST
NPD operating for over 50 years
High-profile corner site with main highway frontage
Fixed annual rental increases with market reviews on renewal
Prime investment opportunity
McNulty Road
State
Location
The property is extremely well located on the corner of State Highway 6 (to Queenstown) and McNulty Road, Cromwell’s main Industrial arterial servicing the growing Cromwell Industrial precinct, and is home to a mix of local, national and international occupiers.
While Cromwell is predominately a community serving local primary sector related industry that include substantial vineyard and horticulture activity, it is also becoming the primary freight/logistics hub for the wider region. It has a growing population of over 5,200 people and has a full range of amenities including, 2 primary schools, a college, 2 medical centres and an established town centre nearby the site containing 2 supermarkets.
While house prices have risen in recent times, Cromwell still offers affordable opportunities for home ownership which helps deliver a stable workforce for the region. The recent announcement of Santana Mineral’s new gold mine at Bendigo is another exciting opportunity for the local economy to benefit from.
Queenstown International Airport is a 40 minute drive to the West
and offers direct flights to major New Zealand cities and the Eastern Seaboard of Australia including Melbourne, Sydney, Brisbane and the Gold Coast. Dunedin is approximately 220 kilometres south east of Cromwell, and Invercargill is 190 kilometres to the south.
In terms of Industrial land supply and values, Cromwell has continued to see solid growth over the past decade. This has been helped by Queenstown and Wanaka’s industrial land values becoming some of the highest in the country, making Cromwell a viable and more feasible location option for a number of occupiers.
The most recent Cromwell industrial land sales have ranged from $550 - $650/sqm, with land rentals for vacant sites ranging from $30 - $50/ sqm depending on the sites finished state.
Zoning
Industrial Resource Area under the Central Otago District Council Operative District Plan
Tenant information
Key information
Tenant NPD Limited
Initial lease term 15 years
Rights of renewal
Net annual rental
One of Ten (10) years and Five (5) of Five (5) years each
$184,000 pa + Outgoings + GST
Market reviews Fixed Annual Increases of 2.25% (excluding those dates where market reviews apply)
Market rent reviews upon each renewal date (capped at no more than +5% and collared at no less than -5% of the then annual rental)
Overview
With over 100 sites across New Zealand, NPD is a well-respected industry leader delivering the highest quality service and fuel. In business for over 50 years, with strong roots in Nelson and throughout the North and South Island.
NPD is renowned for providing its customers a consistent and reliable fuel supply by owning and operating its large fleet of modern Scania truck and trailer units with all delivery vehicle drivers being NPD employees.
Final expiry
The lease
Fifty (50) years from the commencement date
Effectively a new full net ground lease, whereby the tenant owns all improvements. On expiry, the tenant is responsible for make-good removal of improvements unless otherwise agreed by the Landlord. A full copy of the lease documentation is available in the data room upon request.
With strong family values and a caring business ethos, NPD has built an enviable reputation for service with the focus on their customers’ needs.
Sales process
The property is offered for sale by Auction to be held 10am, Wednesday 9 April 2025 (unless sold prior). Auction venue is Colliers Auction Room, 24 McNulty Road, Cromwell.
Inspections
All inspections of the property by a purchaser and/or consultants are to be by prior appointment, and arranged through Colliers.
Information memorandum
The purpose of the Information Memorandum is to provide information in relation to the property and the investment opportunity that is available. It is produced solely as a general guide for interested parties. It does not constitute valuation advice or an offer.
Please note
The Vendor reserves the right not to accept any offer and, without limitation, the Vendor is not obliged to accept the offer with the highest consideration. The Vendor may, in its absolute discretion, negotiate with any person who submits an offer or with any other person with respect to the sale of the Property and, at any time prior to the exchange of binding contracts, may withdraw the Property from sale. No person is entitled to any redress against the Vendor if the Vendor exercises that discretion.
The Vendor is not responsible for any costs or expenses incurred by any prospective purchaser in preparing and lodging an offer.
Disclaimer: This document is CONFIDENTIAL to the recipient and information contained herein may not be disclosed to any other party and may not be used or reproduced either in whole or in part without the written consent of the vendor or the selling agents. All areas, dimensions and measurements referred to in this Information Memorandum are metric and are subject to purchasers own survey. Colliers does not guarantee, warrant or represent that the information contained in this advertising and marketing document is correct. Any interested parties should make their own enquiries as to the accuracy of the information. We exclude all inferred or implied terms, conditions and warranties arising out of this document and any liability for loss or damage arising there from.
Mark Simpson | Director | Commercial Broker
Mobile: +64 27 490 6394
Email: mark.simpson@colliers.com
Sam Staite | Director of Industrial Mobile: +64 21 738 245
Email: sam.staite@colliers.com
South Island Commercial Limited. Licensed under the REAA 2008.
Otago Realty (NZ) Limited. Licensed under the REAA 2008.
Level 1, 181 High Street, PO Box 933
Christchurch 8140, New Zealand
+64 3 365 7887
colliers.co.nz
10 Athol Street
Queenstown 9300, New Zealand
+64 3 441 0790
colliers.co.nz