Information Memorandum - Lot 2, 111 Frankton-Ladies Mile Highway
Colliers as sole agents, have been appointed to market for sale Lot 2, 111 Frankton-Ladies Mile Highway, Frankton, Queenstown.
This property is being offered For Sale by Deadline Private Treaty closing Wednesday 14 August 2024 at 4pm (unless sold prior).
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.
colliersotago.co.nz/67029489
location indicative only
Data room documents available:
• Information Memorandum
• LIM
• Scheme Plans
• Sale & Purchase Agreement
All enquiries, requests for information and arrangements to undertake inspections in relation to this opportunity are to be directed to the listing agent below.
James Valentine +64 21 777 772 james.valentine@colliers.com
Lot 2, 111 Frankton-Ladies Mile Highway, Frankton, Queenstown
DESCRIPTION
A flexible land parcel, zoned Business-Mixed Use with options ranging from 1,500m² - 3,500m² depending on purchaser requirements.
TENURE
Freehold
LEGAL DESCRIPTION
Awaiting title
CERTIFICATE OF TITLE
Awaiting title
AREA
Flexible options for land parcels ranging from 1,500m²3,500m² depending on purchaser requirements.
LOCAL AUTHORITY
Queenstown Lakes District Council (QLDC)
ZONING
Business Mixed Use under the QLDC Proposed District Plan
SALES PROCESS
For Sale by Deadline Private Treaty, closing Wednesday 14 August 2024 at 4pm (unless sold prior)
Investment Highlights
Flexible Zoning
Business-Mixed Use under the QLDC’s Proposed District Plan allows for a range of different uses.
Prime Location
Located in close proximity to Five Mile, Queenstown Central & Frankton’s Industrial precinct with frontage to State-Highway 6.
Development Opportunity
This vacant site is a blank canvas creating the perfect development opportunity for potential purchasers.
Flexible Land Parcel 1,500-3,500m²
The vendors are offering between 1,500m³ and 3,500m² for sale, giving prospective purchasers flexibility as per their requirement.
Contextual Mix
This development opportunity is located amidst one of Queenstown’s fastest growing commercial areas. Over the past few years, there has been a noticeable shift in population and businesses away from the Queenstown CBD, into the Frankton area. The site is located directly across the road from Queenstown’s two central shopping centres – Five Mile and Queenstown Central, which generate a significant amount of foot and vehicle traffic on a daily basis.
This site forms part of a wider commercial & residential development, with a significant number of residential dwellings proposed for this area. Dubbed ‘Waipuna Rise’, this development will have a huge impact on this area, on top of the 226 dwellings recently consented as part of the ‘Five Mile Villas’ development currently being built behind the two shopping centres.
There is strong road frontage, giving prospective tenants or owner-occupiers profile for their businesses onto one of Queenstown’s busiest roads.
Remarkables Residence
Queenstown Central
Five Mile Shopping Centre
Five Mile Villas
State Highway 6
Queenstown International Airport
Access to the Property
The Frankton North development site is located on the northern side of State Highway 6 (SH6). The proposed new roading connection, extending from the northern side of the NPD roundabout will link the subject site from the northeast, as illustrated in the 1.2 Site Linkages Plan (see below and .
Construction of this road is scheduled to begin after winter and is projected to be completed by mid to late 2025. It’s important to note that the Title wont issue until the completion of these works, aligning with the settlement process.
Additionally, a secondary road is planned to enhance connectivity. This road will link Five Mile through the Transpower Sub-Station to the Quail Rise residential neighbourhood to the east, providing an essential route for future connectivity however there is no certainty around the timing of this road.
Given the zoning of this site for activities likely to attract significant customer traffic, parking and traffic generation are critical considerations for the resource consent process. An integrated Transport Assessment will likely be required for future resource consent applications within the Business-Mixed Use Zone. We encourage obtaining independent planning advice to navigate these requirements effectively.
Zoning
Business Mixed-Use Zone
The site is located within the Business Mixed Use Zone (BMU) as shown on Planning Map 33 of the QLDC Proposed District Plan.
The purpose of the Business Mixed Use Zone is:
“to provide for complementary commercial, business, retail and residential uses that supplement the activities and services provided by town centres. Higher density living opportunities close to employment and recreational activities are also enabled. Significantly greater building heights are enabled in the business mixed use Zone in Queenstown, provided that high quality urban design outcomes are achieved.”
Buildings, activities, and development within the Business Mixed Use Zone area of the site is subject to a number of rules, standards and special provisions.
There is a planners report which can be obtained in the dataroom, however we note that it is the responsibility of the interested parties to qualify and elaborate all of the relevant information noted above and in the planners report.
The Property
The property is of a flexible configuration, referring to between 1,500 - 3,500m² of ‘Business - Mixed Use’ commercial land, dependent on purchaser requirements. Positioned as part of a much larger commercial & residential development (Waipuna Rise), alongside the existing amenity in the two shopping centres, this site offers prospective purchasers the ability to gain a foothold in Queenstown’s fastest growing commercial area.
For access, there will eventually be an additional exit added to the existing roundabout, currently outside the Five Mile shopping centre, bringing traffic immediately off the State Highway. In the interim, access will be via the roundabout outside the NPD, with a slip road giving access to the rear of the site.
There are options for developers, land bankers, and owner-occupiers alike – the site is a blank canvas, ripe for development.
Queenstown Market
Queenstown’s commercial property market continues to be underpinned by a lack of supply of land available for development and ongoing population growth, which is continuing to fuel the construction and tourism sectors.
This has seen land values in Frankton increase substantially over the last decade, particularly since 2019. Closely linked, we are seeing commercial and industrial vacancy rates throughout Queenstown at historic lows, as tenants with genuine business reasons to be based in the area struggling to find space.
This shortage of commercial/industrial land available for development, coupled with the high cost of construction of new buildings and the strong tenant demand has seen rents increase strongly and consistently over the past few years. Although we do expect this to slow as the costs make feasibility difficult for new development.
Queenstown initially weathered the slow down that hit the rest of the country in 2022/23, with the resilience reinforced by the shortage of available stock.
Despite this shift, we still consider the long term growth potential to be strong, supported by reported ongoing population and tourism growth. This will result in a continued demand for commercial and industrial property in the region.
Deadline Private Treaty 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 at any point in the deadline sale campaign.
The property is offered for sale with no price, with a deadline by which offers need to be submitted on the basis that the vendors reserve the right to accept an offer at anytime before the deadline sale closes.
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 full due diligence early to know your rights and obligations and 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 d ay.
• 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. B alance is the key.
Offers to be submitted to Colliers Sole Agents by 4pm, Wednesday 14 August 2024 (unless sold prior).
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 you will be required to register in the dataroom.
• Information Memorandum
• LIM
• Scheme Plans
• Sale & Purchase Agreement
All enquiries, requests for information and arrangements for site inspections are to be directed to the Colliers sole agent:
