Luxmore Development Land - Information Memorandum

Luxmore Development Land 91 Sandy Brown Road | Te Anau Information Memorandum For Sale by Expressions of Interest closing Thursday 5 May 2022 at 4pm March 2022

Introduction Colliers as sole agents, have been appointed to market for sale 91 Sandy Brown Road, Te Anau.

Colliers is pleased to offer a unique opportunity to purchase just over 8.5 hectares of Urban (residential) zoned development land and approximately 4 hectares of Industrial zoned development land within the Te Anau township.

Colliers has been exclusively appointed to market up to 12.6240 hectares of land within the rural township of Te Anau 170 kilometres south-west of Queenstown.

Expressions of Interest are to be lodged at the offices of Colliers Otago, Level Two 10 Athol Street, Queenstown.

Further information can be accessed via an electronic data room at www.propertyfiles.co.nz/ property/91SandyBrownRoad Colliers website link: www.colliersotago.co.nz/67018454 For further information please contact the nominated brokers;

Alastair Wood +64 27 436 2422 alastair.wood@colliers.com

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Doug Reid +64 27 431 3278 doug.reid@colliers.com

Contents Objectives and Outcomes

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Executive Summary

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Investment Highlights

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Land Description

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Location

11

Stats on the Region

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Milford Opportunities Project – Te Anau Hub

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Resource Management

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Residential Zone

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Industrial Zone

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Council Services

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Scheme Plans

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Te Anau

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Due Dilidence

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Experts

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SDC BLOCK LAND TE ANAU

Objectives and Outcomes Key points of the offering The Vendor: •

Wishes to sell all or in parts of the 12.6240 hectare site.

•

Is looking for a development approach that facilitates options for future retirement, social or emergency housing, either within the Council land or elsewhere in Te Anau.

•

The Council will weigh up the respective interest based on the best outcome for the Te Anau community.

The property is offered by way of Expressions of Interest for all or part of the land, with a closing date for responses being 4pm Thursday 5th May 2022.

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SDC BLOCK LAND TE ANAU

Executive Summary Address

91 Sandy Brown Road, Te Anau

Summary

Stunning opportunity to purchase just over 8.5 ha of Urban (residential) zoned development land and approximately 4 hectares of Industrial zoned development land within the Te Anau township.

Vendor

Southland District Council

Legal Description

Lot 31 Deposited Plan 355319

Record of Title

225626

Tenure

Freehold

Site Area

Up to 12.6240 hectares

Zone

Urban Zone (Te Anau) and Industrial Zone

Infrastructure

•

Waste water supply dissecting and to the boundary of the block has the capacity to service the Luxmore Block

•

Water pump station in the south western corner is designed to service the local residential catchment including the Luxmore Block

Access

The site fronts Govan Drive, Caswell Road and Sandy Brown Road

Topography

Gentle to Easy contour

Natural Hazards

None identified on District Plan Planning Map

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SDC BLOCK LAND TE ANAU

Investment Highlights

DEVELOPMENT READY Zoned and ready to develop

ESTABLISHED INFRASTRUCTURE

EASY TO DEVELOP LAND

Established industrial and residential development and infrastructure surrounding both blocks

Easy to gentle contour providing easy to develop land

EXISITING RESERVE FRONTAGES

SIZABLE AREA

Existing reserve frontages

Up to 12.6240 hectares

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Land Description The site is a large (12.6ha) property located in urban Te Anau which is zoned for residential and industrial land use purposes. The western portion of the site is zoned Urban (Residential) and the eastern end is zoned Industrial. The site is relatively flat, with a gentle fall running from north east to south west along the site.

A council recreation reserve forms the ‘boundary’ between the urban and industrial zoned parts of the site.

The site fronts Govan Drive, Caswell Road and Sandy Brown Road. The property is vacant and grassed.

Council Recreation Reserves adjoin parts of the eastern and southern boundaries of the site.

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Location The picturesque Lake Te Anau is the largest lake in the South Island and second largest in New Zealand, with the spectacular Mt Luxmore and Murchison mountains providing an awe-inspiring backdrop.

Te Anau was first surveyed in 1893, shortly after the Milford Track opened, but the township only developed after the opening of the Homer Tunnel and the spectacular 120km alpine road to Milford in 1953. The town is a hub for visitors to the sound and also a base for those undertaking the Kepler, Milford and Routeburn Tracks, the former being a 4-day loop from Te Anau.

Access to Te Anau is via State Highway 6 and State Highway 94 from Queenstown, State Highways 1 and 94 from Dunedin or via the Southern Scenic Route from Invercargill. All roads leading to Te Anau and Manapouri travel through diverse terrain and interesting scenery.

Distances •

Te Anau to Milford Sound 120 kms (74.5 miles) allow 2 hours driving

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Queenstown to Te Anau 170 kms (105.5 miles) allow 2 hours driving

•

Invercargill to Te Anau 152 kms (94.5 miles) allow 2 hours driving

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Dunedin to Te Anau 290 kms (180 miles) allow 4 hours driving

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Stats on the region Quick stats about population counts for Te Anau (2018 Census) •

Number of people: 2,538

•

Median age: 39.4 years

•

Males: 1,263

Population in Te Anau, 2006–18 Censuses 2006

2013

2018

1,935

2,001

2,538

Age and sex of people in Te Anau, 2018 Census Category

Male (%)

Female (%)

Under 15 years

18.8

15.7

15–29 years

16.9

19

30–64 years

47.5

48.6

65 years and over

16.6

16.4

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Dwelling occupancy status for private dwellings in Te Anau and Southland District, 2018 Census Te Anau (count)

Southland District (count)

Occupied dwelling

1,038

12,165

Unoccupied dwelling

573

3,048

Dwelling under construction

30

78

Total private dwellings

1,647

15,291

Reference: https://www.stats.govt.nz/tools/2018-census-place-summaries/te-anau

Queenstown

Te Anau

Invercargill

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Milford Opportunities Project – Te Anau Hub A Master Plan for Milford Sound was finalised in 2021, a strategic document focused on the preservation of Milford Sound and the surrounding areas, with a real focus on establishing Te Anau as the main hub for the circa 870,000 tourists who visit Milford Sound each year (Pre Covid).

Developing visitor infrastructure in Te Anau will support its growth to become a stand-alone destination, the beginning of the journey to Milford Sound Piopiotahi and central departure hub for Fiordland and the wider Murihiku Southland destinations. Grouping transport, accommodation, activity access and information/interpretation services around a regenerated town centre will unify this location with more visitors and generate growth and longer stays.

•

Establish a visitor experience centre that includes a park and ride ticketing facility in Te Anau and more parking facilities.

•

Expand accommodation and service facilities within the township.

•

Enhance local community activities and services (free public toilets, recreational centre, medical facilities, lake activities).

•

Enhance other visitor activities and services (glow worms, lake activities/crossings, trails, cycle tracks, Kepler Track).

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Increase usage of the Te Anau Airport Manapouri.

Reference: https://www.milfordopportunities.nz/assets/ Projects/210503-MOP-Masterplan-FINAL.pdf

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TE ANAU VISITOR HUB A key part of Te Anau maturing as a successful sub-regional visitor destination is to provide a visitor hub that is clearly associated with the origin of the Te Rua-o-Te-Moko Fiordland National Park experience and start of the Milford Corridor journey. The visitor hub achieves this through the co-location of two key components: a visitor centre and transport interchange.

Both would be developed to express Ngāi Tahu culture in the built environment.

Visitor Centre The visitor centre would operate day and night and contain static and interactive interpretation displays, audio-visual, seminar rooms and guided experiences. It would play an essential role in delivering information to visitors on Te Rua-o-Te-Moko Fiordland National Park’s cultural significance, history, natural environment, geology and conservation. More specifically, it would have an important role of raising visitor awareness of values, narratives, natural hazards and experiences expected along the Milford Corridor through to Milford Sound Piopiotahi. Other necessary facilities and services, including ticketing, cafés and toilets, would be provided. This centre will also serve as an alternative during inclement weather conditions when Milford Sound Piopiotahi is not accessible due to road closures.

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Transport Interchange The transport interchange is essential for providing the starting point for a bus focused visitor transport model through to Milford Sound Piopiotahi. It would enable rental and private vehicle numbers along the Milford Corridor to be lowered and visitor access to be spread out more evenly throughout the day. This would offer a better visitor experience and strengthen Te Anau as a regional accommodation hub.

The transport interchange would primarily serve as a bus terminal for hop on/ hop off buses and short stay coaches with cycle facilities and a modest car park. An out-of-town support hub, including a longer stay car park and bus depot would be serviced by hop on/hop off buses at the start and end of trips. This could be extended to a potential public transport circuit via the town centre and pass through visitor accommodations and other key community destinations en route to the visitor hub.

It is proposed to add jetties for local water-based experiences and opportunities to use shuttle services to connect surrounding boats, sea-plane operations and Te Anau Airport Manapouri that can provide access to sub-regional destinations, including other parts of Te Rua-o-Te-Moko Fiordland National Park.

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Town Centre Location Location of the visitor hub on the edge of Te Anau town centre must be carefully considered to achieve a balance between supporting the vitality of the town centre by attracting visitors and not undermining its character with more vehicle traffic expected to serve the Milford Corridor.

A suitable site should also be a comfortable walk or cycle from the town centre and visitor’s accommodation to minimise local traffic, while bus services will need to be able to link directly into the state highway network to access Milford Road and other regional destinations.

Opportunities exist to coordinate with other complementary visitor destinations around Te Anau and link into the local and regional trail network.

Most importantly, the site needs to have strong visual connections to Te Rua-o-Te-Moko Fiordland National Park and promote the natural qualities of lake and landscape distinct to Te Anau.

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Resource Management

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Residential Zone Minimum Lot Size. No minimum Maximum Building Height. 9 metres Maximum Accessory Building Height. 4.5 metres Height in Relation to Boundaries. Height recession plan requirements apply Front Yard. 4.5 metres Side and Rear Yards. 1 metre Fencing Height. 2 metres Outdoor Living Space. Minimum area: 100 sqm •

Minimum Dimension: 5m x 10m or an 8m diameter circle.

•

Accessory buildings allowed in outdoor living space: 1

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Maximum area of accessory building allowed in outdoor living space: 10 sqm

•

Area of permeable surface required: Not less than 60%

•

Outdoor living spaces shall be free of driveways, parking spaces and garages

Car Parking. Residential •

Dwelling Unit - 2 per unit

•

Family Flat, Townhouse, EP Housing - 1 per unit

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The following activities are Permitted Activities within the Urban Zone: 1. Residential Activities that comply in all aspects with the General Urban Standards for the Urban Zone.

2. Visitor Accommodation (involving five or less paying guests).

Subdivision Rules: Subdivision in the Urban zone is a controlled activity (Rule SUB.2.4) if it can meet performance criteria (primarily related to the provision of infrastructure).

Financial Contributions. The Luxmore residential land has no development levies applicable

Industrial Zone Minimum Lot Size. No minimum Maximum Building Height. 12 metres, where the site adjoins an Urban Zone, the building shall meet the height recession requirements of the Urban Zone Height in Relation to Boundaries. Height recession plan requirements apply Yards. No setbacks unless adjoining a State Highway or Regional Arterial Rd (12 metres) or any other road (7.5 metres) or any other zone without intervention of a road (7.5 metres)

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SDC BLOCK LAND TE ANAU

Council Services The Luxmore development block currently is currently dissected by various Council owned services, which may require easements and / or vesting in Council as part of vesting in Council as part of a development subdivision.

The following will be required; •

Any development of the land vests in Council the site of the water pump station, as per fenced area.

•

Any development of the land will include easements for the existing water, stormwater and sewer pipes if they are not to be located in any land to be vested in Council as road.

The below plans show the water pump station and pipes indicated blue, stormwater pipes indicated green and the sewer mains coloured red.

Sandy Brown Road Section (Water Pump Station in the South-East Corner) and Govan Drive (north)

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SDC BLOCK LAND TE ANAU

Pumping Station

Govan Drive (western Access Point)

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Indicative Development Layout Scheme Plan - Residential

KEY – 0%

400m² – 649m² 650m² – 849m² 850m² – 999m² 1000m² – 1199m² 1200m² +

Scheme Plan - Industrial

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Te Anau Residential Te Anau over the last three years has experienced good value growth and a high number of transactions in parallel with the majority of other provincial townships within Otago and Southland.

There is a good level of construction activity within the township and the area is a popular holiday home area providing more affordable homes in comparison to the Queenstown Lakes area.

We summarise residential sales over the last three years within Te Anau as follows.

DWELLINGS & UNITS

2019

2020

2021

2022 (2 months)

Median Sale Price

$439,000

$495,000

$552,500

$555,000

Average Sale Price

$475,134

$536,049

$567,763

$680,934

Total Sales

125

91

113

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Sales per month

10.4

7.6

9.4

11.5

12.8%

11.6%

0.5%

2019

2020

2021

2022 (2 months)

Median Sale Price

$159,000

$184,000

$220,000

$237,000

Average Sale Price

$182,719

$209,000

$242,926

$232,071

Total Sales

85

39

61

14

Sales per month

7.1

3.3

5.1

7.0

15.7%

19.6%

7.7%

% Increase in Median SECTIONS

% Increase in Median

Industrial The following is some high-level commentary on the market.

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Limited availability of vacant industrial sites to provide for new development and establishment of new businesses. We would envisage reasonable demand for vacant industrial sites ranging from the 500m² through to 2000m² as a likely scheme plan scenario for the industrial, with the smaller sites expected to yield a higher $/m²

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Indicative land values circa $150 to $200/m², based on analysis of a limited number of improved industrial sales. Invercargill City Industrial land sales are currently in the region of $150 - $170/m².

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5 improved industrial sales in 2020 and 2021 between $250,000 - $415,000

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1 vacant rear site sale in 2021, $195,000 for a rear 999m² site

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Colliers sold the Te Anau Downer EDI depot by Auction in June 2019 at $1,340,000, fully leased, at a yield of 7.6%, a 5964m² yard including 796m² of buildings. Inclusive of buildings the sale analysed to $224/m².

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SDC BLOCK LAND TE ANAU

Due Diligence Due diligence material is available for download from a secure electronic data room operated by Colliers Otago at www.propertyfiles.co.nz/property/91SandyBrownRoad Access to the data room will be provided upon acceptance of a confidentiality statement and Vendor approval.

The following information is available in the data room: •

Information Memorandum

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Expression of Interest Instructions

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Record of Title (to be updated prior to settlement)

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LIM Report

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Structure Plan

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Planning and Development Framework Report (Residential)

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Existing Luxmore Block Services Plan and Legend

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Illustrative Concept Plans (intended to demonstrate possible site plan option only)

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Southland District Annual Economic Profile 2021 - Infometrics Report (note: further information can be provided on request)

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Southland District at a Glance 2021 – Infometrics (note: further information can be provided on request)

Additional information may be added from time to time.

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Experts

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SDC BLOCK LAND TE ANAU

Alastair Wood

Doug Reid

Director | Sales Consultant

Commercial Broker | Lifestyle Sales Consultant

027 4362 422

0274 313 278

Alastair is one of the most experienced property professionals in the Otago region, with over 25 years’ property experience in the Queenstown- Lakes, Wanaka and Dunedin districts. Building lasting relationships with his clients, he has a strong reputation for results, integrity and his strategic approach to bringing deals together to the satisfaction of all parties.

With a diverse property background and a career that’s seen him active in the Queenstown real estate market since 1993, Doug Reid is a seasoned property professional. Holding a property degree from Lincoln, Doug is a Registered Valuer, has Associate status with the New Zealand Institute of Valuers and holds Senior Membership with the Property Institute of New Zealand, having chaired the Central Otago Branch.

Specialising in investment sales of commercial property and development sites, Alastair also takes the lead in syndicated property sales and equity raises, introducing commercial investment to a wealth of new customers. He has worked closely over the last six years with Mitchell Mackersy in various equity raises for syndicated commercial investments.

Having seen the Queenstown market through numerous economic cycles, Doug understands the factors which drive this everevolving market. Applying his knowledge and property valuation experience to the sales sphere, he’s a proven asset to vendors and purchasers.

A director of Otago Realty (NZ) Ltd operating throughout the Otago and Southland regions, Alastair has also held various directorships in other property related entities including Maori Hill Property Ltd which now has in excess of $1 billion under management around New Zealand. He is a Fellow Member of the Real Estate Institute of New Zealand (REINZ) and a former Fellow Member of the New Zealand Institute of Valuers. Also, a past chair and board member of Downtown Queenstown, which helped in the formation of the Queenstown Town Centre Master Plan.

Raised in the Whakatipu area, Doug benefits from vast background knowledge and experience across diverse property sectors throughout the district. Over the last ten years, he has specialised in assessments of lifestyle and industrial property and developed a unique knowledge of niche areas including development blocks, childcare centres, high country stations and luxury lodges.

Working in commercial property sales and lifestyle sales, contact Doug for specialist advice and an approach tailored to the current market.

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SDC Block Land 91 Sandy Brown Road Te Anau FOR SALE BY EXPRESSIONS OF INTEREST closing 4pm, Thursday 5 May 2022 Ref: 67018454

Alastair Wood +64 27 436 2422 alastair.wood@colliers.com

Doug Reid +64 274 313 278 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 Top 10 Athol Street, does not constitute an offer for sale or purchase or otherwise. the course of their evaluation and/or offer.floor, This Information Memorandum

Queenstown Monday - Friday: 9am - 5pm Please be aware that Mortgagee Sales can present more risk to purchasers, we recommend you take advice from your lawyer in this colliersotago.co.nz respect.

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