Wooing Tree Estate - ebook

Introduction

Commercial opportunities at Wooing Tree Estate are offered for lease by way of negotiation.

This information Memorandum provides preliminary information to assist interested parties with their assessment of the opportunities.

Further information is available via an online data room or available on request.

colliersotago.co.nz/67019946

Data room link: www.propertyfiles.co.nz/property/WooingTreeEstate

Data room documents available:

• Scheme Plan

• Site Plan

• Land Covenant

Steve McIsaac Colliers Queenstown

Geoff McElrea Colliers Wanaka

Executive Summary

The developer of Wooing Tree Estate has sold the majority of residential sections with over 268 presales to date out of 394 lots to be developed. Titles have been issued for 283 sections so far. The developer is wanting to secure a food and beverage operator along with other suitable tenants for the remaining space.

The opportunity on offer is:

COMMERCIAL - FOOD/BEVERAGE AND RETAIL

Building Area 600m2 (Building 1 - 250m2, Building 2 - 350m2)

Site Area 2004m2

VISITOR ACCOMMODATION

Keys 80 (proposed)

Site Area 5111m2

Amenities Bike storage, breakfast room, reception

About Wooing Tree Estate

With the move to get out of the big cities and head to a lifestyle destination, Wooing Tree Estate has attracted the interest of families from across the country as well as from expats and retirees. This is the perfect place to bring up kids, live and work from home remotely or retire. Surrounded by vines, green lanes and open space, where you can take a walk around the lake, go water skiing or fishing, golfing, climb a mountain, ride a mountain bike – then go out to one of a multitude of local restaurants or vineyards for dinner. It’s all right on your doorstep.

Being equidistant from Queenstown and Wānaka and guarding the main gateway from Dunedin and Christchurch, makes Cromwell the most accessible centre in he region – and the closest town to all the vineyards, all the ski fields, and all wonderful outdoor scenery and activities Central Otago has to offer. Cromwell has been experiencing much greater growth than predicted and this will continue for years to come.

The Wooing Tree development of 390 residential sections is located between Shortcut Road, State Highway 8B and the State Highway 6. There have been over 245 sections sold, Stage 1 consists of 32 lots and is sold out, completed and the first residents have moved in. Stage 2 consists of 127 lots and has titles issued with a number of homes under construction. Stage 3 of 100 sections is 75% sold with the first titles issued.

The Wooing Tree site is directly opposite the Cromwell Town Centre with the commercial area fronting SH 8B. Wooing Tree Estate have recently completed a pedestrian underpass that links Cromwell Town Centre with Wooing Tree Estate. There are cycle trails and greenway reserves throughout Wooing Tree Estate that connect to the Dunstan Trial and Central Otago Rail Trail network. South of the site and across State Highway 6 is the existing Cromwell Town Centre.

The developer sees the time is right for the limited commercial opportunities to bring to fruition not just for the benefit of Wooing Tree Estate but for the wider community and region.

Stage 2

A new neighbourhood in Cromwell

Wooing Tree Estate - 390 new homes and neighbourhood centre

Stage 3

10 new homes (80% sold)

Construction complete

3B Titles - September 2023

3C Titles - December 2023

Bacchus Villas

36 new homes (to be released)

Construction commencing 2024

Stage 4

68 new homes

Construction commencing 2024

127 new homes (sold out)

Titles Issued

30 homes under construction

Stage 2D

26 new homes (80% sold)

Titles Issued

Visitor Accommodation

Seeking expressions of interest

Roundabout and Pedestrian Underpass

Funded and constructed by Wooing Tree Estate

Roundabout is now operational

Pedestrian underpass is now open to the public

Stage 1

32 new homes (sold out)

26 families moved in

6 homes under construction

Childcare

BestStart confirmed as owner and operator

82 children and 14 staff Opening 2025

Neighbourhood Centre

Construction commencing October/November 2024

Leasing options are available - contact Colliers today

Wooing Tree Cellar Door and Restaurant

Construction started

Opening June 2024

Commercial Food/Beverage & Retail Opportunity

We are seeking reputable Commercial Food/Beverage and Retail Operators to open a facility in the retail precinct at Wooing Tree Estate, to support the needs of both the local community and the growing tourism market.

Here’s the details:

• Area 2,004m2

• 600m2 gross area of hospitality, tourism, retail and ancillary offices/work rooms. 250m2 of this is within a separate building for hospitality uses, with seating for 150pax indoors and 100pax outdoors.

• 30 Carparks

• The building, materiality and layout is to generally comply with design approval process within Wooing Tree Estate.

• If design parameters, building and location change then further resource consent is required.

• Maximum height of 8 metres.

• Access must be from Blondie Drive and eastern point of site as shown on scheme plan.

• Subject to design approval process similar to residential design approval process within Wooing Tree Estate.

LEGALBOUNDARY

Building Plan

Building 1 Building 2 Site Plan

Hospitality Quarter Highlights

The Wooing Tree cellar door will remain one of the key elements of the development and will open the opportunities for commercial businesses that will support the local community. The cellar door will be relocated to the hospitality and tourism quarter of the neighbourhood in Stage 3 of the development. The food/beverage and retail building, the childcare centre along with an area set aside for visitor accommodation will also be located in this area.

• Highly desired spot with an effective frontage to State Highway 8B

• Circa 8900 traffic movements per day along State Highway 8B

• Adjacent to the main gateway into the community on the corner of the newly completed roundabout

• Pedestrian underpass and cycle trials will lead you into the centre of Cromwell

• Close proximity to Lake Dunstan, vineyards, Cromwell golf course and town centre

• Potential to build up to 8 metres

• Signage exposure to State Highway traffic

Location Cromwell

Located on the shores of Lake Dunstan, Cromwell has the appearance of a modern town, but its history stretches back to the gold rush days of the late 1800s when gold was discovered just below the junction of the Clutha and Kawarau rivers by two miners, Horatio Hartley and Christopher Reilly. Once word got out, there was a huge influx of several thousand miners into the area, and the town of Cromwell was born. As time went on and the gold ran out, Cromwell transitioned into a thriving town servicing the burgeoning farming and stone fruit industries, earning its reputation as the ‘fruit bowl of the south’ – over summer the roadside fruit stalls are a delicious temptation.

QUEENSTOWN 60km 50min

WĀNAKA 54km 40min

ALEXANDRA 30km 20min

POPULATION

5440 (June 2020)

CLIMATE

Hot summers & cold winters 2000 hours of sunshine each year, very dry, with only 400mm of ran, on average

SCHOOLS

Two primary and one secondary school

WINERIES - 25

Discover Cromwell’s award winning wines

Wine Country

Central Otago is New Zealand’s southernmost wine region. The region is home to big mountains, pristine lakes, dramatic skies and some of the best Pinot in the world. Any season is a good time to visit Central Otago, cosy up to the fire with a glass of Pinot Noir after hitting the slopes in the winter, or cycle to the wineries for some earned indulgence in summer.

In Cromwell, there are a number of vineyards and Cellar Doors wihin walking distance to the town including the new Wooing Tree Cellar Door that will open 2024. A large amount of soil variability and micro-climates between vineyards in this area are a draw card for the wine enthusiasts showing different styles and characteristics in the wines.

Cycle Trail Hub

Experience a multitude of world class cycle trails with incredible scenery.

Whether you are seeking out challenging single track mountain bike trails, multi-day heritage rides, like the Otago Rail Trail, or a short family adventure the Cromwell region has a multitude of world-class cycle trails perfectly suited to the speed you choose to get away from it all. Incredible scenery and over 300km of off-road cycle and walking tracks are waiting for you straight out of Wooing Tree Estate. Many of the trails pass by world class wineries and cellar doors, stunning heritage sites, art galleries, boutique accommodation, great restaurants and gastro pubs.

Cromwell Industrial/Commercial Market

Cromwell has been one of the country’s fastest growing towns for at least six years. The strategic position of Cromwell as an access ‘pivot’ for the Queenstown and Wānaka 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 Wānaka and Queenstown, Cromwell is 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 the Queenstown tourism and the property market. With the borders now opening to the rest of the world, Cromwell is well positioned to again benefit from tourism. Significant price increases in the Queenstown residential property market has seen people decide 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 premises 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.

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.

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.

• Stabilising of investment yields due to low supply of investment offerings, however this will be balanced with increasing finance costs. These will be dependent on tenant covenant and lease duration.

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

• 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 Wānaka.

Growth Projections

The up-and-coming Cromwell area offers excellent value and growth potential. Over the 2014 to 2018 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.

Source = CODC Cromwell Spatial Framework Report 2019

Population and growth projections for the Cromwell area have been analysed by Rationale.

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 District.

This compares to growth within the Otago Region between 2013-2016 at 1.6% per annum, and between 2016 to June 2017 at 2.3% per annum. The extent of District growth compared the National trends is shown in the data analysis by infometrics; https://ecoprofile.informetrics.co.nz/ Otago, alonhgside tourism, earning and housing affordibility trends.

The population forecasts for the Cromwell Ward 2018 -2048, adopting the SNZ 2013 ‘high scenario’ projections, are for a population of approximately 12,000 towards the end of the ‘Cromwell 2050’ planning period. Statistics NZ regularly updates the population projections and the implications for the CMP will be monitored over time by Central Otago District Council.

Forecast Future Population

(c.66 hhlds.p/a)

(c.57 hhlds.p/a)

*Based on a ratios of 2.3, 2.2 and 2.2 pp/household in 2018, 2028, and 2048 respectively.

Cromwell 2050 - Estimated Residential Yields

Diligence

colliersotago.co.nz