39 Shotover Street, Queenstown CBD
39 SHOTOVER STREET, QUEENSTOWN CBD, OTAGO 2
NEW ZEALAND SOTHEBY’S INTERNATIONAL REALTY 3 Contents Introduction 5 Property Highlights 6 Net Lettable Area 6 Tenancy Overview and Description 7 Floor Plans 8-9 Summary of Existing Leases 10-11 Assessed Current Market Rents 12 Location 13-15 Planning Considerations and Redevelopment Potential 16-17 Summary of Planning Report Findings 18 Sales Process 21 Certificate of Title 22-23
Secure your foothold in Queenstown’s thriving CBD.
4 39 SHOTOVER STREET, QUEENSTOWN CBD, OTAGO
39 SHOTOVER STREET
Introduction
For the first time in five decades, this special commercial property is for sale, offering an exceptional investment opportunity in the heart of Queenstown’s bustling CBD.
Boasting double street frontage, this property is a well-known landmark on vibrant Shotover Street. Fully tenanted, it presents a steady income stream with the added potential for market rent reset, promising increased returns for the discerning investor.
Beyond the medium-term rental yields, 39 Shotover Street holds significant development potential. With Queenstown’s continual growth and demand for commercial space, this property provides a rare chance to capitalise on its prime location and unlock further value through redevelopment.
Situated on one of Queenstown’s most popular retail streets, the property enjoys high foot traffic and visibility, ensuring maximum exposure for any business endeavour. Its strategic position amidst a myriad of shops, restaurants, and attractions makes it an ideal destination for locals and tourists alike, guaranteeing sustained demand for commercial space.
An added advantage rarely found in the area is the provision of private carpark spaces, a coveted asset that enhances convenience and accessibility for tenants and customers alike.
Don’t miss this extraordinary opportunity to secure your foothold in Queenstown’s thriving CBD. Whether you’re an astute investor seeking steady returns, a developer with a vision for growth, or an entrepreneur looking to establish a presence in one of New Zealand’s most coveted locations, 39 Shotover Street is a view.
NEW ZEALAND SOTHEBY’S INTERNATIONAL REALTY 5
Property Highlights
ADDRESS 39 Shotover Street & 15 Duke Street, Queenstown
LEGAL DESCRIPTION Lot 1 DP 19556
IDENTIFIER OT10C/1099
AREA 377 sq m
TENURE Fee Simple
ZONE
The site is included in the Town Centre Zone in the Proposed District Plan. The Zone intends that a wide range of commercial and retail activities occur within this area. 100% site coverage and generous height limitations are permitted within this zone. Full details of this zone are available in the independent planner’s report.
NET LETTABLE AREAS
39 SHOTOVER STREET, QUEENSTOWN CBD, OTAGO 6
GROUND FLOOR (BROWNS SKI SHOP) 142 sq m GROUND FLOOR (HARCOURTS) 151 sq m GROUND FLOOR STORAGE SHED (HARCOURTS) 3 sq m FIRST FLOOR (HARCOURTS) 278 sq m FIRST FLOOR BALCONIES (HARCOURTS) 54 sq m CARPARKS OFF DUKE STREET (HARCOURTS) 4
Tenancy Overview and Description
39 Shotover Street is currently leased to an iconic Queenstown Ski Shop and national Real Estate Agency.
BROWNS SKI SHOP
Ground Floor Retail - 142 sq m (NLFA)
An irregular shaped retail store with 9.6m frontage to Shotover Street and secondary frontage to Duke Street of 6.3m. The shop has a 3m high ceiling height, entry by automatic doors to Shotover Street and with polished timber flooring. A WC, storage space and tea/coffee prep sink is provided. Heating/cooling is by way of electric heat pump.
Browns Ski Shop has been operating from this location for over 44 years with the current operator having leased the premises for the past 27 years. This is a proven retail location with excellent foot traffic.
HIGHLAND REAL ESTATE (T/A HARCOURTS)
Ground Floor retail 151 sq m + First Floor Office 278 sq m (NLFA) + Outdoor Storage of 3 sq m and 4 carparks
An irregular shaped retail space with 10.6m frontage to Shotover Street and secondary frontage to Duke Street of around 12 metres. Entry to the retail space is by automatic doors. A WC and handbasin is located to the rear of the ground floor with the balance of the area being reception and partitioned office/ meeting space.
To the Duke Street entrance, a tiled foyer is accessed by aluminum french doors which leads to both the ground floor tenancy and also to the upper-level office space.
The upper level is utilised for real estate offices. In this space, a kitchen and staff room facility exists along with bathroom, shower, basin and three WC’s. Five separate deck areas provide good amenity on both frontages. Heating and cooling is provided by heat pump.
Harcourts have traded from this location for close to 22 years.
7 NEW ZEALAND SOTHEBY’S INTERNATIONAL REALTY
FLOOR
39 SHOTOVER STREET, QUEENSTOWN CBD, OTAGO 8
Floor Plans 16.64m 10.87m 19.92m 12.52m 16.28m
GROUND
FIRST FLOOR
INFORMATION MEMORANDUM 9
Summary of Existing Leases
BROWNS SKI SHOP
TENANT Browns Ski Shop (1997) Limited
PREMISES
Part ground floor of Lot 1 DP 19556 + common shared space as outlined in lease document
CARPARKS Nil
COMMENCEMENT 1 April 1997
TERM 5 Years
FURTHER TERMS 3 x 5 years + 10 years (by variation to lease)
FINAL EXPIRY 31 March 2027
NEXT RENT REVIEW 1 April 2025
PROPORTION OF OUTGOINGS
RATCHET CLAUSE
DEMOLITION CLAUSE
of overall building 50% of common areas
At review the rental shall not be less than the passing rental 12 months prior to the relevant rental review date.
Three months written notice to be provided in the event the landlord decides to redevelop the property. Such notice cannot be issued between 15 April & 1 October of any calendar year. The tenant having first right of refusal to re-enter a similar sized shop in new building.
39 SHOTOVER STREET, QUEENSTOWN CBD, OTAGO 10
TYPE OF LEASE ADLS Third Edition + variation to lease document
25%
HIGHLAND REAL ESTATE (TRADING AS HARCOURTS)
TYPE OF LEASE
ADLS Third Edition + variation to lease document
ASSIGNOR Queenstown Real Estate 1998 Limited
ASSIGNEE Highland Real Estate Group Limited
PREMISES
Units 1, 2, 3, 4, 5 & 6 top floor 39 Shotover Street & part ground floor of 39 Shotover Street
CARPARKS 4
COMMENCEMENT 1 June 2002
TERM 10 Years
FURTHER TERMS 2 x 5 years + 5 years
RENEWAL DATES 1 June 2022
FINAL EXPIRY 31 May 2027
NEXT RENT REVIEW 30 May 2025
PROPORTION OF OUTGOINGS
RENTAL ASSESSMENT
RATCHET CLAUSE
SPECIAL CONDITIONS
75% of overall building 50% of common areas
Rental to be assessed on basis of a bare shell premise and on the basis assuming the original frontage of the ground floor space.
At review the rental shall not be less than the passing rental 12 months prior to the relevant rental review date.
• Landlord agreed to tenant rearranging the floor layout of both floors.
• Landlord agreed to installation of new street frontage which was paid for by the tenant. Rent must be assessed assuming original frontage.
• No makegood requirement on tenant.
• Tenant has first right of refusal to purchase building.
11 NEW ZEALAND SOTHEBY’S INTERNATIONAL REALTY
Assessed Current Market Rents
It is recognised that the existing premises is currently under-rented. As such, an independent valuation has recently been completed to provide purchasers with a better understanding of current market rental rates. This report will be made available to approved purchasers.
Net Rental Assessment as at February 2024:
Less discount (reflects tenant improvements to frontage)
12 39 SHOTOVER STREET, QUEENSTOWN CBD, OTAGO
SQ M $/SQM/PA Ground Floor 142 $1,350 $191,700 Ground Floor 151 $1,325 $200,075 First Floor 278 $300 $83,400 Decks 54 $125 $6,750 Outside Storage 3 $250 $750 Carparks (4) $2,340 $9,360
($5,000) TOTAL ASSESSED MARKET RENT $487,035 + GST
Location
Shotover Street is the main thoroughfare through Queenstown’s CBD and part of State Highway 6A. It would be considered the highest profile street in the CBD with the benefit of high vehicular and foot traffic.
The central Shotover Street location always ranks highly in the annual pedestrian foot counts.
39 SHOTOVER STREET & 15 DUKE STREET, QUEENSTOWN
NEW ZEALAND SOTHEBY’S INTERNATIONAL REALTY 13
39 SHOTOVER STREET, QUEENSTOWN CBD, OTAGO 14
SOFITEL QUEENSTOWN HOTEL AND SPA
SKYLINE QUEENSTOWN
THE MOUNTAINEER BUILDING
STEAMER WHARF
NEW ZEALAND SOTHEBY’S INTERNATIONAL REALTY 15
39 SHOTOVER STREET & 15 DUKE STREET, QUEENSTOWN
EICHARDT’S HOTEL
FERG BURGER & BAKERY
QUEENSTOWN VISITOR INFORMATION CENTRE
SKYCITY CASINO AJ HACKETT BUNGY CENTRE
Planning Considerations and Redevelopment Potential
Numerous key Queenstown CBD sites have been purchased for redevelopment in recent years.
Under the Operational District Plan and the Proposed District Plan, the site is zoned Town Centre Zone. As such the site offers exceptional long term redevelopment potential.
The purpose of the Zone is described as:
Town centres provide a focus for community life, retail, entertainment, business and services. They provide a vital function for serving the needs of residents, and as key destinations for visitors to our District, they provide a diverse range of visitor accommodation and visitor-related businesses. High visitor flows significantly contribute to the vibrancy and economic viability of the centres. Queenstown will increasingly become a dynamic and vibrant centre with high levels of tourism activity that provides essential visitor-related employment. It serves as the principal administrative centre for the District and offers a wide variety of activities for residents and visitors. It has a range of entertainment options and serves as a base for commercial outdoor recreation activities occurring throughout the Wakatipu Basin. Visitor accommodation is provided within and near to the town centre. Over time, Queenstown town centre will evolve into a higher intensity and high-quality urban centre.
39 SHOTOVER STREET, QUEENSTOWN CBD, OTAGO 16
COUNCIL INFRASTRUCTURE
Queenstown Lakes District Council have recently upgraded CBD infrastructure and the site has reticulated 3-waters infrastructure in both Duke Street and Shotover Street.
17
NEW ZEALAND SOTHEBY’S INTERNATIONAL REALTY
*
Summary of Planning Report Findings
A full planning report has been commissioned and accompanies this information.
A summary of the zoning rules is as follows:
39 SHOTOVER STREET, QUEENSTOWN CBD, OTAGO 18
Rule Description Consent required if rule breached With new Urban Intensification Variation (if adopted by QLDC)* Consent Required if Rule breached Buildings Design assessment purposes Restricted Discretionary Design assessment purposes Restricted Discretionary Licensed Premises 11pm to 8am Controlled 11pm to 8am Controlled Visitor Accommodation Controlled Controlled Residential Activity Must be above ground floor level Restricted Discretionary Must be above ground floor level Restricted Discretionary Building Coverage 100% (subject to design approval) Restricted Discretionary 100% (subject to design approval) Restricted Discretionary Building Height 12 – 14m Restricted Discretionary 24m Non complying + 14m Non-Complying N/A N/A Building Setback at upper Floors N/A N/A 6m setback at street above 12m height. Restricted Discretionary Minimum Ground Floor Height N/A N/A 4m Restricted Discretionary Outdoor Space N/A N/A 4m wide x 6m deep principal living room outlook space for residential or VA units Restricted Discretionary Flood Risk Minimum Floor Level 312.0metres above sea level Restricted Discretionary Minimum Floor Level 312.0metres above sea level Restricted Discretionary Verandahs Shotover Street frontage Restricted Discretionary Shotover Street frontage Restricted Discretionary Acoustic Insulation Mechanical ventilation and sound insulation required Restricted Discretionary Mechanical ventilation and sound insulation required Restricted Discretionary Lighting and Glare Glare and exterior lighting requirements Restricted Discretionary Glare and exterior lighting requirements Restricted Discretionary Screening of Storage Areas Minimum screening requirements Restricted Discretionary Minimum screening requirements Restricted Discretionary Waste Storage Variable on-site requirements depending upon intended building use Restricted Discretionary Variable on-site requirements depending upon intended building use Restricted Discretionary
Not required however Loading bay is required.
Carparks
The level of support or opposition for this Variation is unclear, as Council has not released a summary of submission as of February 2024.
To be read in conjunction with the JE&A Planning report
*
NEW ZEALAND SOTHEBY’S INTERNATIONAL REALTY 19
DUKE STREET FRONTAGE
SHOTOVER STREET FRONTAGE
39 SHOTOVER STREET, QUEENSTOWN CBD, OTAGO 20
Sale Process
This investment opportunity is being offered for sale by way of Tender closing 12:00 p.m. Wednesday 27 March 2024. Prior offers will not be considered.
+64 21 199 7669
matt.finnigan@nzsir.com
NOTICE OF DISCLAIMER
+64 21 355 291
russell.reddell@nzsir.com
This Memorandum has been prepared solely to assist interested parties in deciding whether to express their interest in the assets and then making their own evaluation of the property and its assets. The Memorandum does not purport to contain all information that a prospective Purchaser may require. In all cases, interested parties should conduct their own investigation, analysis and verification of the data contained in this Memorandum and the property. Neither the delivery of this Memorandum nor any contractual agreement concluded thereafter shall under any circumstances create any implication that there has been no change in the affairs or prospects of the property since the date of this Memorandum or since the date as at which any information contained in this Memorandum is expressed to be applicable.
The Advisors have not independently verified any of the information contained in this Memorandum. None of the Advisors or Owner make any representation or warranty as to the accuracy or completeness of the information contained in this Memorandum and none of the Advisors or Owner shall have any liability for any statements, opinions, information or matters (express or implied) arising out of, contained in or derived from, or for any omissions from, or failure to correct any information in this Memorandum, or any other written or oral communications transmitted to any recipient of this Memorandum in relation to the property.
Retention of this Memorandum will constitute acceptance by the recipient and readers of these terms and conditions and any recipients who do not accept any of the terms and conditions should return the Memorandum to the Advisors immediately.
21 NEW ZEALAND SOTHEBY’S INTERNATIONAL REALTY
MATT FINNIGAN
RUSSELL REDDELL
Record of Title
39 SHOTOVER STREET, QUEENSTOWN CBD, OTAGO 22
Register Only Search Copy Dated 30/01/24 5:09 pm, Page of 1 2 Transaction ID 2412829 Client Reference acuebillas001 RECORD OF TITLE UNDER LAND TRANSFER ACT 2017 FREEHOLD Search Copy Identifier OT10C/1099 Land Registration District Otago Date Issued 06 May 1986 Prior References OT10C/239 OT376/142 OT9A/367 Estate Fee Simple Area 377 square metres more or less Legal Description Lot 1 Deposited Plan 19556 Registered Owners D.M. Brown Limited Interests 653063.4 Transfer creating the following easements Type Servient Tenement Easement Area Dominant Tenement Statutory Restriction Party wall Lot 1 Deposited Plan 19556 - herein A DP 19556 Lot 2 Deposited Plan 19556 - CT OT10C/1098 Section 309(1)(a) Local Government Act 1974 Party wall Lot 2 Deposited Plan 19556 - CT OT10C/1098 B DP 19556 Lot 1 Deposited Plan 19556 - herein Section 309(1)(a) Local Government Act 1974 569488.4 Transfer creating the following easements Type Servient Tenement Easement Area Dominant Tenement Statutory Restriction Party wall Lot 1 Deposited Plan 17724 and Section 2 Block X Town of Queenstown - CT OT9A/366 A Transfer 569488.4 Section 3 and Part Section 18 Block X Town of Queenstownherein Encroachment Section 2 Block X Town of Queenstown - CT OT9A/366 B Transfer 569488.4 Section 3 and Part Section 18 Block X Town of Queenstownherein Party wall Lot 1 Deposited Plan 19556 - herein C Transfer 569488.4 Lot 1 Deposited Plan 17724 and Section 2 Block X Town of Queenstown - CT OT9A/366 965701.2 Mortgage to The National Bank of New Zealand Limited - 15.4.1999 at 9.03 am
NEW ZEALAND SOTHEBY’S INTERNATIONAL REALTY 23 Record of Title Identifier OT10C/1099 Register Only Search Copy Dated 30/01/24 5:09 pm, Page of 2 2 Transaction ID 2412829 Client Reference acuebillas001
39 SHOTOVER STREET, QUEENSTOWN CBD, OTAGO
nzsothebysrealty.com/QBS13490
TENDER
Closing 12:00 p.m. Wednesday 27 March 2024
Prior offers will not be considered.
Each Office is Independently Owned and Operated. Browns Real Estate Limited (licensed under the REAA 2008) MREINZ.
