A rare and substantial commercial investment opportunity in downtown Queenstown is being offered For Sale by Tender through Colliers International’s Queenstown office. The block surrounds the high profile intersection of Shotover, Stanley Street and Gorge Road at the entrance to the Queenstown CBD.
The properties are being offered as four individual lots, or alternatively one landmark 2,990 sqm parcel that has concept plans available for a 202 hotel and retail development. The properties are being offered for sale by tender, closing Tuesday 22 March 2016 at 4pm (unless sold prior).
Alastair Wood of Colliers International Queenstown is marketing the property with colleague and tourism broker Barry Robertson.
“This is a very unique opportunity being offered to the market at a time when we have seen unprecedented growth in our tourism market," Wood comments.
"For land to be made available on such a high profile corner at the gateway to the Queenstown CBD is very rare."
In addition to the exposure on a key strategic corner, buyers will also enjoy the benefit of a steady income stream and concept plans for a substantial tourism development, he says.
Existing use of the site includes three tenanted commercial buildings, a vacant lot leased for car parking and a two-level apartment block of 10 residences on separate unit titles. The gross income stream for the four lots is in excess of $650,000 per annum gross, with the majority of leases on monthly terms providing flexibility for redevelopment.
The property comes to market at a time of unprecedented growth with sustained and strong demand set to continue in Queenstown for short and long term accommodation.
Hotel occupancy rates have risen sharply across the board, as have room rates. Hotel operators in the upper end of the market are seeing room rates consistently in excess of $300/night and occupancy north of 80%," says Barry Robertson.
“This has made new hotel development become viable and we are now seeing an undeniable appetite for downtown commercial and hotel development sites. The growth here has been fuelled by the high demand from both investors and tourism operators in what’s one of the country’s most tightly held commercial markets. Properties like these are a sought-after commodity”.
The increased demand from hotel investors and developers has been shown during 2015 with Colliers International brokering of the sale of Novotel Gardens for in excess of $90m, XBase Backpackers (circa $14m) and the sale of a consented hotel site at 130 Frankton Road.
“This clearly signals qualified tourism and hotel investors are back in the market” says Robertson.
The Shotover-Stanley corner sits within the Queenstown Lakes District Council’s High Density Residential Zone, and existing concept plans encompass a 202-room hotel, 1,800sqm of ground floor retail space and 52 underground car parks.
The location is also included in the proposed extension to the existing Town Centre Zone, from the QLDC’s Proposed District Plan Part 3. This proposed District Plan highlights future development for the CBD as evolving “into a higher intensity and high quality urban centre.”