Rare multi-tenanted Queenstown commercial site
The big freehold 9536sq m Queenstown site for sale is identified by the blue border.
A big, multi-purpose commercial investment property for sale in Queenstown’s popular Gorge Rd commercial area is generating gross rent of around $600,000 a year from several tenants.
“The property’s strong cash flow from a range of occupiers makes it a quality commercial investment,” says Alastair Wood, managing director of Colliers’ Queenstown office, who is marketing 131 Gorge Rd for sale by deadline private treaty closing on May 26.
“It’s quite unusual to see a property with such a strong and diversified income on the market in Queenstown. Multi-tenanted investments are always popular, because of their good income security, so we expect the Gorge Road property to be in high demand,” Wood says.
The freehold 9536sq m site encompasses 10 separate tenancies and is home to a range of local and national businesses. Rockgas, owned by Contact Energy, one of New Zealand’s largest listed companies, makes up the biggest proportion of the rent roll. Rockgas occupies a large area to the rear of the site, where it stores and distributes gas to service the reticulated gas infrastructure of Queenstown’s CBD.
Other tenants include local businesses Queenstown Commercial and Real Journeys; an extensive bus parking area used by coach companies; a bus grooming facility and BP which has a truck stop on the property.
Wood says Gorge Rd is Queenstown’s original industrial area and continues to be in demand among industrial occupiers, especially those which service CBD businesses.
“The property’s strong investment fundamentals will appeal to a range of local and national buyers,” he says.
“Owner occupier use is a possibility, including existing tenants who may wish to purchase the property for their own long-term use while generating income from the other tenants. We also expect to receive inquiries from developers and land bank investors, and there may be interest from the Australian market given Queenstown’s popularity as a holiday destination.”
The property contains four separate buildings housing offices, showrooms, workshops and warehouses. Most of the buildings were constructed in the 1990s and provide well-presented business accommodation.
Wood says low site coverage offers the buyer scope to increase the income stream.
“It has a minimal building area relative to its size, with large sealed yard areas used for bus parking. It has the potential for the construction of more buildings to take advantage of a demand for commercial units close to the CBD.
“The property lies within Queenstown Lakes District Council’ proposed Business Mixed Use zone which would allow a wider range of business, commercial and residential activity, as well as greater site densities and heights. For example, the current height limit of seven metres would be increased to 12 metres for permitted activity and 20 metres for ‘restricted discretionary activity’ under the proposed zoning.”
Wood says around 13ha of land along Gorge Road is being considered for Business Mixed Use zoning as it is located strategically close to Queenstown’s town centre, with the potential to become a hub for taller and more intensive development - possibly including residential apartments.
“There is a dire need for more intensive residential developments in Queenstown, given the huge growth in net migration in response to the tourism boom,” he says.