A purpose-built new industrial facility with a long lease to one of New Zealand's best-known tourism brands is for sale in Queenstown's premium industrial precinct.
Located in tightly held Frankton, the property at 52-54 Grant Road is currently being developed into a new customer service centre and workshop for campervan and car rental company JUCY Rentals.
The company is making the move from its current premises at Queenstown Airport due to rising all-year demand and an upcoming lease expiry.
It has committed to a new 10-year lease from completion and settlement, which is due in December. The bank-guaranteed lease will return $585,000 in net annual rent, with fixed annual growth of 3 per cent and a mid-term market review at five years, with a minimum increase of 3 per cent.
Colliers International has been exclusively appointed to market the property for sale by deadline private treaty closing at 4pm on Thursday 17 October, unless it sells earlier.
Director Gareth Fraser says the offering will appeal to investors looking to secure a strategic, long-term investment.
"This design-build property has an enviable array of investment fundamentals, including strong tenant covenant, a long lease, fixed annual rental growth and quality new construction.
"These attributes are underpinned by a strategic landholding in Queenstown's premium industrial hub.
"Queenstown is in the midst of a construction and tourism boom, underpinning business growth and confidence for industrial property occupiers.
"However, industrial-zoned land is in short supply, creating huge occupier demand for the few remaining sites and premises.
"The sale of 52-54 Grant Road represents a rare opportunity to acquire a tightly held Queenstown industrial landholding with a long-term national tenant, stable income and future potential value-add opportunities."
The facility is being developed on a 5,726sq m freehold site near the new Queenstown Central mixed-use retail and commercial development.
Greg Goldfinch, Industrial National Director at Colliers, says it has been specifically designed to cater for JUCY Rental's operational requirements.
"The purpose-built facility will provide a 210sq m customer service area and office at the front. A 610sq m warehouse at the rear will provide workshop space for mechanical and cleaning operations.
"The remainder of the site will be completely sealed, fenced and landscaped, with a 4,886sq yard providing space for vehicle storage.
"This highly functional and well thought-out site plan ensures maximum productivity and future flexibility in the long term for a variety of users."
The building is being constructed of a steel portal frame, attractively clad in profile iron with feature panels and detailing.
Joinery will include aluminium windows and doors.
The front office will include a large main reception area for vehicle pick-up as well as a smaller drop-off reception area.
Other facilities will include staff and customer toilets, a cafeteria, two interconnected meeting rooms and a spacious open plan office.
The warehouse will be split into two distinct areas, each served by electric roller doors and separate pedestrian entrances.
The front two-thirds of the warehouse will be used for vehicle detailing. Access will be via two roller doors on either side of the building, providing for drive-through access.
The remaining third of the warehouse will provide a mechanics' workshop with access via four separate roller doors facing the rear of the site.
An adjoining covered canopy area for vehicle drop-off and pick-up will run down one side of the warehouse.
Rory O'Donnell of Colliers Queenstown says the property is well located within the established Frankton industrial area.
"Access to the area has recently been improved with the completion of Hawthorne Drive, which now connects Remarkables Park and Queenstown Airport with Grant Road and State Highway 6.
"The location provides good access to the nearby Queenstown Central development, Lake Hayes, and Queenstown CBD, some 8km away via SH6.
"This excellent connectivity has attracted various national and multinational tenants to the area in recent years, many of which have committed to long leases."
Tim Thomas of Colliers Queenstown says tightening vacancy rates and land supply in the Frankton area support strong investment fundamentals.
"The asset is located in one of the strongest industrial investment markets in New Zealand," he says.
"Landholdings within Queenstown are tightly held, resulting in strong rental and capital growth prospects in the future.
"The property is within Activity Area D on the Frankton Flats B Structure Plan. This is an area dedicated to yard-based industrial and service activities."
Founded in Auckland in 2001, JUCY is a private, family-owned and operated company.
JUCY Rentals began with 35 rental vehicles and has since grown to provide more than 4,000 cars and campervans across Australia, New Zealand and the USA. Its distinctive green and purple campervans are designed and built in-house in Auckland and Los Angeles.
JUCY also provides premium backpacker accommodation and Milford Sound cruises through its JUCY Snooze and JUCY Cruise brands.