Queenstown CBD redevelopment opportunity

The 582sq m freehold property, at 31 Man St. Photo / Supplied

A site with redevelopment potential, located 200m from Queenstown's CBD and with a zoning that allows for visitor accommodation activities, is up for auction.

The 582sq m freehold property, at 31 Man St, is in the recently expanded Town Centre zone, which permits development of up to 12m in height with a 'roof bonus' that provides for an additional 2m.

Colliers International is marketing the property for sale by auction at 11am on March 7, unless sold earlier.

Brokers Barry Robertson and Steve McIsaac see plenty of options for astute developers or add-value investors.

"The elevated site has an extensive profile to Man St, which forms part of the proposed CBD bypass route — potentially providing a significant boost to the property's exposure to passing traffic," Robertson points out.

"Here's an exceptional opportunity to acquire a generous freehold site in an established Queenstown location, within a very tightly held commercial market.

"The property comprises a single dwelling plus a sleepout, generating $880 in weekly holding income from a residential tenancy.

"A buyer could either refurbish the existing improvements or plan a comprehensive redevelopment that makes the most of the site's location and generous zoning."

Robertson says the property is within an area of developing commercial and visitor accommodation activity as a result of recent zone changes.

"The site is only 50m from the proposed $100m Queenstown Views luxury hotel project, which Augusta Capital bought recently from developer Kevin Carlin for $13.95m, to add to a new tourism fund.

"The five-storey development, on the corner of Man and Brecon Sts, will feature 56 studios and suites, a luxurious penthouse, a 150-guest function room, a restaurant, and a cocktail and piano bar. Construction is due to begin in mid-2019.

"Other key accommodation providers in the area include the Lomond Lodge, which is directly next door to the site for sale, as well as Jucy Snooze, Browns Boutique Hotel, Peppers Beacon and the Crowne Plaza Hotel.

"Major tourism activities nearby include Skyline Gondola, which is undergoing a huge $100m expansion, as well as iFly and Ziptrek."

McIsaac says the property is less than five minutes' walk from Queenstown CBD and only 6km southwest of Queenstown International Airport at Frankton.

"The proposed Queenstown CBD arterial route runs down Man St, which would greatly increase the visibility and accessibility of the property for sale.

"The bypass is a key plank of Queenstown Lakes District Council's unanimously approved $385m Town Centre Masterplan, which will be rolled out over the next 35 years."

McIsaac says the property's limited improvements comprise a 1960s dwelling with a lettable area of about 90sq m, plus a sleep out at the rear of the property.

The dwelling has three bedrooms, a kitchen, bathroom, living room and basement storage.