Pegasus · Phone: +64 3 365 7887 Mobile: +64 21 650 460 [email protected] Colliers...

information memorandum

Pegasustown commercial centre

Situated just 35 minutes from Christchurch, the Pegasus Commercial Centre is a high-quality retail and commercial offering in the heart of the established suburb of Pegasus, North Canterbury. The area is experiencing significant growth as a result of recent infrastructure investment increasing accessibility to the region. There is enormous scope for investors, developers and owner-occupiers to add value to this beautifully designed neighbourhood centre.

54

contents

introduction 7

investment highlights 8

pegasus commercial centre 10

property one summary 12

property two summary 17

property three summary 20

property four & five summary 25

pegasus lifestyle 26

pegasus location 29

pegasus town 30

accessibility 32

key tenants 35

tenancy schedule 36

financial summary 39

market overview christchurch 40

greater christchurch residential land sales 43

christchurch retail trends 44

zoning 46

legal description 48

sale process & due diligence 50

7

introduction

The Centre features three modern neighbourhood mixed use/retail properties with plenty of or scope to add value. All are situated in the heart of the Pegasus residential community.

In addition to the three existing properties, two prime development sites are also available including one with extensive lake frontage.

Offering lakeside shopping and dining, these properties are an affordable opportunity to invest in North Canterbury’s growth. With attractive views and a lively atmosphere, the centre offers outstanding amenity to residents and visitors alike. The immediate catchment continues to grow, with over 1,000 families already living in Pegasus.

The highly anticipated completion of the northern bypass is expected to significantly increase accessibility to Pegasus and the surrounding area and catchment by reducing drive times from the Christchurch CBD and the Christchurch Airport.

This opportunity provides scaleability to investors developers and owner-occupiers with each of the assets being offered for sale either individually, collectively or any combination.

The properties are offered for sale by Deadline Private Treaty closing 4pm (NZST), Thursday 2 July 2020 (unless sold prior).

All bids are to be lodged at the offices of Colliers International, Level 1, 181 High Street, Central Christchurch.

All enquiries, requests for information and arrangements to undertake inspection in relation to this opportunity are to be directed to the sole agents.

Mark MacauleyGeneral Manager & PartnerPhone: +64 3 365 7887Mobile: +64 21 650 [email protected]

Colliers International is proud to present Pegasus Town Commercial

Centre located at 8 Tahuna Street, 60 Pegasus Main Street, 62 Pegasus

Main Street, 58 Pegasus Main Street and 64 Pegasus Main Street to the

market for sale by way of Deadline Private Treaty closing, 4pm Thursday

2 July 2020 (unless sold prior).

Will FranksInvestment Sales BrokerPhone: +64 3 365 7887Mobile: +64 27 250 [email protected]

98

investment highlights

Diverse tenant mix

The properties offer a diverse tenancy mix of retail, commercial and hospitality including The Good Home, Waimakariri District Council and Ray White Real Estate.

Location

Pegasus continues to be a highly desirable North Canterbury suburb with a growing population.

Quality improvements

1. 8 Tahuna Street NLA 1,503.8m² (approx.) An attractive two-level commercial building constructed around 2010. The ground floor includes four retail units and the first floor has three office tenancies including amenities.

2. 60 Pegasus Main Street NLA 647.8m² plus service area of 127.20m² (approx.) A modern single-level building constructed in 2016. The building has five retail units with a shared service corridor to the rear.

3. 62 Pegasus Main Street – The Good Home Pegasus NLA 724.6m² (approx.) A modern, single-level building constructed in 2018 comprising a single gastro pub tenant with views over Lake Pegasus.

Future development land

Also offered for sale are two well located development sites, one of which has extensive water frontage:

4. 58 Pegasus Main Street Land area 847m² Zoning - Business 1

5. 64 Pegasus Main Street Land area 1,030m² Zoning - Residential 6A

Modern attractive design

Recent construction, striking architecture and quality material make the centre a highly attractive, easily maintained asset class.

Scaleable investment

For the first time ever, the centre is being made available in five affordable, separate investment parcels allowing buyers to scale their investment to suit their investment needs. Alternatively all properties can potentially be purchased together providing larger investors the opportunity to completely reposition and further develop Pegasus Commercial Town Centre, with maximum control over the future tenancy mix.

Land area

A substantial land area of over 9,800m² across the six titles.

Car parking

All properties benefit from ample and convenient car parking.

60 Pegasus Main Street, 62 Pegasus Main Street, 58 Pegasus Main Street and 64 Pegasus Main Street include a ¼ share in Lot 7 DP 522271 which accommodates circa 86 car parks.

8 Tahuna Street has car parking for approximately circa 40 parks.

Access

Pegasus is located just 35 minutes from Christchurch with accessibility expected to improve further on completion of the northern bypass bringing Pegasus within easy commuter reach of the city and airport.

Total income

The properties have a combined current income of $487,200.35 + GST per annum (approx.)

8 Tahuna Street $142,008 + GST

60 Pegasus Main Street $109,726 + GST

62 Pegasus Main Street $235,465.91 + GST

Add value or reposition

Current vacancy and short term leases means there is plenty of scope for owner-occupiers and investors to adjust the tenancy mix, enhance value and improve rental income whilst benefiting from some holding income.

Pegasus Medical Centre

pegasus commercial centre

Property 3

62 Pegasus Main Street

Lake Pegasus

Property 2 60 Pegasus Main Street



Pegasus Main Street

Matamata Quay

Peg

asu

s B

ou

leva

rd

Tah

un

a St

reet

Bar

nes

Str

eet

Win

sole

Str

eet

Property 1 8 Tahuna Street

Properties 2, 3, 4 & 5, include an undivided ¼ share in a common car parking area accommodating approximately 86 car parks.

For Sale

Property 1. 2 level office/retail Property 2. 5 retail shops Property 3. Single tenant retail Property 4. 847m² development site Property 5. 1,030m² development site

Future development

Existing development

Boundary lines are indicative only

1312

property one summary


Description A two level building with four retail tenancies (plus ATM) on the ground floor and six office tenancies above on the first floor

Location 8 Tahuna Street, Pegasus, Canterbury

Legal description Lot 104 DP401487

Identifier 453138

Land area 2,950m² (more or less)

Total net lettable

area1,503.8m²

Occupancy 57.1%

Car parks Shared car parking with all tenants, includes circa 40 car parks

Current income $142,008 + GST (approx.)

Estimated net

market rent, fully

leased

$232,000 + GST

Constructed Circa 2010

Tenants

(trading as)

Waimakariri District Council, Ray White, Flat White Cafe, Active Zen, Tank vision NZ and Van De Geest Building Ltd

Zoning Underlying Zoning Res 6, consented for commercial

The opportunity

With approximately 1,065m² either vacant or subject to monthly leases, property

one offers active investors or owner-occupiers the perfect opportunity to

reposition, re-lease or occupy the largest building at Pegasus Town Commercial

Centre.

1716

Description A modern single level block of five retail units

Location 60 Pegasus Main Street, Pegasus, Canterbury

Legal description Lot 1 DP 517496 & 1/4 share in Lot 7 DP 522271

Identifier 844873

Land area 2886m² (more or less)

Total net lettable

area647.8m² (approx)

Occupancy 57.2%

Car parks ¼ share in Lot 7 DP 522271 This lot comprises a shared car park area with circa 90 car parks

Current income $67,901 + GST

Estimated net

market rent, fully

leased

$155,000 + GST


Tenants Main Street Store, Lakeside Pizza and Bottle-O Liquor store

Zoning Business 1

property two summary


The opportunity

Similar to property one, property two offers active investors and owner occupiers

an opportunity to reposition, re-lease or occupy this highly attractive, purpose

built retail development. Essential viewing for investors with creativity and vision

seeking to unlock substantial value.

2120

Description A modern single level building fully leased and trading as The Good Homes Gastro Pub with views over lake Pegasus

Location 62 Pegasus Main Street, Pegasus, Canterbury

Legal description Lot 2 DP 522271 & 1/4 share in Lot 7 DP 522271

Identifier 844872

Land area 1,219m² (more or less)

Total net lettable

areaCirca 724.6m²

Car parks ¼ share in Lot 7 DP 522271 This lot comprises a shared car park area with circa 90 car parks

Net passing

income$211,395.84 + GST


Tenant The Good Home Gastro Pub (plus Spark cell tower site)

Zoning Business 1

property three summary


The opportunity

Property three is home to the popular

Good Homes Gastro Pub and a real

landmark in the Pegasus development

and a Spark cell tower site. Offered

for sale fully leased to a single tenant,

this property is ideal for the more

passive investor requiring less active

management than properties one and

two.

Financial summary (approximate, plus

GST per annum)

Current income $235,465.91

Less: un-recoverable outgoings $24,070.07

(exc GST)

Current net passing income $211,395.84

* Includes Spark cell tower rent

2524

Description

Two freehold development sites, both of which have an undivided ¼ share in the common car park.

LocationProperty 4 58 Pegasus Main Street, Pegasus, Canterbury

Legal description Lot 3 DP 517496 and ¼ share in Lot 7 DP 522271

Identifier 844874

Land area 847m² more or less

Car parks ¼ share in Lot 7 DP 522271

Zoning Business 1

LocationProperty 5 64 Pegasus Main Street, Pegasus, Canterbury

Legal description Lot 10 DP 517496 and ¼ share in Lot 7 DP 522271

Identifier 844875

Land area 1,030m² more or less

Car parks ¼ share in Lot 7 DP 522271

Zoning Residential 6 and Business 1

property four & five summary



2726

Location meets lifestyle

Construction at Pegasus began in 2006 with the first titles being issued in 2008 and the first residents moving in later that year. By 2010, the majority of the facilities were completed including some of the retail, Pegasus Lake and the 18-hole Pegasus Golf Course and Sports Club. 2014 the Waikuku Primary School was shut and relocated to Pegasus under the name Pegasus Bay School which caters for students through years 1-8.

Pegasus boasts a thriving community with quality amenities and recreation areas, making it an ideal place for residents to enjoy a rural lifestyle whilst benefiting from excellent access to Christchurch.

Pegasus has a 14 hectare lake at its centre along with a championship golf course and Pegasus Bay Beach. The environmentally-sensitive design includes 100 hectares of wetlands that form a natural habitat for protected ecology including a wide variety of native plants, birdlife and animals.

The Pegasus Town Commercial Centre lies at the heart of Pegasus Town and provides outstanding amenity to the immediate and wider residential catchments which is expected to grow significantly with continued migration out of Christchurch into the north Canterbury region.

Number of sections

Approximately 1,800 residential housing sites.

Section sales

As at March 2020, over 90% of all residential sections within Pegasus have been sold. A total of 1,550 sections have been sold with only 150 remaining.

pegasus lifestyle

Estimated population

Pegasus is estimated to be home to up to 6,000 people at full capacity.

Pegasus Bay School

Is a state co-educational full primary school located on Solander Road within the Pegasus Town subdivision, with a roll of approximately 402 students (as of March 2019).

29

Christchurch

RavenswoodRangiora

Pegasus

Kaiapoi

Pegasus is surrounded by several established residential communities including Kaiapoi, Rangiora, Woodend and the lifestyle settlement of Ohoka. All are popular residential areas within easy commuting distance of Christchurch and enjoy the benefits of clean air and a rural environment.

Woodend is situated to the north east of Pegasus between State Highway 1 and the Pacific Ocean coastline, approximately 26 kilometres north of Christchurch. It has approximately 2,200 residents, developed across both sides of State Highway 1.

Further satellite towns include Kaiapoi, approximately 6.5 kilometres to the south and Rangiora approximately 4.7 kilometres inland to the west. Kaiapoi and Rangiora are small rural servicing towns where considerable residential development has been completed over the last 20 years.

The suburb of Pegasus is accessed via Pegasus Boulevard on the eastern side of Main North Road

(SH1) where there is a major roundabout also feeding into Ravenswood Village to the west. Pegasus Golf Club has been developed on both sides of Pegasus Boulevard - an 18 hole championship golf course with a large clubhouse complex incorporating restaurant and bar facilities. Further expansion of the golf club is expected, with resource consent being recently lodged for a three-storey hotel and conference centre along with a restaurant in Taerutu Lane.

Located opposite the entrance to Pegasus on SH1 is the substantial Ravenswood Village development which provides for 1,352 residential lots with a mix of medium to high density housing plus a commercial hub. Development has commenced on the commercial area including an industrial precinct and work has been completed on Stage 1 of the residential with Stage 2 now underway. The initial commercial component includes the recently completed BP service station and McDonalds along with a proposed New World development.

pegasus location

Johns Road

Main

Nor

th R

oad

Mar

shla

nd R

oad

SH1

Chch

Inte

rnat

iona

l Ai

rpor

t

12 17

14

18

10

11

9

6

5

4

3

2

1

8

7

15

16

13

Beach Access

LakePegasus

Pegasus BaySchool

Pegasus Golf& Sports Club

Pegasus Bay

NORTH

Pegasus Golf & Sports Club

Pegasus Bay School

Lake Pegasus

Pegasus Bay

Beach access

pegasus town The commercial and residential suburbs surrounding Pegasus have experienced unprecedented development and infrastructure investment in recent years to enable and accommodate substantial employment and resident growth.

Stat

e Hig

hway

1

Pegasus Boulevard

Infinity Driv

e Pegasus Main Street

Tiritiri Moana Drive

Te K

oh

ang

a D

rive

Property 5 | 64 Pegasus Main Street | Development Land

Property 4 | 58 Pegasus Main Street | Development Land

Property 3 | 62 Pegasus Main Street

Property 2 | 60 Pegasus Main Street

Property 1 | 8 Tahuna Street

accessibilityMajor infrastructure investment is set to significantly benefit Pegasus as it becomes easier and quicker to access the north Canterbury region from Christchurch.

The Christchurch Northern Corridor (CNC) is a $290 million infrastructure project which is expected be complete by the end of 2020. The CNC will extend the Northern Motorway through to QEII Drive and Cranford Street and includes:

• The addition of a third north and southbound lane on the Waimakariri Motorway Bridge and a clip-on cycle path.

Source: https://www.nzta.govt.nz/projects/christchurch-motorways/christchurch-northern-corridor/

• A new four-lane motorway starting just south of the Waimakariri River to connect with QEII Drive near Winters Road and then continue through Cranford Basin to link with Cranford Street.

• An upgrade of QEII Drive to four lanes between Main North Road and Innes Road.

• An upgrade of Cranford Street to four lanes to Innes Road and an improved Cranford/Innes intersection.

• Off-road pedestrian and cycle facilities linking to existing and new cycle facilities in the area.

IMPROVE WALKING AND CYCLING

REDUCED COMMUTER TRAVEL TIME

SUPPORT ECONOMIC GROWTH

JOB CREATION AND ACCESS TO JOBS

REDUCED CONGESTION

IMPROVE SAFETY

A WAIMAKARIRI BRIDGEThe Waimakariri Bridge is being widened and strengthened so it can carry two extra traffic lanes and a new clip-on cycleway. The additional northbound lane will help traffic merge from Main North Road, the Western Belfast Bypass and Christchurch Northern Corridor at the start of the Northern Motorway. The NZ Transport Agency is currently investigating the best design for the third southbound lane so it can safely operate as a high occupancy vehicle (HOV) lane during the morning peak. The separated cycle lane will clip-on the east side of the southbound bridge. The shared cycle path addresses safety concerns for cyclists and pedestrians wishing to cross the Waimakariri River. .

B NORTHERN CONNECTIONAn existing bridge will take the southbound lanes of the northern motorway over the northbound lanes of the CNC. In order to connect the CNC to the existing Northern Motorway some changes are needed. The existing Chaneys on-ramp will be removed, meaning there will be no access at this point onto the motorway. Access will be further west at the Main North Road/Dickeys Road intersection.

C MAIN NORTH ROAD & RAILWAY LINE BRIDGESBridges will take the CNC over Main North Road and the railway line.

D THE KĀ PŪTAHI CREEKA bridge over the Kā Pūtahi Creek will also allow the shared cycle/pedestrian path to move to the other side of the motorway and a connection to Guthries Road. At G The Kā Pūtahi Creek has been realigned and developed into a small forested wetland area. The CNC will run along the east side of the realigned Kā Pūtahi Creek.

E GUTHRIES, FACTORY AND FORDS ROADSGuthries Road is realigned to connect with Belfast Road. Factory and Fords roads will both end in a cul-de-sac at the boundary of the motorway. Access to Factory Road from Guthries will no longer be possible.

F BELFAST ROADBelfast Road will pass over the top of the motorway on a bridge and ramps will provide access to the CNC - to and from the south. These will provide access between this industrial area and the Port of Lyttelton.

H RADCLIFFE ROADRadcliffe Road will pass over the top of the motorway on a bridge. There will be no access to the motorway from Radcliffe Road.

I STYX RIVER BRIDGEA bridge will take the CNC motorway over the Styx River. A smaller separate bridge will take pedestrians and cyclists over the Styx River.

J PRESTONS ROADPrestons Road will pass over the top of the motorway on a bridge. It will be realigned to the south. Service lanes will be built for residents on the north side of Prestons Road. There will be no access to the motorway from Prestons Road.

K SOUTHERN INTERCHANGE The new motorway will go over QEII Drive on a bridge while access to and from QEII Drive and the new motorway will be provided by on and off-ramps and double roundabouts below the bridge.

L GRIMSEYS ROADAccess at Grimseys Road will be left-in and left-out only. Vehicles travelling westbound on QEII Drive will be able to access Grimseys Road by using a u-turn bay before the Main North Road/QEII Drive intersection. Drivers exiting Grimseys Road wishing to go west on QEII Drive can turn left and then turn around at the roundabouts.

M QEII DRIVEQEII Drive will be four-laned between Main North Road and Innes Road. A raised median will prevent right turns into and out of Philpotts Road, Grimseys Road and Winters Road. Hills Road will remain left-in left-out as it is now.

N PHILPOTTS ROADAccess at Philpotts Road will be left-in and left-out only. Vehicles travelling eastbound on QEII Drive will be able to access Philpotts Road via the Innes Road roundabout. There will be a left turn lane from QEII Drive into Philpotts Road.

O WINTERS ROAD AREAWinters Road will be divided by the new motorway. There will be no vehicle access between the two sections of Winters Road. The western section of Winters Road will have left-in left-out access to the southern interchange’s northbound off ramp. (This mean drivers can come from Cranford Street and turn left into Winters Road and they can turn left out of Winters Road to access QEII Drive and the new motorway). The eastern section of Winters Road will have left-in and left-out access to QEII Drive only. Pedestrians and cyclists will have access between both sides of Winters Road via a subway under the motorway.

P CRANFORD BASINThe motorway will continue over QEII Drive through the Cranford Basin to join Cranford Street. The upgrade of the Cranford Basin into an improved storm-water retention area is a Christchurch City Council project which is well underway. Turning this area into a forested wetland area with public walkways and other facilities is a possible future Council project that will need public support to gain funding through the Council’s planning processes.

Q CRANFORD STREET TO INNES ROAD AND THE CRANFORD/INNES INTERSECTIONCranford Street will be four-laned with a continuous central median. In narrow areas on-street parking will be removed and the footpath will be narrowed. The Cranford Street/Innes Road intersection will be widened and turning lanes and signals will be improved. The CNC off-road cycle path will finish at McFaddens Road and an on-road cycle lane will be added on both sides of Cranford Street to Innes Road. A signalised pedestrian crossing will be added near McFaddens Road.The central median along Cranford Street will improve safety by removing right turns at Knowles Street, Weston Road and McFaddens Road, and by reducing the possibility of front-on collisions on Cranford Street. The median will also reduce delays and stop commuters using suburban streets as rat-runs or shortcuts. While this may mean a longer drive for local residents, the median will improve safety and reduce through traffic on local roads.

R CRANFORD STREET INNES ROAD TO CITYThe Christchurch City Council is working on plans to ensure traffic can easily continue along Cranford Street on the city-side of the Innes Road intersection. Some initial investigations have already been done and more in-depth investigations and traffic modelling on the effects and solutions needed south-east of Cranford Street are under way. More public engagement will be part of this ongoing investigation.

Northern Motorway (SH1)

Waim

akariri River

Western Belfast Bypass (SH1)

Main North Road

Fact

ory

Road

Belfa

st R

oad

Radc

li�e

Road

Styx

Riv

er

Kā Pūt

ahi C

reek

Pres

tons

Roa

d

Win

ters

Roa

d

Grimseys Road

Northern Corridor (SH74)

Marshland Road

Guthries Road

Cranford Street

Papanui Parallel

Indicative

connection

Innes Road

Philpotts Road

Northern Corridor (SH 74)

Shared cycle/pedestrian path

Waterways

Bridges

Cycle/pedestrian underpass

Rail line

F

A

BD

E

G H

JK

L

M

R

N

O

PQ

S

I

C

PEDESTRIAN /CYCLE SHARED PATHS AND CONNECTIONA shared pedestrian and cycle path will run the entire length of the CNC. A clip-on shared path will be added to the Northern Motorway Bridge over the Waimakariri River to get pedestrian and cyclists safely over the river. Local councils and the NZ Transport Agency are still considering options to improve cycle connections to and from the new clip-on. Subways will provide access where marked on the map and the shared path will cross the Styx River I and Kā Pūtahi N on separate

pedestrian/cycle bridges. Shared paths will also link to and improve cycle facilities along QEII Drive. From Cranford Street, a separate Christchurch City Council project will link the CNC cycle facilities to the Papanui Parallel S. From a signalised pedestrian crossing at McFaddens Road, the CNC cycle path will connect to on-road cycle lanes on both sides of Cranford Street up to and including the Innes Road intersection.

The CNC is a 12km motorway extension that will provide improved options for cyclists, pedestrians, private vehicles and freight, and makes improved public transport possible on this and other existing routes. It will reduce traffic on nearby local roads and improve safety for all road users. The CNC Alliance expects to complete this project in 2020.

0800 CNC 200 (0800 262 200)Our project site office is at 145 Winters Road (hours 9am to 5pm Monday to Friday)

OUR CONTACT DETAILS FOR MORE PROJECT INFO:www.nzta.govt.nz/cnc

nztasouthisland nztacwc

CHRISTCHURCH NORTHERN CORRIDOR

IMPROVEDPUBLIC TRANSPORT

IMPROVE WALKING AND CYCLING

REDUCED COMMUTER TRAVEL TIME

SUPPORT ECONOMIC GROWTH

JOB CREATION AND ACCESS TO JOBS

REDUCED CONGESTION

IMPROVE SAFETY

A WAIMAKARIRI BRIDGEThe Waimakariri Bridge is being widened and strengthened so it can carry two extra traffic lanes and a new clip-on cycleway. The additional northbound lane will help traffic merge from Main North Road, the Western Belfast Bypass and Christchurch Northern Corridor at the start of the Northern Motorway. The NZ Transport Agency is currently investigating the best design for the third southbound lane so it can safely operate as a high occupancy vehicle (HOV) lane during the morning peak. The separated cycle lane will clip-on the east side of the southbound bridge. The shared cycle path addresses safety concerns for cyclists and pedestrians wishing to cross the Waimakariri River. .

B NORTHERN CONNECTIONAn existing bridge will take the southbound lanes of the northern motorway over the northbound lanes of the CNC. In order to connect the CNC to the existing Northern Motorway some changes are needed. The existing Chaneys on-ramp will be removed, meaning there will be no access at this point onto the motorway. Access will be further west at the Main North Road/Dickeys Road intersection.

C MAIN NORTH ROAD & RAILWAY LINE BRIDGESBridges will take the CNC over Main North Road and the railway line.

D THE KĀ PŪTAHI CREEKA bridge over the Kā Pūtahi Creek will also allow the shared cycle/pedestrian path to move to the other side of the motorway and a connection to Guthries Road. At G The Kā Pūtahi Creek has been realigned and developed into a small forested wetland area. The CNC will run along the east side of the realigned Kā Pūtahi Creek.

E GUTHRIES, FACTORY AND FORDS ROADSGuthries Road is realigned to connect with Belfast Road. Factory and Fords roads will both end in a cul-de-sac at the boundary of the motorway. Access to Factory Road from Guthries will no longer be possible.

F BELFAST ROADBelfast Road will pass over the top of the motorway on a bridge and ramps will provide access to the CNC - to and from the south. These will provide access between this industrial area and the Port of Lyttelton.

H RADCLIFFE ROADRadcliffe Road will pass over the top of the motorway on a bridge. There will be no access to the motorway from Radcliffe Road.

I STYX RIVER BRIDGEA bridge will take the CNC motorway over the Styx River. A smaller separate bridge will take pedestrians and cyclists over the Styx River.

J PRESTONS ROADPrestons Road will pass over the top of the motorway on a bridge. It will be realigned to the south. Service lanes will be built for residents on the north side of Prestons Road. There will be no access to the motorway from Prestons Road.

K SOUTHERN INTERCHANGE The new motorway will go over QEII Drive on a bridge while access to and from QEII Drive and the new motorway will be provided by on and off-ramps and double roundabouts below the bridge.

L GRIMSEYS ROADAccess at Grimseys Road will be left-in and left-out only. Vehicles travelling westbound on QEII Drive will be able to access Grimseys Road by using a u-turn bay before the Main North Road/QEII Drive intersection. Drivers exiting Grimseys Road wishing to go west on QEII Drive can turn left and then turn around at the roundabouts.

M QEII DRIVEQEII Drive will be four-laned between Main North Road and Innes Road. A raised median will prevent right turns into and out of Philpotts Road, Grimseys Road and Winters Road. Hills Road will remain left-in left-out as it is now.

N PHILPOTTS ROADAccess at Philpotts Road will be left-in and left-out only. Vehicles travelling eastbound on QEII Drive will be able to access Philpotts Road via the Innes Road roundabout. There will be a left turn lane from QEII Drive into Philpotts Road.

O WINTERS ROAD AREAWinters Road will be divided by the new motorway. There will be no vehicle access between the two sections of Winters Road. The western section of Winters Road will have left-in left-out access to the southern interchange’s northbound off ramp. (This mean drivers can come from Cranford Street and turn left into Winters Road and they can turn left out of Winters Road to access QEII Drive and the new motorway). The eastern section of Winters Road will have left-in and left-out access to QEII Drive only. Pedestrians and cyclists will have access between both sides of Winters Road via a subway under the motorway.

P CRANFORD BASINThe motorway will continue over QEII Drive through the Cranford Basin to join Cranford Street. The upgrade of the Cranford Basin into an improved storm-water retention area is a Christchurch City Council project which is well underway. Turning this area into a forested wetland area with public walkways and other facilities is a possible future Council project that will need public support to gain funding through the Council’s planning processes.

Q CRANFORD STREET TO INNES ROAD AND THE CRANFORD/INNES INTERSECTIONCranford Street will be four-laned with a continuous central median. In narrow areas on-street parking will be removed and the footpath will be narrowed. The Cranford Street/Innes Road intersection will be widened and turning lanes and signals will be improved. The CNC off-road cycle path will finish at McFaddens Road and an on-road cycle lane will be added on both sides of Cranford Street to Innes Road. A signalised pedestrian crossing will be added near McFaddens Road.The central median along Cranford Street will improve safety by removing right turns at Knowles Street, Weston Road and McFaddens Road, and by reducing the possibility of front-on collisions on Cranford Street. The median will also reduce delays and stop commuters using suburban streets as rat-runs or shortcuts. While this may mean a longer drive for local residents, the median will improve safety and reduce through traffic on local roads.

R CRANFORD STREET INNES ROAD TO CITYThe Christchurch City Council is working on plans to ensure traffic can easily continue along Cranford Street on the city-side of the Innes Road intersection. Some initial investigations have already been done and more in-depth investigations and traffic modelling on the effects and solutions needed south-east of Cranford Street are under way. More public engagement will be part of this ongoing investigation.


Waim

akariri River

Western Belfast Bypass (SH1)

Main North Road

Fact

ory

Road

Belfa

st R

oad

Radc

li�e

Road

Styx

Riv

er

Kā Pūt

ahi C

reek

Pres

tons

Roa

d

Win

ters

Roa

d

Grimseys Road

Northern Corridor (SH74)

Marshland Road

Guthries Road

Cranford Street

Papanui Parallel

Indicative

connection

Innes Road

Philpotts Road

Northern Corridor (SH 74)

Shared cycle/pedestrian path

Waterways

Bridges

Cycle/pedestrian underpass

Rail line

F

A

BD

E

G H

JK

L

M

R

N

O

PQ

S

I

C

PEDESTRIAN /CYCLE SHARED PATHS AND CONNECTIONA shared pedestrian and cycle path will run the entire length of the CNC. A clip-on shared path will be added to the Northern Motorway Bridge over the Waimakariri River to get pedestrian and cyclists safely over the river. Local councils and the NZ Transport Agency are still considering options to improve cycle connections to and from the new clip-on. Subways will provide access where marked on the map and the shared path will cross the Styx River I and Kā Pūtahi N on separate

pedestrian/cycle bridges. Shared paths will also link to and improve cycle facilities along QEII Drive. From Cranford Street, a separate Christchurch City Council project will link the CNC cycle facilities to the Papanui Parallel S. From a signalised pedestrian crossing at McFaddens Road, the CNC cycle path will connect to on-road cycle lanes on both sides of Cranford Street up to and including the Innes Road intersection.

The CNC is a 12km motorway extension that will provide improved options for cyclists, pedestrians, private vehicles and freight, and makes improved public transport possible on this and other existing routes. It will reduce traffic on nearby local roads and improve safety for all road users. The CNC Alliance expects to complete this project in 2020.

0800 CNC 200 (0800 262 200)Our project site office is at 145 Winters Road (hours 9am to 5pm Monday to Friday)

OUR CONTACT DETAILS FOR MORE PROJECT INFO:www.nzta.govt.nz/cnc

nztasouthisland nztacwc

CHRISTCHURCH NORTHERN CORRIDOR

IMPROVEDPUBLIC TRANSPORT

• The CNC is the first alliance contract of this size in the South Island. It is an alliance between the NZ Transport Agency, Christchurch City Council, Fulton Hogan, Aurecon and Jacobs.

The project brings many benefits to the Christchurch and Canterbury community by unlocking space to provide safe solutions for all travel modes. The CNC project includes options for cyclists, pedestrians, private vehicles and freight, and allows for improved public transport routes and infrastructure. The CNC will make travel times in and out of

Christchurch more reliable via all main routes – the CNC, Main North Road, Marshland Road and the Western Belfast Bypass (SH1).

This new motorway and its connections will be built to high modern safety standards and will move heavy traffic off suburban roads making them safer, encouraging walking, cycling and the use of public transport – especially through Redwood and Belfast. Improved efficiency of freight in and out of Christchurch and Lyttelton Port, and better access to the industrial growth area in Belfast is also expected.


Cranford Street

CBDPegasus

THE MAIN STREETSTORE

34

key tenants

The Good Home

Overlooking Lake Pegasus, the purpose built boat shed style buildings reflect the nautical and coastal life of the area. The Good Home Pegasus has an extensive food and beverage offering, making it a popular spot for the residents.

Bottle-O

The Bottle-O is an independently owned and operated New Zealand retail liquor store committed to delivering genuine value to customers.

Waimakariri District

Council

Waimakariri District Council represents a local government district located in the Canterbury region of New Zealand’s South Island. It is named after the Waimakariri River, which forms the district’s southern boundary, separating it from Christchurch City and the Selwyn District.

Main Street Store

The Main Street Store is owned and operated by Templeton Group Limited providing convenience for all of the Pegasus community.

Heartly Real Estate &

Morris & Co Real Estate

Morris & Co Real Estate Limited is dominant in the north Canterbury area. The local Pegasus Town team hasbeen involved in a high volume of transactions including section sales and have a good understanding of the Pegasus market.

Flat White Cafe

A haven away from the city in the ever growing Pegasus Town, Flat White Café offers excellent coffee and cuisine all of which is made on-site. It offers an extensive brunch menu and cabinet selection along with coffee, wine, beer and smoothies.

tenancy scheduleUnit/Floor

TenantArea (m²)

Base Rent p.a.

OPEX p.a. Lease TypeLease Term (years)

Lease Commencement

Next ExpiryRights of Renewal

Next Rent Review

Review Mechanism

8 Tahuna Street, Pegasus

G Simba Purveyors Limited t/a Flat White Café 391.2 $34,770.00 $19,530.40 Gross Monthly 09-Feb-19 - - - -

G Vacant (former General Store) 381.6 - $19,051.12 - - - -

GWaimakariri District Council (Community Centre)

150.0 $34,500.00 $6,337.29 Net8 years 1 month & 26 days

05-May-17 30-Jun-25 1 x 3 01-Jul-22 Market

G ATM 4.0 $499.92 $199.70 Gross 23-Nov-09 - - - -

G Waimakariri District Council 158.3 $36,408.96 $6,687.95 Net 6.00 1-Jul-19 30-Jun-25 1 x 3 01-Jul-22 Market

1 Hartley RE/Morris & Co RE 86.2 $17,488.44 $4,303.48 Net 3.00 02-Jul-18 01-Jul-21 1 x 3 02-Jul-20 CPI

1 Active Zen Limited 62.0 $8,741.25 $3,095.31 Net Monthly 01-Aug-18 -

1 Vandergeest Building 15.0 $4,800.00 $748.80 Gross Monthly - - - - -

1 Tankvision 15.0 $4,800.00 $748.80 Gross Monthly - - - - -

1 Vacant 14.6 - $729.83 - - - - - - -

1 Vacant - Workspace 225.9 - $11,276.43 - - - - - - -

Total 1,503.76 $142,008.57 $72,709.77

Unit/Floor

TenantArea (m²)

Base Rent p.a.


Lease Commencement


Next Rent Review

Review Mechanism

60 Pegasus Main Street, Pegasus

CR1A Vacant (ex. TAD Design) 119.1 - $11,728.18 - - - - - - -

CR1B Vacant (ex. Pegasushi) 148.8 - $14,652.84 - - - - - - -

CR1C Templeton Group Limited t/a Main Street Store 142.0 $41,552.00 $15,522.47 Net 5.00 06-Aug-19 05-Aug-24 - 06-Aug-22 CPI

CR1D S&P Private Limited t/a Bottle "O" 119.1 $36,388.87 $11,728.18 Net 6.50 08-Sep-17 07-Mar-24 2 x 5 years 08-Sep-20 Fixed 3%

CR1E Shreeji Services Limited t/a Lakeside Pizza 118.8 $31,785.00 $11,698.64 Net 3.00 15-Dec-17 14-Dec-20 1 x 3 years 15-Dec-20 Fixed 4%

Total 647.8 $109,725.87 $65,330.31

Unit/Floor

TenantArea (m²)

Base Rent p.a.


Lease Commencement


Next Rent Review

Review Mechanism

62 Pegasus Main Street, Pegasus

TGHP Limited t/a The Good Home 712.1 $228,465.91$24,070.07 excl. GST

Semi-gross 12.00 16-Aug-18 15-Aug-30 1 x 6 years 16-Aug-20Greater of initial base rent and turnover rent

Spark NZ Trading t/a Spark Tower 12.5 $7,000.00 - - 6.00 01-Jun-19 31-May-25 4 x 6 years 01-Jun-22 CPI

Total 724.6 $235,465.91 $24,070.07 excl. GST

Property 1

Property 2

Property 3

1. The Deed of Lease for the Hartley Real Estate tenancy is in preparation stage.

2. The Good Home tenant operates on a Turnover Rent basis, the figure stated in the above schedule reflects 12 months of Turnover Rent payable by the tenant for the period Sep 18 - Aug 19. This is a semi-gross lease with the tenant paying increases in rates and insurance (and related valuations fees) from that payable as at the commencement date along with utilities. Further details on turnover rent and OPEX are available in the data room.

3. The Good Home has hit its milestone date for the requirement that it purchases its existing fitout from the property owner. This process has yet to be completed. Further detail is available in the data room.

4. The Waimakariri District Council tenancy has not had it’s NLA certified and therefore the NLA stated in the above schedule is based on historical data, although under Clause 38 as stated in the Deed of Lease, the landlord is entitled to undertake a certifiable area measurement and adjust the rent accordingly. Further detail is available in the data room.

5. The Deed of Lease for Shreeji Services Limited t/a Lakeside Pizza, is currently awaiting tenant execution.

6. Floor areas quoted above are in accordance with current lease documentation.

7. At 8 Tahuna Street, the ANZ ATM and Flat White tenancies are both currently in hold-over.

8. OPEX figures stated above are as per the FY19 Budget, details available in the data room. The total OPEX for 8 Tahuna Street is $75,076.20 but is stated in the Tenancy Schedule as $72,709.77 as the council are not liable to pay rates of $2,366.43.

NOTE – The figures within this tenancy schedule are based on the current contract rental, these figures are Pre COVID-19 figures, all lease documentation and related documents are available within the data room upon request.

3938

financial summary

Current Contract Income

Property 1 $142,008.57

Property 2 $109,725.87

Property 3 $235,465.91

Property 4 Vacant car-parking land

Property 5 Future development land

Total Current Contract Income $487,200.35

Estimated Net Market Rent (Fully Leased)

Property 1 $232,000.00

Property 2 $155,000.00

Property 3 (already 100% leased) $235,465.91

Property 4 -

Property 5 -

Total $622,465.91

market overview christchurch

Christchurch is the gateway to New Zealand’s South Island. Bordered by hills and the Pacific Ocean, it is situated on the edge of the Canterbury Plains that stretch to the Southern Alps. The city is traditionally an entry/exit point for tourists and other visitors to the South Island with a number of international flights utilising Christchurch Airport. Christchurch is the main distribution hub of the South Island with millions of dollars of export materials passing through its ports each day.

Canterbury is a key economic region of New Zealand, accounting for 12.4% of GDP, or over half of the South Island economy. Across the Canterbury economy, no industry contributes more than 11% to GRP. This diversity in economic activity means that Canterbury is well placed to withstand any potential future economic downturns across any industry. Given the strength and size of the Canterbury economy, the local unemployment rate has generally been lower than the national benchmark and has historically followed a similar trend.

Overall, Christchurch is a driving force behind the strong New Zealand economy. According to ChristchurchNZ, the city’s strong economic fundamentals, available land for development and strong rebuild platform make it uniquely placed among New Zealand’s urban centres to absorb significant growth without the additional costs and challenges facing other

cities. Christchurch sales activity was just shy of $1 billion in 2018, representing two thirds of the South Island’s total transaction value.

Christchurch itself has low unemployment rates, high levels of economic activity and solid employment opportunities. Local employment is focused around white collar industries, including managers, professionals and sales workers. These industries were estimated to employ more than 85,000 workers in Christchurch in 2013. Average earnings for employees grew by 3.3% in Canterbury in the March 2019 quarter compared to the same period of the previous year, reaching $1,037 per week (ChristchurchNZ).

Permanent and long-term migration to Christchurch has increased significantly since 2012 where net migration was around 5,000 persons in 2018. Christchurch is an attractive city to reside in due to it’s relatively low and stable residential rents and prices. Combining this with steady earnings growth, the already strong household affordability relative to other urban centres in New Zealand continues to improve (ChristchurchNZ).

Furthermore, the visitor economy remains an important export earner for the city and region. Total guest nights for the region increased in the second quarter of 2019 while growth in visitor spending of 4% year-on-year for June 2019 continues to be above national growth levels of 3.2% (ChristchurchNZ).

Christchurch Regeneration

In 2016, Regenerate Christchurch was established to lead the regeneration of Christchurch to develop visions and strategies for Christchurch along with making recommendations to the Government and facilitate increased investment. The Christchurch City Council along with Regenerate Christchurch have multiple projects either completed, underway or planned.

Levels of building activity in Christchurch and Canterbury remains at all time highs, indicating the importance of the construction sector to the Christchurch economy. According to ChristhchurchNZ, in the quarter ending March 2019 there were 619 new residential building consent approvals for Christchurch, up 3.9% from March 2018. Within Canterbury, 1,248 new residential buildings were consented in the

More than 65% of Canterbury’s residents live in Christchurch, the second largest city in

New Zealand.

Christchurch Population Trends

0

2008

2009

2010

2011

2012

2013

2014

2015

2016

2017

2018

2019

2020

F20

21F

2022

F20

23F

2024

F20

25F

2026

F20

27F

2028

F

800,000

700,000

600,000

500,000

400,000

300,000

200,000

100,000

March 2019 quarter, consistent to March 2018 quarter. The volume of consents remains greater than pre-2011 levels.

Along with the fast growing resident population, The Te Pae Christchurch Convention Centre which is currently under construction is set to be a key piece in the regeneration of Christchurch City. Featuring a world-class design, the new centre is going to encourage a significant increase in tourism, economic activity and diversity. The Te Pae Christchurch Convention Centre which is currently under construction is set to be a key piece in the regeneration of Christchurch City. Featuring a world-class design, the new centre is going to encourage a significant increase in tourism, economic activity and diversity. The centre is scheduled for completion in October 2020.

Source: Statistics NZ

4342

greater christchurch residential land sales

The greater Christchurch section market during the period from 1989 to 2001 averaged approximately 798 sales per annum. Significant growth in the volume of sales occurred in the period from 2002 to 2007 culminating in the peak of 2,478 sales in 2003 with an average of 1,464 section sales per annum over the six year period. This growth, partially driven by immigration and changing lifestyle requirements together with the decline in availability of sections within the Christchurch section market, saw an increase in the number of section sales in the townships within the Waimakariri and Selwyn Districts. The initial popularity of Pegasus in Waimakariri and the continued growth of section sales in the Rolleston market combined with the lack of availability of sections within Christchurch due to RMA and resource consent issues resulted in a fall in the number of sections sold in Christchurch during the 2006 – 2007 period and a dramatic reduction in 2008, attributed to the global financial crisis.

There was a surge in market activity within the residential section market in greater Christchurch in 2009 following the global financial crisis with a significant increase in sales. In 2009, 817 sections sold compared with just 242 in 2008 however the average section price fell from $199,023 in 2008 to $189,912 in 2009.

Activity slowed in 2010 with 514 sections selling at a lower average price of $185,158.

Since 2010 there has been a significant increase in section sales with 1,269 recorded in 2011, 1,924 in 2012, 2,560 in 2013, 2,337 in 2014, 1,736 in 2015, 1,910 in 2016, 1,427 in 2017 and 1,012 in 2018. The average sale price increased from $193,133 in 2011 to $247,294 in 2018.

The greater Christchurch residential section market for the most part is very price sensitive with a number of developers reconfiguring subdivision layouts to create smaller lots to meet an affordable price market demand. Pegasus is very well positioned in this market.

Since 2010 there has been a significant increase in section sales in the

greater Christchurch areas including Pegasus. In Pegasus, the average

price of residential sections has increased from $145,000 to $160,000 in

the last three years. Source: REINZ

4544

• The Christchurch population is now more than 390,000 people. GDP has gone from $17.2 billion in 2010 up to $21.3 billion. The increase in people, GDP and earnings has boosted retail opportunities and a development response. While the CBD has seen a significant lift, suburban retail has also risen strongly.

• In the last two years, CBD retail has had a revival following several years of planning following the earthquakes. It is now estimated that the daily working population is back up to 40,000 in the CBD. There are now more than 3,900 businesses with 6,200 residents. Tourism has returned with guest nights now exceeding 1 million within the CBD.

• Commercial activity in suburban areas continues to grow and within the Christchurch CBD there are now over 2,100 new car parks available along with a newly completed Entx Entertainment Complex.

• International arrivals and spending is positive

and higher for the second quarter of 2019 compared with the corresponding period in 2018. Much like the previous quarter, the central city hospitality and retail offering is expanding and attracting higher levels of spending (ChristchurchNZ).

• International visitor spending was $222 million in Christchurch for the 2019 June quarter, up 7.4% on June 2018. When considering year on year growth, Christchurch continues to outpace New Zealand with regards to total visitor spend growth. This has led to a stable rental environment with first class locations still showing rental growth (ChristchurchNZ).

• Local residents are the primary spenders in the city, representing 72.4% of all spending and year-on year growth was at 0.6% in June 2019 (ChristchurchNZ).

• The outlook for Christchurch remains positive due to consistent growth in key investment drivers and the continuing regeneration of the city.

christchurch retail trends

Source: Statistics NZ

zoning

4746

The Residential 6 and 6A zones provide for the residential development of Pegasus new town to the east of State Highway 1, north east of Woodend. It is anticipated that the zones will enable a variety of housing environments of differing densities, from single story detached dwellings on spacious sections to higher density living within close proximity to the community and commercial facilities in the town.

The following is a summary of the planned Residential 6 and 6A zone characteristics:

• Predominant activity is living

• Compact, cohesive urban community

• Convenient and distinctive town centre adjoining a central lake

• Facilities include a school, community facilities and reserves

• Variety of housing densities and styles

• Townhouse and comprehensive housing developments focused around the town

centre, main access roads through the town, and the community facilities

• Minimum lot sizes of generally 400 square metres in the Residential 6 zone and a maximum lot size of 412.5 square metres in the Residential 6A zone

• Streetscapes enhanced by significant planting of trees.

• Full urban services

• Structured roading layout, with associated walking and cycling provisions, linking the commercial and community activities with the residential neighbourhoods

• Generous areas of open space throughout the town, linking to the enhanced nature conservation areas and the recreation and open space resources of the surrounding area

• Safe and efficient urban environment reflecting the natural and cultural attributes of its surroundings

The Business 1 zone in the Waimakariri District covers the Rangiora, Kaiapoi, Oxford, Woodend and Pegasus town centres. It is intended to be the dominant location of, and to be dominated by business, administrative and cultural activities.

The Business 1 zone at Pegasus enables the development of a convenient and attractive commercial and community centre for the newly developing town. The area of the “Town Centre” in Pegasus is limited in size to encourage the grouping of community buildings, local shops and other commercial activities within a compact and identifiable centre, providing a social and business focus for the town.

The Business 1 zone in Pegasus provides the opportunity for the development of a small local business and a community centre.

Properties 1 & 5

8 Tahuna Street has a underlying zoning Residential 6 consented - commercial retail/

office & 64 Pegasus Main Street has a split zoning of Residential 6 and Business 1 zoning.

Properties 2, 3 & 4

58, 60 & 62 Pegasus Main Street have a zoning of Business 1 & 64 Pegasus Main Street is

partially zoned Business 1 also.

4948

legal description

1. 8 Tahuna Street Legal Description: Lot 104 DP 401487

Identifier: 453138

Land area: 2,950m² more or less

2. 60 Pegasus Main Street Legal Description: Lot 1 DP 517496 and ¼ share in Lot 7 DP 522271

Identifier: 844873

Land area: 886m² more or less

Car parks: ¼ share in Lot 7 DP 522271

3. 62 Pegasus Main Street Legal Description: Lot 2 DP 522271 and ¼ share in Lot 7 DP 522271

Identifier: 844872



4. 58 Pegasus Main Street

Development land

Legal description: Lot 3 DP 517496 and ¼ share in Lot 7 DP 522271

Identifier: 844874

Land area: 847m² more or less


5. 64 Pegasus Main Street

Development land

Legal description: Lot 10 DP 517496 and ¼ share in Lot 7 DP 522271

Identifier: 844875



50

sale process & due diligence

The property is offered for sale by Deadline Private Treaty closing 4pm (NZST), Thursday 2 July 2020 (unless sold prior).

All bids are to be lodged at the offices of Colliers International, Level 1, 181 High Street, Central Christchurch.

All enquiries, requests for information and arrangements to undertake inspection in relation to this opportunity are to be directed to the sole agents.

Due diligence & data room access

Due diligence material (including leases) is available for download from a secure electronic data room.

Access to the data room will be provided upon Vendor approval.

Please ensure you refer to the Colliers International data room for the most up to date property information.

All enquiries, requests for information and arrangements to undertake inspections in relation to this opportunity are to be directed to the sole agents.

Mark Macauley

General Manager & PartnerPhone: +64 3 365 7887Mobile: +64 21 650 [email protected]

Will Franks

Investment Sales BrokerPhone: +64 3 365 7887Mobile: +64 27 250 [email protected]

information memorandum

pegasustown

DISCLAIMER: This Information Memorandum has been prepared solely for information purposes in order to assist interested parties in making an initial evaluation of the property and does not constitute advice nor purport to contain all of the information that a prospective purchaser may require. In all cases interested parties must conduct their own investigation and analysis of the property and the data set out in this Information Memorandum to satisfy themselves in all respects and not rely on the information in this Information Memorandum to make their purchasing decision. This Information Memorandum has been prepared in good faith and with due care by Colliers International, but neither Colliers International nor the Vendor accept responsibility hereunder for the accuracy of any part of the information contained in this Information Memorandum. Therefore the recipient/s of this Information Memorandum to the extent that they rely on the information contained herein do so entirely at their own risk. The Vendor and Colliers International NZ Limited (and its brokers) expressly disclaim all liability for representations, express or implied, contained in, or for omissions from, this Information Memorandum or any other written or oral communication given to any prospective purchaser in the course of their evaluation and/or offer. This Information Memorandum does not constitute an offer for sale or purchase or otherwise.

South Island Commercial Limited Licensed under the REAA 2008

Pegasus · Phone: +64 3 365 7887 Mobile: +64 21 650 460 [email protected] Colliers...

Documents

Transcript of Pegasus · Phone: +64 3 365 7887 Mobile: +64 21 650 460 [email protected] Colliers...