Generational opportunity in Queenstown

A two-storey commercial building overlooking Queenstown’s village green in the CBD’s sought-after Golden Square precinct has been placed on the market for sale, giving investors a chance to secure a stake in New Zealand’s premier tourism location.

The property at 24 Camp Street has 440.4sqm lettable space across the two fully-separated levels and occupies a 250sqm freehold site. Purpose-built for ASB Bank in 2001, the building has good street appeal combining contemporary design with subtle nods to Queenstown’s heritage character and is occupied by two tenants on attractive leases.

Offering a split-risk mix of retail and entertainment use, the property returns net annual income of $378,765 plus GST, with leases having favourable review structures and rent reviews to market.

The 221.4sqm ground floor retail space has prime glazed frontage onto Camp Street and is occupied by long-established men’s fashion store Sergios Menswear, renowned for its curated range of international luxury brands such as Hugo Boss, Paul Smith, Diesel, Ben Sherman and Scotch & Soda.

The 219sqm first floor former office space is accessed from a dedicated street entrance and is home to an innovative and unique entertainment tourism offering called The Dreamery, providing a unique light and sound sensory experience.

William Gubb and Henry Napier, Bayleys Queenstown are selling the property via a deadline private treaty process closing Thursday 12th March, unless sold prior.

The supply of Queenstown CBD retail floorspace has remained largely static for more than 10 years, making existing stock in high demand by investors and occupiers, says Gubb.

“The majority of CBD buildings are held as generational investment assets and seldom change hands. On top of that, there’s almost zero vacancy in the town centre, and we’re seeing consistent rental growth as a result.

“The Golden Square precinct is bounded by Rees Street, Camp Street, The Mall (Ballarat Street) and Shotover Street and is in high demand from A-grade tenants given the easy accessibility and position close to the waterfront tourist hub.

“It benefits from high-foot traffic volumes which suits upper-end retail, with a broad mix of global brands and boutique retailers, hospitality and entertainment options in the area.”

Gubb says the larger Queenstown story underpins the desirability and tightly held fundamentals of commercial property, with the town effectively having its own retail micro-climate and outperforming national consumer spending trends as a dynamic and resilient retail market.

“Queenstown is now an aspirational four-season destination and is firmly on the global tourism radar appealing to a wide visitor base and attracting high-net worth travellers and residents.

“The Camp Street property provides the ideal split-risk combination of luxury retail and entertainment which ensures the asset is well-diversified and aligned with Queenstown’s economic drivers.”

Queenstown’s popularity star continues to rise with the town seeing significant population growth, infrastructure investment, and burgeoning global tourism appeal as it strategically positions itself as a year-round recreational, wellness and health hub.

The property falls within the Queenstown Town Centre Zone, and under the Queenstown Lake District Council’s Proposed Urban intensification variation, future development of up to 12 metres building height is slated for this site.

Investors will be encouraged by significant transformation in the area. The first two stages of the Queenstown Town Centre Arterial Route have created a vital new link between Frankton Road and Gorge Road, reducing congestion, improving accessibility, and creating a more pedestrian-friendly town centre.

“The master-planned Lakeview Precinct mixed use development is set to proceed, while an expanding residential base and ongoing infrastructure programme is transforming Queenstown into a more connected, liveable, and globally appealing destination which will fuel continued investment,” says Gubb.