A popular recreational facility in Queenstown with a long-term ground lease in place is being presented to the market for sale. It offers prospective purchasers the chance to secure a unique asset supported by an established business with growth opportunities.
Located at 29 Park Street, the Queenstown Ice Arena is a well-known hospitality and activity business located in the beautiful surroundings of Queenstown Gardens, a few hundred metres from the CBD and adjoining the lakefront.
Being offered for sale is the leasehold interest and business, which includes the Ice Arena buildings, plant, equipment, and associated business assets secured by a long-term ground lease to the Queenstown Lakes District Council (QLDC) with a final expiry of 31 August 2050.
The total floor area of the property spans 2,510sqm and it sits on a 4,855sqm site (more or less).
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This established and profitable business comprises the ice rink facility and cafe and bar operation, which has experienced a consistent and growing income stream.
The vendors have contributed significant investment into the ongoing development and improvement of the business and associated ice rink assets since purchasing it in 2010.
Considerable opportunities lie ahead, particularly in the summer months, for a range of different business opportunities to completement the ice skating and roller skating offering.
The existing lease also allows for alternative uses of the facility including, but not limited to, electric go-karts, a gymnasium, a swimming and hot pool complex, a childcare facility, a retail outlet for sporting equipment, or a premises for concerts, festivals, trade shows, and auctions as well as other recreational uses QLDC may agree to.
The property is currently situated on Reserve Land in the beautiful Queenstown Gardens and is zoned for Community Purposes.
The ground lease terms and conditions ensure the use meets certain standards for community-based benefits and accessibility.
Colliers Queenstown Brokers Mark Simpson and Rory O'Donnell have been exclusively appointed to market the leasehold interest and business for sale via deadline private treaty closing at 4pm on Thursday 5 September, unless sold prior.
Originally built in 1966, the Ice Arena was demolished and rebuilt with a new, fully enclosed ice rink facility in 1996.
The existing vendors purchased the property in 2010 and have progressively upgraded and extended the arena over the past 10-plus years, injecting more than $2.5 million of capital, improving the property, infrastructure, and business assets.
The property is well maintained and in good condition. There is an ongoing maintenance programme that keeps the buildings and its facilities up to a quality standard.
Simpson, Director at Colliers Queenstown, says the business provides consistent turnover and profitability against the backdrop of a long-term lease to QLDC.
"The Queenstown Ice Arena is home to local ice skating and ice hockey clubs, including the current New Zealand Ice Hockey League champions, The Skycity Stampede, and past champions, the Wakatipu Wild, Queenstown's women s national league team," Simpson says.
"The functional nature of the facility means it can host a wide range of sporting, cultural, and corporate events in addition to ice-based activities to grow the existing revenue stream from the property."
A recent example of its ability to host special events was the China Amway conference in late 2023, where the arena was booked exclusively for a period of seven weeks for their delegates to enjoy skating, shows, dinner, and entertainment.
O'Donnell, Commercial Broker at Colliers Queenstown, says the location and surrounding area add to the appeal of this offering.
Nestled in the heart of Queenstown's picturesque central gardens, this elevated lakefront site is only a five-minute walk from the Queenstown CBD, while the local bowling and tennis clubs are also in the general vicinity, O'Donnell says.
"This unique location ensures easy access and convenience, as well as a steady stream of pedestrian traffic. The site offers plenty of customer parking and features a new bus stop on Park Street, a short walk from the facility's front entrance."
Queenstown's key economic drivers of tourism, construction, and migration have rebounded well in a post-Covid environment and the area is also set to benefit from more than a billion dollars of infrastructure investment that is proposed for the coming years, further underpinning the appeal of this offering.
- Supplied by Colliers
