Fully leased Mt Wellington hotel site goes on market
The opportunity to acquire land and buildings housing the Mt Richmond Hotel and Conference Centre, has come up for the first time in many years.
CBRE agents Warren Hutt and Brett Whalley are selling the fully leased 44-unit accommodation business site, at 676 Mt Wellington Hwy.
The deceased estate is for sale by deadline private treaty (offers closing at 4pm, on April 4), with Hutt pointing out that leased hotel assets of this type seldom reach the market.
“This is a tremendous opportunity to acquire an investment in wellperforming asset class; the hotel and conference centre has experienced record occupancy rates and growth,” he says.
“It is a well-presented, tidy investment in an evolving location and with zoning that enables further development; we expect it to appeal to longterm passive investors, land holders, the hospitality sector, and more widely.”
The two, and part-three-storey Tudor-style 1980s freehold property occupies a 2832sq m land holding at the corner of Mt Wellington Highway and New Brighton Rd.
The business — which is not for sale — has 43 studio units, a twobedroom family unit, gym, spa room, swimming pool and courtyard, plus manager’s accommodation and ample car parking.
In addition to the trading income from the accommodation, it generates income from conference facilities (with capacity for 270); a licensed 172.98sq m restaurant and bar; and a 65sq m gaming room.
Hutt says owner of the business, J&Y Hotel Management Ltd, holds a lease running till May 2020, with a 20-year right of renewal.
Annual net rental is $457,000pa + GST and rent reviews are every three years, with the next one set down for May 15, 2021.
Whalley says that the 2,832sqm site offers a high land value component with long-term redevelopment potential.
“Zoned Residential-Terrace Housing and Apartment Buildings (THAB), it has been earmarked by Auckland Council for intensive future development,” he points out.
“This zone encourages urban residential living in the form of terrace housing and apartments. Mt Wellington is is a sleeper suburb that is starting to become an up-and-comer. So with a high-profile corner site in a very convenient and accessible south-eastern location, there’s much redevelopment potential.”
Mt Wellington has a mix of warehousing, industrial and commercial properties along the main arterial routes, together with residential homes built from the 1950s through to the present day. It is popular and well-established area, says Whalley.
“It’s a short drive to the Southern Motorway via Princess St on-off ramp, and thus to the airport, and with Otahuhu is now now regarded by many as being at the epicentre of Greater Auckland, there’s much investment coming into the area.”