Landmark hotel, big building in Gisborne
A waterfront Gisborne property, home to the 50-room Emerald Hotel along with a neighbouring commercial building and associated carparking, is for sale.
The offer includes the stratum in freehold and going concern of The Emerald Hotel, along with the stratum in freehold interests in the neighbouring 2825sq m commercial building anchored by Woodward Chrisp Law, Gisborne District Council, Summit Forests NZ (owned by Sumitomo Japan) and Rivers Bar & Restaurant.
Strategically placed at the top of Gladstone Rd on the corner of Reads Quay, the property overlooks the Turanganui and Taruheru rivers just across from the Gisborne Marina. This well-established corner property provides healthy returns and split-risk from The Emerald Hotel, a high-yielding operation with an Air New Zealand accommodation contract in place, and over 10 income-generating commercial leases.
The Emerald Hotel features 50 rooms made up of spacious studios, one-bedroom suites and junior suites with an in-house restaurant, gym, swimming and spa pools, and flexible conference facilities for up to 400 attendees.
The commercial building tenancies includes the bar and restaurant and TelferYoung on the ground floor and a further eight office units in the building above. Some 54 carparks are allocated to the commercial tenancies and 35 to the hotel.
JLL brokers Nick Thompson and Harry Fergusson have been appointed to market the property for sale by expressions of interest.
“It’s rare for a split-risk investment opportunity of this scale to present itself in Gisborne. Not only does it provide the market an opportunity to secure the largest single-owned hotel in the region, but buyers can also take comfort by acquiring the tenanted, adjoining commercial building,” says Fergusson.
“The Gisborne region is one of the country’s most desired destinations and strongest growth cities. Iconic hospitality and accommodation assets such as this are tightly held, and this trend looks set to continue.”
Thompson says it’s not just the asset’s split-risk nature that makes it a compelling investment.
“Prospective buyers can act with some confidence as the property comes with significant future-proofing including huge street profile and river views, ample carparking and strong tenant covenants further adding to its credentials,” says Thompson.
“An incoming investor has the opportunity to take advantage of an established landmark hotel which benefits from robust business and proximity to a range of strong demand drivers supplemented by the substantial income from the tenanted commercial building,” says Thompson.