Slice of paradise at Waipu Cove
The land, buildings and business sustaining Waipu Cove Resort, offering direct access to one of Northland’s best surf beaches, are on the market for sale.
Brokers say the 12-apartment motel-style operation is just 90 minutes north of Auckland and 40 minutes south of Whangarei, but feels far away from city life.
The resort is nothing less than a slice of paradise, according to Bayleys business brokers Carolyn Hanson and Wayne Scurrah, who point to direct beach access via a rear gate.
Scurrah says the business — at 891 Cove Rd — comprises a mix of studio, one, two, and three-bedroom apartments built around a shared swimming pool complex.
The land, owner-manager’s residence, business management rights and most of the individual apartments are being marketed for sale by negotiation, with offers closing at 4pm on May 30,
Included in the two-storey property is a 208sq m four-bedroom/ three-bathroom owner/manager’s apartment plus a 36sq m garage/ workshop with top floor views, across Bream Bay over to Whangarei Heads, plus decking of 60sq m giving all-day sun.
The resort’s 550sq m of buildings sit on some 2300sq m of freehold land zoned commercial accommodation.
Seasonal rack rates at Waipu Cove Resort range from a studio room at $130 per night to $375 per night for a three-bedroom apartment. The resort recorded a 67 per cent occupancy rate for the year ending March 31, 2019, showing yearly increases for the past five years.
Scurrah says a second tranche comprises eight individually-owned apartment-titled apartments, with the sale of these apartments available separately or together with the owners/managers residence and business.
The remaining four apartments within the complex will remain privately owned but be available for rent by holidaymakers under the existing management agreement, which has
been operating for seven years.
“Essentially, Waipu Cove Resort functions under a similar ‘pool’ structure to some of the big-city international hotels operate — where individually-owned rooms are leased back to the branded accommodation provider, and apartment owners are paid a net return once allocated operating expenses and a management fee are taken out,” Scurrah says.
The apartments are all administered under a body corporate group, representing all apartment owners. The body corporate group works with the business owner to administer all expenditure and the maintenance of the premises — both internally and externally — to ensure high levels of resort-style accommodation are delivered in accordance with guest expectations.
“Any new owner of the business and available eight apartments will, of course, be first in line to purchase those remaining four apartments as and when they come up for sale — eventually unifying the entire complex into one ownership structure,” Scurrah adds.
Hanson says the resort is the biggest motel-style accommodation provider in the southern portion of Bream Bay — with minimal competition of a similar standard — catering to both tourists and corporate travellers.
The property provides on-site guest parking for 12 vehicles.
“Aside from a common laundry, all the apartments within Waipu Cove Resort are self-contained — featuring their own kitchen amenities, lounges, and bathroom facilities.
“They all have shared access to an in-ground heated swimming pool, a spa pool and well-appointed outdoor barbecue area all situated within a tropical setting,” she says.
Under the current management agreement, apartment owners are entitled to a maximum 60 days personal use of their apartment each year.
“Bringing those apartments back under the umbrella of a single owner would not only increase the resort’s occupancy rate, but also grow gross revenues,” says Hanson.
“This business could either be operated by the owner or under management — with cleaners and other contractors employed as required throughout the seasons.”