Triple delight for investors as tourists return to south
A multi-dimensional accommodation offering in the South Island town of Oamaru allows investors to operate a motel business or to lodge longer-term tenants, while maximising the development potential of a neighbouring renovation and vacant land.
The substantial freehold landholding of 7816sq m at 14 and
19-19A Joy St is in a position primed to leverage the resurgence of tourism and recently completed airport works in the eastern Otago coastal town.
Bayleys salespeople Oscar Kuang, Michael Broome, James Chan and Allister Simpson are marketing the property by international tender closing at
4pm, Friday December 8, unless sold prior.
Kuang and Chan of Bayleys Asian Markets team say the property presents a unique mix of existing accommodation, renovation projects and potential future development.
Those will appeal to investors, start-up operators and developers with their eye on Oamaru as the next coastal tourism hot spot. The town is renowned for its historic precinct, natural attractions like the Moeraki Boulders and blue penguin colony, and an inexplicable reputation as the world Steampunk capital.
Oamaru and the broader Waitaki region are seeing increasing visitor numbers, particularly from China. Heightened interest from film and TV companies has catalysed the district council to invest in a plan to boost occupancy and attract greater levels of sustainable tourism.
Eden Garden Motel at 14 Joy St is a 1116sq m accommodation complex with 21 guest rooms, reception and shared kitchen area. It is on a freehold 3429sq m site in a Residential zone with existing commercial use rights generating circa $200,000 a year from short-term tenancies.
Broome, of Bayleys Hotels, Tourism & Leisure team, says there is a renovation project comprising backpacker accommodation, with an additional 11 rooms scheduled for completion in early 2024, directly opposite the site.
The 300sq m backpackers project at 19 Joy St features a 905sq m landholding. Under-utilised land spanning 3482sq m at its rear has received resource consent for a
40-unit motel with self-contained units ranging from 41-55sq m and
30 on-site carparks accessed from Joy St.
Basic foundations at the 3482sq m 19A Joy St site are in place, offering a walk-in project for a skilled developer, he says.
Simpson, of Bayleys Hotels, Tourism & Leisure team, says the development proposition presents a blank canvas opportunity to harness market fundamentals and pioneer an asset that will form a significant part of the region’s infrastructure and cultural fabric.