Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search


Record breaking South Island portfolio comes to the market

Record breaking South Island portfolio comes to the market

Jones Lang LaSalle has been appointed by The Group Holdings to market a rare portfolio of seven properties, totalling over $47 million. Portfolios of this size are extremely uncommon and often only come onto the market once in a cycle.

A diversified and large portfolio of properties has come to the market and provides investors with a unique opportunity to capitalise on the growing tourism sector in New Zealand’s South Island.

The portfolio consists of three leased luxury boutique hotels, a large commercial building centre, two blocks of development land and another entity comprising of a retail outlet, backpackers and adventure hire centre.

Justin Kean, Jones Lang LaSalle’s Head of Research and Capital Markets says, “These assets represent a diversified property offer that is further up the value-added spectrum than a traditional core asset. Core assets across New Zealand have been priced up over the last 12 months.”

Justin continues, “We tend to see this happening during this stage in the property cycle where by investors have to move out of that core, comfortable and low-risk space, and take on assets that are not necessarily traditional investments but are better, more viable income earners and have a high yield.”

According to Statistics New Zealand, international visitor arrivals from December 2012 to December 2013 rose by 6.0%, taking visitors to a total of 2.7 million people during the year. There is a distinct strengthening in the tourism sector and certain hot-spots that are benefiting from this growth include the Nelson, Blenheim and Queenstown areas.

John Binning, Jones Lang LaSalle’s agent that has been appointed to market this portfolio says, “With New Zealand’s strong economic growth and such a positive tail wind from the tourism sector this diversified portfolio offers considerable exposure to the parts of the country that are doing well out of current market conditions. Adding this to the fact that there has been very little new supply in the South Island outside of Christchurch, this portfolio represents a rare opportunity to access assets of scale.”

The seven properties for market include; Nugget Point Spa Resort, located in Queenstown. The hotel is a forty room, luxury 5 star rated hotel incorporating a health spa and gymnasium, tennis court, squash court, home theatre, wine tasting cellar, as well as conferencing and wedding facilities.

An adjoining 1.2 hectare land-block, which is adjacent to the resort and capable of building a two hundred room luxury hotel extension to the existing accommodation.

Awaroa Lodge, located within Abel Tasman National Park, Nelson which has twenty-six villa type rooms and is the only luxury accommodation hotel in the Abel Tasman National Park, regarded nationally as one of the best Eco lodges in New Zealand.

Portage Resort Hotel, located in Kenepuru Sound, Marlborough Sounds, Blenheim, located directly on the sea edge with a marina next door and a wealth of opportunity to diversify.

Portage Country Shop, Cafe, Hire Centre and Backpackers lodge. Located on land adjacent to the Portage Resort Hotel, the shop offers support to the hotel by catering for adventure hire of kayaks, mountain bikes and fishing gear.

123 Halifax St, a 2.1 hectare land block on edge of CBD, Nelson. The development site is currently being cleared of housing so that better access can be gained to the land available for a hotel or retirement complex.

And lastly, Mitre 10 Mega, Commercial Building and retail outlet in Blenheim, built on 1.82 Ha of land.


© Scoop Media

Business Headlines | Sci-Tech Headlines


Banks: Westpac Keeps Core Government Transactions Contract

The local arm of Westpac Banking Corp has kept its contract with the New Zealand government to provide core transactions, but will have to share peripheral services with its rivals. More>>


Science Investment Plan: Universities Welcome Statement

Universities New Zealand has welcomed the National Statement of Science Investment released by the Government today... this is a critical document as it sets out the Government’s ten-year strategic direction that will guide future investment in New Zealand’s science system. More>>


Scouring: Cavalier Merger Would Extract 'Monopoly Rents' - Godfrey Hirst

A merger of Cavalier Wool Holdings and New Zealand Wool Services International's two wool scouring operations would create a monopoly, says carpet maker Godfrey Hirst. The Commerce Commission on Friday released its second draft determination on the merger, maintaining its view that the public benefits would outweigh the loss of competition. More>>


Scoop Review Of Books: She Means Business

As Foreman says in her conclusion, this is a business book. It opens with a brief biographical section followed by a collection of interesting tips for entrepreneurs... More>>


Hourly Wage Gap Grows: Gender Pay Gap Still Fixed At Fourteen Percent

“The totally unchanged pay gap is a slap in the face for women, families and the economy,” says Coalition spokesperson, Angela McLeod. Even worse, Māori and Pacific women face an outrageous pay gap of 28% and 33% when compared with the pay packets of Pākehā men. More>>


Housing: English On Housing Affordability And The Economy

"Long lead times in the planning process tend to drive prices higher in the upswing of the housing cycle. And those lead times increase the risk that eight years later, when additional supply arrives, the demand shock that spurred the additional supply has reversed. The resulting excess supply could produce a price crash..." More>>


Get More From Scoop

Search Scoop  
Powered by Vodafone
NZ independent news