Accommodation complex for sale

Monday, 3 August 2015, 1:54 pm
Press Release: Bayleys

Accommodation complex combining lifestyle and income opportunities for sale

Amid escalating house prices, a residential, holiday and caravan complex at Waihi Beach in the Western Bay of Plenty offers coastal living at an entry level price. The property encompassing a home and established business has been placed on the market for sale.

One of only two accommodation types of its kind in the area, the Beach Life Village complex incorporates long and short-term residential housing options with cottages and caravan facilities to cover a range of needs for locals and visitors to the popular destination. Waihi Beach is located on the doorstep of the internationally renowned Hauraki Rail Trail, 12km east of Waihi and 60km north of Tauranga.

In addition to income streams, the property also features an owner’s residence, allowing a potential new owner to reap the potential rewards of this lifestyle property situated just 400 metres from a 10 kilometre stretch of beach.

The property has been placed on the market for sale with Bayleys Tauranga salespeople Brendon and Lynn Bradley through a tender process closing on August 14. The complex has a Capital Valuation of $1.065 million.

Located at 127 Emerton Road in the Island View area, Beach Life Village is strategically situated at the southern entrance to Waihi Beach, close to a range of basic goods and services including convenience stores and cafes. In the summer the population swells to more than 16,000 when holidaymakers flock to the area, according to Census figures.

Originally a motel business, the property was recently converted to a joint residential and holiday home complex to meet a range of accommodation needs.

Bayleys salesperson Brendon Bradley who is marketing the property, said the property combined the best of both worlds - lifestyle and income.

“Set on 7693sqm of landscaped, park like grounds, this property offers a sought-after lifestyle in a coastal setting. Further, it includes an established income, with the opportunity for a potential new owner to continue and/or grow the business,” he said.

There are nine studio and one-bedroom cottages onsite - four of which have already been sold and a further five on the market that are currently available for short or long term rental.

A seven-bay parking area accommodates campervans and caravans, with underground power connections. A utility/amenities building provides two-car garaging, work bench and storage areas. The northern section of the building includes a residents’ kitchen, laundry, storage space and two guest bathrooms.

Residential rentals for the cottages range from $150-$220 per week while the licence to occupy rentals for the cottages and caravan sites range from $80 to $90 per week. Collectively they produce an attractive annual income, said Mr Bradley.

The three-bedroom weatherboard owner’s residence is situated in the northeast corner of the property and incorporates the reception and office. The owner’s residence and accommodation dwellings all come with a number of chattels including furnishings and appliances. The complex grounds feature a lawn area, vegetable garden and garden shed.

“The business model is based on the sale of a number of cottage units with the sites then being leased on an annual land licence-to-occupy basis, plus residential cottage rentals and long term caravan site licences to occupy, which includes full use of the village amenities and facilities. This is a one of only two such accommodation businesses in the area that combines all these offerings. ”

“There is scope to sell the remaining five cottages, or to retain them as short or long-term rentals in addition to the caravan complex to provide a continued income for the future.”

Further cottages could be added to the property in the future, after obtaining the necessary resource consents, to expand the business, said Mr Bradley.

In addition to its stunning coastal location, the complex is on the doorstep of world famous cycling track the Haurakai Rail Trail. The 82km trail from Thames to Waihi is the easiest cycle trail in New Zealand, and one of the most scenic.

The property’s location makes it ideally placed to cater to the growing market for accommodation in the area, with many visitors choosing to stay in Waihi Beach after completing the trail, said Mr Bradley.

Electronic counters on the trail have recorded more than 10,000 cyclists per month over the summer, pumping millions of dollars into the area's economy. Visitor numbers are expected to further grow as the trail increases in popularity.

A recent report by the Government’s Ministry of Business, Innovation and Employment noted the huge economic benefits which cycle trails such as the Hauraki Cycle Trail have delivered to provincial New Zealand.

“More than a third of business survey participants indicated that they had seen an increase in the number of customers served by their business, with flowon effects in business income/turnover and business expenditure, but also in profit,” the Government report said.
Mr Bradley said the location and amenities of the complex made it a popular accommodation choice with customers and an appealing investment for an astute buyer.
“This property presents an exciting business opportunity for a new owner to purchase a home and income accommodation business operation in an extremely popular tourism destination.”

ENDS

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Bayleys Real Estate

New Zealand

Bayleys is New Zealand's largest full-service real estate company. We offer expertise in the marketing and sale of a wide range of property, including residential real estate, farms and lifestyle blocks, and commercial and industrial property. This includes tourism and business sales such as hotels and motels. We also cover the real estate markets in Fiji and other Pacific Islands.

Bayleys also provides a complete property and facilities service including property management and valuations teams focused on achieving both Owner and Tenant satisfaction.

No other real estate company can match our breadth of coverage across all market sectors throughout New Zealand.

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