A prominently positioned motel in the heart of Mt Maunganui with a long-term tenant covenant presents buyers with the opportunity to acquire a premier asset in one of New Zealand’s most popular holiday destinations.
261 Maunganui Road is a 17-unit motel that includes a pool and barbecue area, conference room and owner’s accommodation that offers approximately 850sq m of total floor area on a large 1610sq m site that has wide road frontage with rear service lane access.
More importantly, the current tenant recently signed a new 25-year lease that began on 1 December 2021 offering long-term passive income in a tightly held location.
The lease provides $225,000 plus GST and outgoings in total annual rental income.
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There is also an additional maintenance fund contribution of 3 per cent of rental income to be paid by the tenant with rent reviews scheduled to be held every two-and-a-half years.
The property sits in the downtown shopping precinct and is close to a number of popular local amenities, including bars, restaurants, cafes and retail stores.
Colliers brokers Simon Clark and Grant White have been exclusively appointed to market the property for sale by deadline private treaty closing at 4pm on Friday 17 December, unless sold prior.
The building was constructed in 1993 as a specialist motel complex and the site includes five luxury suites with spa baths and 12 well-maintained studio units. There is car parking at the front of each unit providing convenience for guests.
The internal areas of all the units have been fully repainted during the past few years and the flooring has recently been replaced with quality tiles.
The property has also been fully re-roofed, including skylights in 2020, to ensure a low maintenance investment going forward.
Clark, managing director at Colliers Tauranga, says this large freehold site is extremely rare and will be ideal for a future three or four-level retail, office, or apartment complex.
“The potential sale price will be at or close to the current underlying land value, which makes this such a great investment,” Clark says.
“With a long-term lease in place this property will provide the new owner with a steady rental stream, while the future rental reviews provide potential for income growth.
“The recent refurbishments ensure the property is well looked after and will continue to remain appealing for guests and visitors.”
White, commercial sales broker at Colliers Tauranga, says Mt Maunganui has long been one of the country’s hot spots for domestic tourism due to the beautiful natural spaces of the area.
“Bay of Plenty offers popular beaches, which are a hit with people of all ages, alongside an outstanding selection of walking tracks, while the local amenities in Mt Maunganui offer something for everyone,” White says.
“Obviously the Covid-19 pandemic has presented a challenging scenario with regards to international travellers, but Mt Maunganui remains a highly desirable holiday destination for a number of Kiwis and it’s great to see them flood into the town during the summer months.
“When cruise ships are operating regularly again in the future, we will see vessels docking at the adjoining port with tourists populating the busy downtown area.
“Purchasing opportunities such as this one rarely come to the market in a tightly held location like Mount Maunganui.”
- Article supplied by Colliers
