The opportunity to own and further develop Pegasus Golf Resort just north of Christchurch is back on the table, following a prospective buyer’s failed bid in court to stop an open-market sale campaign earlier this year.
Rotorway Ltd, an investment vehicle for Hong Kong-based Yellow River Global Capital, proposed $90m of investment into a joint venture with current owner Sam Huo to develop resort facilities on the property. However two years of planning work failed to result in the agreed investment eventuating.
CBRE then launched a marketing campaign to sell the property in May on behalf of Huo’s company, Sports and Education Corporation. The sale campaign was brought to a halt just a few days before the offer deadline by legal action from Rotorway, which claimed it had the sole right to purchase the shares in the entity which owns the property.
Rotorway’s application for an injunction preventing the marketing and sale of the property was declined by the High Court at Auckland, opening the way for CBRE to re-launch the 80ha property to the open market for sale with offers closing on November 21, said Tim Rookes, managing director of CBRE Christchurch.
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“The property was taken off the market purely because of an isolated issue relating to one buyer party, which has no bearing on the quality of this asset or its tremendous future development potential.
“This is a highly exciting opportunity to not only own a championship golf course, but also to develop consented accommodation and hospitality infrastructure on the site, transforming it into a leading regional tourism and leisure destination.”
It is expected to attract interest from local and offshore buyers looking to acquire a trophy holding in New Zealand’s leisure property sector, with investors preparing to increase their acquisition activity as the inflation and interest rate environment becomes more favourable, he said.
“We are expecting strong interest in this property from both offshore and New Zealand-based parties, given its excellent reputation as a successful, attractive championship course close to the central city and international airport.
“Golf courses are viewed as highly prestigious investments, particularly among Asian buyers, and this asset is expected to be keenly contested owing to its accessible location near the airport and central city and the healthy recovery in the tourism market.”
Waimakariri District Council has indicated its support for further development at Pegasus, including a proposed designation in its 10-year district plan to facilitate future commercial development on the golf course property.
Huo said Sports and Education Corporation’s vision for Pegasus Golf Resort has been developed to provide a high-quality regional tourist destination aligned with the council’s goals to boost tourism in North Canterbury.
“We have developed consented plans that will be passed on to the new owner, including hot pools and a spa and visitor accommodation. A very strong and important relationship has been established with the Waimakariri District Council during this process, to facilitate a future development strategy for the Pegasus Golf Resort in line with the council’s regional tourism strategy.”
Subdivision of a ‘super-lot’ of land for developing the hotel, spa/hot pools and accommodation has been completed. A further commercial and residential zoned development superlot known as Mākete, intended for further tourism activities and medium-density residential construction, has also been subdivided.
“Possible future development at Pegasus Golf Resort will provide significant financial and employment benefits for the district. It also creates a highly compelling opportunity to capture the growth in New Zealand’s international leisure tourism market,” said Huo.
The property’s comprehensive range of existing amenities include a driving range, practice greens, pro shop, tennis courts, gym and bar and cafe.
The golf course itself is a parkland-style 18-hole championship course with mountain views, designed by golf architect Kristina Kerr of Kura Golf Design. Its clubhouse is also a past NZ Institute of Architects Award winner.
Pegasus Golf Resort has hosted multiple major golfing events, including NZPGA and NZ Women’s Open tournaments.
The property’s proximity to Christchurch and the international airport is one of its key differentiators, with the recent northern motorway extension bringing the property to 25 minutes drive from central Christchurch and 20 minutes from the airport.
The drive time from Christchurch to Pegasus will be even quicker if the Government presses ahead with its Belfast to Pegasus motorway extension proposal.
The property is situated between Pegasus Town, Ravenswood and Woodend. This is is the fastest-growing locality in the Waimakariri District, currently home to nearly 9000 people and projected to grow to 16,900 by 2043, according to Enterprise North Canterbury.
- Supplied by CBRE
