One of Timaru’s best accommodation offerings, which has been extensively upgraded in recent years, is being sold.
The well-known freehold property, at 36-40 King Street, comprises Cedar Lodge Motel and Coastal Ridge Apartments.
Michael Lough, Investment Sales Broker at Colliers Christchurch, says the pair can be bought together or individually and are for sale by deadline private treaty, closing 26 May, unless sold prior.
“The vendors have worked in the accommodation business for more than 30 years and have really demonstrated their knowledge and expertise with this property. It’s immaculate and trades extremely well,” Lough says.
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“The future opportunity lies in capitalising on all the hard work and investment the current owners have put into the property and developing the additional land. The owners already have resource consent to add a further 10 units to fully maximise the property’s potential. Alternatively, a buyer could add value to the existing accommodation to fully maximise its potential.”
Set on a large 4,961sq m site across three titles with a view to Aoraki/Mount Cook, the high-profile property is for sale as a going concern.
Coastal Ridge Apartments has 10 units of varying sizes. Cedar Lodge Motel features 15 units and there’s also a three bedroom manager’s residence.
“This proven high-quality business is not reliant on international tourism and has strong domestic demand,” Lough says.
The latest economic figures released for the December 2021 quarter shows the Timaru District recorded a higher growth in GDP of 7.7 per cent, compared to national growth rate of 5.5 per cent.
The economic report also shows a jump in tourism spending for the Timaru District, up 11.8 per cent for the year to December, which again has outperformed the 3.9 per cent growth recorded nationally.
Vendors Pam and Brett Simpson bought the Cedar Lodge and Coastal Ridge properties in 2017 after identifying Timaru as a growth market. With a background in hospitality and tourism they had been looking for an investment opportunity that was not reliant on international tourism.
“Timaru is an excellent location to invest in accommodation because of the wide variety of guests requiring nightly accommodation,” Pam Simpson says.
“For us it ticked all the boxes, mainly because of the volume of corporate business, sporting events, the port, strength in agriculture and manufacturing, the transport and logistics hub, and its central location, together with Air New Zealand offering daily flights to and from Wellington. Leisure guests recognise Timaru as the gateway to the Mackenzie Country, and Mount Cook and Waitaki Valley regions.”
- Article supplied by Colliers
