Upmarket waterfront apartment business on market

A luxury waterfront accommodation business in one of the North Island’s foremost coastal holiday towns has been placed on the market.

The five-star Sovereign Pier on the Waterways resort is located in the Coromandel town of Whitianga, directly overlooking the town’s high-end residential waterways complex where property owners moor their luxury boats from jetties at the end of their properties.

Housed within a crescent-shaped lay-out around Whitianga’s man-made waterways, Sovereign Pier on the Waterways’ accommodation inventory comprises luxuriously sized two and three-bedroom units fitted out with designer kitchens, laundry facilities, heat pumps/air conditioning, and balconies or courtyards.

Returning a healthy net profit of around 30 per cent for the business component from the letting pool of 16 apartments as well as a generous body corporate salary with chargeable grounds and maintenance work, the 2ha development makes for the perfect escape.

Also included in the sale is a spacious modern three-bedroom/two-bathroom 161-square metre owner/manager’s residence built in a similar style to the adjacent upmarket accommodation units.

The management rights for the Sovereign Pier on the Waterways accommodation business at 73 South Highway in Whitianga, along with the venue’s owner/manager’s residence, are now being jointly marketed for sale for $2,170,000 plus GST through Bayleys Auckland and Bayleys Whitianga.

Salespeople Gordon McGregor and Shaun Paterson said any new owner of the venture was not only investing in a successful tourism business, but also in a piece of prime residential real estate.

“Sovereign Pier on the Waterways is Whitianga’s premier commercial accommodation provider – attracting a high-end clientele, and delivering good returns from a business perspective,” said Paterson.

“Set on some two hectares of flat land, Sovereign Pier on the Waterways is a true resort location which is fully fenced and gated, and underpinned by high-quality guest amenities such as a substantial inground heated swimming pool, 20-person spa pool, gymnasium, tennis court, boat ramp for exclusive use, and marina berths subject to availability.

“The management rights for overseeing the successful operation of Sovereign Pier on the Waterways come with a long contract in place and additional 10-year terms running through to 2047. The current operators and vendors purchased the business and residence five years ago as a semi-retirement option and are now moving on.

“The business has been set up to ensure the owners have ample time to enjoy the benefits of the location like fishing and diving, and ability to travel locally and abroad. A true lifestyle choice.

“The business is able to efficiently support either a management structure, or be run under an owner/operator model – suitable for a couple who have had enough of the city life and are looking for a lifestyle business opportunity.

“The chic two-storey owner/manager’s dwelling two upper floor decks – one of which is glassed in for year-round use and the lower a lower deck which offers a usable area totalling some 62.2 square metres. The apartment also has a separate office reception desk area to service apartment guests, as well as a high-stud double garage and additional private parking spaces.”

Built in approximately 2008 along the lines of a Sunshine Coast-styled waterfront resort, Sovereign Pier on the Waterways is located just a few minutes’ walk from Whitianga’s central business district.

Commercial accommodation and privately-owned units have garage parking and on-site parking amenities for both cars and boat trailers in a secure enclosed space befitting a five-star venue.

In addition to operating its own websites for direct guest bookings by free independent travellers and holidaymakers, Sovereign Pier on the Waterways villa is also listed with accommodation websites Booking.com, Expedia, Agoda.com, Trivago.com and Wotif.co.nz.

Current management has significantly developed the international guest market, and has been very pleased with the significant number of bookings for the coming year.

McGregor said that over the past 14-years Sovereign Pier on the Waterways had successfully positioned itself as the pinnacle of Whitianga’s commercial accommodation options – primarily based on its location, the quality of rooms, and the suite of guest amenities – enabling it to deliver a better financial performance compared to other more mainstream venues in the township’s accommodation sector.

“The interior decor and furnishings throughout all 16 of Sovereign Pier on the Waterways’ villas within the letting pool have been continuously maintained to a high standard to ensure an ability to secure premium room rates,” he said.

“Lockable bedroom doors mean that the villas can be sold as one-bedroom options to cater for a wide range of guest requirements.

“There is the potential for the other privately administered apartment units to be placed within the letting pool, and this would have considerable upside for the management business.”

As the ‘jewel of the Coromandel’, with numerous cafes and hospitality venues, Whitianga has morphed from once being a holiday home destination, into a prosperous township with a high number of full-time residents – as evidenced by a substantial commercial town centre and well-developed social infrastructure. The Whitianga Waterways community is the town’s upmarket residential suburb.

“The management rights for overseeing the successful operation of Sovereign Pier on the Waterways come with a long contract in place and additional 10-year terms running through to 2047. The current operators and vendors purchased the business and residence five years ago as a semi-retirement option and are now moving on.

- Article supplied by Bayleys