The Sofitel Queenstown is owned by NZ Hotel Holdings and one of a number of properties to be sold.
The New Zealand Superannuation Fund, Russell Property Group and Lockwood Property Group plan to sell their seven-property, $600 million-plus national hotel portfolio after the record-breaking $180m InterContinental Auckland sale.
Marcus Reinders, chief executive of NZ Hotel Holdings, which owns the seven properties, cited Precinct Properties’ planned sale of the hotel in One Queen to Singaporeans.
Reinders today also referred to tourism growing and rising international interest as other prompts.
A statement issued by agents CBRE said: “This is the largest hotel portfolio brought to market in New Zealand, presenting a once-in-a-generation opportunity.”
The seven hotels, with 1402 rooms, are:
NZ Hotel Holdings says it is transforming New Zealand’s destinations for the long-term benefit of New Zealanders but now its portfolio is to be sold.
When, in July 2019, the NZ Super Fund bought into what was then a $300m portfolio, direct investments head Will Goodwin said that allowed exposure to the fast-growing tourism sector and would support the industry.
“New Zealand needs additional hotel accommodation to support both growing domestic tourism and international arrivals,” Goodwin said then.
Brett Russell of Russell Group is at a hotel conference in Adelaide. Yesterday, he indicated an appetite for the seven hotels.
“While the New Zealand market is still improving, the global market is strong for the tourism sector. The InterContinental sale proves there is a high demand for quality assets in New Zealand. The NZ Super Fund understands the investment market and the opportunity to divest at the right number.”
A Super Fund spokesman said yesterday it was not that entity’s decision to sell.
“We are just one shareholder, albeit the largest,” he said, referring to an 80% stake.
Russell said the decision to sell was a “joint” one.
“Things change and we need to be able to react to the market.”
Last year, Russell announced he and Canterbury partner Mainland Capital would refurbish the abandoned former Noah’s/Rydges Hotel in the central city.
However, that deal didn’t involve NZ Hotel Holdings.
In 2013, Russell and Crombie Lockwood’s Stephen Lockwood strengthened and fixed what is now the BreakFree on Cashel St, in NZ Hotel Holdings’ portfolio.
Russell, who owns Dominion Constructors, converted the ex-Bayleys offices into the QT and built many Te Tōangaroa buildings, including the Adina.
In 2021, interests associated with wealthy retirement and hotel investor Graham Wilkinson of Generus Group sold two hotels to NZ Hotel Holdings:
NZ Hotel Holdings Asset GP, incorporated in 2019, is 80% owned by NZSF Hotel Holdings, 10% by Russell Property Partners and 10% by Lockwood family interests.
Ex-SkyCity Entertainment Group CEO Graeme Stephens, who left unexpectedly in 2020, is a director of that company with Russell and others.
CBRE’s Michael Simpson, Peter Hamilton and Nick Hill are managing the seven-property hotel sale via an expressions of interest campaign closing on June 26.
Anne Gibson has been the Herald‘s property editor for 25 years, written books and covered property extensively here and overseas.