The business buying the historic Hotel DeBrett in Auckland’s CBD for $21 million has unveiled its plans for the corner site.
The 98-year-old building stands on the Shortland Street/High St corner on land used for accommodation since 1841.
Colliers’ Blair Peterken said the hotel operator had recently renewed its lease, giving any buyer a solid income stream.
Auckland Council valued the hotel at $29.5m in June 2021, with the 818sq m land holding being worth $11.4m and the 2652sq m building worth $18.1m.
Chris Davies, a director of commercial and residential developers Location Group, and Tony Peterson, of food business Leader NZ, are buying the building at 2-4 High St together.
The sale is due to settle at the end of this month, Davies said.
Cruise ships and more people returning to work in offices in the area had created a buzz around the property which enhanced trade within it, he said.
“It’s obviously got good cash flow. Some of the things that need sorting out are tenancy vacancies. We have the skills at Location to deal with those. It’s had a cosmetic and structural upgrade by a previous owner so we’re comfortable with how the building is looking and how it is structurally as well. We have a long lease from the hotel operator and the Cornerbar,” Davies said.
“It’s a great value-add opportunity. The retailers are going well and there’s more activity around that area now in the last six months.”
Tenants in the building include Crane & Sons, Ruby Apparel, 3 Wise Men, Habitat Hotels & Apartments, Lila’s Tailoring and Clear Skincare Clinic.
But Location didn’t buy the neighbouring 23 Shortland St, which Davies said is still for sale via Colliers.
The joint parties paid $21m for the three-level building.
Redevelopment opportunities exist at the building, which is a heritage category two.
“There are hoops to go through but it’s achievable. We’re getting Jasmax to look at future redevelopment potential of the property. We would keep the structure that’s there but add height to the building. How high depends on what Jasmax presents but at least another three, maybe more,” Davies said.
“It wasn’t a factor for us buying it but it’s nice to have for the future,” he said.
Location Group was founded by Roy Richardson many decades ago and its managing director is Mark Weipers, whose son Andrew also works there as a development manager with Olly Gunman.
Location’s offices have been in Shortland St and Davies said no decision has been taken yet about where it will go.
The business lists two apartment developments underway now: 12 three-bedroom townhouses at Reside in Kingsland where it is due to finish work around August and 10 terraced places at Reside in Mission Bay is due to be completed mid-winter.
Some of Location’s projects include:
Collier’s Peterken brokered the hotel sale with fellow agents Kris Ongley and David Burley. Parties were showing interest in buying the neighbouring 23 Shortland St, Peterken said.
Anne Gibson has been the Herald’s property editor for 24 years, has won many awards, written books and covered property extensively here and overseas.