The troubled Oceans Hotel and Apartments at Tutukaka could be sold within the next few weeks, but the receiver of the luxury complex admits it won't go for anything like the $20million plus it cost to build.
The owner of Oceans, Tutukaka Holdings Ltd, went into receivership in early August and
the property is on the market as a mortgagee sale with real estate agents Colliers International, in Whangarei.
Russell Churchill, a director of receivers PricewaterhouseCoopers, said several parties were doing due diligence on the hotel complex, but at this stage no agreements had been signed.
He hoped there would be "something to report" in relation to a sale in the next few weeks. "I'm positive we will find a buyer," he said.
However, Mr Churchill conceded that any sale price was likely to be substantially less than the more than $20million it cost to build the complex in 2004 and 2005.
He said while the property is in 26 individual titles it was likely they would be sold together as one and until it did sell the doors to the complex would remain locked.
The new owners would be free to brand and develop a new Oceans operation - "they will have a blank canvas to work with," Mr Churchill said.
The property has 28 hotel studios and 15 apartments on 26 titles (with an option to buy all or selected parcels); restaurant and bar, retail unit and conference facilities.
The Oceans hotel was closed on July 23, giving staff just a few hours notice.
Tutukaka Holdings Ltd had been in default of mortgage repayments for some time prior and had been trying to sell the hotel to meet its debts before the receivers were called in. It is belived there are more than $10 million of outstanding debts related to the complex.
Tutukaka Holdings is owned by Ian Barry of the Gold Coast and James Donnelly of Brisbane, who bought the property off developer John Hamilton (whose company Jadco Developments went into receivership in 2006).
Jadco Developments built the hotel complex.
