The Capital Gateway Motor Inn is at the entrance to Wellington in the Ngauranga Gorge.
The Capital Gateway Motor Inn is at the entrance to Wellington in the Ngauranga Gorge.
The land and buildings comprising a large accommodation facility on the State Highway One motorway approach to Wellington at the top of Ngauranga Gorge is for sale.
The Capital Gateway Motor Inn, built in 1987, encompasses a 40-unit motor lodge complex, campervan park, apartment, restaurant and conference building.
Located at1 Newlands Road, at the intersection of Newlands Road and SH1, the well-known and strategically positioned Tudor-styled property, is less than a 10-minute drive from the Wellington CBD.
"This is an established business in a prominent location that caters largely to business travellers and families and which receives repeat custom," says Mark Sherlock of Bayleys Wellington who is selling the freehold land and buildings through a tender process closing on April 13.
Sherlock says the 1.56 hectare property, which is leased to the business operators until February 2050, comprises three free-standing accommodation blocks plus an adjoining reception and restaurant/conference building, and comes with a two-bedroom manager's apartment upstairs.
"The long term lease, reputation of the tenant and the standard of facilities provide an outstanding passive investment for a new owner," Sherlock says.
"The site has extensive exposure to north and southbound traffic on the motorway and is easily accessible from the south via a slipway to Newlands Rd and from the north via the Newlands overbridge. All local amenities are within easy driving distance, as is the central city.
"This is a sizeable accommodation provider, with more generously-proportioned accommodation rooms compared to modern hotel developments."
The entrance to the Capital Gateway Motor Inn at the intersection of SH1 and Newlands Rd.
The motor inn has four styles of motel units ranging from studio to two-bedroom family units and the campervan park on the northern side of the property which can accommodate 27 vehicles. The motel units have been regularly redecorated to ensure a high level of presentation.
Other facilities within the main buildings are a reception area, bar and restaurant, full commercial kitchen, staffroom, bathrooms, cleaners' room, unloading bay, rubbish disposal areas, walk-in cool room, storeroom and laundry.
In the campervan park an amenities building has a laundry, kitchen, cleaners' room, storeroom and bathroom facilities.
The buildings have an A-grade seismic rating with construction predominantly of reinforced concrete slab foundations and concrete block to the ground floor with timber framing. Externally, the buildings are clad in board and batten cement fibre sheet with concrete support; PVC spouting and downpipes; and aluminium framing and window joinery.
The land and buildings are leased to Capital Gateway Motor Inn 2006 Limited, for a 47-year term commencing in February 2003 and with a final expiry date of February 2050. Annual rental is $452,000 plus GST.
"This company has been operating the business for the last decade and has a proven track record," Sherlock says.
The property is held in two titles and sits on an elevated site above SH1. "An appealing feature is the availability of near level excess land which could be further developed into additional accommodation in the future," says Sherlock.
"This property offers a new owner the opportunity to acquire a passive income with a long-term well-established tenant operating an extensive well known motor inn that most Wellingtonians recognise."
