A new 130-room hostel built to house students of Auckland University's Tamaki campus is up for sale.
Tenders close July 8 and can be made through Rick Hamilton of Barfoot & Thompson, John O'Brien and James Chan of Bayleys.
The three-level Unitel hostel, being sold as a freehold going concern,
offers single and double rooms, and now accommodates local single workers as well as students.
The property on 3319sq m at 2 Farmhouse Lane promises high yield potential and is only five minutes walk to the campus.
"The income from the business is around $1,300,000 per annum, less expenses, and the valuation gives a projected net income of $916,418 per annum," Hamilton says.
"Since it opened in April, 80 rooms have been occupied, plus the manager's accommodation. Rooms range from $149 to $195 a week.
Residents have the privacy of their own ensuite in furnished units but can also experience a "family feel" in the community kitchen and lounge, TV room and outdoor courtyard area. The hostel has monitored security, a resident manager and swipe-card entry for after-hours use.
"The complex has an alpine feel about it, with exposed wooden exterior cladding and shingle pebble gardens," Hamilton says. "A solid upside of the deal is being so close to the campus with opportunities for a high yield and positive growth."
A rise from 2000 students to 6000 is predicted at Tamaki by 2010.
