The land and buildings housing the Mt Richmond Hotel and Conference Centre in Auckland's Mt Wellington are for sale.
CBRE agents Warren Hutt and Brett Whalley are selling the fully-leased 44-unit accommodation business site, at 676 Mt Wellington Hwy.
The deceased estate is for sale by deadline private treaty with the receipt of offers closing at 4pm, on Thursday April 4.
Hutt says leased hotel assets of this type seldom reach the market.
"This is an opportunity to acquire an investment property in a well-performing asset class; with the hotel and conference centre having reported record occupancy rates and growth," he says.
"It's a well-presented, tidy investment property in an evolving location and with azoning that enables further development. We expect it to appeal to long-term passive investors, land holders, the hospitality sector and more widely."
The mainly two-storey, and part three-storey, Tudor-styled 1980s' freehold property occupies a 2832sq m site at the corner of Mt Wellington Highway and New Brighton Rd.
The business — which is not for sale — operates 43 studio units, a two-bedroom family unit, gym, spa room, swimming pool and courtyard, plus manager's accommodation and car parking.
In addition to the trading income from the accommodation, it generates income from conference facilities (with capacity for 270); a licensed 172.98sq m restaurant and bar; and a 65sq m gaming room.
Hutt says owner of the business, J&Y Hotel Management Ltd, holds a lease running till May 2020, with a 20-year right of renewal.
Annual net rent is $457,000 plus GST and rent reviews are every three years; with the next one set down for May 15 2021.
Whalley says the 2832sq m site offers a high land value component with long-term redevelopment potential.
"Zoned Residential-Terrace Housing and Apartment Buildings it has been earmarked by Auckland Council for intensive future development," he points out.
"This zone encourages urban residential living in the form of terrace housing and apartments. Mt Wellington is a sleeper suburb that is starting to become an up-and-comer. So with a high-profile corner site in a very convenient and accessible south-eastern location, there's much redevelopment potential."
Mt Wellington has a mix of warehousing, industrial and commercial properties along the main arterial routes, together with homes built from the 1950s through to the present day. "It's in a popular and well-established area a short drive to the Southern Motorway via Princess St on-off ramp and on to the airport," says Whalley.