Queenstown lakefront with development potential

Housing Bumbles Backpackers, 2-4 Brunswick St, is only 200m from Queenstown's steamer wharf. Photo / Supplied

A Queenstown accommodation complex on the shore of Lake Wakatipu is being promoted for sale as an ideal investment property with excellent redevelopment potential.

"It has superb views of Lake Wakatipu and mountain ranges including the majestic Remarkables," says Barry Robertson of Colliers International who, with colleague Steve McIsaac, is exclusively marketing 2-4 Brunswick St for sale by tender closing at 4pm on Friday, July 14 - unless sold earlier by negotiation.

Robertson says the property, on the corner of Brunswick St and Lake Esplanade, comprises an established accommodation facility leased to a locally-run backpackers' business, and an adjoining vacant development site.

"This is rare opportunity to acquire a superbly-located waterfront property," he says.

Robertson says the property has a total land area of 1245sq m split across two titles.

The larger lot at 2 Brunswick Street comprises 802sq m spanning five unit titles that are to be sold together.

McIsaac says the accommodation complex was originally built as a motel and was later converted to a backpackers' facility.

The property is leased to Bumbles Backpackers, as is the smaller lot for sale at 4 Brunswick St comprising 443sq m of vacant freehold land.

"Bumbles Backpackers is a well-established locally-run business," says McIsaac. "It provides 55 beds in a mixture of dorm, twin and double room configurations with shared bathroom, laundry and kitchen facilities. It is a well-maintained property has been operated by the tenants since 2005."

Rooms within Bumbles Backpackers feature stunning lakefront and mountain views. Photo / Supplied

Robertson says the leases are due to expire on April 30 next year and this would free up the properties for future development.

"Interested parties can submit a tender on an individual property or for the combined properties, giving a purchaser the options of redeveloping part or all of the site if they wished."

Robertson says the property is within level walking distance of the CBD and about 200m from Queenstown's steamer wharf. Queenstown International Airport in Frankton, is just 8.5km away.

The property is zoned High Density Residential under the Queenstown Lakes District Plan. This is under review, with the council proposing changes to the objectives, policies and rules of Residential zoning.

"Queenstown's CBD is a mix of predominantly retail outlets, food and beverage and accommodation providers," says Robertson.

"The surrounding property is made up of accommodation providers and residential developments."

McIsaac says Queenstown is widely regarded as New Zealand's premier tourist destination and offers a wide 'four seasons' range of recreational and adventure experiences.

"Tourism remains the region's largest economic driver," he says. "Annual estimated tourist numbers to Queenstown are 2.9 million, with more than 1.8 million passengers travelling through Queenstown International Airport in 2016 - up 17 per cent on the previous year. This makes it one of the fastest growing airports in Australasia."

Further growth in visitor numbers and total spending is expected in 2017, following a record year in 2016 for the hotel and tourism sectors.

"Queenstown is an exceptional investment location, especially for add-value accommodation developments," McIsaac says.