Change at helm near for hostel and bar

The Base Hot Rock Backpackers and Lava Bar buildings are for sale, but the popular businesses are not going anywhere.

After a month on the market, tenders close tomorrow for the purchase of the backpackers on the corner of Arawa St and Ranolf St in Rotorua and the adjacent bar.

The buildings are both leased to the Base Backpackers chain on a new 10-year term with five 5-year rights of renewal.

With a net annual rental income of $350,000 plus GST, it's a great opportunity for investors, says Bayleys Rotorua's Mark Slade.

"They can just sit back and collect the rent," he said.

"The tenants will carry on as normal - all that changes is the owners of the building."

Mr Slade said there had been interest locally and nationally, with about 12 potential buyers having been shown the property ahead of tomorrow's deadline.

"We are marketing it in conjunction with our Wellington office," he said.

"We are hoping for one or two tenders and one or two from the Wellington team."

Bayleys Wellington's Grant Young said the properties offered investors secure income for at least 10 years with an established international tenant.

"They [Base and Lava Bar] are successful businesses that want to stay," he said.

"Base Backpackers has built up a worldwide reputation for travellers for offering good clean facilities, security and a great travelling experience."

He said there were also two vacant sections at the back of the businesses that could be developed or sold separately by the buyer.

The Base Hot Rock Backpackers is one of 13 Base Backpackers operations in Australasia and comprises 171-bed budget accommodation over four levels - from double ensuite rooms to 12-bed dorms.

It's regularly used by coach tour providers Kiwi Experience, Stray Bus and Auckland Adventures. The Lava Bar is popular with visitors and locals for its lively bar complete with pool tables, flat screen television and large screen.

Mr Young said the current owners, an international company, had maintained the buildings to a high standard and had recently completed a major refurbishment of both.