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Sale expected to whip up storm of interest

Sale expected to whip up storm of interest

Date Posted: Aug 6, 2009

6 August 2009

  

Widespread interest from diverse groups is expected in Queenstown’s Stormcat Lodge, which has just been put on the market after being placed in receivership in May.

The impressive Arthurs Point Rd accommodation complex at the base of Coronet Peak, opened its doors last year and is aimed at having the flexibility to cater for either seasonal workers or short term visitors in the tourist town. It has 98 rooms, mostly studio units and is set on 1.42ha of land, which has consents in place for future development.

Receivers WHK Cook Adam Ward Wilson have appointed commercial agents Colliers International in Queenstown to sell the property.

Alastair Wood, of Colliers, described Stormcat as a quality property with a $13 million development cost, including land.

“The nature of the sale means that the receivers are keen to get this matter resolved as quickly as possible. With this in mind, we’re expecting it to sell at less than replacement cost.”

The lodge has been developed over the front third of the side, with residual land of around 6000m2 directly behind it, to the north. Resource consent has been granted to subdivide the rear of the site, providing potential for further development or hiving off for a later sale.

“We’re expecting strong interest from investors and accommodation operators throughout New Zealand and potentially Australia. We think this will appeal to a wide group including the likes of large employers in Queenstown, big tourism operators – both local and national, education providers, and nearby hotels which may want to expand,” Wood said.

“Stormcat is in a great position nearby five star boutique hotel Nugget Point Resort and the three star Coronet Plaza Hotel. Its potential for further development makes it particularly attractive. Because Queenstown is an all year destination, there is consistent demand for workers and visitor accommodation throughout the year.

“The development is a new concept in rental living, designed for convenience and cost effectiveness that takes the hassle out of traditional renting. Added to this it has the flexibility of providing good quality visitor accommodation at affordable value.”

Wood said the bumper ski season had reaped big rewards for the Queenstown tourism industry with the $30 million expansion of Coronet Peak clearly paying dividends.

“That development comes on top of the $31 million airport expansion two years ago. Both these projects have really given a huge boost to the industry here.”

Wood noted that figures from the Ministry of Tourism for 2008 and the first half of 2009 show that backpacker accommodation is still showing growth in both revenue and occupancy.

The lodge was developed by Stormcat Property Development Trustees Ltd, whose director Tanya Chappie spearheaded the project. One of the company’s secured creditors is Dominion Finnance Group Ltd, which was placed in receivership last year.

As well as the studio units, which all have their own cooking and bathroom facilities, Stormcat Lodge comprises two one bedroom units, an administration/reception area, three common rooms and nine laundries.

The property is for sale by deadline private treaty, closing September 10.

For further information, please contact:

Alastair Wood, 03 441 0772, 0274 362 422, alastair.wood@colliers.com

Mark Simpson, 03 441 0770, 0274 906 394,mark.simpson@colliers.com

 

 

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For more information, please contact:

Alastair Wood

Alastair Wood

Managing Director & Investment Sales
Queenstown Office
DDI: +64 (3) 441-0772
Fax: +64 (3) 441-0791
Email: alastair.wood@colliers.com

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Mark Simpson

Mark Simpson

Sales Broker
Queenstown Office
DDI: +64 (3) 441-0770
Fax: +64 (3) 441-0791
Email: mark.simpson@colliers.com

View full profile

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