With 36 Auckland suburbs now having an average house price of more than $1 million, and some edging closer to $2 million, a comprehensive Nelson home and business package with future upside is being touted as a value-for-money lifestyle option for an
The popular Fountain Resort Motel in Green Street, Tahunanui which has solid trading figures boosted this season by visitors to the ICC 2015 Cricket World Cup and an exceptional Nelson summer, has been placed on the market for sale as a freehold going concern with an asking price of $1,595,000.
Gill Ireland of Bayleys Nelson said that after eight years at the helm of the successful business which has a strong repeat and referral customer base, the owners have decided to sell up “lock, stock and barrel”.
“This opens the door for a forward-thinking new owner who recognises the inherent value of such a property and business proposition in sunny Nelson.
“Aucklanders would be staggered to see what their money can buy in the Nelson region.
“For the price of a home in one of Auckland’s preferred suburbs, you can get a 12-unit motel and facilities and a large standalone three-bedroom family home all on an underutilised 4,047m2 residentially-zoned site less than half a kilometre from Nelson’s famed Tahunanui Beach.”
“While the motel business is trading profitably and has strong future bookings 12 months out, this is also a prime future redevelopment opportunity waiting to happen.”
Ireland said additional units could be built on the site thereby extending the motel accommodation options, or a buyer may see value in building an apartment development and unit-titling this – along with unit-titling the existing motel units.
“Affordable housing is at a premium across most regions in New Zealand. With many people choosing to downsize for practical and financial reasons, along with a rise in single-person households across the country, modest accommodation options are finding favour.”
There is a mix of studio, one-bedroom and two-bedroom units and a large standalone three-bedroom, two-bathroom owner’s residence with garage and workshop. The mini-gymnasium, swimming pool and extensive children’s play area have made Fountain resort a popular destination for holidaying families. A comprehensive inventory of chattels is included in the sale.
Ireland said prospective purchasers looking at a business opportunity will be encouraged by the incremental increases in turnover – particularly in the last three years of trading.
“The business turned over more than $280,000 in the 2014/2015 financial year,” she said.
“The motel is very well-maintained as the current owner is a builder and has looked after the property fastidiously.
“Ten months out and the motels are already fully booked for the New Zealand Hockey Federation’s masters’ hockey tournament next February.
“The business trades well all-year round as the motel is located near to the Tahunanui sports ground and caters for school and other tournaments, and
benefits from regular travelling representative business booked through affiliate, the ASURE group.”
Tony and Ngaire Small, the owners of Fountain Resort, are foundation members of the ASURE Accommodation Group. This is a 50-strong network of privately-owned and operated motels and motor lodges from Kaitaia to Invercargill, offering members a referral system, third party loyalty partners, and joint marketing benefits.
Ireland said a general feeling of positivity across the Nelson region – and the New Zealand economy as whole over summer months - has impacted favourably on the bottom line of many hospitality-based businesses.
“The 2014/2015 summer has been a good one for the region as reflected by the latest Paymark figures which show Nelson topping the country in spending in March with a 9.4 per cent value increase.
“On top of this, the latest Statistics New Zealand figures reveal that the Nelson-Tasman region experienced an enviable 17 percent increase in domestic visitor nights during February this year compared to February 2014. The national average was just 2.5 per cent.
“We would expect the March figures to be strong, too, given that Nelson proudly hosted three matches in the ICC 2015 Cricket World Cup.”
The motel complex has been fully refurbished including the creation of a conference room with integrated kitchen and bathroom facilities. This extends the appeal of the motel offering and allows for convenient on-site meetings and presentations for smaller groups.
Nelson has one of the sunniest climates of all major New Zealand centres, earning the nickname 'Sunny Nelson' with an annual average total of over 2400 hours of sunshine.