Ten new units being constructed to increase the accommodation pool within one of New Zealand’s most consistently high-performing boutique hotels and resort lodges have been placed on the market for sale.
The freehold units at the Edgewater Resort in Wanaka are being offered in a sale-and-leaseback arrangement, where they will become part of the hotels greater commercially-run pool under a 99-year management lease agreement.
Set on 3.95 hectares of lakeside land, Edgewater Resort Hotel opened in 1986 and currently has 106 accommodation units – in studio, one-bedroom, and two-bedroom configurations.
The 10 new units are to be built in a pair of two-storeyed blocks on land which was set aside in the original development plan running alongside the hotels sealed private entrance road. They are being sold fully furnished with all fittings and furnishings and ready for immediate guest occupancy.
The two bedroom apartments are approximately 100-square metres each, and are being added to increase Edgewater’s room inventory which regularly runs at maximum capacity over most of the high season periods.
The terraced apartments are being marketed for sale by tender through Bayleys Wanaka, with tenders closing on February 21. Bayleys Wanaka director Mat Andrews said that with different floorplates and views, potential purchasers could tender to buy one or multiple units in a company ownership format.
“Each unit comes with a shareholding in Edgewater Resort Hotel Ltd which has a board of five directors who are appointed from within the shareholding base and abides by a long-running constitution,” Mr Andrews said.
“The Edgewater Resort Hotel Ltd company owns Edgewater Resort’s central core building which incorporates the reception area, bar, restaurants, kitchen, and the first-floor conference and function room.
“Full day-to-day management of the new apartments will be undertaken as part of Edgewater’s wider business operations, and there are no body corporate fees levied directly to apartment owners.
“Edgewater Resort completed a soft refurbishment in the 2017/2018 financial year, which saw an upgrading of its guest accommodation furniture and fittings, along with a makeover of the cafe and bar areas, and a rebuild of the kitchen. So incoming unit owners are buying into a relatively new commercial environment.”
Mr Andrews said all accommodation unit owners within the Edgewater corporate structure were paid dividends when the company declared its annual trading profits. In addition, all unit owners were entitled to 35-days personal use of their investment annually.
“The asset shareholding aspect of this investment, along with the physical ownership of the individual accommodation units land and building differentiates this opportunity from a simple timeshare ownership format,” he said.
He said that existing unit holders within the Edgewater Resort Hotel Ltd rarely sold their residences and associated shareholdings, however those that did benefitted from capital growth gains in both the land and buildings, and the company shareholding value.
“There is a strong possibility, purely based on the quality unique location of this opportunity, that some of the existing unit owners will tender to buy additional apartments,” Mr Andrews said.
“The resulting increased room capability will not only allow Edgewater Resort to increase its guest capacity during the peak trading season, but also to host more corporate events and secure a bigger portion of wedding and private function accommodation business – some of which currently overflows to other accommodation providers in Wanaka when the venue simply doesn’t have enough room to accommodate all guests on site.
“Over the past five years, Edgewater Resort has recorded average annual occupancy rates of at least 79 percent, and is on target to achieve an annual occupancy of 81.9 percent at the conclusion of the current financial year.”
Construction of the two new accommodation blocks at Edgewater Resort is scheduled to begin in the second half of 2020, and be completed during 2021.
Leisure amenities at Edgewater Resort include a spa pool and sauna complex, two all-weather tennis courts, a nine-hole putting green, petanque court and children’s playground, mountain bike hire and day spa.