A varied commercial and development opportunity in the coastal Otago town of Oamaru presents investors with the chance to leverage interest in its thriving tourism sector.
A multi-dimensional accommodation offering in the coastal town of Oamaru allows investors to operate a motel business or lodge longer-term tenants, while maximising the future development potential of an ongoing renovation and supplementary vacant land.
The substantial freehold landholding of 7,816sq m (more or less) at 14 and 19-19A Joy Street is in a position primed to leverage the resurgence of tourism and local airport works which have recently been completed.
Bayleys salespeople Oscar Kuang, Michael Broome, James Chan and Allister Simpson are marketing the property for sale by international tender, closing at 4:00 pm on Friday, 8th December 2023 (unless sold prior).
Oscar Kuang and James Chan of Bayleys Asian Markets team say the property presents a unique mix of existing accommodation, renovation projects and potential future development, which will appeal to investors, start-up operators and developers with their eye on Oamaru as the next coastal tourism hot spot.
“At the eastern tip of the Otago region, Oamaru is renowned for its well-preserved historic precinct, natural attractions like the Moeraki Boulders and the Blue Penguin Colony, and an inexplicable reputation as the world’s Steampunk capital.
“Oamaru and the broader Waitaki region are seeing a resurgence of tourism, with increasing visitor numbers, particularly with guests visiting from China. At the same time, heightened interest from film and television production companies has catalysed the district council to invest locally in a destination management plan set to boost occupancy and attract greater levels of sustainable tourism.
“The subject property presents an exceptional opportunity to leverage this burgeoning interest, with the chance to grow an existing business, create another and maximise vacant land currently underutilised on the site,” they say.
The Eden Garden Motel at 14 Joy Street is a 1,116sq m (more or less) accommodation complex with 21 guest rooms, a reception and a shared kitchen area.
It is located on a freehold 3,429sq m (more or less) site in a Residential zone with existing commercial use rights generating circa $200,000 per annum from short-term tenancies.
Michael Broome of Bayleys Hotels, Tourism & Leisure team says that directly opposite the Eden Garden Motel site, there is an ongoing renovation project comprising backpacker accommodation, with an additional 11 rooms scheduled for completion in early 2024.
The 300sq m backpackers project at 19 Joy Street features a landholding of 905sq m (more or less), and an underutilised portion of land spanning 3,482sq m (more or less) at its rear has received resource consent for the construction of a 40 unit motel.
“Resource consent for the development portion of the property has been issued with conditions for 40 self-contained motel units ranging from 41–55sq m and 30 onsite car parks accessed from Joy Street.
“Basic foundations at the 3,482sq m (more or less) 19A Joy Street site are in place, offering a walk-in project for a skilled developer,” he says.
Allister Simpson of Bayleys Hotels, Tourism & Leisure team says the development proposition presents a blank canvas opportunity to harness market fundamentals and pioneer an integral asset that will form a significant part of the region’s infrastructure and cultural fabric moving forward.
“A distinct shortage of appropriately zoned, freehold landholdings with the scale to accommodate a meaningful development within the fringe of Oamaru’s Central Business District provides a natural advantage for the property, which is expected to generate strong interest from a broad array of purchasers based locally and offshore.”