Westport, South Island
Been to Westport lately? Have a look at this!
Land, Buildings and Business Offers Over $2.2m
Business Description
Mining boom pending! Westland Mineral Sands just south of Westport has been granted a $30m government loan for its proposed $70m mineral separation plant at Cape Foulwind. Accommodation providers in the town already enjoy quite steady trade, so this shot in the arm should be a real boom.
Huge potential here for the right operator! A lot of property and potential profit for this money! This is a seriously good opportunity. The vendors would consider finance assistance for the right operator – is this you?
Great central location sited on over 4,000 square metres, 27 hotel rooms, 80 to 100 seat restaurant, three bars including conference room and 28 car parks. Liquor store currently on short-term lease to a reliable operator, happy to stay on.
This part of town was not subject to flooding. The property is fully insured, including for natural disaster. Buildings have had significant upgrades to bring them up to 67% NBS and the rooms are well presented.
This property is offered well below rateable value for the land and buildings alone by motivated absentee vendors, because it currently is not operating. (Further reasons for this can be discussed.) As such, recent financial performance information is not available. We are able to provide spreadsheet projections on the accommodation side of the business, illustrating various revenue and profitability scenarios.
The town of Westport has gone from strength to strength in recent times. It now seems to have quite a vibe and has plenty more potential. Recent performances for other accommodation businesses we have dealt with show the steady and growing business being enjoyed here.
Please be aware that some of this information may have been sourced from RPNZ/ Property Guru/ Land Information New Zealand and we have not been able to verify the accuracy of same. Any boundary lines shown on an image are indicative only.
An Information Memorandum is available to download from our website coffeys.co.nz or enquire direct to KELVYN COFFEY.
Business Summary
Key Investment Insights
1. Positioned centrally in Westport on over 4,000 square metres, offering strong visibility and access to town amenities.
2. Direct upside from regional mining activity, with Westland Mineral Sands granted a $30m government loan towards a $70m separation plant at Cape Foulwind, likely increasing accommodation demand.
3. Accommodation inventory comprises 27 hotel rooms, described as well presented, supporting immediate room revenue potential.
4. F&B and events capacity includes an 80 to 100 seat restaurant, three bars including a conference room, enabling diversified revenue streams.
5. Onsite 28 car parks enhance guest convenience and event capability, important for group and conference business.
6. Liquor store on site is on a short term lease to a reliable operator, providing an existing tenant income stream with option to continue.
7. Property has undergone significant upgrades to achieve 67 percent NBS, reducing seismic risk and insurance complications.
8. Not subject to recent flooding and fully insured including natural disaster cover, lowering physical and financial risk exposure.
9. Offered well below rateable value for land and buildings alone by motivated absentee vendors, indicating potential for immediate equity value.
10. Sellers are open to finance assistance for the right operator, and management can access spreadsheet revenue and profitability projections; recent trading figures are not available due to the property not currently operating.
11. Some information sourced from external databases such as RPNZ and LINZ has not been independently verified, so buyers should confirm specifics during due diligence.
12. Local tourism and accommodation sector shows steady growth and positive recent performance, implying market tailwinds for a reopening operator.
