Hotel Property Development - Investment Synopsis

Background

New Zealand is renowned as a lifestyle holiday and beach-resort destination with a number of exclusive waterfront property developments available for investors including new hotels, elite residential properties, condominiums, apartments and luxury retirement villages.

Investment Summary

TPS Capital is seeking the interest of investor/s to develop a number of hotels situated in prime regional locations within easy driving distance of Auckland City. The proposed new hotel development/s are seen as an ideal opportunity for astute investors to capitalise on the growing awareness of New Zealand as an attractive destination for overseas tourists, as well as catering for increased demand from the domestic market.

For the first hotel, the land allocated for the development has an underlying value of US$5 Million to US$8 Million.  It is in a prime waterfront location and has all the appropriate local government resource consents approved. The development company is looking for a cornerstone investor to take an approximate 75% share as a joint venture under a new Special Purpose Vehicle (SPV) agreement. Participation in the SPV would be envisaged as a syndicated share in a property owning company with entitlements that are able to be freely traded. The total capital requirement for the hotel, including the land, is US$45 Million to US$50 Million.  The hotel would be leased to a recognised international hotel operator.

The Development Company

The company is a privately-owned New Zealand property development company, with many years of experience, and has an excellent reputation for developing high-value, quality coastal waterway property developments. The activities of the company are supported by in-house design, consultation, civil construction, marine facilities and project management solutions.

Project Overview

The proposed five-star hotel will be a mix of two and three level blocks together with common hotel facilities. There are three possible concepts that have been designed and approved to fit the hotel site.
  • The first concept has a total number of 142 rooms and parking for 116 cars and three tour buses.
  • The second concept, a total number of 169 rooms and parking for 101 cars and three tour buses, and
  • The third concept a total number of 145 rooms and parking for 116 cars as well as parking for three tour buses.
  • The overall design of the hotel includes an outdoor pool in a central area surrounded by the rooms to one side. The reception, cafes, restaurants, a day spa and a guest lounge are in the middle section, and a banquet hall and conference facilities are on the other side of the pool.
A six to twelve month lead time is envisaged. This will include time to finalise design concepts, complete working drawings and the obtaining of building consents.