Resort 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 resort hotels situated in prime regional locations within easy driving distance of Auckland City. The proposed new resort 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 resort hotel, the land allocated for the development has an underlying value of US$5 to 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 in the 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 resort hotel, including the land, is US$45 to 50 million. It is planned that the resort hotel would be leased to a recognised international resort 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 luxury resort hotel will be in an area that has tourist attractions both to distinguish it, and accentuate it, as a desirable destination. It will have a mix of two, three and four bedroom apartments in a modern three-level designed complex overlooking a waterway development. The proposal is for a staged development consisting of a central hotel facility, comprising small conference / meeting rooms, reception / booking area, bar and restaurant as well as accommodation of approximately 40 apartments. Subsequent stages would be an apartment style development, sold as strata title with the ability to lease through the central operator as ‘managed apartments’, by a suitably qualified international brand operator in the central facility. 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.