Listing #:1412401127

Unique Going Concern on Leasehold Land

Location: Nelson, Nelson / Tasman
Reasons to buy

Excellent location
Restored in 2007
10 year perpetually renewable lease
Rent fixed until January 2025
Potential to grow the current business or create new revenue streams.
The Customhouse, on a leasehold commercial site, is an historic two storey building built in 1904. Many of its original characteristics have been retained, such as timber panel doors, wooden arch and decorative ceiling. In 2007 the property was refurbished over 7 months. It comprises 13 rooms (3 with en-suites), with 46 beds and shared facilities.

Owner’s accommodation?
There is currently no owner’s residence. The current owner utilises one of the rooms and shared facilities.

Location
The property is located in Port Nelson and in walking distance to cafes, local dairy, waterfront restaurants/bars and fish & chip shop and only a 10 minute shuttle ride from the airport and a 15 minute walk to the CBD.

Opportunities
From 2008, the property has been operating as tourist accommodation, plus semi-permanent residents. The owner has advised that the business operates with a growing, positive cash flow. The listed price is based on a registered valuation dated October 2016.

There is potential to operate the premises in a number of ways (subject to resource consent approvals where applicable) such as:

Continue as a backpackers
Re-open the bar
Lease the carpark next door (16 spaces)
Convert into a boutique hotel or commercial offices
Operate a business hub incorporating:
Café/restaurant
Bike hireage
Micro brewery
Gift shop
NZ Backpacker Segment
?NZ has the reputation for being one of the best places in the world to backpack. The backpacker segment represents approximately 11 per cent of New Zealand’s holiday arrivals and visitor spend – making it a valuable visitor segment for New Zealand and the hostel market is going from strength to strength.

Reference: EL00918

Agency reference #: EL00918
Asking price: $875,000
Listed: Thu 7 Sep, 10:04 am
Jono Jarvis
Link Business Broking Ltd
  • Contact Details
  •  (09) 5799226
  •  (021) 1779760

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Advertiser's details

Jono Jarvis
  •  (09) 5799226
  •  (021) 1779760
Link Business Broking Ltd
(09) 5799226

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