The renowned Haka Lodge, set in a heritage building on Auckland’s Karangahape Road, has a new owner by way of a tender campaign.

The circa 1920’s three storey (plus basement) character building on the corner of K’ Road and Day Street offers a heritage façade in an iconic Auckland CBD location. 

At a glance: 

• Haka Lodge, on Auckland’s Karangahape Road has sold by way of a tender campaign. 
• The sale was managed by Nick Thompson, JLL's Director of Hotels and Tourism.
• The heritage building was refurbished in 2015 and is fully fitted as a high-end backpacker facility.

JLL Director of Hotels and Tourism Nick Thompson managed the sale, and said that the building was comprehensively refurbished in 2015, seismically strengthened, and converted into its current use as a backpacker hostel offering by Haka Lodge Backpackers, owned by New Zealand adventure tour company Haka Tours.

Haka Lodge, Auckland

“This opportunity benefitted from the exposure to New Zealand's largest export sector, tourism, through a safe property asset with a solid lease to a successful operator,” said Thompson.

“The property is fully fitted as an operational high-end backpacker facility with a range of dormitory and private facilities available, while the current owner occupier offered a long-term market-based lease with fixed growth.”

Thompson says Haka Lodge is in a prime location, as K’ Road is very accessible to the motorways, public transport, Auckland CBD, and the popular suburb of Ponsonby.

Furthermore, the major Auckland City Rail Link project is under way that is to consist of an electrified, double-track, subterranean rail tunnel, running for approximately 3.5 kilometres between Britomart Transport Centre and the Western Line, connecting just to the west of Mount Eden Railway Station.

With the goal to be complete by 2023, there will be two stations provided in Auckland’s CBD with one of these set to be approximately 150 metres from the subject property on K’ Road, which will improve commuter’s travel time into the city and offer ‘hop on/hop off’ travel around the city centre. This is expected to attract additional high-density residential capacity in the area and generate urban renewal within the inner-city fringe catchment.

Thompson said it’s opportunities like these that can provide a sound investment, as tourism plays a significant role in the New Zealand economy when it comes to producing goods and services and creating employment openings.

“The most recent figures from Statistics New Zealand in it's 'Tourism Satellite Account' show total tourism expenditure in New Zealand in 2017 was $36 billion, an increase of 1.9% over the previous year despite a decrease worldwide,” says Thompson.

“Furthermore, tourism generated a direct contribution to GDP of $14.7 billion while more than 230,000 people were directly employed in tourism, an increase of 9.3% from the previous year.”

Commencing from 1 May 2019, Haka Lodge Auckland has one right of renewal of 12 years (1 May 2031), and three subsequent rights of six years each with fixed growth, which makes it a hands-off investment.

“K’ Road has long been known as an entertainment area with gentrification occurring over recent years. It also sees a significant amount of tourism,” said Thompson.

“As the statistics show, tourism is an invaluable part of New Zealand that is showing no signs of slowing down, making it all the more important for investors to jump onboard and benefit from its growth.”

For further details on the sale of Haka Lodge, email the agent Nick Thompson via the contact details below

See also: 

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