A strategic portfolio of two substantial Auckland commercial accommodation businesses for sale is tipped to appeal to active business owners and passive investors alike.

The offer encompasses exclusive management rights and associated real estate assets in the CBD and a business focused on a complex that offers permanent rentals in a growth hotspot in the city’s southeast. The business can also be operated as a serviced apartment provider if the operator chooses. 

The Tetra Serviced Apartments complex on Wakefield Street in central Auckland is home to 177 apartments over 12 levels, of which 47 are managed.

Newhaven Apartments offer affordable long-stay accommodation in East Tamaki. The complex on Haven Drive contains 71 managed apartments, and 176 in total, along with extensive recreation facilities.

Bayleys is marketing the sale of exclusive management rights of the two properties and associated real estate assets on behalf of Nesuto New Zealand, part of leading Australasian hotel and apartment hotel operator Daiwa Living Nesuto Group.

The portfolio is being offered with a total asking price of $2,315,000 + GST (if any).

Bayleys Hotels, Tourism and Leisure national director Wayne Keene says a sale of all assets to one investor is preferred. However, individual sales can also be considered at the vendor’s discretion.

“This is a business portfolio with unique attributes, including its strategic locations and combination of a short-term hotel business and permanent rentals, providing a captive clientele, unlike other accommodation business portfolios.

“The current owners have built the business to a level where it can sustain a full-time management structure while still offering excellent returns to shareholders.

“New owners could take on the business’s day-to-day running, or a passive investor could maintain a management structure similar to what is currently in place,” says Keene.

Tetra Serviced Apartments

Image: Tetra Serviced Apartments, 85 Wakefield Street, Auckland CBD, New Zealand

Built in 2006-2007 in a prime CBD location, the Tetra Serviced Apartments property combines various apartment types covering different markets.

The opportunity is on offer to own and operate a management rights business, along with real estate assets at the complex including office, reception and storage units, car parks, laundry and bathroom facilities.

A building management agreement will allow a new operator to run a serviced apartment operation should they wish. An additional telecommunications agreement will enable them to charge the body corporate for internet and phone services.

The rights come with a term of 15 years remaining of a 19-year tenure, however, owning the key real estate assets is beneficial to this investment.

Bayleys’ Hotels, Tourism and Leisure broker Shitanshu Patel says the apartments attract particularly strong demand from students at the nearby University of Auckland and Auckland University of Technology.

“Auckland’s student accommodation sector has been a star performer in recent years and is bouncing back with the reopening of international borders post-Covid. The University of Auckland reported record-high applications for accommodation it provides this year.

“Demand for Tetra Serviced Apartments is also underpinned by its location in the CBD, which is home to 65,000 jobs and a burgeoning population of inner-city residents along with the city’s main transport hubs.

“There is also an opportunity to capture a broader base of clientele among travellers and tourists drawn to the CBD,” says Patel.

Newhaven Apartments

Image: Newhaven, 40 Haven Drive, East Tamaki, Auckland, New Zealand

Newhaven is a low-rise complex with a mix of one, two and three-bedroom apartments and townhouses. It also provides a gym, tennis court, large outdoor pool, barbecue area and children’s playground, which are all complimentary for residents.

Keene says there is an opportunity at this complex to own and operate a management rights business capitalising on what he considers a very buoyant market for commercial accommodation assets in this class.

An encumbrance deed allows the operator to collect a recreational levy from the owners within the complex, which pays for the operator to manage the recreational facilities.

The encumbrance also allows the operator to run a serviced apartment business should they wish.

A full-time general manager, who is a qualified and experienced real estate agent, handles all the sales and rental units at Newhaven. A full-time housekeeping manager is also present.

The rights come with a 999-year tenure which commenced in 2006.

Patel says demand at the Newhaven complex is underpinned by the surrounding area’s rapidly growing population.

“The property is within handy walking distance of the more than 200 stores at Botany Town Centre shopping village.

“The neighbouring industrial precinct is a hub of 2,000 businesses that contribute $3 billion a year to the economy – along with 30,000 jobs, which is expected to rise to 45,000 on completion of Highbrook Business Park,” says Patel.

What’s on Offer

Exclusive management rights of two properties and associated real estate assets being sold on behalf of Nesuto New Zealand Limited:

• Tetra Serviced Apartments, 85 Wakefield Street, Auckland CBD, New Zealand
• Newhaven, 40 Haven Drive, East Tamaki, Auckland, New Zealand

The portfolio provides an investment and income opportunity for a buyer seeking better-than-bank returns with an excellent tenure and terms.

The owner’s preference is to sell all assets to one investor. However, individual sales to investors can also be considered at the vendor’s discretion.

Business financial information is available to potential buyers subject to signing a non-disclosure agreement.

Sale Method

The portfolio is for sale with a combined asking price of $2,315,000 + GST (if any).

For more information contact the agents via the contact form below. 

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