Landmark Emerald Hotel with large mixed-use building for sale
50-room freehold and going concern hotel along with neighboring tenanted commercial building + car parks
June 2022 – A waterfront Gisborne property home to the 50-room Emerald Hotel along with a neighbouring tenanted commercial building and associated car parking has been presented to the market for sale via Expressions of Interest.
On offer is the opportunity to acquire the stratum in freehold and going concern of The Emerald Hotel along with the stratum in freehold interests in the 2,825sqm neighbouring commercial building anchored by Woodward Chrisp Law, Gisborne District Council, Summit Forests NZ (owned by Sumitomo Japan) and the iconic Rivers Bar & Restaurant.
The property is situated within the strong performing regional city of Gisborne with its high yielding hotel operation with an Air New Zealand accommodation contract in place, complemented by a split-risk commercial office and hospitality component featuring several high-calibre national tenants.
Strategically placed at the top of Gladstone Road on the corner of Reads Quay, the property overlooks the Turanganui and Taruheru rivers just across from the Gisborne Marina. This well-established corner property provides healthy returns and split-risk from The Emerald Hotel and over ten income-generating commercial leases.
The Emerald Hotel features 50 rooms made up of spacious studios, one-bedroom suites and junior suites with an in-house restaurant, a gymnasium, swimming pool and spa pool, and flexible conference facilities capable of catering up to 400 attendees.
The commercial building components are made up of ten tenancies, including the iconic Rivers Bar and Restaurant and Telfer Young on the ground floor and a further eight commercial office units in the building above. 54 car parks are allocated to the commercial tenancies while a further 35 are allocated to the Emerald Hotel.
JLL Brokers Nick Thompson and Harry Fergusson have been exclusively appointed to market the property for sale by expressions of interest.
“It’s rare for a split-risk investment opportunity of this scale to present itself in Gisborne. Not only does it provide the market an opportunity to secure the largest single owned hotel in the region, but buyers can also take comfort by acquiring the tenanted, adjoining commercial building,” says Fergusson.
“The Gisborne region is one of the country’s most desired destinations and strongest growth cities. Iconic hospitality and accommodation assets such as this are tightly held, and this trend looks set to continue”
Thompson says it’s not just the asset’s split risk nature that makes it a compelling investment.
“Prospective buyers can act with some confidence as the property comes with significant future-proofing including huge street profile and river views, ample car parking and strong tenant covenants further adding to its credentials,” says Thompson.
“An incoming investor has the opportunity to take advantage of an established landmark hotel which benefits from robust business and proximity to a range of strong demand drivers supplemented by the substantial income from the tenanted commercial building,” says Thompson.
Interested parties can contact the sole agents for more information.
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