EXECUTIVE SUMMARY COMMERCIAL UNITS, LIGHTER QUAY, AUCKLAND, NEW ZEALAND

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Albert Barker
6 years ago
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associated with, sponsored by, or endorsed by Melview

Westin Auckland Ligter Quay hotel, or Westin Hotel

1 EXECUTIVE SUMMARY COMMERCIAL UNITS, LIGHTER QUAY, AUCKLAND, NEW ZEALAND Bayleys Real Estate are not associated with, sponsored by, or endorsed by Melview Lighter Quay Hotel Management Limited as owner of the Westin Auckland Ligter Quay hotel, or Westin Hotel Management LP or its affiliates as operator of the hotel and as owner of the Westin trademark. Any sale or rental activities by Bayleys Real Estate are conducted independent of such parties and the

2 Bayleys Real Estate Limited is pleased to offer for sale the leasehold interest in the commercial facilities, located in the Westin Lighter Quay, for sale. The Westin is Auckland CBD s newest premier grade hotel located on an exceptional waterfront site in the heart of Auckland s Viaduct. With a lease in place to an international hotel operator, the purchaser will benefit from a secure, long-term cash flow. PROPERTY DESCRIPTION: The interests for sale comprise eleven fully leased commercial areas contained within 17 strata unit titles located within the Lighter Quay five-star hotel, developed over six floors including basement. These hotel facilities include health spa, pool, gym, function room, meeting room, executive lounge, lobby lounge, lobby retail, lobby bar and library, restaurant, café, club, front and back of house areas, along with 45 parking spaces. The building is focussed around a central water feature and includes an adjoining marina and lock. It is such features that set the hotel apart from alternative hotel complexes in Auckland s CBD. LOCATION: Auckland s Viaduct Harbour is a waterfront Central Business District precinct developed over the last 20 years with a mix of commercial offices, retail and restaurants, residential apartments and hotels. Office tenants in the area include Vodafone, Microsoft, HP, KPMG and Air New Zealand. Auckland s Viaduct Harbour is now considered one of the premium locations within the CBD and the growing trend of tenant movement to the waterfront will continue to enhance its reputation. PROPERTY ADDRESS: 21 Viaduct Harbour Avenue Viaduct Harbour Auckland New Zealand LEASEHOLD TITLE DESCRIPTION: The leasehold site refers to an area of 4,064 m² for Lot 3A DP , Certificate of Title of the North Auckland Registry.

3 Certificate of Title Lot Deposited Plan Land Area NA A ,064 m² STRATA TITLE DESCRIPTION: Unit Certificate of Principal Entitlement Accessory Unit Title Unit (/100,000) Meeting Room H7-270 Function H Restaurant H H14 8, Café H Club H3 1/2 share 2, Bar & Library H10 1/2 share 2, Health Spa, H1-663 Pool & Gym H H Back of House H H , Signage H Retail H Executive Lounge A B Lobby Lounge H Carparks , CP14/15, 16/17, 54/55, 56/57, 58/59, CP30-53, CP60-69, CP74, TCP1-5 - The commercial units within the hotel are available for sale individually or as a whole. The carparking spaces are to be sold in whole or part in conjunction with any of the principle units. TOTAL RENTAL: $2,493,433 per annum + GST LEASE DETAILS: The commercial areas are leased to Melview Lighter Quay Hotel Management Limited, operators of the hotel. The lease terms and conditions for the individual commercial areas are the same and are summarised below. The rent is to be reviewed to the higher of market or CPI. The rent and outgoings for the commercial areas are paid out of the hotel revenue in priority over the payment to the individual room investors. Each area within the hotel is held in an individual strata title of Deposited Plan , as detailed below. The development has been strata titled within the meaning of the Unit Titles Act 1972.

THE WESTIN - LEASE TERMS Commencement 29 June 2007 Term Ten years Expiry 29 June 2017 Right of Renewal Six further terms of five years each Final Expiry 29 June 2047 Rent Reviews Two yearly for

4 THE WESTIN - LEASE TERMS Commencement 29 June 2007 Term Ten years Expiry 29 June 2017 Right of Renewal Six further terms of five years each Final Expiry 29 June 2047 Rent Reviews Two yearly for initial term. Every 30 months thereafter ZONING: The hotel is located within the Viaduct Basin Precinct, Auckland City Operative District Plan Central Area Section Permitted activities include offices, retail, education and food and beverage.

SCHEDULE OF COMMERCIAL UNITS AND CURRENT RENTS Set out below is a schedule of the commercial areas included within the

The base rentals are to be reviewed on a two yearly basis for the period of the initial term and thereafter every 30 months

Meeting Rooms The meeting rooms are located at ground level and are held in unit title H7 MEETING ROOMS 52.

FUNCTION ROOM Function Room 213.07 $600 $127,842 Outdoor Eating 72.

5 SCHEDULE OF COMMERCIAL UNITS AND CURRENT RENTS Set out below is a schedule of the commercial areas included within the offering along with details of both the base and fit out rents as set out within the various leases. The base rentals are to be reviewed on a two yearly basis for the period of the initial term and thereafter every 30 months with reviews being to the higher of market or CPI. Meeting Rooms The meeting rooms are located at ground level and are held in unit title H7 MEETING ROOMS $400 $20,868 $13,200 $34,068 Function Room The function room is located at ground level and is held in unit title H13 FUNCTION ROOM Function Room $600 $127,842 Outdoor Eating $200 $14,400 $142,242 $46,200 $188,442 Restaurant The restaurant is located at ground level with the main kitchen located at basement level. It is held in unit titles H4 and H14 RESTAURANT Restaurant $600 $168,030 Basement $300 $61,488 Outdoor Eating $200 $40,000 $269,518 $303,600 $573,118

Café The café is located at ground level and is held in unit title H11 CAFÉ Use Café 64.53 $600 $38,718 Outdoor Eating 60.

They are held in unit titles H6, H15 and part unit H1. HEALTH SPA AND GYM Spa (Basement Level) 175.35 $300 $52,605 Spa (Ground Level) 148.

6 Café The café is located at ground level and is held in unit title H11 CAFÉ Use Café $600 $38,718 Outdoor Eating $200 $12,000 $50,718 $59,400 $110,118 Club The club is located at basement level and is held in unit title H3 CLUB Club $300 $43,611 Storage $200 $5,010 $48,621 $59,400 $108,021 Health Spa and Gym The health spa and gym are located over basement and ground level. They are held in unit titles H6, H15 and part unit H1. HEALTH SPA AND GYM Spa (Basement Level) $300 $52,605 Spa (Ground Level) $450 $66,861 $171,600 Pool & Gym $300 $91,101 $145,200 $210,567 $316,800 $527,367 Bar & Library The bar and library are located at ground level and are held in unit title H10 BAR & LIBRARY Bar & Library $600 $93,204 Outdoor Eating $200 $10,800 $104,004 $132,000 $236,004

Back of House The back-of-house areas are located over basement and ground level. They are held in unit titles H2, H8 and H9.

62 $200 $37,724 $263,469 $132,000 $395,469 Retail Area The retail area is located at ground level and is held in unit title H12 RETAIL AREA

Area Rent ($/m²) Base Rent Rent on Fitout Total Rent Lobby Lounge 88.14 $400 $ 35,256 Terrace 49.

7 Back of House The back-of-house areas are located over basement and ground level. They are held in unit titles H2, H8 and H9. BACK OF HOUSE Use Offices $500 $167,205 Basement Level $200 $58,540 Storage $200 $37,724 $263,469 $132,000 $395,469 Retail Area The retail area is located at ground level and is held in unit title H12 RETAIL AREA $2,000 $21,500 $6,600 $28,100 Executive Lounge The executive lounge is located on level six and held in unit titles 635A and 635B EXECUTIVE LOUNGE $400 $37,644 $13,200 $50,844 Lobby Lounge The lobby lounge is located at ground level and held in unit title H16 LOBBY LOUNGE Use Net Area Rent ($/m²) Base Rent Rent on Fitout Total Rent Lobby Lounge $400 $ 35,256 Terrace $200 $ 9,908 $ 45,164 $33,600 $78,764 Car Parks The car parking is located at ground and basement level. There are parks for 45 vehicles included in the offer, all as individual accessory units. The car parking spaces are to be sold in whole or part in conjunction with any of the principle units. CARPARKS Total Base Rent Rent on Fitout Total Rent 45 $163,118 - $163,118

RENTAL PAYMENT STRUCTURE The purchasers of the commercial premises included in this offer are buying themselves a

The lease structure which has been put in place at the hotel requires that the rental commitment to the commercial

of which are owned by private investors.

terminate the leases, no ability to remove the room from the hotel pool and no right of personal occupation.

8 RENTAL PAYMENT STRUCTURE The purchasers of the commercial premises included in this offer are buying themselves a secure cash flow and placing themselves in a jewel in the crown position. The lease structure which has been put in place at the hotel requires that the rental commitment to the commercial units is the first priority payment from the income derived from the The hotel accommodation comprises 172 rooms all of which are owned by private investors. The rooms are all leased back to the hotel management company with the individual owners having no rights to terminate the leases, no ability to remove the room from the hotel pool and no right of personal occupation. The above lease structure ensures that the hotel management company retains total control over the entirety of the guest accommodation and the hotel. The hotel management company is responsible for the operation of the hotel, including management and letting of the rooms and collects all resultant income. Prior to distributing profits back to the room owners the management company pays all hotel expenses with the first priority being the rental commitment to the commercial units.

9 SALE PROCESS: CONTACTS: For sale by Tender Closing 4pm Thursday 25 th September (Unless sold prior by any other means) SALES TEAM JAMES CHAN HAROLD McCRACKEN P P M M F F E james.chan@bayleys.co.nz E harold.mccracken@bayleys.co.nz HEAD OFFICE Bayleys Real Estate Limited MREINZ Maritime Square 4 Viaduct Harbour Avenue Auckland New Zealand P F

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