Unique Going Concern on Leasehold Land
About this business for sale in NelsonUnique Going Concern on Leasehold Land
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 story 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.
There is currently no owner’s residence. The current owner utilises one of the rooms and shared facilities.
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.
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:
- 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.
+64 3 366 3394
+64 21 177 9760
*Sellers Discretionary Earnings, also known as EBPITD (Earnings Before Proprietors Compensation, Interest, Tax and Depreciation). This is the estimated total discretionary earnings (profit) for a business, usually based on historical trading.