Hotel group's magnificent seven southern portfolio for sale

Nugget Point boutique hotel and spa in Queenstown which forms part of the Tirohanga Group portfolio of seven properties for sale.

Jones Lang LaSalle has been appointed by the Tirohanga Group to market a big portfolio of seven properties, having a total value of over $47 million.

The Rotorua-based hotel group's portfolio comprises three leased luxury boutique hotels, a large commercial building centre, two blocks of development land, and another property which houses a retail outlet, backpackers and adventure hire centre.

Justin Kean, Jones Lang LaSalle's head of research and capital markets, says the diversified and large portfolio provides investors with an excellent opportunity to capitalise on the South Island's growing tourism sector.

The seven properties comprise:

Nugget Point boutique hotel and spa in Queenstown - a 40-room, luxury 5-star rated hotel, incorporating a health spa and gymnasium, tennis court, squash court, home theatre, wine tasting cellar, conferencing and wedding facilities.

A 1.2ha freehold land block adjacent to the Nugget Point resort - the potential site for a 200-room extension to the hotel.

Awaroa Lodge, Abel Tasman National Park, Nelson - regarded as one of the best "eco lodges" in New Zealand and comprising 26 villa-styled rooms. It is the only luxury accommodation hotel within the national park.

Portage Resort Hotel, Kenepuru Sound, Marlborough Sounds - featuring a stunning shoreline frontage with a marina next door and significant opportunities to diversify, the property includes a cafe, hire centre and backpackers' lodge.

The Portage Country Shop - located on freehold land adjacent to the Portage Resort Hotel, the shop provides support to the hotel complex by hiring out adventure equipment like kayaks, mountain bikes and fishing gear to Portage guests.

A land block of over 2ha at 123 Halifax St, on the edge of the Nelson CBD. The development site is being cleared of housing so that better access can be gained to the freehold land which would be ideal for a hotel or retirement complex.

The Mitre 10 Mega retail outlet in Blenheim, occupying a 1.82ha freehold site.

"While the entire portfolio is on offer the vendor will consider offers for individual properties, which could allow investors a rare chance to access property assets of this scale," says John Binning, agent with Jones Lang LaSalle, who has been exclusively appointed to market the portfolio by private treaty.

"With New Zealand's strong economic growth and a positive tail wind from the tourism sector, this diversified portfolio offers considerable exposure to parts of the country that are doing well in current market conditions. In addition, there has been very little new supply coming on to the market in the South Island outside of Christchurch."

Kean says there has been a noticeable strengthening in the tourism sector. "Hot-spots that are benefiting from this growth include the Nelson, Blenheim and Queenstown areas," he says.

According to Statistics New Zealand, international visitor arrivals from December 2012 to December 2013 rose by 6 per cent, taking visitors to a total of 2.7 million people during the past year.