Coromandel bush retreat goes for $10m

Part of Puka Park in the Coromandel.

A joint venture partly owned by Accor, the world's largest hotel chain, has paid Tainui Group Holdings more than $10 million for a Coromandel hotel.

Accor Premiere Vacation Club has bought the Grand Mercure Puka Park, a 10ha property with 48 chalets set in native bush. Accor said yesterday it paid more than $10 million but could not disclose the exact price.

Accor has had the management contract for the hotel since 2001.

Marty Kandel, the Accor club's chief executive, said New Zealand was a priority area for expansion because it offered people a clean, green and safe environment. Puka Park was less than two hours' drive from Auckland and club members would be booked into it immediately.

The Accor club is a joint venture between French-based Accor and Australian developer Becton.

Steve Murray, Tainui's chief executive, said the sale would allow his group to focus on other accommodation investments such as the existing Novotel-Tainui and building the Ibis-Tainui, both in Hamilton. He said the new owners would benefit the region.

Peter Hook, Accor's communications manager in Sydney, said the purchase would boost the timeshare sector.

"This is quite a significant purchase because timeshare doesn't really have a great name in New Zealand - as it didn't in Australia - but today the new look timeshare industry is booming and APVC has probably been the largest acquirer of hospitality property in Australia over the past two years. This is a new leap forward," Hook said.

Kandel said the timeshare industry had been more tightly regulated which offered more secure opportunities for investors.