Otahuhu's history in colourful corner pub

Newspaper ads from 1863 show the Star was a major staging point for coach journeys between Auckland and Waikato. Photo / Supplied

Part of an historic Otahuhu property dating back to the 1860s that houses one of the township's oldest businesses is for sale by auction.

The Star Hotel at 388 Great South Rd, which has operated for more than 150 years under different proprietors, will be auctioned by CB Richard Ellis on September 29.

The hotel has been put on the market by the Ranchhod Group to free up capital for other projects.

Newspaper advertisements dating from 1863 show the Star was a major staging point for coach journeys between Auckland and Waikato and it was described by the proprietor at the time as "one of the most commodious country hotels in the region offering the finest ales, wines and spirits with cleanliness and civility".

The two-level boarding house was the original hotel and is the oldest part of the property.

Leading to the upstairs rooms is a staircase with an ornate carved banister, believed to have been installed when the hotel was first built.

During the hotel's early days, it gained notoriety when a 31-year-old man, who had been drunk for a fortnight, died at Mt Eden jail from the effects of excessive drinking at the hotel. The coroner censured the barman for "supplying the man with drink when he was aware the deceased could not take food".

In an incident that amused a reporter in 1865, Richard Crabb, temperance lecturer, was charged on the information of William McManus, licensee of the Star Hotel, Otahuhu, with provoking a breach of the peace by saying within the hearing of passers-by: "You are a publican's pup! Go inside and bark from your own kennel!" In fining Crabb, the magistrates considered such conduct detrimental and not conducive to the cause of temperance. As a reporter noted, there was no sympathy for the licensee. "Too bad to get a good, godly man like Mr Crabb fined."

A somewhat different property today, the Star Hotel is far bigger, covering 1622sq m on a 2263sq m site that includes 26 on-site carparks on the corner of Great South Rd and Atkinson Ave.

CB Richard Ellis sales brokers Colin Stewart and Dominic Ong are marketing the property and say it will appeal to investors attracted by the 10 year lease to an independent operator that still has nine years to run and a net return of about $217,000 a year.

"The hotel has a high cash flow coming from a multi-faceted operation that encompasses the bar, 18 gaming machines and a 28-room boarding house," says Stewart. "There is also a vacant 187sq m shop that could potentially add another $40,000-$50,000 to the property's income.

"In an economic environment where cash flow is paramount, this property has all the right attributes for serious investors.

It is in a strategic location, has multiple income streams, holding income and a big land area that will be ripe for future development."

Ong says the corner property in a landmark position within Otahuhu's main shopping area has been well maintained and its frontage sweeps 170m from Great South Rd around to Atkinson Ave.

"The property effectively defines the southern end of the original Otahuhu retail strip.

"Beyond and to the south are bulk retailers, car yards and other lower density operations. Within the shopping area are a full range of banking and professional services and a good range of retailers and community facilities. Shops are always in high demand in Otahuhu and there is never any shortage of tenants."

Mahesh Ranchhod of The Ranchhod Group says there is a demolition clause in the hotel's lease, giving any new owner the opportunity to unlock its development potential.

"The Auckland City Council Business 3 zoning is a bonus, allowing a maximum height of 30 metres and a floor area up to five times the land area. This is a development friendly zoning that is unusual outside Newmarket's main shopping strip."

Within the property, the 356sq m bar and casino areas have ornate plastered walls, cornices, a vaulted ceiling in part and separate entrances from Great South Rd. The 1076sq m boarding house is sandwiched between the bar, casino and the retail shop.

It has entrances into a central foyer from both Great South Rd and Atkinson Ave and a shared kitchen/lounge area, a small gym and separate laundry on the ground floor.

Upstairs is a large unit separate from the main building.

Ranchhod says the hotel has been built in various stages at different times and includes differing materials, although it appears to have been recently modernised and redeveloped to bring it up to modern standards.

One of the suburb's mainstays, the Star Hotel serves a population of more than 11,000.

The Auckland City Council says over the next 15 years Otahuhu is projected to grow by about 3600 households from the 3228 now established. A new aquatic centre will open in 2011 and library in 2014.

Under the council's growth management strategy Otahuhu is a "business development area". The council says the suburb is a major employment area that can support more jobs and the extra movement workers, customers and goods that the extra jobs will bring.

There are about 1240 businesses employing 7200 people in the suburb.

One of the most prominent is Dominion Breweries, New Zealand's second largest brewery.

It was founded by William Joseph Coutts in November, 1929 and is still at the corner of Great South and Bairds Rds.

On the northwestern side of the town centre is an industrial precinct that houses big manufacturing, distribution and warehousing companies.

Stewart says Otahuhu is one of Auckland's premier employment suburbs with a number of diversified industries and this property cycle has become one of the best times to buy property as there are realistically priced assets being offered to investors who can take advantage of low interest rates.