KEY POINTS:
Kingfish Lodge is one of the oldest fishing lodges in the country. Bayleys' Michael Pleciak says there has been a phenomenal amount of interest in it
A chance to buy a slice of Kingfish Lodge, one of New Zealand's best known fishing retreats, for under $100,000 is attracting
widespread interest.
A total of 120 ownership interests are being offered for sale in Kingfish Lodge and just under 12 hectares of surrounding waterfront land in Whangaroa Harbour, Northland, each costing $99,950 (including GST).
For that, buyers get their own freehold title to a 120th share in all the freehold land and assets comprising Kingfish Lodge, plus all fixtures, fittings and chattels, as a tenant in common with other co-owners.
A proportionate property title scheme has been put in place by the Markham Group to sell the lodge which will undergo a significant upgrade.
The ownership concept, providing the opportunity for independent parties to jointly own a single property for a proportion of the total cost, has been commonplace in the New Zealand commercial and industrial property market for several years.
However, Michael Pleciak, Bayleys Real Estate's waterfront sales team leader, says this is the first time a proportionate scheme has been used for a property of this type, although fractional ownership of lifestyle properties is popular in the United States and Europe.
"We've had a phenomenal amount of interest in it since it was launched on the market three weeks ago and have been fielding inquiries from all over New Zealand and internationally.
"It's providing people who could not otherwise afford a coastal property, or who don't necessarily want to have a large amount of capital tied up in a holiday retreat, with the opportunity to own a piece of an iconic fishing lodge for a relatively modest outlay and to have a bit of fun along the way."
Pleciak says interest is coming from fishing and boating enthusiasts, including people who have stayed at the lodge, and those attracted by the property's prime waterfront location and its prospect for long-term capital growth.
Owners receive a certificate of title for their share of the property which they can sell at a later stage.
As part of their ownership interest, they will be entitled to 28 nights usage for two people of one of the lodge's 12 suites. More than $900,000 has been budgeted for the refurbishment of the suites to a minimum 4-star standard.
Owners pay a fee of $50 a night for cleaning and servicing of the room. However, with the average daily rate achieved for the lodge in its March 2007 financial year being $300 and an initial forecast of $330 a night for the refurbished suites, Pleciak says there will be a potential saving of close to $8000 a year to be made on accommodation for those who use their full 28-day entitlement.
Owners will be entitled to 16 nights usage in the game fishing season from October to April and 12 nights usage in the off-peak season from May to September. To ensure all owners get a fair chance to use the lodge, there is a maximum stay of three consecutive nights in peak season. However, if surplus accommodation is available then owners can extend their stay beyond the three-night limit.
Family members and friends can be nominated to use any part of an owner's accommodation entitlement. Owners can also charge others for using their entitlements if they so desire, says Mike Peterson, of Bayley's Auckland office, who is marketing the property with Andrew Stone, from Bayleys Kerikeri.
Several people can jointly own a single share and apportion use between them.
Peterson says an application form in an Offeror's Statement sets out the terms and conditions on which applications for an ownership share will be accepted, and they must be made in accordance with that.
Reachable only by helicopter or water, a large part of Kingfish Lodge's appeal is its tranquillity, says Peterson. The lodge is a 15-minute water taxi ride from Whangaroa, which is about 30 minutes drive north of Kerikeri.
The sale also includes title to a 120th share of a car park site in Whangaroa, where owners can leave a vehicle during their stay at the lodge. Among the chattels being bought as part of the scheme is a catamaran for ferrying owners to and from Kingfish. Owners will also have access to a Caribbean 32 fishing launch stationed at the lodge.
For those wanting to take their own boats to the lodge, there are moorings as well as a jetty, upgraded in 2004, and a floating pier.
Kingfish will continue to operate as a fully managed lodge. In addition to its 12 guest suites, the lodge has a bar and restaurant area, staff accommodation and conference facilities.
Andrew Gelonese, who has more that 25 years' hospitality management experience, has been engaged to revamp the lodge's operating systems and to assist in the appointment of an experienced operator.
The operator will be entitled to let up to 20 per cent of the lodge's accommodation annually and will be responsible for all costs involved in its operation including the property's rates, insurance, utility costs and the scheme management costs.
Pleciak says one of the other issues involved in owning a holiday retreat, in addition to the initial substantial capital outlay, is the high annual holding cost, particularly for waterfront property where rates have soared in recent years.
He says a structure has been put in place at Kingfish designed to minimise these costs for the proportionate owners by making them the responsibility of the operator, in return for the operator being able to generate revenue from leasing part of the premises, as well as from the restaurant and bar.
Kingfish is one of New Zealand's oldest coastal fishing lodges, located in the sheltered headlands of the Whangaroa, internationally renowned for its closeness to some of the world's best big game fish waters.
The lodge has direct access around Kingfish Point into the Pacific Ocean and the fertile fishing grounds of the Cavalli Islands and Stephenson Island.
In the 1920s, renowned American sportsman and author Zane Grey made the lodge site his base in a quest to land record-breaking marlin.
The lodge itself was built in the 1940s, as a base for the army and US navy ships that used the harbour as a refuge during World War II.
