Lifestyle block with hospitality sector income

This Dairy Flat villa, used as a boutique bed-and-breakfast business, is on a 4.7ha lifestyle section.

A solar powered, 100-year-old villa serving as a successful multi-purpose bed-and-breakfast business on Auckland's North Shore is being marketed for sale as having significant potential for expansion as a hospitality facility.

The Dairy Flat property, which combines two business operations with a home on a 4.7ha lifestyle section, is being marketed for sale by auction on February 26, through Karen Asquith and Graeme Mann of Bayleys Orewa.

Located at 48 Young Access 25 minutes north of Auckland, it encompasses the Pine Valley Bed and Breakfast business, a private residence, a purpose-built glass house function pavilion and a smaller dwelling used for commercial accommodation.

Asquith said the property combined country lifestyle with multiple hospitality and food and beverage business opportunities. It also had potential for subdivision into lifestyle blocks. "A new owner could walk in and continue the existing home and businesses as they are, or consider developing the existing operations.

"Marketing for both the function venue and the bed-and-breakfast accommodation has largely been word of mouth. Even though this has largely been a hobby business for the current owners, the business last year generated $40,000 worth of revenue from bookings."

With a professional approach it could become a fulltime operation, with two revenue streams, she says.

"The premise is currently unlicensed. This is an avenue for future development that has huge potential for new owners opening up opportunities for the number and types of functions that could be hosted."

Pine Valley Bed and Breakfast is located within a 100-year-old villa surrounded by private grounds bordered by bush. The converted villa has six bedrooms, four of which are guest bedrooms. It also has a formal lounge with open fire and a large bay window, informal lounge and dining area, spacious kitchen and a deck.

Mann says guests are served a selection of organic Kiwi breakfasts and room rates per night range from $155 for the smallest room, to $265 for a king suite. "Accommodation in the separate cottage is $295 per night for a bed and breakfast stay or $245 per night for a vacation rental."

Since 2010, the villa has been completely solar-powered.

A 100sq m purpose-built glass house, patio and the property's attractive gardens last year enabled the hosting of 15 medium-sized weddings and open-air events. There is considerable potential to increase this number of events. The function centre can accommodate up to 70 people, with the target market comprising weddings, business functions, private parties and special-interest group events.

Food classes have also been held since the addition of an outdoor kitchen and pizza oven by the owners.

Mann says the business owners have excellent community networks and business contacts, including a preferred caterer for events.

"These contacts can be passed on to the new owner," he says. The third building on the site is a colonial-style, self-contained one-bedroom cottage set apart from the main house with living room, fireplace, kitchen, washer/dryer and broadband connection. "This is perfect accommodation for additional guests or extended family. Alternatively, it could be rented out as an extension of the bed-and-breakfast or on a long-term basis, providing a third income stream."