Waiheke Island luxury resort project

The five-star resort was envisaged as the South Pacific's version of Martha's Vineyard. Photo / Supplied

Envisaged as the "Martha's Vineyard of the South Pacific", an ambitious project for a five-star winery-based luxury hotel and entertainment and conference centre on Waiheke Island, in the Hauraki Gulf, is up for sale.

The property is being marketed by Bayleys Real Estate through a tender process managed by sales consultants Michael Pleciak and Pat Regan, with expressions of interest closing on March 4.

Isola Estate was planned be an 80-room, Tuscan-influenced resort, branded under the premium Langham hotels banner. Unfortunately, it was launched in 2008 just as the global economic meltdown came into effect.

Fifty-two unit titles, made up of one, two, and three-bedroom apartments, were offered to the public under a 25-year management contract to Langham Hotels International.

The resort was to be built on the existing Isola Estate winery while retaining some of the vine plantings around the perimeter of the buildings. Units ranged from a 60sq m one-bedroom apartment through to a 180sq m three-bedroom apartment.

The complex was also designed to offer day spa facilities, a gymnasium, retail wine outlet, restaurant and functions venue. Adjoining the main accommodation facilities was a separate 1858sq m entertainment and function venue with capacity for up to 400 people, along with access to a private airfield and helipad.

However, with banks tightening their lending criteria, and potential investors sitting on their savings, sales of Langham Place units were very slow.

Isola Estate owner and project developer Brent Gibson spent almost four years working on the overall tourism and hospitality concept, which he had hoped to have completed by May this year, in time to benefit from strong occupancy expected in association with next year's Rugby World Cup.

Gibson bought Isola Estate in 2006 from former Fullers Ferries chairman George Hudson, who had a consented concept plan for developing the space _ albeit on a much smaller and mid-range scale.

As a long-time Waiheke Island resident, Gibson has been heavily involved with the island's tourism sector from 1989, when he was involved in establishing what is now known as the Waiheke Island Resort - a three-star corporate-based property at Palm Beach.

Gibson also owned McGinty's Lodge on Onetangi Beach where he secured resource consent for what is now known as The Sands complex, before selling his interests to the eventual developers.

"There is definitely a long-term future for a five-star hospitality and tourism development on Waiheke Island at Isola Estate," Gibson says.

"With all the plans drawn up and appropriate resource consents acquired, the hotel project is ready to be taken up by an organisation which can see the vision and bring it to fruition. The management contract with Langham is still valid and can still be exercised."

Gibson says the sale represents a "sunrise opportunity" for a company or organisation to play the major role in the future of tourism on Waiheke Island, which already boasts some of the best dining establishments and premium vineyards in New Zealand.

"Under current conditions, I've taken the project as far as I can and added as much value as I can. After four years, it's time to pass the opportunity to an organisation which is capable of internally funding the project."

Pleciak says Isola Estate continues to operate independent businesses on the site, and these could continue as long-term revenue streams, or until construction of the hotel and entertainment complex began. These include production of wine by the vineyard and sold through the hospitality trade, a vineyard rental property, regular and ongoing landfill payments, and a lease to hold four large scale outdoor events on bare land at the back of the site.

Pleciak says Isola Estate is offered for sale under two titles - with prospective buyers able to buy either one or both sites. Each title is more than 4ha. The front block has full resource consent for the 80-room hotel complex, and contains the wine-producing vineyard, while the back block has resource consent for the entertainment and function venue, and is operating as a landfill site and heliport.

The rear block sits between two of Waiheke's leading wine producers - with Stonyridge on one side and Te Motu on the other.

"We anticipate interest in Isola Estate will come from either within the New Zealand tourism operating sector or an international organisation wishing to invest in the New Zealand tourism sector," Pleciak says.