Turners Ltd (the former Dorchester Pacific Ltd) has put on the market the last of 4 properties it dropped into a separate trust in the wake of the global financial crisis to protect the value of its mortgage portfolio.
Dorchester bought out the prior mortgages on the portfolio’s 3 hotel properties, becoming an owner instead of being a powerless lender. The 3 hotels – the Goldridge in Queenstown, Parkview in Christchurch and the Emerald in Gisborne – represented just over $30 million of Dorchester’s $40 million of property loans at the time it entered a moratorium in December 2009. The fourth asset was an apartment building in Queenstown.
The moratorium ended in August 2010 but, by the time an attempt to take control of the trust management was launched last year, only the apartments had been sold. Since then the Christchurch & Queenstown hotels have been sold, leaving the Emerald.
It’s one of Gisborne’s largest commercial properties, including the 50-unit Quality Emerald hotel, 1910m² in 3 commercial tenancies, 4 retail tenancies, a vacant 2-storey building & 96 parking spaces at the corner of Gladstone Rd & Reays Quay, overlooking the Taruheru River.
The trust has taken the property to international tender through Bayleys, closing on Wednesday 13 April.
Marketers Alan Haydock & Cameron Melhuish (Bayleys Auckland) & Colin McNab (Gisborne) said it was being offered for sale in multiple parcels of either individual parts or the entire property. The parcels are:
- The 4-star plus Qualmark-rated Quality Emerald Hotel & conference centre plus 2 levels of fully leased offices on the same title, 1554m² occupied by Gisborne District Council and returning $317,505/year net + gst, plus the 96 parking spaces in an adjoining building, some on long-term leases and the balance used by the hotel
- The 3 retail units totalling 488m², each on its own title, one vacant, 2 leased to longstanding tenants for a total $73,116/year net, which can be tendered for individually or together, and
- The vacant 324m² 2-level heritage building at 9-11 Gladstone Rd, where each floor is on a separate title & available for purchase individually.
Russian businessman Serguei Sonkin developed the property in the mid-2000s. The hotel was built in & around the former Quay Point office building, some of which was retained. 6 apartments added on top of the building were sold individually and the 4-level parking building beside the hotel contained retail space on the ground floor. All the buildings have a seismic rating exceeding 66% of new building standard.
2 June 2015: Bid to oust Dorchester trust manager fails, but sales process to accelerate
15 May 2015: 2 investors turn heat up on Dorchester property trust manager
11 March 2011: Dorchester signs Frankton Arm sale agreement, cautions on Briggs offer for property trust units
1 July 2010: Dorchester reconstruction approved
17 May 2010: Dorchester finalises reconstruction plan, awaits trustee approval
27 November 2009: Dorchester completes third hotel purchase
21 August 2009: Byrnes described the way back up for Dorchester
Attribution: Agency release, own files.