Ponsonby Central owner Andy Davies has sold his Haka Backpackers Lodge on Karangahape Rd & Haka Hotel in Newmarket for $18.9 million.
Bayleys took those 2 properties plus the 11-storey Haka Hotel Suites fronting 2 Day St, behind the backpackers’ lodge, to market through an international tender last October.
Mr Davies opened his dining market – the multi-restaurant Ponsonby Central – 7 years ago and opened all 3 accommodation properties over the last 3 years.
373-375 Karangahape Rd:
Features: 447m² site in 2 titles, 2 adjoining buildings totalling 1348m² – 805m² character building occupied by a backpackers lodge with 10-year lease to Ryan Sanders’ Haka Tourism Group until June 2025, 2 10-year rights of renewal & fixed rental increases until June 2022; 543m² commercial building, refurbished & seismically strengthened in 2014, occupied by Cotto restaurant, the Anthology nightclub & 3 office tenants on top level
Outcome: sold for $7.2 million at a 5.52% yield
Agents: Damien Bullick, Nick Thompson & James Chan
9 Manukau Rd:
Features: 1103m² site zoned mixed use, 1725m² 63-room hotel building, originally a 5-level office building developed in the 1970s and converted to residential accommodation, refurbished & converted in 2017 to a 3-star hotel & lodge; 10-year lease to Haka Tourism Group company until December 2027, 3 10-year rights of renewal
Rent: $580,000/year net + gst (4.96% yield), including income from 2 telecommunications leases, increases to a minimum of $738,596/year net + gst (6.31% yield on sale price) by December 2020
Outcome: sold for $11.7 million
Agents: Damien Bullick, Nick Thompson, James Chan & Layne Harwood
Attribution: Agency release.