Auckland

Rare opportunity to acquire Auckland apartment hotel

The Waldorf Stadium Apartment Hotel in the heart of Auckland CBD is on the market for sale through Colliers International Hotels and CBRE Hotels.

13 Apr 2018

The Waldorf Stadium Apartment Hotel in the heart of Auckland CBD is on the market for sale through Colliers International Hotels and CBRE Hotels.

The 178-unit strata title development is to be sold subject to a new 11-year performance lease, underpinned by guarantees from Japanese serviced apartment conglomerate Daiwa House Group, which has a market capitalisation of US$19,150 billion as at December 2017. The entity has recently acquired the Australia and New Zealand Waldorf serviced apartment business with further plans to expand in the region.  

Wayne Bunz, National Director of CBRE Hotels, said the development was being offered for sale subject to a long-term management lease to one of the largest serviced apartment providers in the region, Daiwa House Group.

“This strong tenant covenant will provide investors with secure long-term returns moving forward. Another truly compelling highlight is New Zealand’s generous tax structure, Stamp Duty and Capital Gains Tax is not applicable on transactions.”

Built in 2008, the Waldorf Stadium Apartment Hotel is located in downtown Auckland in close proximity to the harbour’s edge, 12,000-capacity Spark Arena, Britomart Precinct and just 500 metres from Queen Street - the city’s main commercial and retail thoroughfare.

The hotel comprises a mix of studio, one, two and three bedroom fully self-contained apartments and is situated on a prime parcel of land, which is subject to a long-term ground lease to one of Auckland’s largest inner-city land owners.

Mr Bunz said the sale campaign came at a time of unprecedented growth in Auckland’s hotel sector.

“The current occupancy rate is 86 per cent and the market has witnessed RevPAR growth of nearly 13 per cent this year,” Bunz says.

“Auckland is one of the best performing hotel markets in the Asia Pacific region. Investors will therefore be assured of strong returns moving forward, which is further underpinned by one of the largest international serviced apartment operators in the world.”

Dean Humphries, National Director of Hotels for Colliers International, said the asset’s divestment would represent the first major hotel sale in the Auckland CBD since the Hilton Auckland sold in 2012.

“As a result, we’re anticipating unprecedented interest from a wide range of international and domestic investors given the exceptionally strong trading conditions in the gateway city.”

Mr Humphries said it was common for hotels in Auckland to be located on leasehold land given their relative proximity to the water’s edge, with the majority of this land being owned by entities such as Ngati Whatua Ōrakei. and Auckland Council.

The property is being sold by an International Expression of Interest campaign closing May 16, 2018.

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About CBRE Group, Inc.

CBRE Group, Inc. (NYSE:CBRE), a Fortune 500 and S&P 500 company headquartered in Los Angeles, is the world’s largest commercial real estate services and investment firm (based on 2017 revenue). The company has more than 80,000 employees (excluding affiliates), and serves real estate investors and occupiers through approximately 450 offices (excluding affiliates) worldwide. CBRE offers a broad range of integrated services, including facilities, transaction and project management; property management; investment management; appraisal and valuation; property leasing; strategic consulting; property sales; mortgage services and development services. Please visit our website at www.cbre.com.

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Neither CBRE nor its affiliated companies make any warranties or claims on the implied accuracy of the information contained herein.

About CBRE Group, Inc.
CBRE Group, Inc. (NYSE: CBRE), a Fortune 500 and S&P 500 company headquartered in Dallas, is the world’s largest commercial real estate services and investment firm (based on 2021 revenue). The company has more than 105,000 employees (excluding Turner & Townsend employees) serving clients in more than 100 countries. CBRE serves a diverse range of clients with an integrated suite of services, including facilities, transaction and project management; property management; investment management; appraisal and valuation; property leasing; strategic consulting; property sales; mortgage services and development services. Please visit our website at https://www.cbre.com.