Largest leisure facility in NZ for sale
Eight tenancies at Motion Entertainment, 346 Te Ngae Rd, Rotorua, include a licensed cafe and conference centre.
A new, multi-tenanted entertainment and conference complex at Rotorua has been placed on the market through Colliers International.
Motion Entertainment — at 346 Te Ngae Rd — is being marketed on behalf of its developers by Colliers brokers Leroy Wolland and Simon Clark. It is for sale by deadline private treaty, closing March 9.
The complex is the newest and largest indoor entertainment and leisure facility in New Zealand, accommodating eight individual tenancies under one roof, including a licensed cafe/restaurant, says Clark.
There is also a 150 person conference facility.
Motion Entertainment is a ‘destination’ entertainment centre, adding an excellent all-weather attraction to Rotorua’s range of recreation options for locals and visitors, he adds.
“With tourism now the main export earner for New Zealand, there is great potential to capture good long-term returns from a facility such as this, especially given its location in one of New Zealand’s key tourism hotspots.”
“It’s also the first entertainment centre of its kind to incorporate a licensed cafe and a conference facility, which gives it great appeal as an all-in-one destination for locals, inbound domestic and International tourists and corporate groups.”
The complex, which opened in November 2016, is fully occupied by eight separate entertainment tenants: Strike Zone Tenpin Bowling & Timezone Games, Revived Bistro, Megazone Laser Tag, Chipmunks Playland & Cafe, Dialled Indoor Tramp Park, Escape Masters real-life escape game, Lumberjax Mini Golf and XD Dark Ride virtual reality game.
The tenants jointly run the conference facility as equal shareholders in Motion Entertainment’s management company with the entire centre designed to provide a range of complementary amenities for leisure visitors and corporate groups, Wolland says.
“The centre is designed to cater to individual visitors as well as conferences, with the cafe/restaurant providing food and beverages to leisure customers as well as conference groups upstairs,” he says.
“It’s effectively a one-stop centre which provides a great day out for a range of different customer types.”
The complex, which opened in November last year, houses multiple entertainment options under one roof.
Rotorua hosts a large number of corporate and conference groups because of its existing attractions and good range of accommodation, says Clark.
“A centre like this, where conference groups can use the ground floor entertainment tenancies for breakout sessions, will prove to be extremely viable.”
Motion Entertainment is a high-profile anchor within the Lynmore Junction convenience retail centre. A new BP service station opened in conjunction with Motion Entertainment says Wolland. The second and final stage will open in June 2017.
“The opening of the retailers, service providers, food outlets and service station in Lynmore Junction benefits Motion Entertainment by attracting more potential customers, as well as adding retail amenity to the location for visitors and locals.”
The 6044sq m building was originally constructed in 1998 and has been completely upgraded, refurbished and extended to accommodate Motion Entertainment achieving 100 per cent New Building Standard. The building occupies a single freehold title 1.1795ha in size (subject to final survey). Together, the tenants generate net passing income of approximately $770,000 (subject to final tenancy survey) and provide a weighted average lease term of 9.25 years.
“The long leases and strong income lend further weight to the viability of Motion Entertainment as a long-term investment proposition, along with its excellent location in a well-established tourism hub,” Clark says.
As one of New Zealand’s longest-established tourism destinations, Rotorua hosts around 3.3m international and domestic visitors a year, who spend a total of $700m. For the year ended September 2016, annual guest nights in Rotorua rose 7.6 per cent to 1,054,451, according to Statistics NZ.
Motion Entertainment is located close to Rotorua Airport on the main road between the airport and the central business district, making it ideally positioned to capture customers from the surrounding residential catchment as well as tourists, says Wolland.
“This is a growth location in central Rotorua which is well placed to benefit from tourism growth. Te Ngae Road is the main route connecting Rotorua and Tauranga, with 23,000 cars passing the Motion Entertainment site daily.”
The entertainment centre has 105m of frontage to Te Ngae Rd, giving it very high visual exposure, with multiple vehicle access points including controlled traffic lights at a newly upgraded intersection.
Te Ngae Rd is also designated for future road widening to create a four-lane arterial route, which is expected to further benefit Lynmore Junction and Motion Entertainment, Clark says.