Mount holiday park as investment and business
Aerial view of the Golden Grove Holiday Park at 73 Girven Rd, Mt Maunganui, with the property identified by a red border.
A popular holiday park in Mount Maunganui has been placed on the market for sale, with the option to purchase the going concern business as well as the land and buildings.
The Golden Grove Holiday Park, at 73 Girven Rd, is being marketed by Colliers International Tauranga brokers Grant White and Simon Clark and is for sale by deadline private treaty closing on Thursday July 23 2015, unless it sells before the deadline by negotiation.
White says buyers can elect to either purchase the land and buildings as a passive investment with a new 20 year lease in place or acquire the freehold going concern and run the holiday park business themselves.
“The Golden Grove has a proven history of success as an accommodation business, based on its prime location and high-quality facilities,” he says. “The vendors have owned and run the property and business for the past 21 years and have now decided to move on to their next venture. This creates an excellent opportunity for a buyer to take over the property with or without the holiday park business.”
Included in the sale are 13 self-contained units; four cabins; and a two storey lodge which provides accommodation for groups of up to 30 in five studio ensuite units, camp amenities and a three bedroom manager’s residence with office.
The large 9346 sq m site has two road frontages and encompasses a variety of buildings, tent and campervan sites within landscaped grounds.
“The owners have added tremendous value to the property by providing a very functional range of accommodation and facilities buildings which are all in excellent condition,” White says.
“The holiday park is marketed as a great place to stay for families, independent travellers and school or sports groups,” he says. “A games room, guest laundry and kitchen, children’s playground, reception and service facilities are also on site, with everything very well-maintained and ready for the new operator to move in and take over.”
Street level view inside the Golden Grove Holiday Park.
White says several other local holiday parks have ceased operation over the years with land having been purchased for housing developments.
“As a result, the Golden Grove receives high demand year-round from individuals, families and groups as there are now very few other comparable options in the immediate area,” he says.
Clark says the property “ticks all the boxes” as a long-term portfolio addition for buy-and-hold investors. “The property has a net income stream of around $200,000 a year, a new 20-year lease with the right to renew for a further 10 years, a maintenance fund, an attractive location and quality buildings. All the elements of a sound passive investment with guaranteed returns are in place here.”
He also expects buyers to be expected attracted by the rarely-available opportunity to own a substantial block of prime residential-zoned land in a proven growth location.
“The high demand for residential land in Mount Maunganui certainly makes 73 Girven Rd a highly strategic investment proposition, with the potential for future capital growth likely to be an added attraction for purchasers..”
Clark says the holiday park has a 56 year history in the location and is popular year round due to its strategic position just a short distance from many local amenities.
“It’s within a few minutes’ walk to Mount Maunganui’s famous beach as well as to the Bayfair shopping centre and Baywave aquatic centre. The ASB Arena and conference centre and local golf clubs are also within easy reach.”
The property is situated roughly half way between downtown Mount Maunganui and the fast-growing seaside suburb of Papamoa. Shops and a take-away outlet are next door, with the cafes and restaurants of downtown Mount Maunganui just a five minute drive away.
An added attraction of this location is the quick access to main arterial routes out of town, with regional centres including Rotorua and Whakatane within an hour’s drive.
Two large nearby retirement villages also provide the holiday park with a steady source of income from residents’ family and friends who stay on visits to Mount Maunganui, Clark says.