Wellington's SilverOaks Hotel in Thorndon may have finally been sold, 18 months after it was first put on the market.
Bayleys agent Paul Dixon said a buyer, who could not yet be named, had signed a conditional contract for the 64-room complex.
He was also not able to disclose the contracted sale price.
The former Sharella Motor Inn, originally opened in 1972, became part of the SilverOaks chain after it was bought by Dennis and Dawn Wilson in 1996.
The chain's six hotels were all put on the market in March last year, but failed to sell.
The SilverOaks Group was put into receivership in August and its assets are now now being sold by receivers Grant Graham and Brendon Gibson, of Korda Mentha.
Their first report, published on October 12, said the group - which includes SilverOaks Property No 1 and Wilson Trustees - was put into receivership because it was in default to Westpac. The companies owe the bank $17.9 million, another $124,000 is owed to employees and Inland Revenue, who have preferential claims, and an estimated $577,000 were owed in unsecured liabilities.
Gibson said it was unlikely that preferential creditors would get all their money and unsecured creditors were unlikely to get any.
The receivers have so far sold two of the properties. As well as the conditional contract on the Thorndon hotel, they have also sold the Oakwood Manor Motor Inn conference and function centre in Auckland. This was due to settle last Monday.
Four other Rotorua and Auckland hotels are still on the market.
The SilverOaks Geyserland in Rotorua - a 68-room property overlooking the Whakarewarewa Thermal Valley.
The SilverOaks Resort Heritage in Rotorua - a 41-room apartment-style complex supported by a range of leisure activities and amenities.
The Gwendoline Court Motel in Rotorua - an 18-unit business close to the city's Maori arts and crafts attraction.
The SilverOaks Inn Silver Point in Auckland - a 35-room conference and meeting location.
Dixon said they were being sold as a package or separately, with offers closing on November 19.
The hotels were being traded in receivership by Korda Mentha.
"This has maintained the financial integrity of the properties, and ensured that all forward bookings or reservations were fulfilled," Dixon said.
Most of the hotels were fairly "tired" and varying degrees of investment would be needed to restore them. Most of the hotels were built during the 1980s.
"Combined with the fact that the properties are now in receivership, albeit still generating some revenues, the receiver's price expectations reflect a realistic appraisal of their current market position," he said.
Leisure amenities include swimming pools, spa and sauna rooms, tennis courts, barbecue areas, children's playgrounds and mini-putt golf courses.
Corporate services include conference and meeting rooms. All the properties have licensed food and beverage operations with restaurant and bar options, function catering and in-room dining.
"One of the Rotorua properties and the remaining Auckland site have potential for conversion into private rental accommodation, while the remaining two Rotorua locations could continue in the hospitality arena."
- © Fairfax NZ News
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