Prominent corner site a 'cash cow' for potential buyers
A prominent block of buildings in Hamilton's city centre is a "cash cow" for potential investors, according to the business owners.
The landmark property is being sold to allow the Auckland-based owners, VR Group, to expand their business.
The group, a private company that manages about 1000 apartments and owns 12 hotels around New Zealand, bought the former Le Grand Hotel block three years ago.
The company rebranded the boutique hotel as City Oaks and recently converted two levels of office space on the corner of Alexandra and Collingwood into short and long-term accommodation.
General manager Arvind Saluja said the block on land was "cash cow" made up of 7,782 square metres of floor space on Victoria, Collingwood and Alexandra Streets.
The group was looking to expand its business in other places but wished to maintain its core business in Hamilton, he said.
The once-dilapidated building underwent earthquake strengthening and infrastructure repairs, as well as a new lick of paint.
"It was quite in a dilapidated state, so all the basic infrastructure was improved - electricity, water, drainage."
The 37-room hotel also included conference and function facilities, an on-site restaurant and covered parking for approximately 20 vehicles at the rear of the building. It had the capacity to cater up to 350 across its five conference rooms.
"The main attraction, firstly, was that it is in the city centre. Secondly, it has two corners and covers three roads... And in the vicinity it has all the happening places."
Saluja said they would be open any potential buyers who will "do good business".
All 16 lots were fully tenanted, he said, and many of the tenants were on six, nine and 12 year leases. Retail tenants on Victoria St include award winning River Kitchen Cafe, recently located Agenda Restaurant, Portofino and Piccola.