Hotel sale to free up capital

0 Comments | Dominion Post; Wellington, New Zealand, Jul 20, 2010 | by Diane JOYCE

THE owners of a piece of Central Hawke’s Bay history, the Tavistock Hotel, have put it on the market – looking to free up capital to expand their pub business in Australia.

The original building, built in the 1800s by Waipukurau founder Henry Russell, burnt down and was replaced in 1930, said sales agent Robbie McKee, of PGG Wrightson Real Estate.

“Because the Russell home was the only dwelling in the district, he and his wife frequently found themselves looking after travellers visiting the area.

“To accommodate these often uninvited and unexpected guests, Russell built the Tavistock Hotel on the site. He shortly afterwards expanded to develop [the township of] Waipukurau, employing a manager to run his hotel, which has remained in business ever since.”

The 2567-square-metre building houses Breakers Cafe and the Rosie O’Grady’s Irish pub. Mr McKee said his vendors, who owned the building and ran the pub, were selling on the basis of leasing it back long term.

They wanted the capital out of the building to develop the Breakers and Rosie O’Grady franchise in Australia.

The lease was set at $170,000 a year for an initial term of six years, with three further rights of renewal of four years.

The building’s latest capital valuation was $850,000, although that did not reflect a $500,000 refurbishment that was completed 18 months ago, Mr McKee said.

There was more scope for development, he said.

“The 35 upstairs accommodation rooms and manager’s flat could be developed into low-cost backpackers’ accommodation or conference facilities.”

The licence included 18 Lion Foundation gaming machines
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