B Hotel 

  Commercial Property  

  

  The B Group Limited  

This offer by The B Group Limited is limited to persons who are wholesale investors for the purposes of the offer in terms of clause 3(2) or 3(3)(a) of Schedule 1 of the Financial Markets Conduct Act 2013. No product disclosure statement for the purposes of that Act has been prepared and none is required for the wholesale offer. Independent financial advice should be obtained before making an investment decision. 

Overview

THE OPPORTUNITY

The B Group Limited offers wholesale investors the opportunity to invest in an exciting new tourism project in Wanaka, New Zealand. The B Hotel will be a 35-room luxury lodge designed to meet the strong demand for tourism and accommodation assets in the region.

Resource Consent is held and construction will commence soon with completion expected in early 2020. The hotel will set a new standard for this market, providing contemporary, well-appointed rooms, complimented by a strong food & beverage offering.


KEY PEOPLE

The hotel is being developed and managed by proven tourism and hospitality operators Andrew McIntosh and Scott Brown.

Andrew was the founder of Kiwi Experience & Awesome and previously owned and operated Base Backpackers, Blacksheep Backpackers and the Franz Joseph Holiday Park.

Scott is a career hotel and hospitality executive and was the co-founder of the highly successful food & beverage operation HIPGROUP.


LOCAL MARKET

 The property is located in the heart of central Wanaka, a premier New Zealand tourist destination that benefits from year-round visitor traffic. Importantly, there is limited correctly zoned land available for the future development of accommodation assets.

Wanaka continues to see strong growth metrics that provide support for this project, including:

  • c.72% occupancy rate for all existing accommodation, increasing to > 85% for higher quality or well-located operations
  • 8.8% growth in ‘guest nights’ in 2017
  • 18% increase in visitor spend in 2017
  • 24% growth in visitor arrivals forecast by 2022, and
  • 35% increase in visitor spend forecast by 2022.

 

KEY INVESTMENT HIGHLIGHTS

 All figures are in New Zealand Dollars and Goods and Services Tax (GST) exclusive.

  • The offer is for 30% of the forecast Free Hold Going Concern Valuation.
  • The Freehold Going Concern valuation is forecast at $18m in year one, increasing to $27m by year five as occupancy, tariffs and food & beverage sales increase.
  • The Internal rate of Return (IRR) is forecast at 30.3%.
  • The on-completion value of the Freehold is estimated to be $12.4m, generating a gross rental yield of 6%.
  • The free cashflow is forecast to be $1.68m in year one.
  • Cash return on investment is forecast at 16.8% in year one, rising to 19.7% by year five.
  • Distributions will be paid quarterly.
  • Investors will be entitled to free accommodation commensurate with the level of investment.


Issue Type:
Commercial Property
Sector:
Property
isEOI: true

Investment Details

Investment Type: Wholesale

Transaction Size:NZD 3,000,000.00

Committed Capital: 

Pre-money valuation: 

Minimum Capital Raise: 

Share Price:NZD 1.00

Unit Price:NZD 0.00

Minimum Investment Size:NZD 50,000.00

Advisor

The B Group Limited

Website: http://www.thebgroup.co.nz/

Email:

Phone:

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