Sharechat Logo

Delaware North takes 20-year sublease on Queenstown backpackers worth $27M in rent

Monday 30th April 2018

Text too small?

Delaware North, a hospitality company based in Buffalo, has been cleared to take a 20-year sublease on land in Queenstown that's the site of the Pinewood Lodge, an investment that would generate about $27 million in rent.

The applicant has a history of other investments in New Zealand and has proposed to inject capital and resources into developing the productive capacity and services provided by the Pinewood Lodge business operated on the land, the Overseas Investment Office said in a judgment summary released today. The $27 million of rent was based on an annual return adjusted for the 90-day bank bill rate.

Pinewood Lodge, which has beds ranging from luxury to backpackers, is near the Skyline Gondola and targets mountain bikers among its clients. The vendor was Pinewood Village Ltd, owned by Rosslyn and Robert Greig, according to the Companies Office.

Today Delaware said in a statement that it had "entered into a long-term partnership to operate Pinewood Lodge".

"With occupancy rates in Queenstown averaging close to 80 percent in recent years thanks to the multitude of year-round adventure activities, hiking and outdoor sports, Delaware North is confident Pinewood Lodge will continue to go from strength to strength," it said.

The company has a catering contract for Wellington's Westpac Stadium including corporate boxes and premium areas and has a contract with Auckland International Airport to operate eight food outlets at the airport.

(BusinessDesk)

  General Finance Advertising    

Comments from our readers

No comments yet

Add your comment:
Your name:
Your email:
Not displayed to the public
Comment:
Comments to Sharechat go through an approval process. Comments which are defamatory, abusive or in some way deemed inappropriate will not be approved. It is allowable to use some form of non-de-plume for your name, however we recommend real email addresses are used. Comments from free email addresses such as Gmail, Yahoo, Hotmail, etc may not be approved.

Related News:

MARKET CLOSE: NZ shares fall as investor uncertainty weighs on exporters; F&P Health, A2 drop
NZ dollar drops below US68c on plan to up bank capital
Noel Leeming fined $200,000 for misleading consumers
Big four banks face stiffer capital requirements from RBNZ
Infratil signals A$50m investment in Canberra Data Centres
Govt provides $2.5 mln to develop Opotiki aquaculture
Labour co-ordinator role may alleviate kiwifruit labour shortage
NZ manufacturing activity chugs along in November
Australia's GWA lobs in $118M bid for Methven
Govt leaves door open for higher emissions price cap

IRG See IRG research reports