Te Aro building with strong cashflow to attract investors

A distinctively striped Wellington inner city backpackers hostel, just off Courtenay Place, is being sold as a freehold going concern.

The offer includes the Wild Zebra Backpackers operation and all the property located at 58-60 Tory Street, respectively owned by Wellington Backpackers Ltd and Stayandi Trust.

The seven storey freehold unit tilted building, which sits on 587 sqm of land, was built in the 1940s and was originally an office building and known as the Macarthy building. Over the years, it has had several reincarnations including accommodating the Wellington branch of the Department of Conservation. It was renovated in the early 1980s, unit titled in 1997 with each floor now having its own title and converted to a backpackers around 2008. Initially known as Wildlife Backpackers, it has more recently been rebranded Wild Zebra Backpackers with a paint job to match.

Colliers International associate director Sam McIlroy is marketing the building in conjunction with Alistair Robertson.

McIlroy said it had multiple uses and income streams, comprising a ground floor restaurant (Wildfire); levels one to five operate as a backpackers with some 250 beds split into dormitories, single, double, ensuite and family rooms. On the top floors are six penthouse apartments.

“The property provides a strong cashflow and we think it would make an ideal family operation because of the labour intensive nature of this type of business. Alternatively, operators of backbackers elsewhere in the country will be interested in the opportunity as it enables them to sell guest nights off their existing operations.”

The prominent Te Aro building has a net lettable area of 2260 sqm and is being sold by deadline private treaty closing March 7.

“Courtenay Place is an increasingly popular choice for people wanting to live and work in the central city, with stylish apartment developments attracting tenants who enjoy the Courtenay Place Precinct which is one of Wellington’s main entertainment area with many bars, restaurants, cafes, cinemas and concert venues. It is also popular with the creative, design and digital industries and has been the centre of apartment development in the city,” McIlroy said.

Nearby is the Embassy Theatre, the St James Theatre as well as many terrific cafes, bars and restaurants.

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