Management rights in a coastal Paradise

7:00 PM Tuesday January 16, 2018 Colin Taylor

The four-level Esplanade tourism apartment building at right is only a short walk from Whitianga’s marina. Photo / Supplied

In the Coromandel resort town of Whitianga, the management rights for the popular The Esplanade tourism apartments are for sale.

“The complex at 8 Esplanade, has a total of 18 units comprising 12 two-bedroom units, five 3-bedroom units and one 1-bedroom unit in the letting pool,” says Darcy Snowden of Christopher Brown and Associates.

Snowden is marketing the marketing rights for sale by negotiation for an asking price of $1,345,000. “The price includes a substantial share in the property in the form of a one-bedroom manager’s unit plus a two-bedroom unit on its own title which the owner of the management rights can rent out,” Snowden says.

He explains that management rights are not unlike motel leases in that the rights encompass all the assets of the business in the form of the chattels, intellectual property, branding and all the systems that make for a successful business within leased premises.

“The main difference of The Esplanade is the real estate component that’s included in the asking price.

“Also, while similar to a motel in concept, each unit in The Esplanade is much bigger with designer kitchen, large lounge and dining room, big bedrooms and bathrooms, expansive private decks and their own laundry. The private decks have views of the ocean, marina or over the swimming pool.

“Sky Television is included with 50 plus channels, DVD players and Wi-Fi. The units have an undercover car park and storage lockers, and some units have air-conditioning. The complex also has a swimming pool which is heated in summer and a spa pool.”

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Large balconies at The Esplanade have views over the swimming pool, to the marina and ocean. Photo / Supplied

The four-level Esplanade with one level of car parking in the basement was originally built about 2004 and then completely re-clad three years ago. It now has a new building Code of Compliance.

Snowden says The Esplanade’s website, along with a system developed for the hospitality industry, make it easy for guests to choose units suited to their requirements and book on-line.

“Other functions of this system include checking in and out; automatic management and numerous other capabilities. Most clients make on-line bookings which makes for the running of a relatively stress-free business; also assisted by employing a very reliable cleaning staff. “Another contributing factor to the ease of running the business is having all the laundry owned and laundered by a local commercial laundry company.”

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This wide view depicts The Esplanade complex at far left in its Whitianga coastal setting. Photo / Supplied

Snowden says The Esplanade is an ideal location for tourists about two minutes’ walk to Whitianga’s main beach and less than 300m to Whitianga town centre with a number of excellent cafes and restaurants. “For guests wanting to launch or a retrieve boat, a ramp is across the road and the marina is nearby.”

For boaties, the Mercury Islands are just northeast of Whitianga while other nearby attractions include the well-known Hot Water Beach and Cathedral Cove, many bike and walking tracks, art and craft galleries.

Snowden says The Esplanade and other tourism related businesses are not just dependent on the summer influx. “The shoulder seasons are seeing many more visitors including an increasing number from overseas; and Whitianga has a permanent population of 5000 which is expected to double by 2025.

“The town is the main support center for the wider area with good shopping, professional and trade services, businesses supporting the tourism industry, and an industrial/manufacturing sector.

“Being about 2½ hours from Auckland, Hamilton and Tauranga, Whitianga is also a popular destination for day-trip and weekend get-aways for residents within the Golden Triangle region.”