Approval for big resort investment
By David Williams - The Press, Friday, 27 July 2007
A British-based company has been given approval to invest more than $300 million in a resort development near Queenstown, in one of New Zealand's biggest property transactions.
The Overseas Investment Office confirmed yesterday it had given the go-ahead for investment by BlueSky Capital in Melview Developments Ltd's $1 billion Kawarau Falls Station development in Queenstown.
The investment involves a 221-room Intercontinental hotel, announced last week, a 197-room all-suite serviced apartment hotel, both to be managed internationally, as well as a boutique luxury lodge and a luxury apartment building.
Melview managing director Nigel McKenna said the sale showed the significance with which international investors regarded New Zealand and the Kawarau Falls Station development. "It is a testimony to both that we have come on the international investment radar to this extent," he said.
Stephen Bellotti, head of BlueSky Capital, said Melview's development put Queenstown on a different international footing. "We consider New Zealand has the potential to become a globally recognised luxury destination for high-end travellers," he said.
BlueSky conducted due diligence on the New Zealand market before settling on the Kawarau Falls project. It is the first investment from a fund which the company will use to invest in a portfolio of hotels and resorts in the Pacific Rim.
The Manchester-based company said on its website that its Global Destinations Fund I was worth $US250m, which would be invested in an estimated five projects around the world. The fund has a target internal rate of return of 30 per cent. John Bayley, the executive chairman of Bayleys Real Estate, which brought the parties together, said an investment of this size was a huge vote of confidence in the future of Queenstown and the New Zealand tourism industry.
Those sentiments were echoed by Alastair Porter, of developer Remarkables Park, which is building a new town centre at Frankton, not far from Kawarau Falls Station. "This is a substantial investment. This is probably the single biggest investment in Queenstown I know of by one investor," he said. "It's a great vote of confidence in Queenstown."
John Darby, who is behind the $2b Jacks Point development, said it was no surprise to see such a large investment in an area showing strong growth in resident population and visitor numbers. Queenstown Lakes Mayor Clive Geddes said the real impact on the town came from the project's construction and the long-term jobs associated with it, he said.
"One positive from the project is the introduction to New Zealand of two new hotel brands, which is good for the international visitor industry and Queenstown," he said.
Excavation for the first of four hotels, a Westin Hotel, is under way at the Kawarau Falls Station site. At its peak, the four-year project will employ up to 800 people making it one of the largest employers in the resort.
Resort hailed as biggest project since Clyde Dam - August 2 2007, Business Day
Youngsters brave downpour to get closer to nature - August 1 2007, North Yorkshire News
$300m in Kawarau Falls – July 27 2007, The National Business Review
Resort investor adds $300m to development - July 27, 2007, Otago Daily Times
McKenna sells third of a billion dollar Queenstown development - July 27 2007, Globalkiwis.com
Approval for big resort investment - 27 July 2007, The Press by David Williams
$300m resort sale - July 27 2007, The New Zealand Herald
UK fund earmarks $300 million for Queenstown development - July 26 2007, The National Business Review By Tamsyn Parker
BlueSky Capital to Buy Four Hotels in Queenstown, New Zealand - July 25 2007, Bloomberg By Tracy Withers
McKenna sells third of a billion dollar Queenstown Development - July 25 2007, TMC Net
Youngsters put nature project in picture - July 25 2007, Northern Echo
A little place for that greener getaway - May 22 2007, The London Paper
Green Light - April 7 2007, GNER Livewire Magazine
North Yorkshire’s natural place to retreat from it all - March 25 2007, The Guardian
Great green getaways - February 22 2007, Pure Yorkshire
New wave eco-lodges - February 11 2007, The Sunday Times
New company to take ‘green’ lodges design idea nationwide - February 7 2007, North Yorkshire News
Encouraging the Natural way to enjoy a holiday - February 6 2007, Yorkshire Post Business
Richard Hammond’s clean break Aislabeck, Yorkshire - February 3 2007, The Guardian
Next year I want to……..be greener - December 30 2006, The Guardian