McKenna sells third of a billion dollar Queenstown development

26 July /2007 Globalkiwis.com

QUEENSTOWN: Property developer Nigel McKenna said on Wednesday 25 July he had sold a third of what will be a billion dollar development at Kawarau Falls Station near Queenstown.

In one of the largest property transactions negotiated in New Zealand, UK-based BlueSky Capital will invest over $300 million in Melview Developments' resort.

McKenna said the investment had been granted Overseas Investment Office (OIO) approval, for the purchase which includes the five-star boutique Westin Hotel, the 221-room Intercontinental announced last week, plus a 197-room serviced apartment hotel.

The properties are part of the 13 separate buildings which comprise the resort.

McKenna said the sale showed New Zealand was on the international investment radar.

Excavations at the site had begun and at its height the project would employ 800 workers.

The acquisition is the first to be made by BlueSky Capital's Global Destinations Fund I, which intends to invest in a portfolio of five-star hotel and resort real estate assets in the Pacific Rim.

BlueSky head Stephen Bellotti said New Zealand as a destination was increasingly popular for visitors from the northern hemisphere.

He said New Zealand had potential to become a globally recognised luxury destination for high-end travellers which is why BlueSky had made its investment.

Until now, the lack of sufficient numbers of truly international class hotels in key resort areas had held the industry back, he said.