Tauranga: Office leases to cover potential losses from hotel

OH WOW, another $100M baby!!!!!!

This council carpark on Durham St could be home to a long-awaited $100 million hotel and commercial building development.

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### ODT Online Wed, 24 Jul 2013
$100m hotel plan for city
By John Cousins – Bay of Plenty Times
A massive $100 million building is proposed for council-owned land in Tauranga’s downtown after plans for an international hotel escalated into a combined hotel and commercial office development.
Mayor Stuart Crosby announced that negotiations between the council and Tainui Holdings, the Waikato iwi’s investment arm, had seen a substantial high-end office development added to the original plans for a $40 million hotel. The council’s ambitions for the block of land on Durham St are now only a week away from a firm direction being given on whether the project went ahead.
Tainui Holdings and its hotel operator partner, Accor group, had until July 17 to carry out due diligence and had kept the council abreast of progress.
Mr Crosby said the much larger project had been driven by the opportunity that the income from office leases would cover potential losses from the hotel: “Hotels are notorious for not making profits in their early years.” APNZ
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Tauranga downtown’s emerging skyline

Recent Additions
$30m ANZ Building on the corner of Cameron Rd & Elizabeth St
$14m Sharpe Tudhope Building on the corner of Devonport Rd & 1st Ave
$21m police station, Monmouth St

Planned Additions
$1m-plus 3-storey retail & office building on The Strand’s Grumpy Mole site
$10m office building on the corner of Willow St & Harington St
$30m TrustPower head office
$67m tertiary and research campus
$100m international hotel and office development

PS. Dunedin is SO not Tauranga. The Bay is poised to boom as the fruit bowl of Asia. Meanwhile on the Taieri, Dunedin City Council lets a councillor and friends build speculative housing and a plant nursery turn into a gravelled ‘destination hub’ (without a legal water connection?) on high class soils, with impunity.

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Recent Post and Comments:
25.6.13 Hotel/Apartment Tower decision to be appealed

For information on the proposed $100M ‘Dunedin Hotel’, enter *hotel* in the search box at right.

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Posted by Elizabeth Kerr