BUSINESS DESCRIPTION
The freehold (land and buildings) of an eleven unit motel in the Hawkes Bay is for sale for $575,000 (+gst if any). The motel is leased out and the rental is currently $60,000 +gst + outgoings (rates and insurance) giving a 10.4% return on Investment. The 30 year lease commenced in 2005 (23 years to run).
The motel is on 4058m2 of land and includes a 4 bedroom managerâ??s residence, 6 studio units, 4 x 2 bedroom units and a freestanding 2 bedroom unit. There is a double garage (9m x 6m) and a swimming pool.
There is a provision in the lease for two yearly rent reviews (market value) and a ratchet clause. The next rent review is 1 May 2013.
There is a maintenance fund of 5% of rental ($3,000) which is a provision towards the Lesseeâ??s maintenance responsibilities. A copy of the lease and a recent valuation is available to a serious purchaser.
The lease may also be available for someone wanting home and income investment in a lovely spot of the Hawkes Bay.