Article – BusinessDesk
Delaware North takes 20-year sublease on Queenstown backpackers worth $27M in rent
By Jonathan Underhill
April 30 (BusinessDesk) – Delaware North, a hospitality company based in Buffalo, has been cleared to take a 20-year sublease on land in Queenstown that’s the site of the Pinewood Lodge, an investment that would generate about $27 million in rent.
The applicant has a history of other investments in New Zealand and has proposed to inject capital and resources into developing the productive capacity and services provided by the Pinewood Lodge business operated on the land, the Overseas Investment Office said in a judgment summary released today. The $27 million of rent was based on an annual return adjusted for the 90-day bank bill rate.
Pinewood Lodge, which has beds ranging from luxury to backpackers, is near the Skyline Gondola and targets mountain bikers among its clients. The vendor was Pinewood Village Ltd, owned by Rosslyn and Robert Greig, according to the Companies Office.
Today Delaware said in a statement that it had “entered into a long-term partnership to operate Pinewood Lodge”.
“With occupancy rates in Queenstown averaging close to 80 percent in recent years thanks to the multitude of year-round adventure activities, hiking and outdoor sports, Delaware North is confident Pinewood Lodge will continue to go from strength to strength,” it said.
The company has a catering contract for Wellington’s Westpac Stadium including corporate boxes and premium areas and has a contract with Auckland International Airport to operate eight food outlets at the airport.