Four YHA hostel accommodation buildings could be sold twice in 12 months

The $ 9 million YHA hostel in Takapō / Tekapo opened in September 2019, sold out earlier this year, and is returning to the market.

Provided

The $ 9 million YHA hostel in Takapō / Tekapo opened in September 2019, sold out earlier this year, and is returning to the market.

Four of the 11 buildings containing hostels run by the Youth Hostel Association that closed in New Zealand in December, which will hit the market in February 2022, were sold earlier in 2021.

Wolf Herwegh Vonk, a Dutch businessman and recent New Zealand resident, and his company, Heredium Group, purchased YHA hostels in Takapō / Tekapo, Rotorua, Wellington and Wānaka in February 2021 under a deal to 35 year leaseback.

These four buildings are expected to join seven other YHA hostels in Auckland, Christchurch, Aoraki / Mt Cook, Queenstown (2), Franz Josef and Te Anau which will be sold by Colliers in February 2022.

Herwegh Vonk could not be contacted, but a spokesperson for Heredium in Auckland said The Timaru Herald “He is in Europe, and should return at the beginning of next year”.

READ MORE:
* Backpacker industry on the verge of collapse with a third of hostels and thousands of beds gone for good
* Youth hostel closures in Tekapo and Aoraki / Mt Cook are a double whammy for the Mackenzie District
* Victim of Covid-19: New Zealand Youth Hostels Association to permanently close 11 hostels

“I am not in direct contact with him,” said the spokesperson.

Hamish Doig of Colliers International, the sales agent, has generated a great deal of interest in hostels.

“We have responded to numerous calls nationally and internationally.”

Another YHA was sold in February and bought by a private investor. The sale of five hostels made the YHA about $ 30 million.

In a statement announcing the 11 closures, YHA, a nonprofit, said Auckland’s extended Covid-19 lockdown, and no prospect of an international visitor market this summer, created market conditions that placed them in an unsustainable financial situation.

“At the end of 2020, YHA completed a severe restructuring in order to bring the organization to an expected recovery period during the summer period of 2021/22, while continuing to maximize its domestic revenues.

“YHA New Zealand, which traditionally serves young international visitors, has doubled its domestic guest nights over the past 12 months as it has shifted towards more domestic groups and family stays.

“Unfortunately, this significant national growth was not enough to compensate for the loss of revenue from international customers.”

The 23 properties individually owned and operated by YHA continue to operate normally.

In 2020, Heredium purchased the seven-story Manawa Building in Oxford Tce, Christchurch, for $ 80 million.

The building is home to over 2,000 students from the Canterbury Ara Institute as well as education and development staff from the Canterbury District Health Council and staff from the University of Canterbury.

The Manawa building in Oxford Terrace near Christchurch Hospital purchased by Wolf Herwegh Vonk for $ 80 million in 2020.

Things

The Manawa building in Oxford Terrace near Christchurch Hospital purchased by Wolf Herwegh Vonk for $ 80 million in 2020.

Things said this was Herwegh Vonk’s first real estate purchase in New Zealand and would form the cornerstone of a portfolio he plans to buy in New Zealand.

Heredium also bought and sold commercial property at Auckland International Airport, posting an after-tax profit of 49.4%, and purchased Auckland’s largest waterfront penthouse.

The Heredium Group website states that the Herwegh Vonk company was established in the Netherlands in 1987 and has secured 50 real estate investment portfolios. Since 2005, she has been based in Switzerland.

“Due to the consistently declining returns at which properties are offered in Europe, Heredium’s geographic focus of investment since 2020 has spread across the world to New Zealand where we continue to seek out good quality properties. as part of our long-term strategy, ”the website said.

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