Millennium & Copthorne Hotels New Zealand has reached conditional agreement to buy a 3160 square metre site in Whangārei’s CBD for the development of a hotel.
The NZX-listed hotelier will purchase the land from the Whangārei District Council for $2.24 million, depending on the outcome of due diligence, it told the market today. The initial land purchase would be funded from existing cash reserves with the development costs provided through bank funding.
The site had been earmarked for hotel use since public consultation in 2012, and Millennium & Copthorne (MCK) had initially investigated the prospect of acquiring it in 2019.
Prior to going unconditional, MCK will carry out a detailed feasibility study for the construction of the hotel “taking into account the current development market conditions and working with the council on planning consents”.
It will update the market when the agreement is unconditional. Settlement is expected to take place in Q2 2024.