Historic Wanganui pub may become part of exclusive network

Media Release
20.06.2012

Historic Wanganui pub may become part of exclusive network

One of Wanganui’s oldest pubs is on the market for sale – and is being mooted to potentially become a member of the most exclusive pub network in New Zealand.

Built in 1885, the Castlecliff Hotel is affiliated with DB Breweries, which two years ago set up the Classic Pub Network of New Zealand.

The Classic Pub Network is made up of iconic Kiwi pubs such as the Parua Bay Tavern in Northland, which was established in 1902, and the Riverhead Tavern just north of Auckland, which was established in 1857, and the White Swan Hotel in the Wairarapa.

The network works with these classic pubs, assisting them to expand their patronage and promote their unique character.

A prominent an historic landmark in the Castlecliff community, Castlecliff Hotel originally included an adjoining stable with stalls for six horses.

The business has been placed on the market as a going concern through a tender process closing June 22. Marketing the business for sale is Bayleys Lower North Island salesperson Bob Davies.

The sale includes the business and the building, while the 1269 square metre land area is currently leased. Mr Davies said the hotel could benefit from a new owner who had the vision to modernise the hotel’s facilities, while retaining its unique culture and heritage.

“This is an ideal opportunity for an owner/occupier to come in and make the most of the potential that this important piece of Wanganui’s history has to offer,” he said.

Mr Davies said the current owner had already begun redevelopment of the hotel, with plans to transform the front bar into a café-style pavement bar making the most of the views down Cross Street.

“The vision for the Castlecliff Hotel is to create a pavement-style café culture, similar to that seen in Auckland, Wellington, Napier and Nelson.

“A growing number of ‘bars’ or ‘pubs’ are widening their customer base by moving into the café market and becoming far more family-friendly.”

Mr Davies said many parts of the two-storey wooden building were underutilised, giving a new owner the opportunity to create new income streams.

“The kitchen, front bar and 17 hotel accommodation rooms have not recently been used to their full potential,” he said.

“Work is underway for the public bar to be developed into a bottlestore business. In addition, the transformation of the front bar into a bar/café-style business means there will be opportunities for the kitchen to become better utilized, which may have a flow on affect to the accommodation side of the business.”

The hotel building is currently owned by Castlecliff Cellars Limited and is part leased to Shree Sai Holdings (Castlecliff) Limited which operates the off licence. Shree Sai Holdings (Castlecliff) Limited has a two-year lease, with seven two-year rights of renewal. The annual rental income is $24,000 plus GST, and 15 percent of outgoings.

The business is owned by Castlecliff Hotel Limited, which leases the building from Castlecliff Cellars Limited. Castlecliff Cellars Limited leases the land from the Wanganui District Council. The lease was renewed in June last year for 21 years. The annual rental is $5139 plus GST.

In addition, Castlecliff Hotel Limited has an agreement with the New Zealand Community Trust to provide space and administer 18 gaming machines.

Mr Davies said: “The Castlecliff Hotel has been a stalwart of the local community for many years and has the support of loyal local clientele.

“The business occupies a prominent corner of Polson and Cross Streets, in the heart of old Castlecliff, and is adjacent to the new Four Square supermarket and the Cross Street shopping precinct.

“The surrounding residential area is undergoing a gradual upgrade, improving the overall quality and popularity of the area.”

ends

© Scoop Media