A Hamilton airport hotel has been bought out of messy receivership for $3 million.
Waikato Regional Airport Limited, which operates Hamilton airport, bought the Hamilton Airport Hotel and Conference Centre as it seeks to cut its reliance on regulated transport revenue.
The airport operator, owned by five local councils, announced the purchase last month saying it was in line with the company’s goal of expanding non-aeronautical revenue.
“Ownership of the hotel provides an opportunity to further develop and enhance the range of services offered within the airport precinct,” says Waikato Regional Airport Limited chair John Spencer.
“With a number of new businesses in the area and record numbers attending events such as Equidays and Fieldays at nearby Mystery Creek Events Centre, demand for accommodation near the airport has grown.”
The hotel lease and chattels were owned by Bolton Properties, but transferred to a related entity Hamilton Airport Hotel Ltd in December last year “when it became clear that the IRD proposed to wind up Bolton Properties,” receivers Thomas Rodewald and Kim Thompson of Rodewald Consulting said in a report.
The airport operator had signed a conditional deal to buy the buildings from Bolton and the business and chattels from Hamilton Airport Hotel ahead of the IRD’s application to liquidate the business
This prompted former director and creditor Kevin Parker to appoint receivers “to take control of the sales process,” the report said.
Negotiations broke down between the airport operator and the Bolton receiver, with Waikato Regional Airport threatening to file court proceedings if a sale was not completed, the report shows.
“Following extensive discussions, taking into account the potential legal costs and also taking into account the building report indicated substantial repair costs existed, the receivers offered to complete the sale contract,” the receivers said.
The property was sold for $2.85 million and the assets for $140,000.