Clearwater Resort launches new investment unit marketing push

By Chris Hutching

Friday 16th November 2001

CLEARWATER UNITS: Part of a $50 million, five-star, 200-room hotel

Clearwater Resort developers John Darby and Howard Paterson launched a new marketing pitch this week for the sale of 40 investment units that will be part of a $50 million, five-star, 200-room hotel.

Several buildings including a $4 million clubhouse are nearing completion on the 160ha Bob Charles-designed resort site near the Waimakariri River about 10 minutes drive from the airport. It will be officially opened next March during a US Professional Gold Association event offering prize money of $1.2 million - the largest for any such event in this country.

Messrs Darby and Paterson said they have sold $30 million worth of sections, apartments, villas and memberships. Settlement for many of these sales is several months away, suggesting some buyers are speculating on the future of the resort.

Mr Darby said the recent sales of 16 stage-one hotel units costing $475,000 to $495,000 collectively worth $7.5 million was "staggering." In addition, 24 residential sections costing $375,000 had been sold and 11 Clubhouse Terrace apartments sold off the plans for $595,000 each.

The 40 two-bedroomed hotel villas now being marketed are priced at between $495,000 and $525,000, in keeping with the way prices of subsequent stages are priced at higher levels. They will be leased back to the hotel. Clearwater principals are negotiating with several hotel chains.

Investors seeking a smaller stake in Clearwater might be tempted by the 99-year golf memberships sold by Clearwater Resort. So far 200 memberships have been sold at prices from $12,000-45,000. Present investment levels vary from $20,000-45,000.

Sales director Chris Herbert said the membership was structured in such a way that the entry price increased with the completion of each stage of the development. He described the memberships as tradable commodities that could be redeemed at any time.

Clearwater Resort acting general manager Justin Prain said the level of inquiry about Clearwater's restaurant and conference facilities was "astounding" with many bookings already filling the calendar for next year.

The new clubhouse includes facilities for conferences and functions, bars, golf shop, restaurant, greywacke stone fireplace, and covered walkways and garden linking to other buildings. The golf course is the longest in New Zealand with notable features in its artificial lakes and natural streams, which flow through the property.

Messrs Darby and Paterson are downplaying the effect of the September 11 terrorist attacks on New York on investor sentiment. They have enlisted support from the optimistic Darryll Park, chief executive of Christchurch and Canterbury Marketing who said the downturn afflicting some tourist operators would not affect Clearwater Resort because it catered to free and independent travellers rather than tour parties.

Clearwater has been 10 years in the making from when it was initially promoted by a Japanese developer who sold the project to Messrs Paterson and Darby for $3.4 million.

A dispute over final payment of $1.4 million is yet to be settled.

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