Queenstown smashes sales records

8th December 2009

Media release from Millbrook Resort

7 December 2009

Queenstown resort smashes sales records

The future’s looking bright for property development at Queenstown’s Millbrook Resort after re-sales[1] hit a record high in the past year.

From 1 October 2008 to 30 September 2009, the five-star resort sold $23.36million from its property portfolio, easily beating its previous 2004/2005 record of $17.24m.

A breakdown of the 35 percent increase shows that sections within the new western development, which average around half an acre, were the most sought after. In general, the value of properties held up, in direct contrast with many resort projects in New Zealand.

Millbrook Property and Development Manager Ben O’Malley is delighted with the result, particularly in light of the current economic downturn.

“The market was quite unsettled this time last year and although we took measures to respond to the recession we were expecting the worst,” he says.

“While we did have some buyers fail to settle on sales, overall we’ve had a great strike rate for settlements, and demand has meant the majority of the properties that weren’t settled were on-sold relatively quickly.

“I believe our record sales figures are a strong endorsement of the quality and stability of our product and Millbrook’s well-established track record.

“They also show a huge amount of confidence in Millbrook owners Eiichi Ishii and his family who, despite the recession, have continued investing in Millbrook when it would have been all too easy to pull back.”

In the past couple of years, with the backing of the Ishii family, Millbrook has invested approximately $30million on a new covered driving range, the new Coronet Nine golf course, new neighbourhoods, walking trails, Butel Villa and Village Inn refurbishments, a major IT system upgrade, and a Coronet Square show home.

Mr O’Malley says the new Coronet Square development is progressing well.

“The first houses have been completed, with two now owner-occupied, and several of the high-end standalone homes are underway or about to start construction.”

Another surprising result has been strong growth in Millbrook Country Club memberships. Only 11 sales were forecast for the past year, but 26 memberships have been sold. Memberships include complimentary access to the 27-hole championship golf course, swimming pool, the health and fitness centre along with discounts in Millbrook food and beverage outlets, The Spa and access to a wide range of member events throughout the year. Memberships also include a range of members’ guest privileges.

Mr O’Malley says all membership sales are due to word of mouth.

“We don’t do any advertising or marketing – it’s all word of mouth referrals from members bringing in their own friends and acquaintances. Although a lot of people have tightened their belts there still seem to be plenty out there who want to invest in the Millbrook lifestyle.”

His overall forecast for 2010/2011 is cautiously optimistic.

“I think we’ve weathered the recession pretty well. The hotel side is showing good signs of recovery already, particularly in the Conference and Incentive market.

“We’re continuing to develop and roll out our master plan for Millbrook and I believe that gives people confidence and a clear vision of what they’re buying into. The past 20 years of continued development and investment in our product and brand has resulted in a mature product with a track record of success and quality.

“One of the most pleasing aspects of our property market is that we have continued to sell during both market booms and downturns, and many investors have continued to re-invest by trading up.”

[1]Selling on behalf of a third party (like a real estate agent).

ENDS

For further media information please contact:

Property and Development Manager Ben O’Malley

021 397 608 or ben@millbrook.co.nz

[1]Selling on behalf of a third party (like a real estate agent).

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