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Iconic tourism business for sale "The Kingston Flyer Vintage Steam Train" near Queenstown, Central Otago, New Zealand

Chrissy  Chisholm - Tourism Business Broker

Wednesday 24 April 2013, 6:51PM

By Chrissy Chisholm - Tourism Business Broker

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The "Kingston Flyer" train and hospitality Freehold business is for sale
The "Kingston Flyer" train and hospitality Freehold business is for sale Credit: Chrissy Chisholm - Tourism Business Broker

One of the world's most unique train businesses The "Kingston Flyer" train and hospitality Freehold businesses situated in the township of Kingston, a small town at the southernmost end of Lake Wakatipu, just north of the border of Otago and Southland, in New Zealand. It is 47 kilometres south of Queenstown by a road which winds between the lake to the west and The Remarkables mountains to the east. Kingston Township and the rail corrider from Kingston to Fairlight is situated on State Highway 6 on the route to Milford Sound is for sale by Adrian Chisholm of TourismProperties.com 021 727 888 real estate specialists in Tourism, Hospitality & Leisure. www.tourismproperties.com

This "Debt Free" business is for sale by a reluctant vendor due to ill health. Do not ask how many millions the replacement value of this package of locomotives, carriages, land, buildings, chattels, plant and machinery -  it is far in excess of the asking price of NZ$2.5m The Capital Value (CV) of the Land & Buildings alone shows a total value of $1,721,000 on the current Rates Assessment Notices.

The Business includes 10 land titles (some with buildings including the Flyer Cafe & Bar business) in Kingston and some are residential sections suitable for housing. One title is situated between Kingston and Fairlight containing the railway corridor and one title in Fairlight houses the Fairlight Station and triangle three point turning equipment to turn the train around for it's return journey to Kingstion.

The locomotives include an AB 778 (entered service in 1925) and AB 795 (entered service in 1927, seven passenger carriages of the same vintage / period and associated plant and machinery.

The hospitality business includes the "Flyer Cafe & Bar", chattels at valuation and Goodwill >this business has both a "on-premise" and "off-premise" liquor licence and the Kingston Flyer Train has an "on-premise" licence on board the train.

The new owner would be required to apply to the New Zealand Transport Authority (NZTA) for approval as the new rail operator to receive a new Rail Licence and Saftey Case for the Kingston Flyer operation.

A new owner/investor has a great opportunity to take this business to the next level. The current owner has done a fantastic job building the business and refurbishing the locomotives,carriages and the Cafe & Bar, plus adding significant marketing branding to the business.

The new tourist cycleway for this area is due to open in November 2013 and it is proposed that the journey will start in Queenstown with a ride to Walter Peak on the Earnslaw and then ride through the Mavora Lakes to Mossburn, Lumsden, Fairlight with a ride on the Kingston Flyer to Kingston. Initially it will start from Kingston. Expecting, once established around 40,000 per year will take advantage of one of the world's most scenic cycleway.

I invite all interested parties to contact me as I am happy to discuss details of this unique tourism opportunity.