Virginia Lake Café sale
Virginia Lake is one of Whanganui’s most cherished destinations and is enjoyed by locals and visitors alike. The café plays an important role in the overall visitor experience and has become a popular and valued part of the lake precinct, providing a place for people to meet, relax and enjoy their surroundings while visiting the area.
The council is aware of community interest regarding the potential sale of the business and the process involved in assigning the lease to a new operator.
The Virginia Lake Café operates under a commercial lease agreement. While the council owns the building and land, the business itself is privately owned and operated. As with other commercial businesses, any sale of the business is a matter for the business owner, subject to the requirements of the lease agreement.
The current lease has a substantial remaining term, making it a more attractive and commercially viable proposition for a prospective purchaser or operator.
This situation differs from a previous lease arrangement, where the lease was nearing expiry. Prior to the lease ending, the lessee sought an extension to support a future sale of the business. However, as the lease was approaching its expiry and the purpose of the extension was to facilitate an on-sale of the business, the lease term was not extended.
Following the expiry of that lease, the opportunity was publicly advertised through a contestable process to identify an appropriate service provider for the site.
If a buyer is identified for the current business, the council's role is to consider an assignment of the existing lease. This process includes:
- A credit check of the proposed buyer
- Confirmation that the buyer can meet the current service requirements and opening hours
- Council approval of the lease assignment, including elected members
- Completion of the assignment process
The council's focus is on ensuring any future operator can meet the requirements of the lease and continue providing a high-quality experience for the many people who visit Virginia Lake each year.