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Central Cycle Trails – Cycle Tourism Opportunity For Sale

Middlemarch, Otago
Asking Price:
$925,000 (NZD)
Sales Revenue:
$1M - $5M (NZD)
Cash Flow:
$500K - $2.5M (NZD)

Central Otago’s leading Cycle Tourism Business

We are proud to offer for sale the market-leading Cycle Surgery Rail Trail business. Established in 2000 as a pioneering operator on the Otago Central Rail Trail this business continues to enjoy strong growth and profits on the back of a booming cycle trail tourism industry. The company mission is “to provide the ultimate cycling experience in New Zealand“. Cycle Surgery Rail Trail provides bike hire, shuttle services and itinerary planning services on the Otago Central Rail Trail, Roxburgh Gorge and Clutha Gold Cycle Trails.

The timing couldn’t be better for new owners. This business has built an enviable reputation as the premium operator on the iconic Otago Central Rail Trail – described as “New Zealand’s original great ride”. There are now significant plans to grow the trail network in the region – providing massive opportunity for business growth. The Government has confirmed a $13 million contribution towards a Queenstown-Central Otago cycle trail that is expected to create 329 full-time jobs. The trail will be part of the $26 million New Zealand Cycle Trail Project to build 536km continuous cycle trail network across the Otago region between Queenstown, Wanaka, Cromwell, Alexandra and Roxburgh.

A further catalyst for growth has been the explosion in e-Bike popularity which has made the ‘bike experience’ more accessible for a whole new range of tourists, including different age groups and levels of fitness and ability. Cycle Surgery was one of the early adopters of e-Bikes and has invested heavily in this technology.

This established, profitable business has many points-of-difference that underpin its growth momentum:

Cycle Surgery is one of the longest operating and most reputable operators on the Otago Central Rail Trail
The only business that completely designs and builds their own hire bikes for maximum comfort and reliability on Central Otago Cycle Trails.
Turnkey business with outstanding systems, including proprietary booking management system (BMS) and Itinerary Planning System. These integrated systems optimise staff operations and enhance overall business efficiency
With two Cycle Surgery Depots – Cycle Surgery Middlemarch and Cycle Surgery Clyde – Cycle Surgery Rail Trail has two great depots located in prime positions
Qualmark Silver – Tourism New Zealand Quality Assurance
Trip Advisor – Certificate of Excellence for the last 5 years
A Cycle Surgery App for client use is currently being developed
The Cycle Surgery Team are powered by technology and driven by passion – to provide clients with best cycling experience in New Zealand!
Everything is set up for new owners to take the handlebars of this exciting business! Participate in a highly rewarding industry and enjoy a great lifestyle and income. Cycle Surgery is a turnkey business, everything is set up and ready for the new owners to walk in and start making money. Systems are in place and forward bookings for the 2019/2020 season are already ahead of other years.

The substantial returns support the realistic asking price of $925,000+ GST (if any), which includes the following:

Tangible assets

This includes vehicles/shuttles and depot fit-out

Intangible assets and goodwill

This includes 2 x websites (www.cyclesurgery.co.nz and www.railtrail.co.nz)
‘Cycle Surgery’ IP and trademarks
Substantial client database
Cloud-based Booking Management System (BMS)
Itinerary planning software
Marketing material
Cycle Surgery app (currently under development).
PLUS there are already significant confirmed (deposits paid) forward bookings for the coming 2019/2020 season of approx $500,000 and representing over $210,000 in operating surplus!

Stock – Custom designed Cycle Surgery Hire Bikes, E-Bikes, Kids Bikes and accessories

The owners are happy to work with the buyer/s to ensure a smooth transition.

This is a genuine opportunity seeking genuine buyers! Further detailed information is available from the broker upon request.

Property information

Real Estate:

Lease

Location:

Cycle Surgery Rail Trail provides bike hire, shuttle services and itinerary planning services on the Otago Central Rail Trail, Roxburgh Gorge and Clutha Gold Cycle Trails. There are now significant plans to grow the trail network in the region – providing massive opportunity for business growth. The N.Z. Government has confirmed a $13 million contribution towards a Queenstown-Central Otago cycle trail that is expected to create 329 full-time jobs. The trail will be part of the $26 million New Zealand Cycle Trail Project to build 536km continuous cycle trail network across the Otago region between Queenstown, Wanaka, Cromwell, Alexandra and Roxburgh.

Business Operation

Expansion Potential:

There are now significant plans to grow the trail network in the region – providing massive opportunity for business growth. The N.Z. Government has confirmed a $13 million contribution towards a Queenstown-Central Otago cycle trail that is expected to create 329 full-time jobs. The trail will be part of the $26 million New Zealand Cycle Trail Project to build 536km continuous cycle trail network across the Otago region between Queenstown, Wanaka, Cromwell, Alexandra and Roxburgh.

Years established:
19

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