Resort Brokers May informer 2013 by iformat

No. 69 | November 2012

INFORMER Park for a holiday and let the good times roll

In this edition we look at the magical appeal of caravan park holidays

resortbrokers.com.au

No. 71 | May 2013

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Outcomes & opportunities

T Ian Crooks

MANAGING DIRECTOR

There aren’t many of us who don’t have heartwarming memories of holidays spent in a caravan park. So what made those holidays so special? Australians may have recently been venturing overseas more than ever before. But they are also returning to the simple pleasures… family, friends and good-time holidays in our own beautiful backyard.

RESORTBROKERS.COM.AU

hank you for all the positive feedback on last issue’s cover story about family business. The Senate Committee has since tabled a weighty report, ‘Family Businesses in Australia – different and significant: why they shouldn’t be overlooked’. The main recommendation (one of 21) is to set up a new federal committee to identify policy issues for attention. Really, it just highlights how much more needs to be done. If you want to read the detail, you’ll find a copy of the report at www.fambiz.org.au. Meanwhile, my daughter Trudy (Resort Brokers Sales Manager) and I have been to the HICAP (Hotel Investment Conference Asia Pacific) Update in Singapore. It’s always a real ‘who’s who’ of our region’s hotel industry. We came away with a very positive impression. Relative to room rates and occupancies across Asia, Australia is holding up very well. It’s also great to catch up with what’s happening around the traps. Myanmar is enjoying a real tourism surge, thanks to big reforms underway there. Thailand’s Phuket remains a hotspot, and Bali is still flying. Almost 2.95 million foreign tourists visited Bali last year, up 4.3% on the year before. Aussies, still in love with this enchanting island, make up more than a quarter of that number. You’ll notice our centre spread showcases some villas in Bali. I know the

developers well. Investors in their last project, an adjacent courtyard hotel, are now reaping a net return of over 20%. These new villas are available from just US $120,000. Not bad for your own piece of paradise! Back at home, many eyes are looking closely at investment opportunities in Australia. This month, our new series on hotel groups steps inside Swiss-Belhotel International. Big in Asia and the Middle East, this fast-growing group wants to expand its presence here. Chairman Gavin Faull explains why. There are certainly some great opportunities now across the whole accommodation spectrum in Australia – hotels, motels, holiday parks, and management rights. Inside, you’ll read my views on the need for more motels. The caravan park sector is the focus of our cover story, and features strongly in our popular series on the many faces of tourism and accommodation, which this month introduces you to Allan Walls, who’s been a leader in both park broking and operations. Resort Brokers Australia has become increasingly involved in the caravan park market, and has been very active of late. In fact, in the last 6 months we have sold 6 caravan parks and, as you’ll see in these pages, more quality properties are currently listed. Finally, I wanted to mention off-theplan management rights, which are again becoming a big part of our business. New developments, like Sea Pearl at Mooloolaba, Oshen in Yeppoon and Arena, just down the road from us here at South Brisbane, head our list of terrific off-the-plan opportunities. And more are in the pipeline. I think canny buyers should now be taking another good look at the Gold Coast. Despite a disappointing Easter due to some rough weather, it will always boast 30 kilometres of the world’s best white sandy beaches. Demand for Brisbane management rights has been high, so maybe it’s time to head down the highway! Good reading! There’s something for everyone in this issue. carlacook@resortbrokers.com.au or PO Box 5004, West End QLD 4101

INSIDE HOTEL GROUP

MIKE O’CONNOR’S COLUMN

FEATURE: PARK FOR A HOLIDAY

STOP PRESS

MANY FACES OF ACCOM. INDUSTRY 48 AGENT PROFILES

RELIEF MANAGERS

INDUSTRY SPECIALIST

EXCLUSIVE LISTINGS

OUR TEAM

DIRECTORY

RESORTBROKERS.COM.AU 3

Resort Brokers Australia are delighted to offer exclusively to the market the hottest new permanent management rights to hit South East Queensland in years - Arena South Brisbane. Arena consists of 191 apartments over two twelve-storey towers. The residential agent and developer anticipate a high percentage of investors given the very accessible price point, fantastic urban location and the fact that South Brisbane has the lowest vacancy rates of any suburb in Brisbane. The projected net income of $610,696 has been prepared by industry specialist accountants, Holmans and is based on 75% investors and 25% owner occupied. There is an option to buy any apartment in the development (subject to availability) which includes a separate office and storage areas with exclusive use. No set office hours and cutting edge management systems means that you are free to focus on the job at hand.

On the cusp of arty South Brisbane and the eclectic West End, Arena combines exceptional retail amenity, transport and lifestyle. Step outside and a bustling urban neighbourhood beckons. Inside, Arena is the perfect city pad. Arena’s striking duo of architecturally designed buildings are a stunning new addition to South Brisbane’s urban DNA. Dramatic chopstick columns float the duel podium towers above Arena’s urban courtyard, pool, barbeque pavilions, gym and vibrant ground level plaza retail. Inside, the oversized Ellivo-designed 1, 2 and 3 bedroom apartments plus spectacular skyhomes blend private living, residents-only amenities and active public spaces to wonderful effect. Unlike anything ever seen in South Brisbane, Arena is set to be the star of the show. • Brand new Accommodation module of 25 years • Incredible body corporate salary of $218,182 p.a.

CONTACT EXCLUSIVE AGENT RESORT BROKERS AUSTRALIA - THE OFF THE PLAN SPECIALISTS Tim Crooks EXCLUSIVE AGENT Mobile: 0422 208 450 Brisbane office: (07) 3878 3999 Email: timcrooks@resortbrokers.com.au

Steve Campbell EXCLUSIVE AGENT Mobile: 0407 220 668 Brisbane office: (07) 3878 3999 Email: stevecampbell@resortbrokers.com.au

Brisbane’s hottest inner-city management rights EXPRESSIONS OF INTEREST. SUBMISSIONS BY 28th JUNE 2013.

DEVELOPER BACKGROUND

ARCHITECT BACKGROUND

Galileo Group is a diversified independent real estate specialist with expertise in development, funds management, transactions and financing. Galileo’s current projects include “The Residence” in East Sydney, a premium residential development project recently completed in joint venture with AMP Capital Investors and Cbus Property, and Metro Residences Chatswood, a major residential project comprising 553 apartments over three towers currently under construction above Chatswood Transport Interchange. Metro Residences Chatswood is a joint venture project with ISPT, one of Australia’s leading property fund managers.

Ellivo Architects are experienced commercial, mixed use and residential Architects, passionate about design, creative with the use of space, and ardent about achieving balance between development goals and architectural outcomes. Great design is only valuable when it is delivered successfully as built form, becomes available as usable space and provides an impressive yet functional interior. Ellivo Architects are committed to applying environmentally sustainable solutions to every scenario. In our studio, every design and selection is aligned to principles of sustainability. And creating vibrant, successful places is equally import to creating good architecture. We pride ourselves on “designing success” whereby the success embedded in the Architectural design includes being socially and environmentally sustainable.

EXCLUSIVE

he Ridge on Leichhardt is one of Brisbane’s most well known landmarks and is perfectly located in Spring Hill. The hotel offers great CBD apartment style accommodation. Facilities include an outdoor BBQ area, a gymnasium and large outdoor rooftop pool. The apartments and studios have contemporary decor and fully-equipped kitchens. The Fortitude Valley entertainment and restaurant precinct is a short drive from the hotel. The Ridge on Leichhardt is close to numerous restaurants, pubs and nightclubs in the area. The apartments also offer easy access to the city’s financial and shopping centres. It is only a 5 minute walk to Queen Street, Roma Street Train Station, Central Station, many of Brisbane’s top medical specialists, St Andrews Hospital, and the Brisbane Exhibition Grounds. This prominent building high on Leichhardt Street has exceptional potential and upside for the astute operator. Very seldom do corporate opportunities like this present themselves in inner city Brisbane.

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Outstanding Brisbane CBD Opportunity RARE CHANCE TO ENTER THE CORPORATE MARKET The current vendor has enjoyed the business since mid 2008 and has decided its time to move on. The body corporate has recently approved painting of the exterior building and all monies are in the sinking fund to do so.

Steve Campbell EXCLUSIVE AGENT Mobile: 0407 220 668 Brisbane office: (07) 3878 3999 Email: stevecampbell@resortbrokers.com.au

The BBQ and pool area are to be completely refurbished in winter 2013 adding new features to the common areas. Be quick to secure this fantastic opportunity! • 89 units with 38 in the letting pool • 29 short term, 9 permanent and 22 outside agents • Long agreements with 17 years left to run • 2 bedroom manager’s residence with office on title • Outstanding opportunity with significant upside for the experienced operator

Net Profit: $295,309 PRICE: $2,150,000

REF: MR002427

EXCLUSIVE

Queensland’s finest regional city hotel

For 365 days a year this hotel enjoys patronage from the fly-in aircrew who use a minimum of 13 rooms per night. The total business consists of 80% corporate and 20% leisure trade.

OPPORTUNITY TO EXPAND

This hotel has to be seen to be believed!

Ian Crooks EXCLUSIVE AGENT Mobile: 0411 171 648 Brisbane office: (07) 3878 3999 Email: iancrooks@resortbrokers.com.au

Trudy Crooks EXCLUSIVE AGENT Mobile: 0477 882 210 Brisbane office: (07) 3878 3999 Email: trudycrooks@resortbrokers.com.au

Net Profit: circa $2,065,000 Turnover: $6,547,416 (30/6/2012) HOTEL PRICE: $16,700,000 EXTRA LAND: $3,300,000 TOTAL PRICE: $20,000,000 REF: FH002466

he Clarion Hotel Mackay is just seven years old and is located on the waterfront at the Mackay Marina, which is only 5km north of the CBD. Mackay is located midway between Brisbane city and Cairns and is the hub of the Queensland mining industry. Hay Point, which is one of the largest coal exporting ports in the world, is situated only 25km south of the hotel. This fabulous property, which is built over eight levels is beautifully decorated throughout and all rooms enjoy spectacular views. The complex has 79 rooms in total and they consist of; 41 standard deluxe studios, 13 executive king and queens suites, 12 one bedroom apartments, 11 executive spa suites and 2 exquisite superior spa suites.

Although under management since opening, the property has been fastidiously maintained to a high 4.5 star standard. The new waterfront restaurant, which was completely renovated in November 2012, compliments the fantastic overall operation. An adjacent waterfront block of land is included in the sale and has a DA approval for a further 120 rooms. This will appeal to sophisticated private investors or Australian and Asian Hotel Groups. Facilities include: • F ully gated resort pool, conference area, grand port cochere plus spacious reception area •B uilt adjacent to one of the Eastern Seaboard’s finest Marinas Exclusively marketed by the Resort Brokers Australia Hotel Division. RESORTBROKERS.COM.AU

EXCLUSIVE

n offer is a rare opportunity to purchase a Brisbane leasehold operating under the renowned Quest banner. This 4.5 star building was opened less than 5 years ago, and has been humming along at high occupancy ever since. The building consists of 26 X two bedroom apartments (each containing a one bedroom apartment and a studio), along with 2 X one bedroom apartments. Fitted out to an exacting standard and maintained to a high level, it presents as near new. An inspection will not disappoint. The property is ideally located to benefit from the large and ever-growing demand for corporate accommodation in and around Brisbane’s northern suburbs. With the opening of the new Airport Link tunnel, it is also within easy reach of the CBD and the airport. Being a part of the Quest franchise, the new owners will benefit from an huge array of support mechanisms, in place to ensure that each franchisee is able make the most out of their business. Quest’s aim is to help franchisees focus on their core business and to grow their bottom line.

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Quest Chermside PRIME BRISBANE CORPORATE LEASEHOLD

The massive expansion of the Westfield shopping centre directly next door will drive tariffs and occupancy. Operated largely under management for the last year, this business is poised and ready for a motivated hands-on operator to push it to the next level 4 key, 4.5 star serviced apartment •5 building • 80% corporate trade • Long lease tenure – 20.5 years remaining •C urrent occupancy 73% (average c. 80% since opening) rofessionally trained, experienced staff •P in place •R efurbishment plan tied into lease •N o real estate

Alex Cook EXCLUSIVE AGENT Mobile: 0467 600 611 Brisbane office: (07) 3878 3999 Email: alexcook@resortbrokers.com.au

Net Profit: $533,000 Turnover: $2,380,000 PRICE: $2,292,000 REF: MR002423 & LH002422

Insight : Ideois : Networking

23rd-25th July 2013 Hilton Sydney

New. Focused. Fresh. HotelsWorld Australia New Zealand and Hotel Franchise World have been created to bring together the accommodation industry’s leaders and those who want to listen to, meet, learn from and grow with them.

HotelsWorld Australia New Zealand and Hotel Franchise World will comprise two days of unparalleled industry meetings. Working under a theme of What’s New, What’s Next? the two events will deliver insight, ideas and networking through innovative event programs and quality speaker rosters, including key decision makers across the entire hotel, resort and serviced apartment sectors in the region and beyond. The two events have already secured the highest level of industry support ever achieved in this region from most of the leading hotel company owners, operators and suppliers in the region. Held in Sydney from 23 to 25 July 2013, over 400 owners, developers, operators, lenders and advisors, are expected to join over 30 Sponsors, Exhibitors and Supporters to hear from and network with over 70 global, regional and local speakers and panelists.

HotelsWorld Australia New Zealand and Hotel Franchise World will be part of Megameet 2013, a series of co-located and linked industry events over 3 days in Sydney and which include the 2013 Tourism Accommodation Australia (New South Wales) Awards for Excellence and the IT based Ted Event. For further information, visit www.hotelsworld.com.au or call conference chair John Smith on 0418 447 222. GOLD SPONSORS

SILVER SPONSORS

HOSTED BY

PLATINUM SPONSORS

he Hermitage Hill country retreat is a majestic boutique accommodation and function centre situated in the central tablelands of NSW. It has been recently restored to its exquisite former glory. The property features two accommodation offerings – the Hermitage Hill Guesthouse; which features fabulous rooms. All have been completely remodelled with airconditioning, spectacular views, large guest lounge and heated swimming pool. The Stone Cottage contains a king size deluxe spa suite offering the ultimate in comfort. The property is an ideal venue for corporate functions, wedding receptions, birthday parties or any other formal or semi-formal celebrations of all sizes. The ballroom is reminiscent of those used in 19th century England with floor to ceiling windows and panelling often seen in luxurious English country mansions. The grand high pressed metal ceilings will take your breath away.

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Majestic guesthouse in regional NSW WHERE THE MOUNTAINS MEET THE PLAINS The traditional style gardens are perfect to hold a garden wedding ceremony and the photo opportunities are endless. • 16 beautifully appointed rooms • Licenced – 74 seat restaurant • Stone cottage – king size deluxe spa suite • Spacious 4 bedroom owner’s residence • Complete refurbishment in 2001 including underground infrastructure • 3.5 star AAA • Solar heated salt water pool • New BBQ area • Park like grounds

Shane Wynhoven Mobile: 0424 174 592 Sydney office: (02) 9904 8224 Email: shanewynhoven@resortbrokers.com.au

Net Profit: On request Turnover: On request PRICE: $1,850,000 REF: FH002394

PRICE REDUCTION

4 star apartments in Byron Bay LONG 15 YEAR LETTING AGREEMENT Ian Dore EXCLUSIVE AGENT Mobile: 0412 752 238 Brisbane office: (07) 3878 399 Email: iandore@resortbrokers.com.au

he 4 star Crest Apartments has long term 15 year letting agreements up until June 2028. The complex is set in an environment of native gardens and large shade trees, perfectly located just 600 metres from the town centre of Byron Bay and a stone’s throw from the dunes of Byron’s famous surfing beaches. Byron’s town centre has numerous cafes / eateries and exceptional restaurants bars and live entertainment with night spots regularly frequented by international stars.

Net Profit: $172,717 PRICE: $1,285,000

REF: MR002311

The town is also the nucleus of Byron Shire, which has in excess of 28,000 residents. • 21 spacious self-contained one and two bedroom apartments plus two story private two bed / five person villa • 15 year letting agreement • 17 apartments in letting pool • Heated saltwater pool, large BBQ area, secure basement parking, cable TV and wireless broadband • Manager’s level unit is an open plan layout with two bedrooms, airconditioning and basement car parking and storerooms • Reception and office is detached from manager’s unit • Easily managed by a single operator

In addition, Byron Bay is famous for its array of festivals, events and colourful markets while also being home to trendy boutiques, art, craft and retail shopping. There are not many people who have not enjoyed a weekend in relaxing Byron Bay. RESORTBROKERS.COM.AU 11

Editorial

Feel the Passion BY CATIE LANGDON: IN THIS SERIES OF ARTICLES, WE PROFILE LEADING SHORT-TERM ACCOMMODATION OPERATORS – THEIR ORIGINS, GROWTH, MARKET POSITION, AND FUTURE PLANS.

Gavin Faull, Chairman and President of global hotel management group SwissBelhotel International, explained the group’s approach this way: “You don’t see a Swiss-Belhotel. You feel it.” He is referring to the essence of the brand, a feeling when you walk through the door of being cocooned in an atmosphere of serenity, certainty and wellbeing. The brand is not described by rigid design guidelines or structural style. It is communicated through assured quality, hospitality excellence, efficiency, security and discretion. Founded in 1987 and headquartered in Hong Kong, Swiss-Belhotel International is today recognised as one of the world’s top 100 hotel management groups and among the fastest-growing. It provides professional management services in all aspects of hotel, resort, serviced residences and golf club operations. Swiss-Belhotel International began as a 12 RESORTBROKERS.COM.AU

small hotel consultancy set up by a former head of The Peninsula Hotels group, with whom Mr Faull had previously worked. Gavin Faull went on to be CEO of Kingsgate International Corporation, a publicly-listed hotel and property company in Australia and New Zealand, before joining his former Peninsula colleague at SBI in 1990. “With my Hong Kong partner, I bought Swiss-Belhotel International in 2000, and that’s when it became a fully fledged hotel management company,” he explained. The transition led to rapid expansion. Today, with a growing portfolio of more than 114 hotels, resorts and projects, Swiss-Belhotel International manages properties in China, Vietnam, The Philippines, Malaysia, Indonesia, Australia, Kuwait, Bahrain, Iraq, Oman, Qatar and Saudi Arabia. In addition to its corporate head office in Hong Kong, worldwide operations are supported by regional sales and

development offices in China, Vietnam, Indonesia, Thailand, Australia, New Zealand and United Arab Emirates. Mr Faull says that successful growth is due to the group’s firmly held view that it should work with property owners as partners – not displace or dictate to them, but rather collaborate in a way designed to maximize their returns and realise their investment potential. “Our management philosophy is unique. We develop our staff, we embrace our guests and build customer loyalty. We welcome the participation of owners, work with them, and lift properties to the next level by adding Swiss-Belhotel International’s unique values.” The group’s motto underlines the approach: “Committed to excellence in service and management.” Another oftcited catch-cry sums it up … “passion and professionalism”. They say their fusion of Swiss hospitality

professionalism and Asian passion and service is what truly sets Swiss-Belhotel International apart from other hotel management companies. It comes back to that essential ‘feel’, the Swiss-Belhotel International hallmark. While each property is individual and distinctive, designed to express the unique attributes of its location and cultural influences, the reassuring constant is hospitality excellence, simple, warm and welcoming. At present, Swiss-Belhotel International carries six brands: Grand Swiss-Belhotel (five-star hotels), Swiss-Belhotel International (four-star hotels), SwissBelresort (mid- to upper-scale resorts), Swiss-Belresidences (serviced apartments), Swiss-Belinn (three-star hotels), and the newest addition, Zest Hotel (two-star hotels) introduced in Indonesia two years ago. “There is no need to make branding complicated,” Mr Faull insists. “We have our core four-star brand, and all names leverage off that. They all reinforce each other. We build and value customer loyalty across the spectrum. “The simple fact is, the same

person has a need for different levels of accommodation at different times and under different circumstances. It may be four or five-star when the company is paying, or three-star when he or she is paying for the family.” The group is strongly focused on progressively and substantially increasing its property portfolio and promoting a globally recognised brand through a strong market presence and extensive sales and marketing networks. Naturally China is a significant growth market. And Indonesia has been particularly strong. Swiss-Belhotel International has been named that country’s Leading Global Hotel Chain for the past three years in succession in the annual Indonesia Travel and Tourism Awards. It also claimed the 2012-13 award for ‘Most Favourite 4-star Hotel’. In Australia, the brand is represented only in Sydney at The York by SwissBelhotel, where the group acquired management rights some years ago. While growth here has been subdued, Mr Faull now believes the time could be right for expansion ‘down under’. Informer spoke

to him just as he was leaving Hong Kong for Melbourne, to look at a project. “I do see growth prospects in Australia,” he said. “Post GFC, there is now more capital around, but the appetite has not been there for the hotel industry yet, largely because hotel development has a long incubation period. “Most of the recent investment in hotels in Australia has been acquisitions, with little new product being developed, with the exception of Perth where the room supply shortage was and remains acute. “But for many reasons – because there has been little development, because of Australia’s economic strength, the fact that tourist and business travel is growing and the Chinese middle class are now travelling there – I think the time could be right. “I’m considering becoming an equity investor myself.” As the group pursues opportunities in Australia and the Pacific with the same ‘passion and professionalism’ that has driven its growth in Asia and the Middle East, we could soon be ‘feeling’ more of the elegant influence of Swiss-Belhotel International. For more information visit www.swiss-belhotel.com

Editorial

Terms of the contract – financial due diligence and approval of the lease DAVID BURROUGH - HILLHOUSE BURROUGH MCKEOWN Our examination of the main terms of a motel purchase contract continues with an examination of the following conditions: 1. Financial Due Diligence; and 2. Approval of the Lease. These conditions will be relevant whether you are purchasing the motel business, the freehold investment or both the business and the freehold. Financial Due Diligence The purchase contract should be conditional upon the purchaser being satisfied of the financial soundness of the business by a certain date after execution of the contract. To enable this to occur the contract should provide for the vendor to deliver or make available to the purchaser or the purchaser’s accountants copies of such financial data which may be reasonably required. 13 RESORTBROKERS.COM.AU

The purpose of such enquiries is to enable the purchaser to explore the financial viability of the business. Generally this will be required to be provided to the purchaser’s financier in order to secure finance for the purchase. If the purchaser is not satisfied of the financial soundness of the business, then the purchaser will be able to terminate the purchase contract by notice in writing to the vendor. Care should be taken to ensure that the time frames in the contract within which the purchaser needs to be satisfied with the financial soundness of the business or within which the purchaser needs to terminate the contract are strictly adhered to. For this reason it is important for a prospective purchaser to liaise with their accountant early in the transaction to ensure that the time frames can be met.

Approval of the Lease The approval of the lease is an important condition for both the purchaser of a the leasehold business and the purchaser of the freehold investment. It is essential prior to purchase of the business that the purchaser understands as much as possible about the lease document and how it works. Not only does this document affect his own activities in the motel business, but is also is an important part of the asset which is sold. Generally the contract will require the vendor to deliver to the purchaser a true copy of the lease within a certain amount of time of the contract being entered into. The contract should be conditional upon the purchaser being satisfied with the terms and conditions of the lease by the a certain date. If the purchaser is not satisfied of the terms of the lease, then the purchaser will be able to terminate the purchase contract by notice in writing to the vendor. Again, care should be taken to ensure that the time frames in the contract are strictly adhered to. The results of the analysis of the lease in terms of cost to the prospective tenant or landlord should be conveyed to the purchaser’s accountant prior to the contract becoming unconditional. These conditions are for the benefit of the purchaser and every effort should be made to use the time available to conduct thorough enquiries in relation to both the financial soundness of the business and the lease. Such information enables a purchaser to make an objective and informed decision in relation to whether or not to proceed with the proposed purchase. RESORTBROKERS.COM.AU 13

EXCLUSIVE

eaumont Kew Serviced Apartments are situated in the prestigious Melbourne suburb of Kew less than 6 kms from Melbourne. It consists of 76 studio serviced apartments with guest facilities including a fully appointed conference room, licenced restaurant (used only for breakfast and functions), guest laundries, complimentary Wi-Fi, paved courtyard and onsite parking. The apartments are stylishly furnished with kitchenettes, comfortable living areas, bathrooms and laundry facilities. Kew is a prestigious suburb with many historic buildings representing a bygone era of Melbourne. Within easy commuting distance to the city, the property is located close to Kew Junction on the direct tram line to the city. The property is the ideal opportunity for an experienced operator or small hotel group looking to ‘cash in’ on the corporate Melbourne market. The complex has a two bedroom freestanding owner’s accommodation which was built in 2008 and has a modern comfortable fit out.

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Exciting accommodation business in Melbourne LONG LEASE RETURNING 32.7% ROI 6 x 4 star serviced apartments including •7 46 x studio and 30 executive studio apartments •A ll apartments provide quality furnishings and fittings, kitchenettes, living areas and bathrooms •B uilding facilities include a large reception area with separate manager’s office, conference room, licensed restaurant, lobby lounge, paved courtyard and onsite parking •O pportunity for purchaser to operate as an independent or branded business • The vendors are completing a property and apartment refurbishment program • Long lease • Market rent

Jim Chapman EXCLUSIVE AGENT Mobile: 0413 444 782 Melbourne office: (03) 9347 3100 Email: jimchapman@resortbrokers.com.au

Net Profit: $540,588 Turnover: $2,744,356 PRICE: $1,650,000 REF: LH002402

EXCLUSIVE

The best location in Echuca A FANTASTIC CASHFLOW BUSINESS

Gerard Hurry EXCLUSIVE AGENT Mobile: 0417 250 211 Melbourne office: (03) 9347 3100 Email: gerardhurry@resortbrokers.com.au

Net Profit: $320,379 Turnover: $916,257 PRICE: $1,200,000 REF: LH002441

his is an excellent opportunity to secure the best located motel in the Victorian Murray River tourist mecca of Echuca. The motel is situated in the central business district of the town and also right on the doorstep of the historical port area, home to the world’s largest collection of operating paddle steamers. The town plays host to many large events throughout the year in particular the Southern 80, the largest water-ski race in the world. There is a fantastic array of restaurants, cafes and hotels to service the town’s swelling holiday population as well as many tourist attractions based around the historical port area and the amazing paddle steamers.

Facilities include an in-ground pool, indoor spa, corporate lounge/billiard room and guest laundry. In addition there is a manager’s flat and a very large four bedroom residence. The business provides excellent cash flow and is a great opportunity for the ‘handson’ operator or a motel family to build on this already substantial business. • 42 well presented motel units • Long 26 year lease • Excellent ‘centre of town’ location • Short walk to historical port district • In-ground pool, heated indoor spa •B asement style corporate lounge/ billiard room • Wi-Fi and Austar • L arge four bedroom residence with private balcony overlooking town centre • Above average Victorian returns

The property consists of 42 well presented motel units of varying configurations. RESORTBROKERS.COM.AU 15

Editorial

Opportunity knocks on the motel room door BY IAN CROOKS - RESORT BROKERS AUSTRALIA

Accommodation occupancy rates in Australia are rising, yet growth in room numbers remain low. Over time, the laws of demand and supply have pushed prices higher. But investment in new rooms has not kept pace. I now see a very strong case for accommodation investment. Motel development has stagnated for too long. Australia needs at least 100 new motels, of 30 to 40 rooms each, in key locations now! However the investment must be welltargeted. According to the latest figures released by the Australian Bureau of Statistics (ABS), the national occupancy rate for hotels, motels and serviced apartments (15 or more rooms) rose to 65.8% in 2012, up from 65.3% in 2011. For someone who has been in the industry for as long as I have, these are impressive figures. For the 20 or so years up to the mid-2000s, the traditional average occupancy rate hovered around 57 – 59%. The industry’s other key performance indicator, revenue per available room (RevPAR), has also climbed. ABS data shows it rose from $103.83 in 2011 to 16 RESORTBROKERS.COM.AU

$107.99 in 2012. Anecdotally, I can tell you average room rates in most areas have increased by about $25 net of GST in the past four years, driven by the accommodation shortage. National figures show a steady and encouraging upward trend. But we need to drill deeper, looking at the detailed regional results to identify where the opportunities lie. Australia’s accommodation industry is a patchwork landscape with its cities and regions subject to diverse economic factors and influences. Queensland, Western Australia and the Northern Territory recorded the greatest trading improvements from 2011 to 2012. Again reminding us of the importance to our industry of the resources and energy sectors. In Queensland, for example, while the average daily rate (ADR) statewide has risen by almost 12% over the last five years, the regional results vary wildly. According to figures provided to the Informer (March 2013) by M3 Properties, the 5-year change in ADR swung dramatically from a rise of 41.5% in the resource boom-affected Central

Queensland region to a fall of 9.4% in tropical North Queensland, where they’ve had to contend with the double whammy of the GFC-driven tourism downturn and natural disasters. In the regions impacted by mining and energy industry fluctuations, the supply issue is complex. In times of peak construction activity, for example, there are never enough motel rooms and mining camps are established to meet peak accommodation needs. The motels are still busy catering for executive and regular business and holiday guest demand. But when the mine construction activity scales back, the camps pack up and leave. Remaining operations personnel, however, still need accommodation and they turn to the motels. There are never enough. So why is it that these prime opportunities have largely gone begging? Why have developers been slow to fill the supply gap? One of the biggest hurdles is often state and local authority red tape, involving lengthy development approval processes and associated costs. That’s why I’m so impressed with new modular and pre-built motel delivery options featured recently in the Informer. The time and cost savings offered by both the R.I. Kenco Spa Modular Building Systems design and Podfirst’s motel units present innovative, viable solutions to our motel supply needs. R.I. Kenco’s Italian-designed and prefabricated Modus units arrive flat-packed. With a build time of just eight weeks from start to finish, you have a new motel in place for around $50,000 - $60,000 per room. In the case of Podfirst, the architecturally designed, pre-built masonry motel rooms are delivered as connectionready pods, from $42,000. They have reinforced, concrete-filled wall panels over a concrete slab floor, with sub-floor services, all ready to plug in. Forecaster Deloitte Access Economics anticipates room occupancy rates in Australia are going to further increase from 65% to 68% by 2014. While international visitor numbers are rising, more and more Australians are choosing to holiday at home. And our own population includes a large bubble of baby boomers who’ll be spending more and more time in pursuit of leisure. Tourism Australia, in 2009, announced we needed to deliver 40,000 more accommodation rooms by 2020. But according to their state of the Industry 2012 report, there’s only been a net increase of around 730 nationally since then. That’s a huge shortfall. I can honestly say, the long-term outlook for motels is stronger now than any time in the almost three decades I have been in this industry. Opportunity is knocking.

Editorial

NRAS?

Understanding NRAS BY JOHN MAHONEY - MAHONEY LAWYERS Since the advent of the Federal Government’s initiative with NRAS (National Rental Affordability Scheme) a couple of years ago, the management rights industry has been endeavouring to come to grips with its impact. That has led to confusion, uncertainty and in more than one case, considerable grief. The NRAS program was designed to provide an incentive for investors to buy new property to stimulate the building industry and improve the rental affordability in high growth areas for middle income Australian families. The incentive to the investor is the provision of substantial tax savings over a 10 year period and there are some clear and certain tax advantage for the investors. The properties can only be rented to tenants with certain levels of income. Most importantly, NRAS is not about social housing nor designed for very low income families. It is, as the NRAS website states, designed for middle income earners including key and essential service workers such as childcare workers, nurses, police officers and fire-fighters. NRAS properties can be rented, but at no more than 80% of the current market rent, to private individuals and families with annual incomes of up to $108,169 and in some limited cases even higher upper limits of $135,212. These amounts will also be indexed to the CPI. There are a very large number of what are known as NRAS providers – not for profit organisations approved under NRAS to manage properties accepted into the NRAS program. There are over 20 operating in Queensland. The NRAS provider comes to arrangements with a developer for an approved number of properties in an approved development to be managed by the provider under NRAS. Under the provider’s agreement with the Government, the provider is responsible to ensure that the letting of the properties 17 RESORTBROKERS.COM.AU

comply with the prescribed NRAS rules particularly that they are let to qualified tenants at the prescribed rents. Unless there is full compliance the provider’s status and the investor’s tax incentives are in jeopardy. It is therefore critical that the provider have a degree of control over how the properties are let and managed. Different providers require different levels of control. One uses a model where it leases all of the properties from the investors and then appoints the onsite manager as agent to sublet the properties to eligible tenants. Other models have joint letting appointments with the onsite manager who does all the property management and receives the bulk of the income. Other models simply allow the onsite manager to take letting appointments from investors but under strict guidelines agreed to with the provider. The obvious issues with NRAS from the perspective of an onsite manager, valuers and banks include: • The degree of control the provider has over the investors and the properties – the provider will be in a good position to direct or influence owners as to who should manage the letting of their properties; • The potential for the provider to itself take on in the future, as agent, the letting of the properties; • The reduced income from the lettings as the rent is at least 20% below market rents; • Whether the complex will be able to attract a sufficient number of qualified tenants who meet the NRAS guidelines; and •M ore paperwork to be completed to ensure strict compliance with the NRAS requirements regarding tenant eligibility and market rents, with some providers insisting on specific software utilisation.

We have acted in a number of transactions involving NRAS properties including for various managers, one of the State’s largest developers and also for a bank funding a purchase. If the full details of the NRAS arrangements are known at the outset there are ways to deal with the above issues so that the onsite manager is protected. That might include a lower payment for the NRAS units, procuring warranties or even restraints from the provider, deferred or staggered payments for the NRAS units, procuring non-competition agreements with the provider or some combination of these or others. Unfortunately we have also been consulted by buyers of management rights off the plan where they have only found out after signing a contract that a large number of units are part of NRAS, situations that can cause a lot of grief. Having arranged and partaken in recents forum attended by a major developer, valuers, banks, brokers and an NRAS provider, the way forward is still not crystal clear. In particular, valuers and banks will attribute minimal if any value to letting appointments where the provider has total control of the letting appointments and who the letting agent will be. Again though there are ways of dealing with even these situations to protect the onsite manager as much as possible. On the positive side, it is important to note that: •N RAS units are more likely to remain in the letting pool for a longer time than other investor units as the NRAS investor (and any buyer who remains in the scheme) has the benefit of the 10 year tax incentive; RAS providers generally do not want to •N manage the letting of the properties and (as do the NRAS investors) recognise that the onsite manager is best positioned to do that – if the onsite manager is providing a sound service there will be little reason not to continue with that; • There has been a resale of at least one management rights business with a large component of NRAS units (albeit not the leaseback model) indicating market acceptance; • There are a very large number of complexes with NRAS units and a growing understanding and acceptance of the concept; and • The management rights industry is very resilient, tending to adapt to or overcome potential threats and move on fairly quickly. For a potential buyer of management rights in a complex where there are or is likely to be NRAS units, it is critical to thoroughly investigate the NRAS arrangements and take sound legal advice from a lawyer experienced in dealing with the issues involved. RESORTBROKERS.COM.AU 17

EXCLUSIVE

esort Brokers Australia have the pleasure of offering for sale one of Mildura’s finest motels. Located on the main road into town and only a 5 minutes away from the information centre and wave pool. Part of the Best Western chain, this motel is excellent on inspection featuring a high quality fit out.

The property consists of 38 spacious, superbly appointed motel suites and executive apartments, conference area and solar heated pool in a gorgeous shady setting. The motel also contains a fully licensed restaurant and cocktail bar which is sub-let to an experienced, local restaurateur under a formal lease agreement. Mildura and surrounds has a population of approximately 50,000. It is the commercial centre of north-west Victoria and is situated on the mighty Murray River which is the towns’ major tourist attraction. Traditionally a burgeoning fruit growing area, Mildura’s dry, arid climate has also made it a popular area for wine growing and is home to many vineyards. 18 RESORTBROKERS.COM.AU

Murray River tourist town

OUTSTANDING LEASEHOLD OPPORTUNITY

The motel shows healthy occupancy and provides operators with the opportunity to build on the substantial existing business. • 38 beautifully appointed, spacious motel suites • Long 28 year lease, market rent • Superb inspection, recently refurbished, requiring no immediate works • Excellent mix of corporate and tourist trade • Solar heated pool in idyllic shady setting • Attractive manager’s residence • Conference area, restaurant and cocktail bar (sub-let) • Located on main road only a 5 minute walk to information centre and wave pool

Gerard Hurry EXCLUSIVE AGENT Mobile: 0417 250 211 Melbourne office: (03) 9347 3100 Email: gerardhurry@resortbrokers.com.au

Net Profit: $408,000 Turnover: $1,199,421 PRICE: $1,400,000 REF: LH002388

Are you buying or selling Caravan Parks, Motels, Management Rights or Hotels?? David Burrough and his team are the most respected legal advisors for those about to buy or sell an accommodation business. Why not give them a call today?

T: (07) 3220 1144 E: email@hillhouse.com.au

www.hillhouse.com.au Many thanks to Queensland Tourism for providing the image of Brisbane 19 RESORTBROKERS.COM.AU

RESORTBROKERS.COM.AU 19

On offer is the freehold interest of a 60 site (soon to be 66 site) park less than 200 metres from the pristine waters of Hervey Bay. The park consists of 12 tourist cabins, 24 permanent and 22 tourist sites plus 6 new sites ready in mid 2013. It is bordered by three streets with access from two, the main entrance is off the major arterial road / drive, Elizabeth Street. This property is complimented by a three bedroom house with kitchen, dining / lounge and bathroom. As well as a small kiosk and office at the front of house for ease of operation. The current vendor is motivated and has reduced the price to sell, sell, sell!

Fabulous beachfront caravan park MOTIVATED VENDOR WHO IS KEEN TO RETIRE • Just 2 minutes walk to the beach • Three street frontage • Very strong under lying land value •B eautiful part of Queensland and popular holiday destination • Three bedroom residence for owner manager • F ully self contained one bedroom granny flat • Consistent trade •O ption to run under management or perfect for joint operation

Nett profit: $402,000 Turnover: $575,000 PRICE: $3,500,000

Lindsay Cooper Mobile: 0418 711 047 Brisbane office: (07) 3878 3999 Email: lindsaycooper@resortbrokers.com.au

REF: FH002198

EXCLUSIVE

Coastal Big 4 freehold caravan park IMMACULATE! THIS ONE IS AN ABSOLUTE BEAUTY Nett profit: $410,000 Turnover: $571,294 PRICE: $3,650.000

Lindsay Cooper EXCLUSIVE AGENT

Mobile: 0418 711 047 Brisbane office: (07) 3878 3999 Email: lindsaycooper@resortbrokers.com.au REF: FH002364 20 RESORTBROKERS.COM.AU

For sale is the freehold interest of a beautifully presented 78 site caravan park. The park is a member of the popular Big 4 group. The park has two residences; one of which is currently occupied by the manager The park consists of 11 relocatable homes; 8 permanents sites with own dwellings; 4 permanents in park owned vans and cabins, 11 holiday cabins and the remaining 44 sites are all powered van and camp.

Situated just a couple of minutes to the heart of town with its many restaurants, bars, clubs, shops and attractions. Yet it enjoys peace and quiet at all times and is only a short walk to the pristine waters of Hervey Bay. • 2 fantastic residences; one is a four bedroom and the other is a three bedroom • 4 star park (3.5 star cabins) •7 8 sites total, cabins, relocatable homes, powered sites • Currently run under management •N othing to spend. Its all done. Full list of refurbishments available •C onsistent performer • 5 minutes (or less) walk to the beach

Located in the popular regional town of Goondiwindi, Queensland this 92 site, 4 star park is a member of the Big 4 caravan park group.

Location, location! Six highway junction FREEHOLD GOING CONCERN CARAVAN PARK

The property is situated on a 4.292 ha site (10.6 Acres) adjacent to national highway with ample of room to expand, at the front and rear of the park.

The freehold interest of this property is a great opportunity for a hands on operator who is looking to increase the bottom line by developing the property further.

The recent addition of the Artesian Spa and Pool facility is very popular with park guests as well as the general public, everyone loves to unwind in the therapeutic waters.

• 4 star park • 10.6 acres - plenty of room to move • Business increasing every year • Country ROI • Member of Big 4 group

The owners residence consists of three bedrooms, a bathroom, lounge room, kitchen/dining and is attached to the front reception for ease of operation.

THE PERFECT FAMILY BUSINESS

Lindsay Cooper Mobile: 0418 711 047 Brisbane office: (07) 3878 3999 Email: lindsaycooper@resortbrokers.com.au

REF: FH002379 / LH002378

PRICE: $2,295,000

Lindsay Cooper EXCLUSIVE AGENT

Mobile: 0418 711 047 Brisbane office: (07) 3878 3999 Email: lindsaycooper@resortbrokers.com.au REF: FH001635

High occupancy park in Inverell Nett profit: $341,610 PRICE: $2,400,000

Nett profit: $326,000 Turnover: $557,000

This property is the ideal proposition for a family looking to run a business together. It has a two residences; one is very large and is situated above the amenities block.

Resort Brokers Australia are offering the freehold interest of this mid-sized caravan park in Inverell.

The other is a three bedroom house with a fabulous alfresco area that is perfect for entertaining.

The park consists of 58 sites in total made up of 35 long term sites and 23 short term sites, however this configuration is currently being changed.

• 15,625 square metres • Manual bookings system • Pool • Modern camp kitchen • Onsite laundry as well as linen hire • 85-95% occupancy • 14.2% return

Additionally there are also 19 cabins, 16 of which are en-suited as well as 19 single motel style rooms that span over 3 sites. These rooms are new and are almost always fully booked.

RESORTBROKERS.COM.AU 21

Editorial

Turning the tables on the great outdoors BY MIKE O’CONNOR When your children are young, you are sometimes possessed by an urge to involve them in a bonding experience. No one knows why normally rational adults are seized by these impulses, ones that invariably involve the great outdoors for children dread them and hide under their beds at the first mention of “doing something together as a family’’. They only thing they wish to do together as a family is to be left in their rooms plugged firmly into social media sites via their laptops. Once the bonding notion has become fixed in a male’s head, however, he is not easily dissuaded for he sees himself as the head of the tribe whose role it is to fend for his brood in the wild. The last time I was seized by this particular form of madness was when I recalled, for no reason, a caravan park where I had once stayed in northern New South Wales. Caravan parks are a link with the past. In an era when many Australians reach for their passports at the mention of holidays, they offer a quintessentially Australian egalitarian experience. Nowhere levels social barriers like the communal shower block in a caravan park. There, shaving elbow to elbow with complete strangers or waiting for a vacant shower cubicle, all creatures great and small are equal. “It will be wonderful’’ I beamed, announcing my great outdoors plan one evening. “I’ll borrow my mate’s motorhome and we’ll have a weekend by the sea. No high rise, no lifts, no breakfast buffet, just self catering and the crash of the surf.’’ 22 RESORTBROKERS.COM.AU

This announcement was greeted with groans of despair. “Will there be WiFi?’’ they chorused. “No computers. No iPads ‘’ I cried, triggering a mass exodus from the dining room followed by the sound of bedroom doors being slammed. The last time I’d stayed in a caravan park had been with a mate and his girlfriend. He was new to the experience and had spent a large amount of money on a huge tent and everything that went with it. What a shame that when after a drive of several hours we arrived at the park and went to erect his luxurious new tent, we discovered he had left the tent pegs at home. Negotiating my friend’s motorhome down the highway was easy enough. Parking it the caravan park proved to be more interesting as it was the size of a cruise liner. After quite a lot of shouting, yelling and contradictory directions which if followed would have seen me parked in the surf, we were plugged into the powered site and ready to set up camp and enjoy the Great Outdoors. The roof that extended from the side of the motorhome like a bat’s wing proved to be a challenge and I never did get it secured properly. Fortunately, there was no wind. Had there been I had the uncomfortable feeling that the motorhome would have gone sailing through the sky and come to rest somewhere west of Alice Springs. All, however, had gone reasonably well and quietly pleased with myself, I decided to set up a folding table and chairs, the better to relax beneath the bat wing. I was ahead on points and had almost

wrestled the table into submission when it struck back, snapping shut and trapping my hand. This hurt quite a bit and sent me flapping around the van site, table still attached to my hand, bellowing in agony. My partner eventually caught me, crash tackled me to the ground and using her feet, forced open the jaws of the table which had a bite like a saltwater crocodile. She found a supply of Band Aids and the bleeding staunched, I abandoned the motorhome and announced we were all going to the nearby pub for dinner. The next morning, the caravan gods smiled upon us. We cooked breakfast without setting fire to anything and with the sun shining from a cloudless sky, walked the 100m to the beach. The kids spent the day swimming and doing kids’ things that did not involve crouching over a keyboard in a darkened bedroom while we sprawled in our director’s chairs and soaked up the warmth At day’s end we braved the communal showers and aglow with that wonderful postshower feel of freshness that comes after a day at the beach, had drinks beneath the bat wing as the sun cast its last shadows over the park. “I love five star resorts, ’’ said my partner. “but you might be on to something here. When the kids leave home we should do more of this.’’ “Jordan’’, I said turning to my partner’s first born. “When are you thinking of leaving home?’’ “Never’’ he replied. Ah well. It was a nice thought.

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LUXURY ON THE BEACH Superbly located on the recently revamped Mooloolaba Esplanade, opposite one of the coasts iconic beaches this complex is arguably the highest quality development ever built on the Sunshine Coast. Sea Pearl’s luxurious lifestyle features are unrivalled with direct pool access from level two podium apartments and the inclusion of a residents’ cinema, gymnasium, steam room, swimming pool and spa.

FANTASTIC LIFESTYLE BUSINESS - POTENTIAL TO GROW LETTING POOL Resort Brokers has been appointed as exclusive marketing agents for the sale of the caretaking and letting rights to the 5 star luxury Sea Pearl complex located in Mooloolaba on Queensland’s Sunshine Coast. The complex features 23 superbly appointed, spacious and luxurious sky homes with deluxe finishes and state of the art lighting sound and data capabilities and 24 hour CCT coverage and video intercom access. Whilst this offering is predominately a caretaking and facilities management role some owners have indicated a desire to let out their apartments for short term let. Utilising achieved tariffs from similar high end complexes it is anticipated these apartments would rent out between $650 per night in the low season to $1,100 per night high season. We would anticipate however only a small amount of owners will initially wish to take advantage of this. Should an onsite manager achieve just three apartments in the letting pool a return to the manager could conservatively exceed $15 - $20,000 per apartment per annum. A minimal claw forward provision will be in place on the letting portion of the sale. Onsite Managers would have full access to all of the complex facilities as do the other owners. The Managers Residence is a two bedroom two bathroom fully furnished apartment.

MANAGEMENT RIGHTS

Caretaking salary: $43,000 Plus projected letting income: $75,000 Total: $118,000 PRICE: $870,000

Glenn Millar Mobile: 0412 277 804 Email: glennmillar@resortbrokers.com.au Tyler Millar Mobile: 0411 271 761 Email: tylermillar@resortbrokers.com.au

www.seapearl.com.au

On offer either the freehold going concern, leasehold interest or the freehold investment of a boutique holiday cabin park / motel consisting of 7 x one bedroom ensuited and self-contained cabins and 3 x two bedroom fully self-contained and ensuited cabins. The manager’s residence is a near new two bedroom, large open planned kitchen, dining and lounge room with a large laundry and bathroom. At the entrance is the office reception and gift and souvenir shop, which of course sells opals catering to guests and tourists. This holiday park is easily run by a couple who work no more than 25 hours each a week according to the vendor.

Boutique holiday cabin park FREEHOLD OR LEASEHOLD: BOTH ON OFFER • Just 6 years old - nothing to spend • 10 ensuited and self-contained cabin accommodation • Right in the middle of town • Average occupancy of over 75% • Work just 25 hours a week for a couple (50 hours combined). How good is that! • Situated in one of the top ten tourist destinations in North West NSW • A compact and easy to run opportunity

Leasehold nett profit: $114,000 (projected) LEASEHOLD PRICE: $325,000 plus SAV

Freehold nett profit: $189,000 FREEHOLD PRICE: $850,000 plus SAV

Lindsay Cooper EXCLUSIVE AGENT

Mobile: 0418 711 047 Brisbane office: (07) 3878 3999 Email: lindsaycooper@resortbrokers.com.au REF: INV002464 / FH002463 / LH002461

EXCLUSIVE

Busy country & western QLD holiday park FREEHOLD OFFERING - PERFECT FOR A FAMILY Nett profit: $562,000 Turnover: $845,000 PRICE: $3,600.000

Lindsay Cooper Mobile: 0418 711 047 Brisbane office: (07) 3878 3999 Email: lindsaycooper@resortbrokers.com.au

REF: FH002459

On offer is the freehold going concern of a busy tourist caravan park in country Queensland. The park consists of 73 licenced sites on 4.5 acres and is made up of 20 cabins and villas; 16 caravan ensuited sites; 9 designated drive through sites; 28 powered sites and a one bedroom flat to the rear of the residence. The residence is a large building with five bedrooms and two bathrooms over two levels. The bedrooms are upstairs and the living area is at ground level with kitchen and

dining combined and separate lounge area plus an alfresco area to the rear. The residence is attached to the office reception area at the entrance to the park • 73 sites - no permanents • Very strong trade - has the most tourists sites in town • 4.5 acres of land with natural gas line to back boundary • 20 cabins and villas • Massive five bedroom house for the owner • Mum and dad can run this business however currently under management • Very busy centre for rural, gas and oil • 4.5 hours Brisbane RESORTBROKERS.COM.AU 25

must at Coonawarra is just a stroll or short drive from over 24 cellar doors, offering travellers the ideal location for a wine lovers adventure, romantic getaway or business liaison. On offer is the freehold and the business of an award winning accommodation business in the heart of the Coonawarra wine region. The complex is only five years old and is by far the best accommodation business in the region. This 4.5 star property has already won six prestigious tourism awards and runs at a very high occupancy. The accommodation is modern and is the perfect offering in this world renowned wine region. With scope to increase and manage tariffs better, there is an opportunity to improve the bottom line. With the business well and truly established, it is great opportunity to take over a unique property in a special part of the world. An inspection will surely impress!!

26 RESORTBROKERS.COM.AU

Trophy property Australia’s best wine country FREEHOLD & BUSINESS •9 self-contained ground floor apartments - 5 x studios and 4 x one bedroom apartments • Low maintenance property •Q uality custom made furniture and hand crafted artwork in each room • Luxury bathrooms with guest robes • Tripadvisor - ranked number 1 of 4 ‘speciality lodging’ in Penola • I deal to run under management or sell leasehold •S tunning, huge manager’s residence with large open plan living area complete with entertainer’s kitchen • Take the time to visit the property website: www.mustatcoonawarra.com.au

Stuart Charles Mobile: 0458 588 472 Melbourne office: (03) 9347 3100 Email: stuartcharles@resortbrokers.com.au

Net Profit: $280,000 PRICE: $2,350,000

EXCLUSIVE

The best in the west NEEDS TO BE SEEN TO BE BELIEVED

Jim Chapman EXCLUSIVE AGENT Mobile: 0413 444 782 Melbourne office: (03) 9347 3100 Email: jimchapman@resortbrokers.com.au

Ian Crooks EXCLUSIVE AGENT Mobile: 0411 171 648 Brisbane office: (07) 3878 3999 Email: iancrooks@resortbrokers.com.au Nett profit: $350,000 PRICE: $1,695,000 (inc. unit)

REF: MR002450

modern 73 unit complex located right on the waterfront in the popular Western Australian city of Mandurah is on offer. The management rights business is branded under the internationally recognised ‘Quest’ chain and has 59 keys in the letting pool. Quest Manduarh was built approximately 11 years ago and has run very efficiently during that time, in fact the same owners have operated the business since its inception. Only 40 minutes south of Perth by rail the business enjoys corporate trade Monday to Thursday nights and leisure guests at the weekend (70% corporate and 30% leisure) - the best of both worlds.

The property is located just 800m from the CBD and performing arts centre, 2kms from the Ocean Marina and 3kms from major shopping centres and golf courses. Mandurah has become a popular lifestyle alternative for Perth retirees. It’s connection with Perth’s CBD has been dramatically strengthened by the opening in 2007 of the Perth / Mandurah rail line. With a business price of $1,170,000 this property is selling at a multiplier of 3.3 making this a lucrative proposition. • Caretaking agreement - 25 years from 5/6/2012 • 4 jetty licenses • Spacious two bedroom, two bathroom manager’s unit with water views • Large office and reception area with internal stair access to the owner’s accommodation • Occupancy 72% • Body corporate remuneration $57,000 increased annually by 4% • Unit price $525,000 (new valuation to substantiate price)

RESORTBROKERS.COM.AU 27

EXCLUSIVE

The vendors of the Spanish Lace Motor Inn have recently spent in excess of $70,000 upgrading the property. With a new 25 year lease on offer at settlement, this motel is ready for the new owners to take it to the next level. The property is frequented by many repeat clients. The recent addition of 81 solar panels will ensure that the electricity account is halved. There is a restaurant onsite however it is closed, but currently the sports bar remains open.

Outstanding opportunity in Townsville LEASEHOLD MOTEL This will not last. Call today to arrange an inspection now! 5 unit B&B motel on the Bowen Road strip •2 • Swimming pool and BBQ area, large outdoor entertaining area • New floor tiling in some units •N ew bathroom fit out to most units, tapware, tiling, cisterns and toilet suites •G ood mix of room types including self contained family rooms • Solid 3.5 star property

Gated permanent complex in Townsville NEAR NEW PROPERTY WITH GREAT RESIDENCE Nett profit: $200,000 PRICE: $1,255,000

Chris Rowe Mobile: 0408 225 220 Brisbane office: (07) 3878 3999 Email: chrisrowe@resortbrokers.com.au

REF:MR002032 MR002331 Ref: 28 RESORTBROKERS.COM.AU

The Westend Apartments complex consists of 84 x two and three bedroom apartments. This highly desirable property enjoys high permanent occupancy together with great returns to owners. This immaculate property boasts 2 magnificent in ground pools set among tropical gardens which are very low maintenance. A very stable rental pool offers new owners a secure investment coupled with a great tropical lifestyle in North Queensland.

Nett profit: $188,000 Turnover: $522,000 PRICE: $625,000

Chris Rowe EXCLUSIVE AGENT Mobile: 0408 225 220 Brisbane office: (07) 3878 3999 Email: chrisrowe@resortbrokers.com.au REF: LH002415

A very rare offering!! • Just 4 years old • Very attractive complex • Long agreements • Great body corporate • Extra income from private lawns • Fantastic manager’s three bedroom, 2 two bathroom apartment with large patio • Pet friendly complex • Great office and reception on title • 54 in rental pool • Rents average over $400 per week • Three bay shed with toilet on exclusive use • Very high occupancy • Room to grow rental pool

EXCLUSIVE

A great opportunity to buy yourself a job and choose how much you want to earn. There is no obligation to live onsite so you have the option to rent out the unit for $18,500 per annum. This permanent complex has strong rental demand given its convenient location right next door to the Stafford City Shopping Centre. This business has three income streams; the rental of 26 units, caretaking of gardens/ common area and cooking a hot lunch for 25 people a day. There is currently a cook employed to prepare lunch for the guests and he is more than happy to stay on.

20% yield & option to live offsite SPECTACULAR UPSIDE

All the units are a one bed configuration with no kitchen and rent for $220 per week. The spacious three bedroom, two bathroom managers unit has been priced based a valuation by a registered valuer which is recognised by all the major banks. • 12 years on term • Separate office on title

Nett profit: $117,841 or $135,500 (live off site) PRICE: $566,000 Tim Crooks EXCLUSIVE AGENT Mobile: 0422 208 450 Brisbane office: (07) 3878 3999 Email: timcrooks@resortbrokers.com.au

Under vendors instruction that we must sell! REF: MR002380

EXCLUSIVE

Small but sweet

SPACIOUS CALAMVALE HOUSE & INCOME Nett profit: $18,000 PRICE: $530,000 (incl. unit)

David Janett EXCLUSIVE AGENT Mobile: 0404 204 672 Brisbane office: (07) 3878 3999 Email: davidjanett@resortbrokers.com.au

REF: MR002397 Ref: MR002032

If you are looking for a large residence and some pocket money on the side then this lifestyle property could be for YOU! The gardens are mulched and self maintaining and mowing is minimal. The income is small but so is the workload. This management rights is in a great location and comes with a granny flat, double garage and a huge house. You have the option to live offsite and rent out the manager’s unit if required, as the current owners do.

The complex is small, with only 11 townhouses so is very quiet and peaceful. All this for the price of a reasonable house! • Very large four bedroom, two bathroom managers residence with separate granny flat or rumpus room • Close to 4 large shopping centres • Ideal supplementary income • Located on the ever popular southside • No office hours • Able to live offsite if required • Small dog allowed • Very flexible lifestyle could suit a stay at home mum or dad RESORTBROKERS.COM.AU 29

EXCLUSIVE

This village of 45 one-bedroom units is in the charming regional area of Griffith, New South Wales. Surrounded by colourful citrus orchards and with its green rolling farmland and beautiful rivers, this property offers a tranquil destination to its guests. The Riverina region (where Griffith is located) is also well known for its many wineries and offers a blend of cuisine, culture and a cosmopolitan atmosphere. This business provides a great opportunity for a hands on operator to come and run the property, as it has been under full management by an external management company.

Secure 20% yield including real estate MANAGEMENT RIGHTS - COMING SOON! The units in the complex represent incredible value for money renting at $160 per week. The business has historically made more profit from food which presents possible upside for an incoming purchaser. This main role for the manager includes cooking, gardening, cleaning and letting (although it has no responsibility to care for tenants or owners - they are all independent). • Secure income with rents direct from pension • 23 years on the agreements • Body corporate salary is $53,942

Outstanding salary! LOCATION, LOCATION, LOCATION! Nettprofit: profit:$139,000 $18,000 Nett

PRICE: $ 530,000 (incl. unit) PRICE: $1,075,738

David David Janett Janett EXCLUSIVE AGENT Mobile: 0404 204 672 0404 2043999 672 Brisbane Mobile: office: (07) 3878 Brisbane office: (07) 3878 3999 Email: davidjanett@resortbrokers.com.au

Email: davidjanett@resortbrokers.com.au

REF: MR002304 Ref: MR002032 30 RESORTBROKERS.COM.AU

Looking for a great management rights close to the Sunnybank area? Then take a look at this one. This complex is a breeze for one person to run Located in Runcorn, close to 5 major shopping hubs, the train station, bus routes, the M1 and the Gateway. Close to all these amenities yet secluded in a quiet cul de sac. This complex offers the best in lifestyle where you have an easy workload but get paid as if the complex had 80 units instead of 41.

Nett profit: $90,150 Manager’s unit price: $275,000 PRICE: $450,000 (incl. manager’s unit) Tim Crooks EXCLUSIVE AGENT Mobile: 0422 208 450 Brisbane office: (07) 3878 3999 Email: timcrooks@resortbrokers.com.au

This management rights would be a great way to start your career. • This outstanding complex has a small workload with a large salary ($87,107) • 41 units with 23 in the letting pool • Stand alone manager’s unit. Three bedroom, two bathrooms and a double lockup garage •N o hedges to trim and garden beds are mulched • Small dog under 10kg allowed This is a rare find and well worth a look. Be quick!

EXCLUSIVE

This is a truly unique opportunity to secure a wonderful property in the heart of Australia’s best wine region, the Coonawarra in South Australia. The business has been run under management and has under-performed. It needs a handson operator with a passion for the region and property. With a current valuation for the business of $120,000, this is a fantastic opportunity to buy at the bottom. On offer is a huge complex with 39 motel rooms, conference, bar and restaurant facilities trading as the Chardonnay Lodge. Surrounded by vineyards such as Wynns Coonawarra and Katnook Estate, the setting is truly beautiful and unique.

Opportunity to build a fantastic business IN THE HEART OF AUSTRALIA’S BEST WINE REGION It has a large stand-alone three bedroom manager’s residence with an open plan kitchen/dining area, living room, study, enclosed yard, bathroom and laundry • Large complex with 39 rooms, restaurant, bar and conference room • Very large rooms (self rated) 3.5 star • Beautiful garden setting surround by vineyards with lovely grounds, pool and gazebo

Nett profit: $39,296 Turnover: $1,019,366 PRICE: $120,000 Stuart Charles EXCLUSIVE AGENT Mobile: 0458 588 472 Melbourne office: (03) 9347 3100 Email: stuartcharles@resortbrokers.com.au REF: LH002437

EXCLUSIVE

This one will set you up for life! LONG LEASE & VERY LOW RENT - 33% ROI Rent: $78,446 Turnover: $632,826 PRICE: $530,000 Stuart Charles EXCLUSIVE AGENT Mobile: 0458 588 472 Melbourne office: (03) 9347 3100 Email: stuartcharles@resortbrokers.com.au REF: LH002438

All the boxes are ticked here. A nice long lease, extremely low rent and of course the opportunity to buy at the right price. This is the type of property that can set you up for life or get you back on track! Located in Bordertown, on the Western Highway between Melbourne and Adelaide, this property enjoys excellent repeat business and has a very good reputation in the local area.

Call us today! An inspection won’t disappoint. • L argest motel in town with 34 rooms (selfrated 3 star) • L ong lease (30 years) and very low rent 12.5% of turnover • L eading motel in town - tripadvisor number 1 of 3 - excellent reviews • 24 hour key vending machine •R estaurant, conference and function room • Excellent return on investment – 33%

RESORTBROKERS.COM.AU 31

FT ! LE 2 O N LY

2 DEVELOPMENTS. BOTH IN BEAUTIFUL BALI!

The ultimate in luxury Designer villas in Seminyak, Bali from only US $595,000 The Aramanis Estate Aramanis comprises of six spacious 3 or 4 bedroom villas located in the heart of Seminyak. It is conveniently located, close to everything this highly sought after suburb has to offer, yet tucked away in a quiet lane, untouched by the hustle and bustle found elsewhere. Each villa provides 230 square metres of floor space and sits on 500 square metres of land. Every villa comes with a 40 year lease plus a further 20 year option.

Proximity Located in a low density residential area occupied by local people as well as prestigious holiday properties such as â&#x20AC;&#x153;the Villas, Villa Kubu and The Ahimsaâ&#x20AC;?. Aramanis can be approached from three separate directions, making it extremely convenient. It can be accessed from Jalan Plawa, from Sunset Road and from Jalan Nakula. You can walk to Jalan Legian and Bintang supermarket through a charming network of lanes and alleys. Nearby Sunset Road gives ideal car access to practically anywhere on the island, with a direct 10 minute drive to the airport, the shopping of Kuta, Ubud, Sanur and Nusa Dua. 32 RESORTBROKERS.COM.AU

Own your own piece of paradise! Quality Throughout Aramanis has been designed by award winning Australian designer Dane Richardson. Dane has won the Australian National Award for Best Residential Building in his category for the last two years, as well as the Building Designer’s of Australia “Design Excellence” award for the last three years running. Dane has bought his contemporary feel to the tropics, creating something truly unique. The Aramanis interiors were created by Zada, a Bali based design studio, owned and operated by well known interior designer Sha.

Purchasing Options Purchasers of the last two remaining Aramanis villas have the ability to buy either a fully furnished three bedroom villa or unfurnished four bedroom villa for USD $595,000, or a fully furnished four bedroom villa for USD $625,000.

Deposit & Payments The Aramanis payment schedule is as follow… • A deposit of USD $10,000 • 40% of the purchase price on signing agreement • 30% of the purchase price at “roof-on” • 20% of purchase price at “lock-up” • Balance of 10% at “hand-over” Meaning that buyers are paying for what they receive, being able to watch each of their payments construct their villa.

33 RESORTBROKERS.COM.AU

Studio apartments for only US $120,000 Located near the beachfront in the heart of popular Legian, these apartments are not beyond your reach! • Studios from US $120,000 • 2 bedroom US $250,000 • 52 apartments in complex • Each apartment is fully furnished with cable TV, broadband internet and room service • Modern design, remarkable affordability and western building techniques • Private beachfront access Resort Brokers Australia have been involved with and known the developers for over 20 years. We have worked in conjunction with them on numerous projects, in particular the sale of the management rights of the famous Outrigger O-CE-N Hotel on Legian Beach. When purchasing in Bali we know from first hand experience the necessity of a well built villa given the extreme weather conditions. These developers have a long standing reputation for producing a durable, quality product. Unit owners who have already purchased apartments in the AQ~VA complex have already enjoyed substantial capital gains since purchasing. In fact, a number of the original purchasers are enjoying in excess of a 20% gain, as well as being able to holiday in their villa for as long as they like each year.

Imagine the bragging rights of owning your own place in Bali? Every Australian paper from the Financial Review, The Sydney Morning Herald, The Melbourne Age and The Australian regularly feature articles about what outstanding investments owning a serviced apartment in Bali is. If you are not a Citizen of Indonesia (and we are sure that most of you aren’t) you will be unable to get a mortgage in Bali, of course this means that you have to buy any real estate out right. Perhaps you could link with a friend to share the cost and enjoyment, which makes financing a purchase easier. Contact Ian Crooks for first-hand details about buying in Bali, and in particular these two spectacular developments. He will be delighted to introduce you to the developer of these two projects.

Ian Crooks MANAGING DIRECTOR Resort Brokers Australia M: +61 111 71 648 iancrooks@resortbrokers.com.au

RESORTBROKERS.COM.AU 33

Editorial

PARK FOR A HOLIDAY: and let the good times roll BY CATIE LANGDON There’s something special about a caravan park holiday, something hard to put your finger on. It’s a magical appeal no other accommodation type seems to hold. Selling this ‘X factor’ is the key to a promising future for an industry with its roots in the past. It’s almost two years now since Informer first covered Australia’s enduring love affair with caravan parks. (‘Accommodation on the Move’, July 2011) “Once regarded as a bit old-fashioned, caravanning is enjoying a resurgence,” we reported. In fact, we went so far as to assert that, more than just shaking off its former conservative image, the caravan park holiday was becoming the epitome of cool. So what is the ‘X factor’ inspiring so many people to return to a style of accommodation that was really in its prime in the 1960s and 70s? It’s not just about a great location, although no one would deny most parks have that in spades. Nor is it purely about the laid-back accommodation style, or great facilities. Even the sum of all these elements still doesn’t quite seem to explain the allure. Actually, we think the secret ingredient is fellow holidaymakers. What makes a caravan park holiday truly memorable is the social experience, 34 RESORTBROKERS.COM.AU

camaraderie with other guests, immersing yourself for a little while in a community whose single-minded purpose is to relax and have fun. “When you arrive at a hotel or motel, you don’t knock on the doors of other guests to say g’day, do you?” says Resort Brokers Australia managing director Ian Crooks. “You either go out to have fun, or you are contained within your four walls. “But when you drive into a caravan park and pull out your deck chair, your neighbours wave hello, offer you a drink, want a chat. It’s just a great atmosphere, a sociable experience no other accommodation environment can match. Lifelong friendships are made in caravan parks.” Business analysts at IBISWorld estimate Australia’s caravan parks and camping grounds industry generated revenue of $1.31 billion in 2011-12, up 1.1% for the year. It contributed to an estimated average annual growth rate of 1.3% for the five years to 2011-12. Australian Bureau of Statistics (ABS) data (Caravan or Camping in Australia Snapshot 2012) tells us there were 1,638 caravan parks (with 40 or more powered sites) nationwide as at mid 2010. All up, the figure is somewhere over 2,300.

ABS figures also show around 90% of all caravan and camping visitor nights were spent outside capital cities, highlighting just how important this sector is to regional Australia. Significantly, our caravan and campervan fleet is continuing to grow strongly. RVM Australia, the peak body for our RV manufacturing industry, says total production of caravans and RVs has been running at over 20,000 vehicles per annum for three years. “This is the third massive year in a row – 29% above the level reached in 2009 – and early signs for 2013 suggest we can expect another boom year,” said RVM Australia CEO David Duncan. “Clearly, people want relaxing, economical and sociable holidays that RVs make possible, with these boom years achieving more than four times the output we had in the mid-1990s.” There’s that word again – ‘sociable’. IBISWorld contends caravan parks and campgrounds have risen to the modern-day tourism challenge, reinventing themselves to become a more important component of total tourist accommodation in Australia. “This includes improving facilities for families and other specific tourist groups with a particular focus on cabin and on-site

Cost Comparison: Caravan Parks VS. Hotels / Resorts 7 nights accommodation. Family of 4 PEAK SEASON - 27th Dec 2013 to 3rd Jan 2014

CARAVAN PARK

HOTELS / RESORTS

SAVING

GOLD COAST REGION - MAIN BEACH, QLD VS

2 Bed Villa $1841

2 Bed Apartment $3417

$1576

SUNSHINE COAST REGION - CALOUNDRA, QLD VS

Villa $670

2 Bed Apartment $1350

$680

NORTH COAST REGION - MACKAY, QLD VS

Villa $1120

Holiday Unit / Villa $1680

$560

SOUTH COAST REGION - BATEMANS BAY, NSW Cabin $1365

2 Bed Apartment $2205

$840

MID NORTH COAST REGION - FORSTER, NSW Standard Cabin $1483

2 Bed Apartment $2520

$1037

EAST COAST REGION - LAKES ENTRANCE, VIC Holiday Unit $1680 van segments,” their May 2012 Market Research Report stated. “New quality facilities are usually available at lower tariffs than competing hotels and motels, but still offer attractive profit margins. “The caravan parks and camping grounds industry survived the economic slowdown in better shape than other tourist accommodation providers by offering a combination of low-cost and high-quality accommodation.” Park owner and Big4 Holiday Parks director, Allan Walls, says the dramatic evolution of parks into comprehensive holiday and resort destinations has been critical. (see our profile of Allan Walls on P.48) “The range of activities provided within the property allows families to holiday in complete relaxation and security for as long as they want,” he said. “A family of three generations will meet up at a holiday park at Christmas. Everything they need is right there for children, young adults and older family members. They can simply relax and enjoy each other’s company knowing everyone is catered for, the children have lots to do in a safe environment, and they don’t have to keep packing up and moving on.” He raises an interesting point – that of inter-generational appeal. Younger age groups are now discovering a style of holiday already loved by their parents and grandparents. Any notion that a caravan park holiday was for fuddy duddies is well and truly debunked. According to the ABS Snapshot, exactly half of the 8.5 million domestic caravan and camping visitors in Australia in 2011 were aged 30 – 54 years, while around one quarter were active seniors aged 55 to 70 years. 35 RESORTBROKERS.COM.AU

2 Bed Apartment $2450

This latter sector grew rapidly in 2011, with visitors increasing by 12% to 2.6 million. Compared to 2000 estimates, trips by active caravan and camping seniors were up by 90%, while nights were up 23% and expenditure was 77% higher. Here comes the huge baby boomer brigade, an unstoppable and hugely valuable population segment which, like families, will be vital to the caravan park industry. Already, caravan parks have instant appeal to this cohort. Studies show baby boomers want adventure, experiences and the opportunity ‘to get to know Australia’. They are hitting the road, staying in caravan parks. Research also shows the key to attracting boomers is to appeal to their ‘forever young’ mindset. What better way to remain young than to revisit the holiday experiences you enjoyed so much in your youth? Some forecasts suggest the number of RV travellers will increase by more than 60% over the next 10 to 15 years. Of course, that’s not to say there are not challenges to be met. The high Australian dollar and availability of cheap international airfares are difficulties faced by our entire accommodation industry. But there is also an increasingly evident shift toward holidaying at home, and a yearning expressed by many for simple, stress-free pleasures. These are trends that should be encouraged, and needs that can and must be met by the industry. The caravan park sector is expected to change shape considerably. The number of establishments will continue to decrease as some sites are converted to higher and better return uses. Larger operators such as Discovery

$770

Holiday Parks (formerly Beston) and Aspen Parks have bought up many operations, while other park owners are supported by major member organisations such as Big4 Holiday Parks of Australia, Top Tourist Parks of Australia and Family Parks Australia. These companies and organisations clearly see growth potential in the industry. But success for all operators will require strong business plans and management practices. This means implementing highly effective marketing strategies, promotional partnerships with other tourism operators and attractions, customer relationship management, effective performance monitoring systems, and up-to-the-minute online booking facilities. A great deal of helpful information and resources are available through peak industry bodies and at major industry conferences and events. Just last month, an industry partnership was formed between the Accommodation Association of Australia (AAA) and the Caravan, RV Accommodation Industry of Australia (CRVA), giving CRVA members an enhanced industry voice and access to a range of services, including workplace relations support. For every business, the key to success is knowing your USP (unique selling proposition) – the attribute that most sets you apart from your competitors – and selling it effectively. In the caravan park industry, that USP, is its ability to provide guests with a memorable shared social experience. Allan Walls summed it up: “We, as an industry, face challenges from many other accommodation providers in Australia. But they are never able to provide the friendships that our industry provides.” RESORTBROKERS.COM.AU 35

esort Brokers Australia has the absolute pleasure of offering the leasehold of this amazing property for sale. Located only a 2 minute drive to the CBD of Merimbula it faces directly on Merimbula’s magnificent Short Beach. It has been designed to capture the northerly aspect and amazing beach panorama. Rarely do we see properties that are as idyllic as this one. All cabins have WiFi, ensuites, kitchenettes and outside balcony areas. Beach Cabins has a magnificent pool area, children’s playground, direct beach and lake access, BBQs, boat parking and guest laundry. Beach Cabins is continuously booked out with couples and families visiting the Merimbula beaches and attractions. This property would be ideal for the husband and wife team wanting to work and live in an absolutely top shelf beachfront location.

Idyllic north facing beachfront resort LEASEHOLD OFFERING SOUTH COAST NSW • Modern spacious three bedroom, two bathroom residence • 25 pentagonal fully self contained deluxe cabins • North facing beachfront 2.5 acre site. • Motivated vendors ready to retire • Easy to manage property • High turnover large profit • Located in one of NSW busiest holiday coastal towns • Perfect lifestyle/business combination by the sea

Russell Rogers Mobile: 0416 166 909 Sydney office: (02) 9904 8224 Email: russellrogers@resortbrokers.com.au

Net Profit: $400,880 Turnover: $622,272 PRICE: $620,272 REF: LH002442

36 RESORTBROKERS.COM.AU

Oodles of upside $200,000 NETT - APPROXIMATELY 50% ROI

Shane Mullins Mobile: 0447 185 001 Brisbane office: (07) 3878 399 Email: shanemullins@resortbrokers.com.au

Nett profit: $200,000 plus SAV Rent: $130,000 PRICE: $395,000 REF: LH002350 / FH001965

n offer is the leasehold to a Queensland style hotel, established in 1928. In operation is a large public bar, front and rear beer gardens, drive through bottle shop, TAB, Keno, 12 gaming machines and three bedroom manager’s residence, all located on 2550sq metres. As the property is currently run under management there is good upside for a hands on operator. Just in the last month the vendor has started operating the drive-thru on Sundays. This has resulted in approximately $1500 - $2000+ in sales that were not previously achieved.

There are negotiations underway with a large pizza franchise to operate from the kitchen area. The accommodation upstairs has also been locked-up which presents an opportunity for overnight or permanent accommodation. Currently, the owner resides in Cairns and only spends twothree days per week at the hotel. Located on the Mossman River, Mossman is a growing residential area. It is approximately 70km north of Cairns and provides easy access Far North Queensland via the Daintree and Cape Tribulation. • Brand new 30 year lease - rent $130,000 • Good opportunity for owner operator • Commercial licence • Drive-thru ‘Bottlemart’ bottleshop • Glycol beer reticulation system with two service points and 12 beer taps • New TAB, keno and 12 gaming machines • Opportunity for increase in accommodation, food service and takeaway

For more upside, the kitchen has never been opened by the current vendor and guests have always used nearby food outlets. RESORTBROKERS.COM.AU 37

Editorial

STOP PRESS:

Best Western Australasia launch new motel / hotel investment fund GARY SCALLAN - FUTURE ASSET MANAGEMENT INTERNATIONAL In a development that could significantly change the local accommodation industry Best Western Australasia is launching Australia’s first specialist Motel / Hotel Investment Fund. The Best Western Investment Trust (BWIT) has being developed in association with Future Asset Management International (FAMI) to provide a high performance income fund which will offer quarterly income and potential capital growth. Best Western Australasia will launch the BWIT on the 1st June 2013 through a Product Disclosure Statement ( PDS) which details all aspects of the investment including the investment criteria, risks and targeted returns. FAMI is a licensed ( AFSL 424626) boutique funds management business which is authorised to operate both Property and Investment Funds in the highly compliant Australian financial markets. FAMI has three Managed Investment Schemes ( MIS ) including the Future Property Holdings Fund (ARSN 160 488 817) under which the BWIT will operate. The BWIT offers a niche investment opportunity for most investors as it combines the security of an accommodation asset with the regular income yields available under leasehold tenure. The BWIT will acquire carefully selected leaseholds and occasionally properties (freeholds) in areas of growth potential. Each accommodation asset will be ring fenced under the BWIT which will not only isolate each asset for security purposes but 38 RESORTBROKERS.COM.AU

will also enable property managers to co invest with the BWIT. The BWIT also provides investment options for superannuation funds as the individual ownership entities are unit trusts which will enable investors to purchase or sell units at the published unit value. Assets are valued quarterly and then reflected in the overall BWIT unit price. This compliant BWIT legal structure makes for very easy trading and full transparency. Investors know that well run accommodation leaseholds are in demand and offer extraordinary returns. The BWIT offers multiple advantages for investors, owners and managers including: •A medium to long term investment based on established, proven accommodation leaseholds. •A bility to use Superannuation funds to invest. This has not previously been possible for managers. inimum investment of only $10,000 •M with option to then make further investments in units of only $1000. Ideal for super funds requiring diversification and regular income. •D iversification reduces risk. The BWIT will acquire multiple leaseholds and freeholds and investors will therefore have their investments spread over multiple properties and leases as BWIT grows. • T he BWIT will not borrow and is not a mortgage fund. Borrowings will only occur in individual ownership entities as appropriate to each investment with a maximum conservative gearing

of 50% (LBR) against the ring fenced asset on a non recourse loan. • The BWIT will be fully compliant and managed by a team of industry specialists including external custodians and auditors. • T he BWIT will selectively seek to co-invest with property managers and investors and assist current owners upgrade, refurbish, purchase, sell or simply cash in some of their current equity / investment. • The BWIT provides an ideal, unitised vehicle for a progressive exit strategy or simply to extract some of the equity without selling the asset. •C urrent accommodation assets may be able to be reversed into the BWIT structure in exchange for an equivalent value in BWIT units. This provides flexibility and an easier exit/ sale mechanism. • The BWIT is able to provide capital for investment within our clear investment criteria and will seek to assist current and new investors achieve their goals. As a licensed, compliant Australian investment manager FAMI is not able to make performance predictions but we are confident that with careful due diligence and astute acquisitions the BWIT will be able to acquire a dynamic, diversified portfolio which will provide quarterly returns in established accommodation market. All assets will be professionally managed by Best Western Australasia and FAMI will report to BWIT unit holders on a quarterly basis with fully transparent unit values adjusted monthly and income paid quarterly after an initial 6 months. The BWIT management team are incentivised to produce extraordinary investment returns and are confident of doing so with the experience and resources of Best Western Australasia and a dynamic FAMI team. The BWIT will shortly announce a suite of new products and services for its BWA members including support to improve and grow their current business or progress to a larger venture. As the first dedicated accommodation income fund BWIT will attract both wholesale and retail investors including those people already in the accommodation industry seeking greater income in this long established sector. FAMI and Best Western Australasia have appointed Chris Appleyard as the BWIT fund manager and Chris can be contacted via the website or on: info@futureami.com.au or on 1300 905 380 We welcome your enquiry and look forward to being of service to you and to the entire accommodation industry.

EXCLUSIVE

An absolute cracker! MANAGEMENT RIGHTS TRINITY BEACH

Shane Mullins EXCLUSIVE AGENT Mobile: 0447 185 001 Brisbane office: (07) 3878 399 Email: shanemullins@resortbrokers.com.au

Nett profit: $318,000 PRICE: $1,820,000

REF: MR002430

n the Beach Holiday Apartments is located on the spectacular beachfront of Trinity Beach, Cairns. The business includes the letting and caretaking rights to 7 individual buildings, each connected by paths and walkways through tropical, landscaped gardens and each offering private facilities including swimming pool, BBQ area, secure undercover parking and safe, secure buildings. The buildings include: On The Beach – 20 apartments (3 level walk-up); Seashells – 11 beachfront apartments (with lift access); Blue Marlin – 6 beachfront apartments (3 level walkup); Golden Cowrie - 2 bedroom ocean view apartments (3 level walk-up);

Ocean Pearl - 2 bedroom ocean view apartments (3 bedroom walk-up); Osprey - 2 bedroom garden view apartments (3 level walk-up); Trochus Beach – 2 bedroom garden view apartment (3 level walk-up). On The Beach Trinity Beach has varying accommodation (room types) and facilities. The current owners have positioned their time to work with the seasons allowing themselves and their staff to maximise their performance to better serve their guests to create the holiday opportunity on offer. With this location – YOU CAN FEEL THE SAND BETWEEN YOUR TOES! • 61 apartment resort located directly opposite Trinity Beach • BC salary over $100,000 • 2 bedroom plus study ground level manager’s residence • Resort pools, BBQ Gazebo’s, tennis court and tour desk • No set office hours • Walk to cafes, pizza and bars • Exciting stuff: multi-million dollar precinct development recently approved RESORTBROKERS.COM.AU 39

5 luxury properties – owner looking to trade up to freehold or leasehold motels EXAMPLE: RESIDENCE WITH 3 APARTMENTS - ABSOLUTE WATERFRONT VIEWS This residence with it stunning apartments is an example of the type of properties we have to trade up to freehold or leasehold motel. All with $$$ adjustment included. • Apartment 1: 4 bedrooms, ensuite plus two bathrooms over multi levels • Apartment 2: 3 bedrooms, ensuite and main bathrooms on one level • Apartment 3: 3 bedrooms, ensuite and main bathroom on one level • The apartments are under 8 years old and enjoy stunning lake and ocean views • Situated on a private elevated block including a swimming pool • Located less than 1km from shopping centre • Valuation $3,050,000 In the first instance please submit photos and trading figures for motels to be considered. 40 RESORTBROKERS.COM.AU

Other properties include: • Finger Wharf, Woollooomooloo - Two spectacular 5 star upper level apartments with absolute water frontage and amazing views. Facilities include indoor pool, gym, secure basement carpark on title Valuations $1,300,000 and $1,350,000. • Hendra, Brisbane – ‘The Promenade’ is a modern two level, three bedroom home less than 8 kilometres from the city. Valuation $600,000 • Wakerley, Brisbane – This modern single level 3 bedroom family home on 600m2 of land is located on the Bay or eastern side of Brisbane. It comprises three bedrooms four bed, two bath, lounge, dining, kitchen, family room, double garage Valuation of $600,000.

Ian Dore EXCLUSIVE AGENT Mobile: 0412 752 238 Brisbane office: (07) 3878 399 Email: iandore@resortbrokers.com.au

Vendor will trade 1 or all properties

EXCLUSIVE

n offer is a surprisingly hard to find opportunity to purchase a high-netting permanent complex in SE Queensland. With over 160 units and a net profit of over $440,000, this is one of the largest residential complexes you will come across. Located in one of the most central and convenient locations on the Gold Coast, Sun Village is within minutes of the highway, Surfers Paradise Beach and Southport CBD. This ensures an exceptionally strong rental demand. Although this will not win any beauty prizes, it will definitely keep your financier and your accountant very happy. The income is underpinned by an enormous BC salary of $225,000, CPI linked and ever-rising. Built in 1989, there is an almost limitless array of additional work to be found. There are currently 65 units in the onsite letting pool, with 14 self-managed by owners and a further 18 managed by outside agents. The current owner has made little effort to retrieve these, representing a massive upside for a savvy, rent-rollbuilding new owner. 42 RESORTBROKERS.COM.AU

Gold Coast cash cow

HUGE PERMANENT - AN OLDIE BUT A GOODIE

The business is currently run under management, with the owner employing a live-in ‘night manager’ who carries out all care-taking and maintenance duties. The owner comes on-site during office hours to conduct administrative and letting duties. • Massive BC salary of $225,000 • 160 units (65 in pool) • Further 32 units outside pool – big upside • Term recently topped up to 19 years • Fully renovated 3 bedroom managers unit with valuation • Opportunity to live off-site • Current managers in place for 9 years • Prime, central location

Alex Cook EXCLUSIVE AGENT Mobile: 0467 600 611 Brisbane office: (07) 3878 3999 Email: alexcook@resortbrokers.com.au

Net Profit: $441,000 PRICE: $2,735,000

REF: MR002446

EXCLUSIVE

Tropical oasis in the heart of Surfers DON’T LIKE HIGHRISES? TRY THIS! Alex Cook EXCLUSIVE AGENT Mobile: 0467 600 611 Brisbane office: (07) 3878 3999 Email: alexcook@resortbrokers.com.au

Net Profit: $320,000 PRICE: $1,995,000

REF: MR002359

n offer is the opportunity to purchase the management rights to this popular and unique holiday complex, positioned in a prime spot in Surfers Paradise; it is located seconds from the new Gold Coast light railway, 2 minutes to the beach, 5 minutes to Cavill Avenue and almost next door to Q1. Unlike the majority of accommodation in Surfers, Enderley Gardens is a three story walk-up, set around landscaped, tropical gardens and a lagoon style pool. This provides a tranquil environment and ensures families, groups and couples keep coming back for more.

for new owners to grow the business. The letting pool has grown from 55 to 69 in the last 2 years, with a further 11 externally managed units yet to retrieve. This business is very easily managed by a couple - the caretaking work is relatively light and the owners have employed a receptionist to help in the office (shown as an expense). The perfect chance to earn a sizable income and still have plenty of time to enjoy the Gold Coast’s fabulous lifestyle. • Fully renovated two bedroom, two bathroom manager’s unit • Large office/reception area, attached and on title • Outstanding BC committee relationship • Agreements just topped up to 19 years • Generous allowance for wages • Independently verified figures • Good BC salary of $112,944 • Running at 73% occupancy • Good growth potential

Although the current management greatly improved the fortunes of this iconic property, there is still plenty of opportunity RESORTBROKERS.COM.AU 43

EXCLUSIVE

his one will set you up for life while living the dream in the tropics! Offered for the first time to the international market, this fantastic cashflow business is a great opportunity. The vendors, after 11 years, are offering this high netting business for sale, as they are shifting back to Australia to be closer to their adult children who had a fabulous time growing up on the island of Efate. Efate, Vanuatu (which is where this fantastic business opportunity is located) is home to the capital of Port Vila. Vanuatu is made up of an archipelago of 83 islands. The combined population is around 200,000 and consists of mostly Melanesian people. The climate is tropical, the coolest season being May to October and the hottest is November to April with the temperatures in the low 30s, this is also known as the wet season. The country boasts an advantageous tax regime which is enhanced by several unique features which include no income tax, no capital gains tax, no withholding tax, no estate duties and no exchange controls. 44 RESORTBROKERS.COM.AU

Tax free Vanuatu

ONLY AUS$500,000, EARN AUS$200,000

The benefits of buying a business here are obvious and the profit is of course tax free! The business has a near new fleet of 35 cars and 4 wheel drives (at the time of writing) and there is no vehicle over two years old.

Ian Crooks EXCLUSIVE AGENT Mobile: 0411 171 648 Brisbane office: (07) 3878 3999 Email: iancrooks@resortbrokers.com.au

This particular business has been operated under a Hertz licence and subject to normal business requirements, you will have the same opportunity to become the licensee for Hertz rent a car business in Vanuatu. Interested parties will be supplied with a detailed investment summary and financials upon application.

Nett profit: $200,000 PRICE: $500,000 (plus stock)

A whooping 26.7% ROI WATERFRONT CARAVAN PARK LEASEHOLD

Russell Rogers Mobile: 0416 166 909 Sydney office: (02) 9904 8224 Email: russellrogers@resortbrokers.com.au

ith the support of council and the new draft management plan, the sky is the limit with this magnificent crown lease tourist park. The property consists of 15 brick selfcontained units, 4 park cabins and 100 powered sites and boasts multiple amenities including a large recreational room, camp kitchen, BBQ area, fenced playground, boat ramp and courtesy bus from the local clubs.

Net Profit: $203,454 Turnover: $487,069 PRICE: $760,000 REF: LH002271

The size of the property works a treat for larger groups as there is something for everything. The park adjoins and opens onto a swimming pool and water slide complex which is perfect for the kids.

This property would be ideal for first timers or a family looking to operate the business. Murrumbidgee, which is here this property is located, has a peaceful country atmosphere and tranquil lifestyle, underpinned a thriving agricultural community this park offers families the perfect rural holiday proposition. For those living in the community the shire has access to the services of a major regional centre, including a hospital, medical and technical services as well as recreational and educational facilities. The district is a safe, friendly, ambient locality where community spirit is evidenced by the achievements of volunteers from the many active clubs and associations. •1 0 acres of beautifully laid out park on the town boundary with 141 sites • L arge modern open plan residence opening onto reception •H igh return on investment and growing • Vibrant business and future with current expansion plan • Well laid out and conveniently located on the town boundary •M otivated vendors ready to move on RESORTBROKERS.COM.AU 45

Editorial

Let us never negotiate out of fear. But let us never fear to negotiate.

John F. Kennedy

BY MIKE PHIPPS - MIKE PHIPPS FINANCE Because I spend a lot of time with new clients from the moment they start thinking about a purchase inevitably I end up getting asked for an opinion on price. The question is usually accompanied by a request for my thoughts on how negotiable the vendor might be and at what price point the first offer should be made. To be blunt none of these matters are really any of my business. However, if you put yourself out there as some kind of industry expert then in my mind you have an obligation to a client to give what feedback you can. To me purchasing an asset is all about striking a fair deal without insulting the vendor on the way through. There seems to be a need in some people’s minds to have to denigrate the asset being purchased in order to justify a low initial offer. This is often referred to as ‘tyre kicking’ and in my view it’s not a good look. Buying and selling a management rights, motel or caravan park is an emotional process. It’s one of the few business transactions that usually includes the sale and purchase of the business operator’s home. For many purchasers

it’s tempting to try to find fault with the asset under consideration in order to drive down the vendor’s expectations. No business is perfect but pointing out the faults to the current operator is not the way to build rapport during the negotiation process. If you are going to use any negatives as a negotiating lever then also acknowledge the positives and keep the emotion out of the process. There’s an old expression that says ‘never negotiate from a position of high emotion or high need’. Approach the process in a cool and calm manner with a focus on not insulting the vendor and in many instances the outcome will be to everyone’s liking. Of course, if the asking price is wildly out of kilter, cut to the chase and find out of there is room for negotiation. Use market statistics and recent sales data to justify your position and if the vendor is clearly still living in 2007 - move on. Speaking of market statistics, I’m seeing a growing number of purchasers doing their own real estate valuation research. The internet provides a plethora of information for

Editorial

Are you missing out on tens of thousands of dollars? BY TONY ROSSITER - HOLMANS ACCOUNTANTS

Tax Planning Strategies Meeting with your Accountant to consider your tax planning strategies each year is just smart business sense. Your Accountant will review your current structures to ensure they are the most appropriate for you to access all possible tax effective opportunities. Schedule a meeting with your Accountant well before 30 June – if nothing else, you will have a very clear understanding of your tax obligations 12 months before they are due and payable to the ATO. Depending on your personal circumstances, your Accountant will devise customised solutions to legally minimise your 46 RESORTBROKERS.COM.AU

tax obligations. Legislation changes frequently – make sure you take advantage of Government initiatives or threshold changes as they occur. If you are currently on a PAYG instalment with the ATO, a review of your current financial position with your Accountant may mean you are able to reduce your current ATO instalments. Waiting until after 30 June to meet with your Accountant doesn’t do you any favours – all your Accountant can do post 30 June is record history. By working with your Accountant, you can look at ways to improve your cash flow, implement proactive measures to save tax and create wealth – for some management rights operators, this can add up to tens of thousands of dollars. Your Accountant will discuss opportunities to legally minimise your tax obligations, such as: Debt restructuring; • Using Superannuation smartly; • Tax deferral – pre-paying expenditure and/or deferring income; •M aximise Superannuation cocontributions; and • Maximise depreciation deductions New Tax Regime The 2013-2014 financial year sees

the intending purchaser and many seem to think that looking at general unit sales data is the best way to decide on the value of a manager’s lot in a strata scheme. It’s a start, but the process is also flawed. As we know the manager’s unit in a scheme is like no other. It will have attached to its ownership the exclusive right to operate a letting business together with other exclusive rights in respect of common property. In my opinion the only way to truly determine the value of a manager’s unit is to have it formally valued. In fact, I am seeing a growing number of vendors and purchasers agreeing to do just this and then contract the sale accordingly. The trick is to ensure the valuation is done by a bank accredited management rights valuer for mortgagee purposes. Not a difficult process but critical to a successful outcome. Part of the purchase negotiation process often involves any number of parties taking a view of what the banks will accept. There seems to be an urban myth out there that the banks have certain criteria in terms of multiples and yields that they simply won’t go past. This is nonsense. The truth of the matter is that the lenders will have an asset independently valued and will lend against that value. If a punter wants to pay over the odds that’s fine, it’s just that the deal will require a higher level of equity as the bank will lend on purchase price or valuation, whichever is the lesser. While on the subject of bank policy don’t be the introduction of new tax rates, the implementation of more concessional depreciation claims and changes to Superannuation. The Federal Budget is about to be announced. Typically a Federal Budget in an election year can prove very interesting – watch this space for a full Federal Budget Summary in the June edition of The Informer. Marginal Tax Rates: 2013 – 2014 Tax Bracket $0 – $18,200

Tax Payable 0%

$18,201 – $37,000

19% > $18,200

$37,001 – $80,000

$3,572+ 32.5% > $37,000

$80,001 – $180,000

$17,547 + 37% > $80,000

$180,000 & over

$54,657 + 45% > $180,000

*Add Medicare Levy of 1.5% for income over $19,000 There are no proposed tax rate changes for the 2014 – 2015 financial year.

Marginal Tax Rates: 2015 – 2016 Tax Bracket $0 – $19,400

Tax Payable 0%

$19,401 – $37,000

19% > $19,400

$37,001 – $80,000

$3,344 + 33% > $37,000

$80,001 – $180,000

$17,534 + 37% > $80,000

$180,000 & over

$54,534 + 45% > $180,000

*Add Medicare Levy of 1.5% for income over $19,000

Understanding Superannuation Superannuation is NOT the stock market, the share market or which investment type

your payroll software programs are updated to reflect this new legislation. Increased to Compulsory Superannuation: 2013 – 2020

tempted to tinker with the unit and business value splits in your management rights sale contracts. These contracts should reflect as near as possible the actual market values of the assets being sold. To have the right overall price and then play with the value splits is not good enough. In many cases the bank will only value the unit so if it’s been overstated in the contract we will have a problem with funding. The bank lends against the valuation of the unit and the contract price of the rights. If the valuation of the unit comes in low because the contract price has been loaded then the overall lending

available to the borrower will fall and potentially crash the deal. Not a good outcome for anyone. Finally, if you think it’s a great business but you can’t quite get to the asking price then say so. Acknowledge that the asking price seems fair but also acknowledge that you can’t pay that price and put forward your best offer. I am surprised at the number of times a vendor will accept a lower offer from someone who acknowledges the value and is honest enough to simply say they can’t quite get there. Even if you are not instantly successful with this approach you may be surprised a couple of months down the track.

the chap at AMP/MLC/BT/SunSuper elects to invest YOUR funds in. Superannuation is a tax friendly investment structure.

such as SMSFs. The Australian Federal Government continues to tinker with reforms in relation to the treatment of Superannuation. For the 2012 – 2013 financial year concessional superannuation contributions are capped at $25,000 per individual. The Australian Federal Government has also announced increases to the superannuation contributions caps for some individuals from 1 July 2013.

Entity Tax Rates: 2013 – 2014 Entity

Tax Rate – top marginal tax rate excluding Medicare

Sole Trader

45% > $180,000

Partnership

Assessed at partner rates – up to 45%

Trust

Assessed at beneficiary rates – up to 45%

Company

30%

Age

Superannuation Fund

15%

Pension (over 60 yrs)

Nil

Note proposed reforms below

Self Managed Superannuation Funds (SMSFs) are managed by the SMSF owner – YOU. SMSFs can invest in a wide range of investments, some of which are not accessible through larger funds, such as property, cash, stocks, shares, resources, currencies, antiques, artwork, gold, etc. The total superannuation assets in Australia rose to over $1.5 trillion for the first time – an increase of 14.6% over the 12 months to 31 December 2012. Of the $1.5 trillion – 31.6% was held in SMSFs, 26.4% in retail super funds, 19.5% in industry super funds, 15.7% in public funds, 3.8% in corporate funds and 2.9% in other funds. It appears from this data that more and more Australians understand the importance of accessing tax friendly investment structures 47 RESORTBROKERS.COM.AU

Superannuation Contributions Caps Year 2012 – 13

2013 –14

2014 – 15

Under 50 years of age

$25,000

50 years of age and over

$25,000

$35,000

60 years of age and over

$25,000

$35,000

The non-concessional superannuation cap remains unchanged The Australian Federal Government has relaxed its position on excess superannuation contributions, whereby any amount of excess contributions from 1 July 2013 may be withdrawn from the fund and taxed at individual marginal tax rates instead of at the excess contributions tax rates. The first superannuation guarantee increase will take effect from 1 July 2013 – increasing the rate to 9.25%. Additionally, employers will be required to report on employee payslips the amount and expected date of the payment of superannuation contributions. For employers, it is vital that

Year

Compulsory Superannuation Rate

Current

9.00%

2013 – 2014

9.25%

2014 – 2015

9.50%

2015 – 2016

10.00%

2016 – 2017

10.50%

2017 – 2018

11.00%

2018 – 2019

11.50%

2019 – 2020

12.00%

Transition to Retirement (TTR) Pensions Once an individual reaches their preservation age – currently 55 – they have the option of commencing a TTR pension from their SMSF. From 1 July 2013, this allows the individual to withdraw between 4.00% and 10.00% of their SMSF balance. Any such withdrawals will be taxed concessionally in the individual’s tax return until they reach the age of 60 – at which time, in most circumstances, they enter the nirvana of the Australian taxation system – TAX FREE. Purchasing Management Rights through a SMSF SMSFs are severely limited to the extent they can invest in related businesses; however with the correct structure, opportunities exist for a SMSF to invest indirectly. This is a complex area which requires specialist advice to avoid risk – seek advice from your Accountant before you get too far down the track with this strategy. Proposed Reforms The current Australian Federal Government has a number of proposed reforms regarding Superannuation on the table which are yet to be legislated – more in the upcoming Federal Budget. Currently pension income from a Superannuation Fund is not taxed. The proposed reforms will mean that from 1 July 2014 Superannuation Fund income over $100,000 per individual per annum will be taxed at 15%. Special rules will apply for Capital Gains on assets. Assets acquired prior to 5 April 2013 will be assessed under the old rules until 1 July 2024; assets acquired between 5 April 2013 and 30 June 2014 will have a choice of which rules to apply; and assets acquired after 1 July 2024 may have the full Capital Gain assessed. Customised Solutions In an ever increasingly complex tax system, it is vital you have customised solutions and your strategies align with your long term goals – speak with a specialists Accountant to maximise your financial success. The information, recommendations, opinions or conclusions provided above are generic in nature and do not express individual advice. You should always consult your professional representatives before taking any action. RESORTBROKERS.COM.AU 47

Editorial

THE MANY FACES OF THE ACCOMMODATION INDUSTRY

Allan Walls: Vanguard of the park industry BY CATIE LANGDON It is pure coincidence that the first sales business opened by Allan Walls in the early 1970s specialised in selling caravans. Ultimately, it wasn’t caravans so much as caravan parks that would come to dominate his successful business life. Four decades later, Allan Walls is widely considered to have been one of Australia’s foremost caravan park sales specialists, and a great contributor to the industry he came to love. Though now retired from business broking, Walls is a national director of Big4 Holiday Parks of Australia and owns three caravan parks, one of which has won its state holiday park tourism award for five consecutive years. The caravan park industry has followed an evolutionary road, changing enormously in Walls’ lifetime. And it has benefited greatly from his professionalism and expertise. Allan Walls’ business roots go back to the 1960s, when his first job was as an accounts junior with Elders forerunner, Australian Estates. He then spent five years working as a public accountant before his instincts led him to pursue opportunities in private enterprise. After a brief foray as a wholesale grocer, he saw greater promise lay in the sales arena. Within a short time of opening a caravan and boat sales outlet at Benalla in Victoria’s north, he was well on the way to success. That business became one of Australia’s largest York Caravan dealers. Remarkably, it was also the nation’s biggest Flightcraft boat dealer, selling one-third of that company’s entire production from inland Benalla, a town close to several significant lakes. “During this very successful period, we became one of Channel 6’s (then regional Victorian TV) largest advertisers, which contributed to the success of our business,” he recalls. “Eventually, I sold out to my 48 RESORTBROKERS.COM.AU

partner, to pursue other opportunities.” It was then Walls had the chance to buy a half share in Westmore Real Estate, a Benalla business brokerage that “mostly sold milk bars, general stores and the odd small motel.” Again his keen business instincts were spot on. “I saw the need to expand to broader horizons. Being based in a regional town was, to some extent, a handicap to business. “So, in 1989, I purchased one of Victoria’s largest business broking houses, Tower Business Agency. Tower was well known and the name opened many doors to larger and larger sales,” he said. “Our motel division grew bigger and bigger, to the stage that we stopped selling small businesses.” It was at this point on his enterprising journey that the caravan rolled back into view. “Out of the blue, I received a phone call asking why we didn’t sell caravan parks and the rest, as they say, is history.” Pivotal to Walls’ increasing focus on the caravan park industry was his purchase of another brokerage firm, Clark Walker, which specialised in caravan park sales. “Sales of caravan parks became the largest part of our business and, having also opened an office in Melbourne, the business morphed into Tower Business and Real Estate.” Ultimately, agreements with interstate business brokers led to the formation of Tower Group Australia, which became a familiar presence at most industry events and conferences across the country for many years. An example of the acumen with which Walls developed his business, and his genuine desire to engage directly with his market, was his move to establish relationships with peak industry bodies. Tower signed on as a long-term sponsor of the Victorian Caravan Parks Association,

and worked with them on a major education initiative. “We jointly ran seminars around four times a year for potential caravan park buyers, holding them at Melbourne’s RACV club,” he explained. “I was then invited by the South Australian Caravan Parks Association to conduct seminars in Adelaide too. “We developed a good round table of experts, including solicitors, accountants and park operators, with the goal to provide prospective caravan park purchasers with some background in the industry prior to purchase. “Most seminars were sold out, with all proceeds going back to the respective associations, so it was of great benefit to the industry while allowing me and my staff to build terrific rapport with park buyers and sellers, and learn a lot too.” Walls says this direct interaction with the industry was not only a key business tenet, it led to his passion for and ultimate direct involvement in caravan parks. “Travel was an essential part of the business, as our policy was to meet as many people as we could on their home ground,” he said. “On the invitation of then Big4 chairman, Bob Barham, we became a major sponsor of Big4 Holiday Parks of Australia. Tower also sponsored Top Tourist Parks and Family Parks for many years. “These associations, the travel, and my eventual love of the industry led me to purchase three caravan parks – two in Tasmania, Big4 St Helens and Big4 Ulverstone, now in partnership with my son Jarrod, and Mulwala Shoreline Caravan Park in south-eastern New South Wales.” It is Big4 St Helens Holiday Park that has won Tourism Tasmania awards every year since 2008, making it a finalist at the national tourism awards for five consecutive years.

Boasting accommodation options ranging from luxury villas to powered and unpowered van and camping sites, plus myriad facilities including games room, adventure playground and giant jumping pillow, it represents the modern face of the industry. “The evolution of the caravan park industry has been dramatic over the past 25 years, from humble camping areas with very basic or no facilities, to 5-star resorts,” Walls says. Many are now one-stop shops for entertainment-packed family holidays, often with large indoor heated pools, state-of-theart playgrounds and kids clubs, magnificent camp kitchens and restaurants. As both an advocate for the caravan park industry and a direct stakeholder, Walls well understands the opportunities and obstacles park owners face. (see our cover story, P.34) “Sadly, the difficulty in balancing the value of the land, which often occupies the best location in town, with the income achievable leaves some operators with no option but to sell or subdivide their park, as the land has a higher value as a development site,” he said. One of his own parks, the Mulwala Shoreline not far from Benalla where it all started, is facing that very destiny. Walls rails against the practice of many local authorities to now allow caravan and RV users to camp in roadside stops free of charge, under what the “misguided impression” that this is somehow good for tourism. While councils (ratepayers) pick up the considerable tab for maintaining these socalled ‘free’ sites, they are competing against park owners who carry significant overheads while contributing to local economies and providing vital local jobs, he says. It is certainly one of the dominant challenges being tackled by the industry today. But, as you may have gathered, Walls isn’t one to shy away from a challenge. While achieving so much on his caravanrelated business journey, he has also found time for competitive pursuits requiring quite a different set of wheels. His passion for motor sport has seen him race Commodore Cup cars around Australia. His pride and joy is a 1988 Holden Walkinshaw. He has also completed the grueling Bathurst 24-hour race, and taken out a class win in the Classic Adelaide four-day tarmac rally. But, back to business. All in all, Allan Walls says his life associated with caravans has been tremendously rewarding. And he remains filled with optimism for the future of the caravan park industry. “I have been most fortunate to meet many great people, many of whom have become enduring personal friends. “Australians love holidays, Australians love Australia, and they love a chat,” he says, referring to the camaraderie enjoyed in the caravan park environment. “So we as an industry will continue to prosper.” 49 RESORTBROKERS.COM.AU

Editorial

Management rights and dealing with the office of fair trading FRANK HIGGINSON - HYNES LAWYERS Representatives of the Office of Fair Trading (OFT) are a necessary evil. They are needed to keep the various industries they regulate clean and tidy. Bad apples ruin it for everyone, so when they come knocking, don’t be afraid, just be ready. For the last few months we have been contacted by more and more clients about spot visits conducted by the OFT. They usually are looking for what they call the ‘big four’: 1. Your licence on ‘conspicuous’ display (above the front door is the traditional spot – but it can be elsewhere. It just must be visible when people enter your premises); 2. Your licensee name and category printed in font 1.5cm high on display; 3. A statement that you are subject to a Code of Conduct (click here for the Code) and the fact that is available; and simple and easy to use complaints 4. A resolution policy in place (but not necessarily on show). If you need one of these let us know. Leaving aside those simple ones, the OFT has a mandate to make sure that you are conducting your letting business in accordance with law. Some of the more common issues that we see arise in an audit are: The right entity – All PAMDA20A’s must be in your name or the prior ones must be legally assigned to you. Yes, we bang on endlessly about that, but it is important – you cannot let a lot (or charge a commission) without a written agreement from the owner of the lot; • The right charges - Make sure that everything you are charging is listed in your PAMDA20A. If not, you need another written authority to raise those charges (like a separate written agreement); • L icence conditions - Make sure you are adhering to any conditions of your licence (i.e. for a resident letting licence – that you are actually residing on site); • Staff licencing - If necessary, make your staff also licenced as required; and

• Audits – Make sure you have had all your statutory audits. Remember that the OFT only regulates letting. They have nothing to do with caretaking. You won’t ever get them chipping you about not maintaining the lawns or hosing the driveway. If you do get a visit, some simple rules for dealing with the OFT are: 1. If they do drop in for a spot check, answer their questions honestly. Having said that, don’t be afraid to tell them you need to seek legal advice (especially if you are not sure about your position). 2. It follows that you should never, ever lie to them. 3. They can require you to (within a reasonable period): • Produce documents about your letting activities (ie. PAMDA 20A’s, copy of your licence, trust account documents); and • give information about an offence if they believe on reasonable grounds that an offence has occurred. A failure to provide information as required is an offence that could lead to a fine or, at worst, imprisonment. 4. You are entitled to seek legal advice to assess your position, but you should do that immediately. Do not get caught thinking as that makes you look guilty – it is a right you are entitled to, and our experience is that it is far better to give a considered response than a haphazard guess. 5. If you do get formal correspondence from the OFT, then seek immediate legal advice. Sometimes the issues can be resolved quickly and painlessly but sometimes you might need to prepare for a fight. 6. Do not ignore their follow up correspondence or emails. They are not like a salesperson – who might get discouraged by someone failing to come back to them. They simply won’t let go – and ignoring them is a sure-fire way to stay on their radar. If you need help we can assist. RESORTBROKERS.COM.AU 49

his magnificently presented complex (which is about to be repainted inside and out) enjoys the enviable reputation as being located at the most ideal family holiday beach destination on the eastern seaboard! Meridian Tower offers the perfect lifestyle in a beachfront location with strong repeat business generating a solid net profits year in, year out. All apartments are fully selfcontained and include large balconies with panoramic ocean and coastline views. This management rights is easily run by a couple who live comfortably in the spacious, air conditioned two bedroom, two bathroom manager’s residence with outdoor balconies and two underground car parks. The h igh rise holiday tower is located on a patrolled beach and is only a short stroll to cafes, shops, clubs, restaurants, public transport and a 10 minute walk to Coolangatta. There is a separate reception and manager’s office on-title which means your apartment is exclusively your own.

50 RESORTBROKERS.COM.AU

Landmark complex on famous Kirra Beach LIFESTYLE WITH FIRST CLASS FACILITIES • Total of 30 units in letting pool • 28 spacious two bedroom, two bathroom apartments all with perfect north facing ocean view balconies • 1 x three bedroom sub penthouse • 1 x three bedroom 14th level penthouse • Heated pool, spa and sauna • Tennis court and games / library room • Beautifully landscaped gardens with a relaxing BBQ area • 17 year term • 65% occupancy with strong $75,271 salary • Pet friendly building • Security basement carpark • Security monitoring cameras throughout

Ian Dore Mobile: 0412 752 238 Brisbane office: (07) 3878 399 Email: iandore@resortbrokers.com.au

Nett profit: $253,356 PRICE: $1,695,000

REF: MR002095

Stunning Eco resort on Gippsland Lakes MANAGEMENT RIGHTS 3.5 MULTIPLIER Jim Chapman Mobile: 0413 444 782 Melbourne office: (03) 9347 3100 Email: jimchapman@resortbrokers.com.au

Ian Crooks Mobile: 0411 171 648 Brisbane office: (07) 3878 3999 Email: iancrooks@resortbrokers.com.au

Nett profit: $188,039 Turnover: $536,004 PRICE: $1,350,000

REF: MR002344

nce in a while a unique opportunity presents itself. Located on the shores of Lake Victoria, Wattle Point is set on over 20 acres of natural bushland with an abundance of “aussie” wildlife. The resort offers 19 luxury lodges, a substantial conference centre with commercial kitchen, bar facility, undercover verandah as well as a freestanding three bedroom manager’s residence with office /reception. Guest facilities are extensive including heated indoor pool, tennis court, jetty and water sport equipment.

The vendors have worked diligently to provide a mature business opportunity with the ability for a hands on purchaser to increase income and profitability. • Management rights over 19 luxury selfcontained privately owned lodges. The on-site manager has exclusive letting rights and the lodges cannot be lived in permanently • Exclusive use agreement for the conference /function centre • Annual Rental $35,000 p.a. • Freehold of 24sq. manager’s residence with adjoining office/reception Asking $700,000 • Caretaking salary currently $42,500 paid quarterly • Current occupancy 50% with substantial forward bookings

The management rights covers the 19 lodges, offered together with the exclusive use agreement for the conference/function centre and the freehold of the manager’s residence and office/reception. RESORTBROKERS.COM.AU 51

Did you know that Resort Brokers Australia has sold 6 caravan and cabin parks in the last few months and have more under contract. We have several agents across the country who are highly experienced in caravan and cabin park sales. So, if you are looking for a broker to sell your caravan or cabin park why donâ&#x20AC;&#x2122;t you give us a call today?

SOLD SOLD

SOLD

SELLING AGENTS, NOT LISTING AGENTS

SOLD

SOLD SOLD

The Original and still No. 1

EXCLUSIVE

Central Australia serviced accommodation business NEAR NEW BUILDING JUST 5 YEARS OLD Jim Chapman EXCLUSIVE AGENT Mobile: 0413 444 782 Melbourne office: (03) 9347 3100 Email: jimchapman@resortbrokers.com.au

lice Springs is the second largest city in the Northern Territory and is the geographical centre of Australia. With a resident population of over 27,000 the “Alice” is a major centre for corporate offices, government organisations, medical and hospital services. It is also home to the despatch centre for the Royal Flying Doctor Services. Quest Alice Springs commenced operation in 2008 and offers a unique opportunity to acquire a mature serviced apartment business.

Nett profit: $504,969 Turnover: $2,615,688 PRICE: $1,875,000 REF: LH002435

The property offers 68 fully furnished apartments with facilities including an expansive reception, conference room, in ground salt water pool and secure onsite parking. The apartments are stylishly furnished with kitchens, bathrooms and lounge/dining room.

With consistent occupancy levels above 70% Quest Alice Springs has an excellent mix of corporate, tourist and family clientele the business would appeal to a hands-on operator. • 68 x 4 star serviced apartments including studio suites, one and two bedroom apartments. Each apartment is comfortably furnished and offering spacious living for short and long term stays • The complex provides a conference/ meeting room, in-ground pool, BBQ, guest laundry and onsite car parking • The benefit of Quest Serviced Apartment Group substantial support systems • Purpose built facility constructed in 2008 • Beautifully appointed and furnished expecting freeholder refurbishment in 2014 • Enjoying continued growth in profitability, occupancy, revenue and room rate • 25 year lease from January 2013 • Market rent

RESORTBROKERS.COM.AU 53

FANTASTIC INVESTMENT

This is a large imposing property situated on the north side of a major northern NSW town on a busy highway. It boasts 46 units including 13 new self-contained and is both a destination and a stopover motel. Occupancy sits at 83% and continues to grow. It sits on 2.08 hectares - the grounds and landscaping are well maintained. The motel has a hot artesian spa bath complex which is visited by guests from all over the world. The local council and tourism board promote the water as therapeutic and a great source of relaxation and replenishment.

Passive investment showing 10% yield FREEHOLD OPPORTUNITY - LESSEE PAYS ALL OUTGOINGS • 46 units including 13 new self contained • Fully licensed restaurant can seat up to 98 • Excellent depreciation for the investor • Three in ground pools including artesian spa pool • Major renovations have been recently completed • Rendered concrete block construction

PRICE: $3,875,000

Len Booth EXCLUSIVE AGENT Mobile: 0438 139 422 Brisbane office: (07) 3878 3999 Email: lenbooth@resortbrokers.com.au

REF: INV001889

FANTASTIC INVESTMENT

Massive 11.46% return EARN $166,214 PER YEAR FROM PASSIVE INVESTMENT Rent: $166,214 PRICE: $1,450,000

Len Booth EXCLUSIVE AGENT Mobile: 0438 139 422 Brisbane office: (07) 3878 3999 Email: lenbooth@resortbrokers.com.au

REF: INV001175 54 RESORTBROKERS.COM.AU

Situated in the Callide Valley this passive investment offers a monthly return of $13,851 exclusive of GST and paid monthly. The lessee pays all outgoings including rates and insurance. Biloela is located 120 kms inland from the port city of Gladstone and 1.5 hrs south of Rockhampton. It is a thriving rural town on the Burnett Highway (A3). A major presence in Biloela is the Anglo Coal Callide Mine which is fully owned by Anglo Coal and employs an average of 350 employees

and around 100 contract personnel. The coalfields cover an area of 176 sq kms and contain seams up to 24 metres thick of sub-bituminous steaming coal with good combustion properties mostly used for domestic power generation. For tourists and visitors to the Callide, Biloela offers The Cultural Heritage Trail which includes the Callide Lookout as well as the Greycliffe Homestead and Museum. • Brick and timber construction • 20 hotel and 5 motel units • 4 bedroom residence and large dining room •4 poker machines owned by freehold owner • Biggest take-away bottle shop in Biloela

Editorial

Get set, get ready, sell: valuing & verifying BY ALEX COOK - RESORT BROKERS AUSTRALIA In recent editions of The Informer, readers will have read a couple of articles concerning important actions that resident managers should take to maintain the value of their management rights. One article, centered largely on short-term management rights businesses, focused on the importance of working with unit owners to upgrade, refurbish and improve their investment units. Another article, applicable to all management rights businesses, focused on the importance of topping up the caretaking/letting agreements to maintain a healthy length of tenure. If you are a management rights owner and haven’t read these, I highly recommend checking our website (all Informer articles are now archived and available to be read online). These articles were intended to provide advice and help for the ongoing, day-to-day running of your business. The suggestions made would be equally relevant on the day you bought your business to the day you sold your business. In light of this, I thought it was pertinent to highlight a couple of the crucial steps necessary just prior to putting your management rights on the market. You’ve done all the hard work now; in the years that you’ve owned the business you’ve cleaned up the complex, renovated a good proportion of the units, increased the income, and successfully achieved a 5 year top-up (hypothetically speaking, of course!) Now what? What can you do to smooth the marketing and sales process? I’d like to focus on 2 key areas. First of all, you must get an industry specialist accountant to verify your trading figures for the purpose of sale. A professionally prepared, up-to-date P&L is essential for an easy sale process. Time and time again, we come across managers who have prepared their own figures. We are told that ‘they are definitely correct’ or that ‘if they’re wrong, it will come out in due diligence’. Take it from us… you are doing yourself a big disservice. Please don’t take this an insult. It’s not that we don’t 55 RESORTBROKERS.COM.AU

trust you. It’s a question of presenting your business to the market it the best possible way you can. Many buyers are instantly dissuaded when they are provided with a vendor prepared P&L. Although some will proceed to an inspection, many will not even bother to look at a business without it. In particular, experienced buyers who have owned management rights before will often not consider businesses that have not taken this critical step. The idea that ‘it will all come out in due diligence’ just doesn’t fly with many buyers. The simple fact of the matter is that once a sale is agreed and contracts are signed, a considerable amount of time and money will be invested. If there is a discrepancy in the figures that cannot be rectified, all this time and money is wasted. Many buyers are not prepared to take this risk. After all, there will be plenty of other businesses with professionally prepared figures that they can look at. Just as importantly, by getting a professionally prepared P&L, you are protecting yourself during the sale and subsequent due diligence period. If the P&L prepared by the buyer’s accountant differs from the one provided by the vendor, the vendor will be in a far better position to argue the toss if their figures have been professionally verified. Moreover, what if the vendor underestimates the level of their net profit. If a buyer’s accountant reports that the business is making more that it was sold on, this will never be passed back to the vendor. Let’s say you sell your business, based on your own figures, is sold on a net profit of $150,000 and a 4.5 X multiplier. If, in actual fact, it is making $155,000, you’ve just lost $22,500! Secondly, it is an incredibly wise idea to get an industry specialist to value your manager’s unit. Although perhaps not as important as getting a professional to verify your figures, it will generally always pay in the long run. In regards to the marketing period, it

will certainly help attract buyers and make them feel comfortable when it comes to the offer stage. Although many buyers are knowledgeable about multipliers applicable to businesses, they will rarely have a clue as to what residential prices should be. Even most of us at Resort Brokers Australia would freely admit that we are not experts when it comes to pricing manager’s units. Getting a professional valuation will give buyers confidence that there are buying at the right price, and that the sale will get past finance approval. As well as providing the buyer with confidence, a professional valuation will also instil a high degree of confidence in the vendor (and the agent). After all, if a professional has indicated that a unit is worth a certain price, it is very difficult to argue against this. As broker, if a unit has a valuation on it, out attitude will always be ‘that’s the price, take it leave or leave it’. There is simply no room for negotiation. I can testify that the vast majority of buyers accept this. This enables us to put the unit negotiation to one side and to concentrate on the more difficult job of negotiating the business price. Once a sale is agreed, having the unit valuation in place will greatly reduce the chance of a sale falling over. This is an important point that all vendors should be aware of. Any agreed sale will almost always be subject to finance approval. Depending on the size of the business, banks may or may not opt to value the business (generally only large management rights businesses require valuation). However, all banks will value the manager’s unit during their approval process. It is simply unavoidable. If your unit is overpriced but you manage to find a buyer willing to pay the asking price, it will inevitably come to a head and create a difficult situation during due diligence. If the manager’s unit does not value up to contract price, the price will need to be renegotiated or the sale will fall over. Bearing in mind that finance approval comes right at the end of the due diligence process, there will be a huge amount of time and energy spent by this point. Why not avoid this stress by getting the valuation done before going to market? It goes without saying that the reason many managers choose not to get their figures verifies and their unit valued is to avoid what they see as an unnecessary expense. The point of this article is to point out that these two important steps actually amount to money well spent. Not only will they help you to get a better price and ultimately save you money in the long run, but they will also greatly reduce the stress involved in the whole sales process. For anyone who has ever sold a business or a residence, a method of reducing stress is certainly worth considering! RESORTBROKERS.COM.AU 55

Chris Rowe - North Queensland & Northern Territory Our agents pride themselves on their local knowledge. They each look after a geographical patch, and grow to learn it intimately. We feel this adds greatly to the confidence with which a property can be sold. In this new feature we will get some thoughts on their local area and will also learn a bit about their personalities. Tell us about your area My area stretches from Mackay in the South up to Ingham in North Queensland. I also cover the Northern Territory Your thoughts on your area The area is geographically very large, making it sometimes a bit difficult to cover. However it is a very prosperous and productive area for our type of business What drives business in your area? The South is driven by the resource sector, Townsville is supported to some extent by the Defence Force, and the balance of my area is a combination of resources and tourism driven. It is a very solid area. 56 RESORTBROKERS.COM.AU

What did you do before Resort Brokers? I was in the printing industry for many years after I left school. My wife, Sally, and I decided on a career change and purchased a caravan park in South Australia. After a few years, we purchased management rights on the Gold Coast, and now we own a large permanent complex in Townsville which she runs with the help of staff. How did you end up at Resort Brokers? I think that the hospitality and accommodation industry can get into your blood. A natural progression from owning businesses in this sector lead me to become

involved in selling them. This is a vibrant industry and I thoroughly enjoy being a part of it. What do you do in your spare time? I enjoy fishing and eating in good restaurants. We try to travel as much as possible. We lead a very busy social life in Townsville, and then of course there is my family which includes a beautiful granddaughter. Do you have a nickname? I donâ&#x20AC;&#x2122;t really think so, although I am often referred to as the big guy. What annoys you? I am passionate about being on time, it annoys me when others are late.

Relief managers DIRECTORY We have many more relief managers in our directory. Please contact us if you require a full list. Please note that this is a directory only. Resort Brokers Australia do not interview or qualify any of the managerâ&#x20AC;&#x2122;s below. Name: Delwyn and John Gane Mobile: 0421 987 462 Email: N/A Manager type: Motel Location: SE Qld / Central Qld

Name: Ray and Bev Hearn Mobile: 0429 420 826 Email: management@yourpark.com.au Manager type: Caravan Park Location: South Qld / Nth NSW

Name: Llew and Trisha Pointon Mobile: 0400 035 359 Email: llewp@tpg.com.au Manager type: Motel Location: Nationwide

Name: Steve and Pam McMullen Mobile: 0418 497 214 Email: sgpj.mcmullen@bigpond.com Manager type: Motel Location: Nth / Coastal NSW

Name: Graeme Fillipe and Deborah Wallace Mobile: 0427 512 751 Email: graemedeb@motelmanagers.com.au Manager type: Motel Location: South Qld / Nth NSW

Name: Simon and Anne Frost Mobile: 0433 921 029 Email: simon@serviceplease.com.au Manager type: Motel Location: Nationwide

Name: Phillip and Sharyn Stallman Mobile: 0428 931 589 Email: pjstal@bigpond.com Manager type: Motels, MR & CP Location: Nationwide

Name: Bob and Judy Sheppard Mobile: 0419 784 215 Email: bj.sheppard8@bigpond.com Manager type: N/A Location: NSW

Name: Sue and Hubert Rietberg Mobile: 0418 883 233 Email: sueandhugh@iinet.net.au Manager type: All properties Location: Brisbane / Sunshine & Gold Coast

Name: Lyne and Wayne Foster Mobile: 0437 217 621 Email: waynefos@dodo.com.au Manager type: Motels Location: Nth / Nth East NSW

Name: Chris and Carmel Moloney Mobile: 0400 483 291 Email: ccmoloney-315@hotmail.com Manager type: Motels Location: Nationwide & N.Z.

Name: Michael Hunter Mobile: 0439 950 900 Email: N/A Manager type: Motel Location: Qld

Name: Carol and Harry Turnbull Mobile: 0428 399 733 Email: N/A Manager type: N/A Location: Nationwide

Name: Peter and Julie Johnston Mobile: 0409 218 751 Email: N/A Manager type: Motel / MR Location: Qld

Name: Robyn and William Campbell Mobile: 0409 838 856 Email: rgcampbell@hotmail.com Manager type: N/A Location: Nationwide

Name: Louise and Siggy Dannell Mobile: 0408 901 927 Email: lsdannell@bigpond.com Manager type: All Location: East SA

Name: Paige Renshaw Mobile: 0438 847 941 Email: paigeandrea@hotmail.com Manager type: Management Rights Location: Nationwide

Name: Karla Harding Mobile: 0414 767 499 Email: bnbangel@fastmail.net Manager type: B&B / Guesthouses Location: Nationwide

Name: Sylvia and Gilbert De Michiel Mobile: 0419 204 773 Email: sylvia@anzacs.net Manager type: N/A Location: East Vic / Qld / NSW

Name: Gary and Robyn Loakes Mobile: 0408 798 352 Email: grl21@bigpond.com Manager type: All Location: Nationwide

Name: Scott Walters Mobile: 0488 726 888 Email: dougie.71@hotmail.com Manager type: Management Rights Location: Nationwide

Name: Tony and Dawn Davies Mobile: 0412 065 348 Email: dawn.tony@hotmail.com Manager type: Hotel / Motel / CP Location: West Qld

Name: Anastasia and Gus Johnson Mobile: 0408 021 303 Email: anastasiajohnson@bigpond.com Manager type: Resort Location: SE / NE Qld

Name: Jan and Allen Morton Mobile: 0417 529 129 Email: N/A Manager type: N/A Location: Sunshine Coast

Name: Christopher Hillman Mobile: 0488 550 005 Email: christopher.hillman@bigpond.com Manager type: Motels, MR, Resorts Location: Nationwide - Capital Cities

Name: Paul and Arlene Moore Mobile: 0404 855 711 Email: pfandammoore@live.com Manager type: Hotel / Motel / CP Location: Qld & NSW Name: Greg and Linda McWhirter Mobile: 0409 882 803 Email: thamacz@octa4.com.au Manager type: Motels Location: Nationwide

Name: David and Belinda Gustafson Mobile: 0403 219 562 Email: gustafsondavid@hotmail.com Manager type: N/A Location: NSW / Qld

Name: Elisabeth Grimm Mobile: 0414 751 142 Email: yellowroses4me2222@yahoo.com.au Manager type: Management Rights Location: Gold Coast

Name: Sabrina Simmonite Mobile: 0410 926 221 Email: qldreliefmanagers@bigpond.com Manager type: Management Rights Location: Brisbane, Sunshine & Gold Coast RESORTBROKERS.COM.AU 57

Industry Specialists a 100 95

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100

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RESORT MANAGEMENT ADVISORS

25 95

SPECIALISTS IN:

Review of operations | Pre-opening planning 5 75 Owner representation | Operations management 0

For professional assistance contact: tjshort@attglobal.net or phone 0413 752 717

Management rights experts

Getting the right legal advice is critical - don’t put your management rights investment at risk. Frank Higginson, Sharon Flood and the team at Hynes Lawyers can assist you with all your management rights needs. Frank Higginson frank.higginson@ hyneslawyers.com.au

Sharon Flood sharon.flood@ hyneslawyers.com.au

Subscribe to our newsletter at marketing@hyneslawyers.com.au. 5 0

Specialising in Hotels & Motels

Service Stations

Management Rights

Residential Development

Caravan Parks

Industrial

Child Care Centres

Commercial & Retail

BRISBANE P 07 3226 0000 F 07 3226 0099 E mailbris@lmw.com.au | www.landmarkwhite.com.au

THE MANAGEMENT RIGHTS LAWYERS Servicing resident unit managers throughout Queensland and New South Wales Brisbane 07 3007 3777 Level 15, 167 Eagle Street Brisbane Q 4000

Gold Coast 07 3007 3777 Corporate House, 155 Varsity Pde, Varsity Lake Q 4227

Buying or selling Hotels Caravan Parks, Motels, Management Rights? Call (07) 3220 1144 or email@hillhouse.com.au

www.hillhouse.com.au

 Specialist Business Advisor to the Accommodation Industry  Specialist Business Advisor to the Accommodation Industry  Verifications Reports  Verifications Reports  Trust Account Audits  Trust Account Audits  Business Services  Business Services  Taxation Specialist Business Advisor to the  Taxation  SpecialistAccommodation Business Advisor to the Accommodation Industry Industry  Accounting  Accounting Verifications Reports Verifications Reports | Trust Account Audits | Business  Benchmarking Benchmarking Trust Account Audits

Services | Taxation Accounting | Benchmarking

Sunshine Coast Brisbane/Gold Coast  Business Services Sunshine Coast JohnCoast Siemon Brisbane/Gold Sam Hodgetts John Siemon Sam(07) Hodgetts (07) 5474 8955  Taxation 3421 3421 (07) 5474 8955 (07) 3421 3421  Accounting Email: cpa@mcadamsiemon.com.au Email: www.mcadamsiemon.com.au cpa@mcadamsiemon.com.au  Benchmarking www.mcadamsiemon.com.au ‘ALL PROFESSIONAL FEES QUOTED UP FRONT’ Sunshine Coast Brisbane/Gold Coast ‘ALL PROFESSIONAL FEES QUOTED UP FRONT’ John Siemon Sam Hodgetts (07) 5474 8955 (07) 3421 3421 Email: cpa@mcadamsiemon.com.au www.mcadamsiemon.com.au ‘ALL PROFESSIONAL FEES QUOTED UP FRONT’

Valuations and Property Advice Specialists in Accommodation Properties and Businesses Prepurchase advice, preparing for sale, rent assessment, and valuation panellist for a wide range of banks.

Owen Barbeler (07) 3620 7900

Owen Barbeler

Brisbane T: 07 3620 7900 E: owen.barbeler@m3property.com.au

Looking to reach the accommodation and tourism industry? Why not advertise here. You will see a range of industry specialists are advertising in our widely read Informer. Circulation - 7,500 - mailed hard copies and 15,350 - sent digitally If you would like a company advert on this page please contact: Carla Cook: 0467 600 611 or email us carlacook@resortbrokers.com.au

Associate Director

58 RESORTBROKERS.COM.AU Owen has worked in the valuation industry since 2002 and specialises in going concern valuations.

Qualifications > Bachelor of Business Management (Real Estate and Development), University of

Exclusive Listings You won’t see these fantastic properties anywhere else! DESCRIPTION

PROPERTY TYPE

LOCATION

UNITS

PERM/ TEMP

NETT

PRICE

Fantastic add on - Business Only in Everton Park

Management Rights

Brisbane

Perm

$99,876

$380,000

Simply Stunning Near New Permanent Complex

Management Rights

Varsity Lakes

Perm

$114,161

$1,100,000

Leasehold Serviced Apartment Business Melbourne

L/H Motel

Kew

Temp

$540,588

$1,650,000

Freehold Leisure Park in Victorian Rural City

F/H Caravan park

Benalla

Holiday

$616,551

$4,100,000

An Exceptional Corporate Business!

Management Rights

Cairns

Mixed

$449,459

$2,180,000

Prime Mildura Leasehold

L/H Motel

Mildura

Temp

$408,000

$1,400,000

30 year lease + low rent + 33% return

L/H Motel

Bordertown

Temp

$174,129

$530,000

Home and Business

Management Rights

Calamvale

Perm

$17,916

$530,000

Once in a lifetime opportunity

L/H Motel

Coonawarra

Temp

$39,296

$120,000

Leasehold offering in major North Qld town

L/H Motel

Townsville

Temp

$240,000

$775,000

Coastal life in Sawtell – Current owners heading overseas

Management Rights

Sawtell

Perm

$101,693

$549,995

Tropical Sanctuary in the Heart of Surfers

Management Rights

Surfers Paradise

Mixed

$320,000

$1,995,000

Serious Upside for Opportunists in Central Port Macquarie

L/H Motel

Port Macquarie

Temp

$87,452

$295,000

Australia’s Best Buy

L/H Motel

Gladstone

Holiday

$1,180,000

$3,500,000

Tasmanian Freehold Caravan Park in Tourism Destination

F/H Caravan Park

Tasmania

Holiday

$353,533

$1,795,000

Western Queensland Freehold Motel

F/H Motel

Winton

Holiday

$207,771

$1,320,000

Inner City Leasehold Accommodation - New 25yr Lease

L/H Guest House

Brisbane

Temp

$89,000

$354,000

Huge 26% return on a freehold property in Mt Isa!

F/H Motel

Mt Isa

Temp

$417,000

$1,625,000

Passive Investment showing a massive 15% return in Mt Isa CBD!

INV Motel

Mt Isa

Temp

$165,000

$1,100,000

Brand new 30 year lease showing 45% return in Mt Isa CBD!

L/H Motel

Mt Isa

Temp

$252,000

$525,000

Victoria’s Tourism Hotspot

L/H Motel

Echuca

Temp

$320,379

$1,200,000

Magnificant Beachside Location!

Management Rights

Trinity Beach

Mixed

$318,000

$1,820,000

Off the Plan Management Rights on the Beach!

Management Rights

Yeppoon

Holiday

$580,000

$1,995,000

Luxury Beach Front Apartments

Management Rights

Palm Cove

Holiday

$167,000

$1,095,000

Beautiful Freehold Caravan Park right on the Coast

F/H Caravan park

Point Vernon

Holiday

$410,000

$3,650,000

An Opportunity not to be Missed!

Management Rights

Port Douglas

Holiday

$130,000

$770,000

Right on the Beach in Surfers Paradise - $275K NET

Management Rights

Surfers Paradise

Mixed

$274,695

$1,680,000

Central Australian Serviced Apartment Business

L/H Motel

Alice Springs

Temp

$504,969

$1,875,000

Quality Brisbane Corporate Leasehold - Quest Chermside

L/H Motel

Chermside

Temp

$533,071

$2,292,204

Property Returns Above Industry Averages

L/H Apartments

Tamworth

Temp

$443,782

$1,500,000

Brand New Motel Lease in Heart of Hunter Valley

L/H Motel

Muswellbrook

Temp

$911,623

$2,500,000

Outstanding Brisbane CBD Opportunity

Management Rights

Spring Hill

Mixed

$295,309

$2,150,000

The Ultimate Beachside Luxury

Management Rights

Mooloolaba

Mixed

$118,000

$870,000

Tie your own boat up on the beach outside your Resort

Management Rights

Noosaville

Holiday

$341,000

$2,200,000

Great Townsville leasehold Motel opportunity

L/H Motel

Townsville

Temp

$188,217

$625,000

Huge Southport Permanent MR

Management Rights

Southport

160

Perm

$446,566

$2,765,000

Dolphin Watch Capital of NSW

L/H Motel

Huskisson

Holiday

$213,018

$570,000

Dolphin Watch Capital of NSW

L/H Motel

Huskisson

Holiday

$213,018

$570,000

Bargara Beach - Lifestyle Plus

Management Rights

Bargara

Mixed

$39,046

$540,000

Ocean Facing - 100% in letting Pool - No fixed office hours

Management Rights

Caloundra

Holiday

$175,775

$1,450,000

The Perfect Business

Management Rights

Port Douglas

Holiday

$70,000

$525,000

Southport Permanent MR - No Requirement to Live On Site

Management Rights

Southport

Perm

$116,000

$835,000

Live off site, 20% return inc. 3 bedroom unit

Management Rights

Brisbane

Perm

$117,841

$566,000

Fantastic Freehold Country Queensland Hotel Motel

F/H Motel Hotel

Yuleba

Holiday

$286,000

$1,300,000

RESORTBROKERS.COM.AU 59

Trades FABULOUS MANAGEMENT RIGHTS - WILL TRADE HOUSE Waterview owners will take trade for part payment of management rights for a house in costal Australia to the value of up to $550,000. Nett $175,775. Price $ $1,450,000

GOLD COAST LUXURY CANAL HOME FOR MOTEL Will trade for Leasehold or Freehold Motel + Cash. Luxury canal home, 4 built-in bedrooms, en-suites, separate large study and entertainer style kitchen, living, dining, lounge with direct water frontage.

3 BEDROOM HOME IN WAKERLEY, BRISBANE Will trade near new 3 bedroom, 2 bathroom family home valued at $600,000 plus Cash for a Leasehold Motel to $1,500,000

Tyler Millar - 0411 271 761

Ian Dore - 0412 752 238

WOLLOOLLMOO, SYDNEY HARBOUR Spectacular 2 bedroom, 2 bathroom Harbour front Apartment valued at $1,300,000 and vendor will trade plus cash on a Freehold or Leasehold Motel to $3,000,000.

SPECTACULAR BEACHFRONT + $90K INCOME Apartment with steps onto the beach plus an income to help you enjoy the lifestyle,Making this the perfect retirement business for you. Price $970,000 however the current vendor will trade your house or apartment up to $650,000 as part payment.

Ian Dore - 0412 752 238

Carolyn Griffith - 0419 675 429

3 APARTMENTS WATERFONT VIEWS, NARRABEEN 3 stunning apartments (3-4 bedroom), only 8 years old. Less than 1km from shopping centre , on elevated block with swimming pool and all with stunning ocean views. Val. $3,050,000. Looking to trade motel LH or FH. Ian Dore - 0412 752 238

Ian Crooks - 0411 171 648 | Jim Keys 0418 753 595

60 RESORTBROKERS.COM.AU

Recently Sold Resort Brokers Australia has sold and settled 41 properties since the 15th January 2013. We have a further 58 properties under contract

MANAGEMENT RIGHTS BRISBANE, QLD

FREEHOLD MOTEL INGLEWOOD, QLD

LEASEHOLD CARAVAN PARK MATARANKA, NT

MANAGEMENT RIGHTS YAMBA, NSW

LEASEHOLD CARAVAN PARK SUSSEX INLET, NSW

MANAGEMENT RIGHTS CAIRNS, QLD

FREEHOLD MOTEL MANAGEMENT RIGHTS JUNEE, QLD GYMPIE

LEASEHOLD CARAVAN PARK MANAGEMENT RIGHTS TULLY GYMPIE HEADS, QLD

MANAGEMENT RIGHTS TOWNSVILLE, QLD

LEASEHOLD MOTEL BLUFF,QLD

MANAGEMENT RIGHTS NOOSA, QLD

FREEHOLD MOTEL OCEAN SHORES, NSW

LEASEHOLD MOTEL FERN BAY, NSW

MANAGEMENT RIGHTS PEREGIAN, QLD

LEASEHOLD MOTEL MERIMBULA, NSW

MANAGEMENT RIGHTS TOWNSVILLE, QLD

LEASEHOLD MOTEL TOWNSVILLE, QLD

MANAGEMENT RIGHTS TOWNSVILLE, QLD

LEASEHOLD MOTEL LEURA, NSW

LEASEHOLD MOTEL TATHRA, NSW

RESORTBROKERS.COM.AU 61

Our team Ian Crooks

MANAGING DIRECTOR NATIONWIDE

David Janett

BROKER SOUTH & WEST BRISBANE

Andrew McQualter

BROKER SOUTHERN GOLD COAST

James Carrick

BROKER NEW ENGLAND & CENTRAL COAST, NSW

Brooke Kelly

RECEPTION / OFFICE ADMINISTRATION

62 RESORTBROKERS.COM.AU

Glenn Millar

BROKER SUNSHINE COAST

Alex Cook BROKER GOLD COAST

Russell Rogers

BROKER SOUTH COAST, NSW

Julie Davidson

NATIONAL TEAM MANAGER

Trudy Crooks

SALES MANAGER / BROKER NATIONWIDE

Tyler Millar

BROKER SUNSHINE COAST

Lynn Booth BROKER CENTRAL QLD

Shane Wynhoven BROKER SYDNEY CBD, NSW

Sarah Wilkinson

OFFICE ADMINISTRATOR

Tim Crooks

BROKER CBD & SOUTH BRISBANE

Lindsay Cooper

BROKER WEST QLD & NTH NSW

Steve Campbell

BROKER BRISBANE CBD & SURROUNDS

Ian Dore

BROKER NTH. NSW & GOLD COAST

Len Booth

Shane Mullins

Jim Chapman

Stuart Charles

BROKER CENTRAL QLD

BROKER NORTH EAST, VIC

Emma Krause

ACCOUNTS MANAGER

BROKER FAR NORTH QLD

BROKER WEST, VIC

Dianne Atkinson

FINANCIAL CONTROLLER

Neville Littleton BROKER BRISBANE NORTH

Carolyn Griffith

BROKER CENTRAL GOLD COAST

Chris Rowe BROKER NORTH QLD

Gerard Hurry

BROKER NORTH WEST, VIC

Carla Cook

MARKETING MANAGER

Directory QUEENSLAND BRISBANE - HEAD OFFICE Telephone: Facsimile: Email: sales@resortbrokers.com.au

07 3878 3999 07 3878 1199

362 Montague Road, West End Qld 4101

CBD & SOUTH BRISBANE Management Rights Tim Crooks NORTH BRISBANE Management Rights Neville Littleton CBD & BRISBANE Motels/ Management Rights Steve Campbell SOUTH WEST BRISBANE Management Rights David Janett

NORTH QUEENSLAND Motels / Pubs / Caravan Parks / Management Rights Chris Rowe 0408 225 220

NORTHERN TERRITORY

PO Box 5004, West End Qld 4101 NATIONWIDE Ian Crooks - Managing Director Trudy Crooks - Sales Manager

FAR NORTH QUEENSLAND Motels / Pubs / Caravan Parks / Management Rights Shane Mullins 0447 185 001

0411 171 648 0477 882 210

Motels / Pubs / Caravan Parks / Management Rights Chris Rowe 0408 225 220

NEW SOUTH WALES

0422 208 450

Telephone: Facsimile: PO Box 78, Freshwater NSW 2069

02 9904 8224 02 9904 8867

0407 727 194

NORTHERN NSW Motels/ Management Rights Ian Dore - Northern NSW

0412 752 238

0407 220 668

CENTRAL/ NORTH WEST NSW Caravan Parks / Pubs/ Motels Lindsay Cooper

0418 711 047

0404 204 672

SYDNEY CBD & GREATER SYDNEY & CENTRAL NSW Motels/ Backpackers / Management Rights 0424 174 592 Shane Wynhoven

CENTRAL WEST/ SOUTH WEST/ SOUTH EAST QLD Caravan Parks / Pubs/ Motels 0418 711 047 Lindsay Cooper

CENTRAL COAST & NEW ENGLAND, NSW Motels/ Caravan Parks James Carrick

0424 174 592

GOLD COAST Telephone: Facsimile:

SOUTH COAST, NSW Motels/ Caravan Parks Russell Rogers

0416 166 909

MAIN BEACH Motels/ Management Rights Ian Dore

07 5510 3900 07 5510 3111

VICTORIA 0412 752 238

NORTH GOLD COAST/ SURFERS PARADISE Management Rights 0467 600 610 Alex Cook SOUTHERN GOLD COAST Management Rights Andrew McQualter

0431 513 532

CENTRAL GOLD COAST Management Rights 0419 675 429 Carolyn Griffith SUNSHINE COAST / DISCOVERY COAST / HERVEY BAY Management Rights 0412 277 804 Glenn Millar Tyler Millar 0411 271 761 CENTRAL QUEENSLAND A/h: 07 4155 6330 07 4155 6440 Facsimile: Motels Len Booth

Telephone: 03 9347 3100 Facsimile: 03 9347 3111 PO Box 1100, Carlton VIC 3053 NORTH EAST VIC Motels/ Caravan Parks/ Management Rights Jim Chapman 0413 444 782 WEST VIC Motels/ Caravan Parks Stuart Charles

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The original and still No. 1