Sunshine Coast Management Rights Spotlight by Multimedia AU/NZ

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Holiday management rights No set ofﬁce hours Across from the beach Easy care property Minimal gardens Suitable for ﬁrst time buyers

NET PROFIT: $199,875 ASKING PRICE: $1,495,000 CONTACT: Mark McKay – 0428 865 120

Holiday management rights Just one block from the beach Walk to shops, cafes & restaurants Reception with studio on title Fantastic onsite facilities Great add on building

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Mixed letting complex Prime position Full resort facilities Immaculate gardens No set ofﬁce hours No requirement to live onsite

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MR Sales have an extensive range of listings Australia wide. Visit www.mrsales.com.au to view them now or Phone: 1300 928 556 | Email: info@mrsales.com.au

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Management rights glow on Sunshine Coast

Coolum Beach, Sunshine Coast. Image courtesy of Visit Sunshine Coast

By Grantlee Kieza, Industry Reporter

“The Sunshine Coast is now an aspirational location,” Mr Phipps told Resort News, “and parts of it have become brands of their own and are kind of bulletproof.

Queensland’s shining Sunshine Coast has become a dream destination, and the management rights industry is following the price of residential real estate through the roof. Some interstate buyers are even snapping up management rights on the Sunshine Coast without inspecting the properties. Industry leader Mike Phipps says the popularity and high prices being paid for management

“There have been plenty of people locked up during COVID and they’ve had lots of time to think about the meaning of life. Some want to come into the Sunshine Coast at a point in their lives and buy into a business. Mike Phipps

“I think COVID has brought those plans forward with a rocket.”

rights on the Sunshine Coast comes in a climate where a buyer recently paid $16.1million for a unit in Hastings Street, Noosa.

Mr Phipps, who runs the brokerage and consultancy firm Mike Phipps Finance, said “6.3 times multiples” on yearly

earnings were now fairly standard for management rights in Noosa and that it was “a significant improvement on a few years ago.” “The tourism market on the Sunshine Coast is predominantly domestic,” he said. “It is a very strong drive market. The Gold Coast has done it tough during COVID because there are no international tourists, but the Sunshine Coast has a much bigger local catchment. “I think we've got to a point on the Sunshine Coast and certainly in Noosa where the amount of international money flowing in from Singapore and Hong Kong would blow you away.

It's a lot like New Zealand’s South Island was back in the day, where they had a lot of investment from North America and it’s going to continue.” The latest Tourism Research Australia National Visitor Survey showed that the Sunshine Coast was able to offset the massive falls in international and interstate visitors with significant growth in intrastate numbers.

“It’s still a young area compared to the Gold Coast,” Mr Jancevski said. “You can see by the amount of cranes around that more management rights properties are being built because the demand is there.

of 17 percent in visitor numbers to 3.8 million for the year. Neil and Amanda Watson took over the lovely Noosa Village River Resort in Noosaville on July 1, buying the management rights because of what Mr Watson described as “lifestyle, location and return on investment”.

In fact, the region recorded record intrastate visitor numbers for the year to June 30, 2021.

“We lived in Cooroibah, which is in the Noosa shire and we’re part of the community,” Mr Watson said. “I needed a career change coming from consulting in ISO standards and auditing.

The Sunshine Coast has close to three million people living within a drive radius of 300km and Visit Sunshine Coast was able to use a market that couldn’t fly interstate or internationally to make up for the losses from international and interstate visitors (about 35 percent of its usual total market).

“I had been involved in accommodation before, but it has changed in quantum leaps since the days when all the traffic was by phone or off the street by foot. Dealing with OTAs and computerised booking systems that don’t sleep has been a massive eye opener.

While Queensland reported a 16.2 percent decrease in visitor expenditure and 19.9 percent decrease in domestic visitor arrivals for the year to June 30, 2021, the Sunshine Coast grew domestic visitor expenditure slightly to a record $2.8 billion, built on an increase

“But we’re enjoying it even though to start with we had more cancellations than bookings because of COVID. It was very onerous processing all those cancellations and refunds, but we applied a 100 percent refund policy so we will get the return custom one day.

Sasha Jancevski

“We had been looking for years for the right place. By and large with most management rights properties the manager’s unit is the last thing that gets thought about, whereas for us this one was ideal. “We think the property has great potential for growth. We factored in the key ingredient that the manager’s salary must be enough to service the debt and it’s working out well.” Sasha Jancevski, from the RAAS Property Group, who has been involved in management rights for 22 years, said limited supply on the Sunshine Coast was making the management rights market there “extremely buoyant”.

Peace of mind for your property decisions

“Despite the reports about COVID affecting the industry I’ve just closed on two properties at Noosa, both around the $2 million mark. “There are new younger people coming into the industry because management rights is such a good business model, and what we are seeing is that people who have many years in management rights are now bolting onto their existing business and expanding their portfolio. They can see the worth in good value properties and the banks are always willing to help because they see management rights as a sound investment.” Mr Jancevski’s colleague at RAAS, Rossina Gall, has three properties listed, and more coming onto the market. “We’re seeing a lot of interest from younger people these days,” Ms Gall said.

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Glasshouse Mountains, image courtesy of Visit Sunshine Coast

Mooloolaba Beach, image courtesy of Visit Sunshine Coast

Barry Davies said strong sales were also being recorded at coastal areas such as Yeppoon, Bargara and Agnes Waters, though the Sunshine Coast offered consistent returns and continued visitor demand.

Matt Campbell and Barry Davies from the Maroochydore-based, Resort Management Sales, are enjoying a record run with 14 properties under contract and six settling on December 1. “We've seen a rush and we have a number of listings coming to market and we suspect this will be a record year for us,” Mr Campbell said. Rossina Gall

“Historically management rights has been a job that people sometimes think is a semiretirement business, but there are properties that suit everyone these days from earning $60,000 a year to more than $500,000 a year. The education opportunities on the Sunshine Coast draw a lot of young families to make the lifestyle choice. Some people have two jobs and use management rights as part of that. “People are designing their own lives and depending on the type of management rights they can work as much or as little as they want to.”

“That’s remarkable since Barry and I collectively have 40 years in the industry and it comes despite the problems that COVID has caused with border closures and lockdowns.” Mr Campbell said the Sunshine Coast’s laidback lifestyle and natural beauty was a great enticement for management rights owners. “There are the attractions of the beach and the hinterland and the national parks,” he said. “It's also less densely populated then the Gold Coast and Brisbane. “COVID has actually heightened the enquiry level for us with people wanting to come to a desirable area like this.”

THANK YOU.

Barry Davies and Matt Campbell

Mr Campbell said his business was offering a range of properties from below $1million right up to $7million. Properties above $3million were creating the most demand because of the income they generated. “The $500,000 net profit and above is the sweet spot for syndicate purchasers, providing a return on investment that is so far superior to anywhere else that you can put your money. “Those properties will offer even greater returns once borders are open.”

A message from Barry Davies and Matt Campbell from Resort Management Sales, Sunshine Coast’s Most Experienced Agency: Peter Brewer

Accountant Peter Brewer, of PBB Consult, said much of the demand on the Sunshine Coast was fuelled by its proximity to large population centres, especially Brisbane, after the border closures.

As 2021 draws to a close, Barry and Matt wish to thank all of our valued clients for working with us to achieve one of our most successful years in our 40 collective years in the industry, with 22 sales worth in excess of $46m settled or currently under contract in the last 6 months alone. We are proud of the results we have achieved for our sellers, despite the challenges COVID has presented to the contractual process and thank them for their patience and trust in our ability to bring their sale to completion. We hope all of our sellers enjoy a restful break and wish our buyers every success in their new venture. To all of the current operators out there who would like to know what their business is worth in the current market, and to better understand how to present their business for sale, please don’t hesitate to make contact for a confidential chat.

Local Focus with a National Coverage Matt Campbell - 0410 343 219 matt@managementrights.com

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ResortNews | November 2021

Barry Davies - 0438 554 995 barry@managementrights.com

“Noosa may have suffered a little from its traditional reliance on Melbourne, but especially the southern end of the Sunshine Coast has fared very well during COVID,” he said. “Management rights on the Sunshine Coast and heading further to Yeppoon have been strong. “The big end of town is chasing yield. Syndicates try to benchmark a 15 to 20 percent return but that can be driven by gearing as well with low interest rates. “To potential investors that’s very attractive but mum and dad/two-person management teams can still get good returns compared with alternative investments. It’s a good business model considering you are not carrying stock or debtors, and there is a body corporate salary coming in every month.” Industry veteran Tony Rossiter, from Holmans Accounting and Taxation, said management rights on the Sunshine Coast had received an unprecedented level of demand over the last 12 months. “It’s been quite exceptional,”

Tony Rossiter

Mr Rossiter said. “Until the most recent border closure in August all of our clients were achieving record trading. The closure of the NSW and Victorian borders continues to impact but the lockdowns will end.” Mr Rossiter said in contrast with the Gold Coast, the Sunshine Coast was still seen by many tourists as a regional centre. “There's a human reaction to COVID to want to get away from the populace,” he said. “That's what we've seen in the capital cities with people moving out of city centres and apartmenttype living for the suburbs, and then out to regional and rural towns which have never seen the sort of growth they have experienced during COVID.

“The Sunshine Coast has been a beneficiary of that. People who would normally travel overseas see the Sunshine Coast as a good alternative

Mr McKillop said there were reports of a beachfront property in Hastings St, Noosa that was under contract after attracting a 6.5 multiplier.

“The recent strong sales in management rights have benefited from strong trade on the Sunshine Coast rather than the multiplier going through the roof.

He said the Coco apartments at Mooloolaba recently sold for a 5.63 times multiplier with a net around $650,000 while Noosaville’s Ivory Palms, with holiday units and a conference centre, sold for a little over $6.5 million on a net profit of around $900,000.

“The businesses have been trading well, but separately the buying and selling activity of these businesses has improved as well. Management rights are seen as a safe and secure income. Transactions are happening more quickly. Properties are spending less time on the market because there is simply more demand from around Australia. “The Noosa Crest resort was sold to a buyer from Canberra. Other interstate investors have bought management rights without actually seeing the property because of the restrictions on movement.” Chris McKillop, a director of valuers Herron Todd White, said the Sunshine Coast benefitted from being just an hour’s drive from Brisbane

Chris McKillop

at a time of lockdowns when people preferred to make lastminute holiday bookings. “Occupancies aren't quite back to where they were from a couple of years ago before COVID, but they are getting closer,” Mr McKillop said, “and the returns have been about the same because of good incomes out of Friday and Saturday night trade. “The Sunshine Coast typically has a more relaxed and slower pace than the Gold Coast and a lot of regional people from places such as Toowoomba prefer it as a destination. The Sunshine Coast beaches are only 40 minutes or so from the hinterland of Montville and Maleny which makes it very attractive as well.”

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He said La Mer at Sunshine Beach had sold for about $3 million on a 5.2 times multiple. Michael Kleinschmidt

Atrium at Buderim, with 258 units in its letting pool, sold for $5million on a net profit of $700,000. Mr McKillop said high residential prices, though, meant the overall return on investment for some management rights was actually dropping. “A lot of the syndicates are wondering if they should buy properties that now include a $1.4 million manager’s residence because it reduces the return on investment,” he said.

WHEN EXPERIENCE MATTERS

Michael Kleinschmidt, the Legal Practitioner Director of Mooloolaba-based Stratum Legal, has lived on the Sunshine Coast half of his life and has seen some of it now priced as among the most expensive real estate in Australia. “There's a huge demand for permanent let complexes and a lot of syndicates are picking up key sites,” Mr Kleinschmidt told us. P42

The only specialist Management Rights valuation company in Australia (with 25 years experience)

Alex McCowan 0417 405 115 or Alison Sun 0416 181 285 admin@accomvaluers.com.au

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Endless Summer in Coolum Steve and Desiree Woolford, the new onsite managers of Endless Summer resort only took over the management rights of this 32-unit holiday resort in early October. Steve is a plumber by trade and Desiree a childcare worker, three years ago they moved to the Sunny Coast from Young in NSW. Steve told us: “Finding an MR business was a remarkably simple and quick process for us, it only took one year from when we began to look, to when we took over. “We had been holidaying on the Sunshine Coast for years and knew we wanted to buy in Coolum. Barry Davies from Resort Management Sales

showed us this property, and we instantly felt that it was the one for us. It’s a great resort that fits our lifestyle. It has the best lagoon pool in Coolum and caters for families, couples and people wanting a break, it is also somewhere our children and grandchildren can visit.

Chartered Accountants & Specialist Advisors to the Accommodation Sector on the Sunshine Coast Since 1993

“We love the location, the resort facilities, the three-bedroom manager’s unit and the business price was within our budget.

Peter Brewer

Damian Quinn

“It may be seen as a risk to buy a holiday resort during COVID, but we think there is a light at the end of the tunnel, with borders open the resort is already fully booked over the Christmas period. Overall, we are very excited about this next chapter of our lives. “A big thankyou to Barry and team for their professionalism over the due diligence period.” PROPERTY

Management Rights Transactions

We work closely with industry profesionals and financiers to ensure our clients interests are protected and outcomes optimised. Peter Brewer t: 07 5449 9992 e: peter@pbbconsult.com.au w: www.pbbconsult.com.au

One of the Sunshine Coast’s most experienced firms in on-site management rights transactions. • Commercial & Business Law • Litigation & Dispute Resolution • Wills & Estate Planning

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Steve and Desiree Woolford

ResortNews | November 2021

Damian Quinn (07) 5443 5266 www.simpsonquinn.com.au

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The Resort Accommodation and Sales (RAAS) Sunshine Coast team Rossina Gall, management rights owner and RAAS sales agent says: “No one knows a building or scheme better than an onsite manager. With both a financial and emotional attachment to the scheme, onsite managers can be, and often are, the biggest stakeholders.” She explains: “We have ‘skin in the game’ that makes us, not only managers but also lot owners, committee members, property and sales managers and when it comes to people all living together, often a little bit more.

Rossina Gall

Sasha Jancevski

the building or scheme as much as people who have a vested interest, it is so much more than a business, there is also a community involved. Over the years I’ve enjoyed meeting people from all walks of life, making improvements along the way that increase returns for investors and make it a nice place to live.

“Now is a good time to buy with interest rates low, but if you are looking to invest in management rights you must enjoy dealing with a range of people. You must have what’s ‘Best for Scheme’ at the forefront because you are helping to look after a scheme that could be worth over $50 Million and also a home or investment to many.

Sasha Jancevski from RAAS says:

“I believe in management rights as no one will care for

“Rather than choosing to state my sales results, history and

“If you would like to discuss taking your first step into the management rights industry, purchase an additional business, or get back into the industry after a break, call me today.”

personal achievements in management rights over the past 20 years, I think it is far more appropriate that my fellow management rights owners and buyers decide where I stand when it comes to the management rights industry. “The entire process of either purchasing or selling your management rights requires skills and diligence from the outset and my commitment never waivers. Often, I am contacted by buyers and sellers who seek my opinion on current market conditions, they do this purely because of my wealth of experience and I am always happy to provide feedback and support. “I do get results and I believe

that if a seller is prepared to meet the market conditions, I will produce a desired outcome within 90 days of listing. I believe that a buyer must be matched to a property according to their wish list and not based on 'just taking a look', and so if you have been on the market for over 90 days or are contemplating taking your property to market for a 'market conditions' result then call me for a no obligation , experienced and professional discussion. You will be pleasantly surprised.” Darrel and Michael Woodham said: “We recently purchased the Noosa Tropicana Management Rights Business on the Sunshine Coast, through Sasha Jancevski of RAAS Sales. Dealing with Sasha was an easy process and he has a wealth of experience in the industry which helped us immensely being new to management rights. Sasha was always available to answer any questions & kept us informed of key dates to remember leading into settlement. After settlement he has followed up with good advice and information we have needed."

Long search reaps rewards for new owners By Mandy Clarke, Editor

Although new to management rights, both Michael and Darrel have a hospitality background. They clearly love Noosa having holidayed there for 20 years; they enjoy the laid-back lifestyle the Sunshine Coast offers. On their journey to purchasing Noosa Tropicana Michael told us: “We started our search over two years ago and looked at a few properties, but then COVID hit so we decided to continue to concentrate on our café and catering business in Brisbane. But, during our 2020 Christmas holiday in Noosaville, we decided

to focus on our management rights goal. In January we sold our house and business and the opportunity to purchase Noosa Tropicana came along.” Noosa Tropicana is a tranquil and tropical resort with 19 short term let apartments in the letting pool, it’s the perfect fit for these managers. Sasha from RAAS was both the agent for this sale and their tutor when they completed their real estate licences. Darrel explained: “After guidance from a friend with lots of industry experience, we had a blueprint. We looked for key components (length of lease, ROI, percentage of letting pool to total apartments) and we wanted suitable managers accommodation.”

Management Rights

A great place to live and work

Despite a reported slowing of the Australian population, the Sunshine Coast population is increasing due to an influx of people moving into the region, and current residents deciding they will stay put. Already known as one of Australia’s top holiday destinations, Queensland’s third largest city’s economy is on a growth trajectory set to reach $33 billion by 2033. “As a business destination, the Sunshine Coast offers an unbeatable combination of capital city infrastructure and a famously stunning natural environment in a regional location. Projects such as our digital infrastructure was recently confirmed as the fastest east coast data path to Asia - and

it’s 70ms faster than Sydney!” reports Sunshine Coast Council development branch.

Resort Accommodation and Sales (RAAS) Sunshine Coast sales agents, Sasha Jancevski and Rossina Gall agree. “Sunshine Coast has historically offered a fairly laid-back lifestyle coupled with exciting business opportunities.” “More so than ever, people are reconsidering what their lifestyle looks like and the Sunshine Coast ticks quite a few boxes in terms of education, access to Brisbane or flights, worldclass medical services, lifestyle and 52km of open coastline” explains Rossina. “Management Rights buyers are no different and we are seeing new and experienced operators researching properties for sale in the region of varying sizes and

Bruce Highway incomes. Buyers are both local and interstate, though a higher proportion from Victoria.”

operators themselves. They are a wealth of knowledge and happy to share it.

Resort Accommodation and Sales (RAAS) has been successful in thousands of Management Rights and Residential transactions for almost 20 years. The friendly, experienced and professional agents usually are previous or current MR

“We are match makers, not deal makers and our goal is to find the right opportunity for our buyers who eventually join the RAAS network of On Site Managers,” says Sasha. For more information contact: Rossina Gall, 0407 374 800 rossina@raas.com.au

Sunshine Coast Properties For Sale Noosa Heads

Irresistible location, ideal lifestyle, Noosa Parade...

Ideal for a single operator or couple who enjoy a minimal working lifestyle in the precinct of Noosa Heads - without blowing the budget. This little gem provides solid returns for one and/or allows your partner to maintain their own career; live & work in one of the best positions in Noosa, being a stones throw from the Noosa river and surfing/cafe/restaurant mecca. The managers apartment provides comfortable living for managers with the office neatly tucked in to access internally from your apartment. The complex has just had a new coat of paint, which compliments an already neat and tidy holiday makers destination. First time to market in over 10 years, the owner has priced to sell... Contact: Sasha Jancevski, sashaj@raas.com.au, 0406 075 270

Net Profit: $115,000

Total Price: $667,650

Peregian Beach Brilliant Beachside Business

Michael and Darrel Woodham

Michael and Darrel believe passionately in the future of management rights on the Sunshine Coast. They said: “The region has already bounced back from COVID, and Noosa

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is a popular destination for domestic travellers. We believe that after surviving the lows of COVID, our industry is heading for much better times, we are very optimistic.” ResortNews | November 2021

Located on Qld’s beautiful Peregian Beach, this exciting Management Rights opportunity is complete with prime absolute beachfront access. There is an impressive welcoming office/reception area with shop & coffee offerings. Spacious accommodation townhouses & airy three bedroom managers townhouse designed for relaxed coastal living. Top resort facilities include heated pool, spa, sauna, BBQ area, fast unlimited internet, convenient unit parking, private balconies, lush irrigated lawn, games room and conference/meeting areas.

Contact: Rossina Gall, rossina@raas.com.au, 0407 374 800

Net Profit: $250,000

Total Price: $2,024,000

GROW YOUR BUSINESS • INCREASE YOUR INCOME • PROTECT YOUR INVESTMENT

07 5593 0007 raasrights.com.au

Images courtesy of Visit Sunshine Coast

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A lot of people don’t realise that the majority of accommodation on the Sunshine Coast is under management rights The Ginger Factory

P39 “Unlike your traditional twoperson management team or even a family-owned business, the syndicates just keep on keeping on, and swap out managers. “It's a classic concentration of market that as a market matures larger players come in and they consolidate properties. That's what's happening in this space." "Consortiums out there with industry accountants pick up some of these properties and it obviously has an impact because it drives demand. “Operating teams make the difference. “I’ve seen the same buildings sold three or four times during my career and while the fundamentals remain the

same, they can have different outcomes depending on who is running it and if they know what they’re doing. “One couple can do it badly, and another can come in and go gangbusters. First and foremost, in management rights you must be a people person providing personal service. If you’re not, then get out because you must have a deft touch with guests “There is also a mindset that creeps into some committees that in financially challenging times they have to spend the least amount of money possible, instead of getting ahead of things before they breakdown. They become Ebenezer Scrooge. They do washdowns instead of painting, whereas the whole

Damian Quinn

Alex McCowan

system should be about meeting the needs of a building.”

hotel style accommodation whereas on the Sunshine Coast it's more family accommodation.

Damian Quinn, from Maroochydore-based Simpson Quinn Lawyers, said larger complexes as well as smaller ones were in big demand all the way from Golden Beach, on the Sunshine Coast’s south to Rainbow Beach in the north. “There are nice beaches all the way along our coast,” Mr Quinn said, “and if you want to settle in there's an Aldi on every second corner, so it’s all there for an easy, relaxing holiday. “The Gold Coast was more affected by COVID because they had a lot of fly-in traffic from Victoria and NSW and their big buildings down there are largely

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“There's always a market for that.” Alex McCowan, from Accom Valuers, said the Sunshine Coast had weathered the COVID storm better than most areas. “The value of management rights is running alongside the good prices we are seeing for residential real estate and the high rents that are being paid on the Sunshine Coast,” Mr McCowan said. “Properties are not only coming out of lockdowns well but trading better than they have for a long time and I see that continuing. “Even with international borders opening, a lot of people will still ResortNews | November 2021

be inclined to holiday at home for some time yet and the Sunshine Coast has always benefited from a very big Brisbane market just an hour away.” Liam Kennedy, the General Manager of the Stay Resort Group, and a former general manager of Noosa Blue, offers a consultancy to newcomers in the management rights field. “A lot of people don’t realise that the majority of accommodation on the Sunshine Coast is under management rights,” Mr Kennedy said. “When COVID-19 hit we went into survival mode but now we're coming out of it very well and we relied very heavily on the local drive market to do it because ResortNews | November 2021

MANAGEMENT & LETTING RIGHTS VALUATION SPECIALISTS

the vast majority of people at the moment are driving rather than flying for obvious reasons. “Once the borders are open again I would imagine that the floodgates will open and things will kick on even more because the longer you have to travel the longer you stay.

1800 664 094

“People who fly to a destination stay a lot more than two nights which is the average length of stay if you're driving from Brisbane. “With Sunshine Coast management rights, people are buying themselves a job with a pretty secure income and at the same time they are able to live and work in paradise.”

quotes@australianvaluers.com.au www.australianvaluers.com.au AUSTRALIAN VALUERS SPECIALISE IN: Holiday Complexes Corporate Complexes Permanent Complexes Student Accommodations Manager Unit Valuations & Rights Time in Motion Reports & Rent Rolls Body Corporate Salary Market Assessments

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By Glen Millar & Chenoa Daniel, ResortBrokers Australia

ResortBrokers, Australia’s longest established and most experienced specialist agency operating in the accommodation and hospitality sector, reports that demand for management rights on the Sunshine Coast has hit unprecedented levels because of a combination of a major increase in drive tourism and permanent domestic migration. The ResortBrokers’ Sunshine Coast team of Glenn Millar and Chenoa Daniel have settled on 16 properties in the past 12 months to the value of $35 million and they have a further eight to settle before Christmas in deals worth a total of $21.7 million. “In my 30 years of living here,

and 16 with ResortBrokers, I’ve never seen anything like the growth we are experiencing right now. This place is a whole lot different to the ‘sleepy-beachy little bolthole up the road from Brisbane’ from when I first moved here,” said Mr Millar. “It’s been caused by a combination of key factors. We have a massive increase in drive tourism because of the border closures and lockdowns which has benefited the short-term operators and businesses,” he said. “Then there’s been a serious wave of interstate and intrastate migration because of the obvious lifestyle benefits of this beautiful part of the world. “And this is all being boosted by record infrastructure investment. The Sunshine Coast is in the middle of literally building a new city and economy based on a 20-year economic plan. “More than $20 billion in infrastructure projects and

private investment has either been completed, is under construction or in the planning pipeline.” Some of the notable sales which generated headlines for ResortBrokers on the Sunshine Coast include Tingirana at Noosa – which was the first short term complex sold after the COVID outbreak – Ivory Palms at Noosaville and Atrium at Buderim which sold for a record multiplier for the region of 6.1X. “The Sunshine Coast is so hot right now, and not just the weather, and I couldn’t have timed my move here two years ago any better. There are buyers everywhere looking for quality accommodation businesses and the big problem I have with all this is that I simply can’t get enough stock to meet the demand!” said Ms Daniel. “Permanent complexes are in demand especially those with net incomes in excess of $300,000. As well as existing

businesses, we currently have four off the plan complexes under contract,” she said. “The demand for these permanent accommodation complexes is, in part, being driven by extremely low vacancy rates. According to SQM Research, the vacancy rate is 0.6 percent as it seems like everybody wants to move here permanently, especially Sydney and Melbourne people,” she said. “When I moved down from far north Queensland to the Sunshine Coast, obviously I had no idea about how the pandemic would dramatically change everything we knew and what impact it would have on the industry here. “It could have been a total disaster from a business point of view for myself but, as we all now know, the border closures and lockdowns led to a big increase in drive tourism and domestic migration, and the Sunshine Coast has benefited from this.“

Glenn Millar

Chenoa Daniel

Broker, Sunshine Coast

0412 277 804

0403 143 151

glenn@resortbrokers.com.au

chenoa@resortbrokers.com.au

RESORTBROKERS.COM.AU | 1300 665 966

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ResortNews | November 2021

Meet the ResortBrokers Sunshine Coast team Introducing Glenn Millar For the past 16 years, Glenn has worked exclusively in the management rights industry and he’s established himself as one of Australia’s premier brokers in the sector. Since he joined ResortBrokers in 2005, he has sold more than 200 management rights with a combined value exceeding a quarter of a billion dollars. Very few brokers come close to this. His region predominately covers the Sunshine Coast, however, he has been involved in sales of both management rights and freehold branded hotels throughout Australia. A fervent believer in the management rights model, Glenn’s knowledge of the sector is highly regarded, leading to his involvement with the industry’s peak body ARAMA on an advisory panel. Glenn has sold many of the region’s

Glenn Millar

Chenoa Daniel

landmark management rights, many two or three times over. There are few management rights brokers who understand this segment of the market, certainly not to the degree needed in such a specialist field.

Introducing Chenoa Daniel Whilst Chenoa has just clocked up five years as a broker, she has been working in the MLR industry for 12 years running her own management rights and consulting business.

For three years Chenoa was ResortBrokers’ far North Queensland specialist and, after racking up an impressive $30 million in sales, she is now well and truly established in her new patch on the Sunshine Coast. Chenoa has become the go-to broker in a short period of time due to her hands-on experience in management rights in both short term and permanent complexes. Her track record speaks for itself. Chenoa achieved the highest multiplier to date in the far north with the sale of

the management rights to the Peninsula Boutique Hotel Port Douglas. That multi-million dollar sale attracted national media coverage and the achievement was all the more meritorious given the tough market at the time. Chenoa also hit the national headlines when she and Glenn Millar sold the management rights to the former Oaks Lagoons resort in Port Douglas on behalf of Minor Hotels to Silkari Hotels.

Ben and his business partners recently took ownership of three management rights businesses on the Sunshine Coast and Ben is the managing partner. The properties include, the stunning beachfront resort, Tingirana Noosa which offers luxury Hasting Street holiday apartment accommodation, and two permanent properties, the Atrium in Buderim, and the High Street residential buildings in Sippy Downs. Ben, his wife and three small children chose to move to the Sunshine Coast from Brisbane because it offered the young family a more relaxed way of life. In doing this they were very specific about the management rights business they wanted. ResortBrokers knew exactly what Ben and his partners were

looking for and only presented properties that ticked all the boxes. Ben told us: “Predominately we look for large management rights businesses with higher incomes or big body corporate salaries that are in highly sought after locations, and all three of these buildings fitted our brief. “Hasting Street Noosa is the everdesired holiday location and the permanent management rights properties in Buderim and Sippy Downs sit in high demand, high growth residential locations.” Regarding the Sunshine Coast’s future Ben said: “There is still so much more room for growth in this beautiful region and therefore there is huge potential for the Sunshine Coast management rights industry. I believe that demand for both holiday and permanent letting will increase exponentially as borders open and even more people will choose to move or holiday here to enjoy this relaxed beach lifestyle.” PROPERTY

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After fine tuning her skills in a tough far north market she has brought her skill set to the Sunshine Coast and shaken things up. Some of her more recent noteworthy deals include Ivory Palms Resort at Noosaville, Verve at Maroochydore and Edgewater at Birtinya, to name a few. Chenoa demonstrated her superior negotiating skills by brokering the sale of Atrium, Buderim which sold for a record multiplier for the region of 6.1X.

Ben Orton from Prestige Residential is new to management rights on the Sunshine Coast By Mandy Clarke, Editor

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