Information memorandum
1/8 Levuka Avenue, Kings Beach Auction Wednesday, 16 March 2016 at 11:00am On Site
Contents The Opportunity.................................................................................................. 3 Executive Summary ........................................................................................... 4 Property Overview .............................................................................................. 5 Location Details .................................................................................................. 6 Tenancy Schedule.............................................................................................. 8 Tenancy Overview .............................................................................................. 9 Tenancy Images ............................................................................................... 10 Tenancy 1 De Lish Fish .................................................................................... 11 Tenancy 2 J Kitchen on Kings .......................................................................... 11 Tenancy 3 Coffee Cat ...................................................................................... 12 Tenancy 4 Crusoes on kings ............................................................................ 12 Financials ......................................................................................................... 13 Sales Process .................................................................................................. 14 Disclaimer......................................................................................................... 15 Annexure A Auction Conditions ........................................................................ 16 Annexure B Title Search .................................................................................. 18 Annexure C Floor Plans ................................................................................... 19 Annexure D Survey Plan .................................................................................. 20
Jason Wright
Michael Shadforth
Ray White Commercial North Coast Central 0451 497 368 jason.wright@raywhite.com
Ray White Commercial North Coast Central 0488 981 076 michael.shadforth@raywhite.com
Damien Poole Ray White Commercial North Coast Central 0414 457 022 damien.poole@raywhite.com
Emily Pendleton Ray White Commercial North Coast Central 0402 435 446 emily.pendleton@raywhite.com
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THE OPPORTUNITY Ray White Commercial North Coast Central is pleased to present to the market by way of Auction, this tenanted investment opportunity at
1/8 Levuka Avenue, Kings Beach (hereafter refered to as the subject property). The property incorporates 392 m2* of retail floor space, comprised of 4 tenancies. The property is a ground floor strata titled unit located within the Rolling Surf Resort. Property features Include:
• Net return of $358,000 per annum * • Absolute beach front location • Four long term existing tenants on strong lease terms • 4.64 year WALE • Good security • Positioned beneath 4.5 star resort – Rolling Surf • One of only a few beachfront retail investments in the Sunshine Coast Council region *approx
Executive summary The property
1/8 Levuka Avenue, Kings Beach Qld 4551
Property description
Commercial ground floor strata titled retail unit
Building area
392 m2*
Method of sale
Auction
Auction details
Wednesday, 16 March 2016 at 11:00am On Site 1/8 Levuka Avenue, Kings Beach Qld 4551
Marketing agents
Jason Wright Ray White Commercial North Coast Central T 1300 255 075 M 0451 497 368 E jason.wright@raywhite.com Michael Shadforth Ray White Commercial North Coast Central T 1300 255 075 M 0488 981 076 E michael.shadforth@raywhite.com Damien Poole Ray White Commercial North Coast Central T 1300 255 075 M 0414 457 022 E damien.poole@raywhite.com Emily Pendleton Ray White Commercial North Coast Central T 1300 255 075 M 0402 435 446 E emily.pendleton@raywhite.com
* Approximately ^ Important: Prospective purchasers conduct due diligence investigations of the property strictly at their own expense and risk, and the vendor will have no liability in relation to such expenses. Consent by the vendor to the conduct by any potential purchaser of due diligence activities or investigation will not in any circumstance be construed as a representation that the vendor will be exercising, or refraining from exercising its rights to deal with the property, or any representation that the vendor intends to contract with that potential buyer, or at all.
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Property overview Address
1/8 Levuka Avenue, Kings Beach
Real property details
Lot 1 on SP132434
Parish
Bribie
Title reference
50354547
Zoning
Tourist Accommodation Zone
Local authority
Sunshine Coast Council
Type
Ground floor strata titled unit
Building age
Circa 1990
Number of tenancies
Four
NLA
Total - 386 m2* -Tenancy 1 – 79 m2* -Tenancy 2 – 27 m2* -Tenancy 3 – 137 m2* -Tenancy 4 – 143 m2*
Net income
$357,919-96* per annum -Tenancy 1 - $94,492-56* per annum -Tenancy 2 - $30 421-20* per annum -Tenancy 3 - $89,281-00* per annum -Tenancy 4 - $143,725-20* per annum
Outgoings
$90,720-00* per annum ($85,200-00* p/a retrievable)
Services
Electricity, town water, sewerage & telephone services
Land & access
The property is located beneath the Rolling Surf Resort which faces Levuka Avenue. The subject property fronts onto Kings Beach. Access to the property is via Levuka Avenue. There is approximately 25-30 onsite Council carparks (not attached to the title) near the entrance of the complex with additional street parking available.
*Approximate
5
CALOUNDRA CBD 5 mins
THE LOCATION
maroochydore 20 mins levuka ave
KINGS BEACH
STOCKLAND AURA 10 mins BRISBANE 1.5hr
With a population growth of 10.1% over the five year period between 2008 and 2013 (higher than the national growth rate of 8.7%) and highest growth of international visitors (9.4%) of any Queensland region in the year ending September 2014, with more than $2.5 billion in overall direct visitor expenditure, the Sunshine Coast is an ideal investment opportunity location. (source www.invest.sunshinecoast.qld.gov.au) For more information on the Sunshine Coast, click the links to these videos: https://www.youtube.com/watch?v=EFc7LfFel2o https://www.youtube.com/watch?v=phCn9MQI1Uc http://www.9news.com.au/national/2016/02/10/18/32/sunshine-coast-in-the-middle-of-a-boom https://www.youtube.com/watch?v=SCquzul1oGE&feature=youtu.be
The property is located in the heart of Kings Beach with absolute beach frontage at the front of the tenancies. Kings Beach is part of the Caloundra region on the Sunshine Coast and is a gateway to both Brisbane and Northern Queensland regions 1.5 hours north of Brisbane, 20 minutes south of Maroochydore and 5 minutes to Caloundra CBD. The property is approximately 25 km to the Sunshine Coast Airport and 10 minutes to Stockland’s new development Aura - which is Australia’s largest new master planned city. Aura will comprise 90 hectare city centre, 3 district centres and 6 neighbourhood centres creating 40,000 onsite & offsite jobs. (source - http://cityofcolour.com/vision/overview)
The Sunshine Coast is an Enterprise Corridor for business being centrally located and providing a focal point for commercial, high value industry, retail and residential growth. The area has been nationally recognized as a lifestyle location with advantages for small businesses.
The Sunshine Coast has access to all major transport networks and export infrastructure. This includes air, road, rail, broadband connectivity and the award winning Sunshine Coast Airport. It has room to grow – available commercial, industrial and residential land with more than 2,700 industrial properties across 830 hectares of land.
sunshine coast region population growth vistor growth
10.1%
9.4%
TENANT
AREA M2
LEASE COMMENCEMENT
LEASE EXPIRY
TERM
OPTION
BOND / SECURITY
INCREASE
CURRENT RENT
Tenancy schedule
Delish Fish
79 m²
01/03/2013
28/02/2018
5 years
5 years
$16,329
3%
$94,492
J Kitchen
27 m²
01/12/2012
31/01/2021
5 years
2 x 5 years
$5,577
4%
$30,421
Coffee Cat
137 m²
18/08/2011
31/02/2021
5 years
2 x 5 years
$28,049
4%
$89,281
Crusoe’s
143 m²
01/10/2015
30/09/2020
5 years
5 years
$20,000
5%
$143,725
386 m² NLA
WALE
4.64 years
$69,955
$357,919
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tenancy overview
J Kitchen Sushi
De lish Fish
Coffee Cat
Crusoes on Kings
Located under the Rolling Surf Resort, J Kitchen Sushi offers a variety of sushi and curries made fresh each day. Established in 2011, owner Mie uses local fresh ingredients to bring her Japanese culture to Caloundra’s beautiful Kings Beach. Rated 4.5 stars on Trip Advisor, customers are very impressed with the high quality produce that can be purchased at fair prices.
De Lish Fish at Kings is a seafood eatery and award-winning gelateria located on beautiful Kings Beach in Caloundra. Their philosophy is to serve fresh and delicious food every time. There is something for the whole family, whether it is their famous beer-battered chips, fresh Australian and local seafood, mouth-watering burgers, delicious salads or homemade gelato. Take advantage of the outdoor seating on site for delicious family favourites by the beach.
A family owned & run business since 2014, Coffee Cat serves fine food and great coffee. With excellent service and live entertainment on weekends, Coffee Cat attracts people from all over the world. Owners, Pierre & Haley, along with head chef Ben Cox’s passion for food shows through, sourcing the best quality local ingredients and using traditional methods of cookery to make all sauces and stocks in-house. With a view to die for, a new inside dining space and the best beachside vibe in town, Coffee Cat is a must visit. It is available for weddings, private functions, breakfast, lunch and dinner bookings.
Crusoes on Kings is a new restaurant operated by local brother and sister chef combination Maureen & Titus O’Halloran. Overlooking Kings Beach this new restaurant is fast becoming a Caloundra favourite. Patrons can dine on local produce accompanied by their favourite wine & enjoy that undisturbed ocean view. Crusoes is open for breakfast & lunch daily and for dinner Thursday to Sunday.
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Tenancy 1
De Lish Fish
Business
De Lish Fish
Tenant
Delish Fish @ Kings Pty Ltd
Size
79 m2 approx
Lease commencement
01/03/2015
Lease expiry
25/02/2018
Term
5 years
Option
5 years
Estimated net income
$94,492.56 per annum
Annual review
3%
Market review
25/02/2018
% of outgoings
21.5%*
Bank guarantee
$16,329.18
*SINKING FUND – $5,520 per annum paid by owner. As per Retail Shop Act, no sinking fund fees payable by tenant.
Tenancy 2
J Kitchen on Kings
Business
J Kitchen on Kings
Tenant
Mies Pty Ltd
Size
27 m2 approx
Lease commencement
01/02/2016
Lease expiry
31/01/2021
Term
5 years
Option
5 years x 5 years
Estimated net income
$30,421.20 per annum
Annual review
4%
Market review
31/01/2021
% of outgoings
6.99%*
Cash bond
$5,577.22
*SINKING FUND – $5,520 per annum paid by owner. As per Retail Shop Act, no sinking fund fees payable by tenant.
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Tenancy 3
Coffee Cat
Business
Coffee Cat
Tenant
Taycha Pty Ltd
Size
137 m2 approx
Lease commencement
01/02/2016
Lease expiry
31/01/2021
Term
5 years
Option
5 years x 5 years
Estimated net income
$89,281.00.80 per annum
Annual review
4%
Market review
31/01/2021
% of outgoings
35.49%*
Cash bond
$28,049.00
*SINKING FUND – $5,520 per annum paid by owner. As per Retail Shop Act, no sinking fund fees payable by tenant.
Tenancy 4
Crusoes on kings
Business
Crusoes on Kings
Tenant
Maztus Pty Ltd
Size
143 m2 approx
Lease commencement
01/10/2015
Lease expiry
30/09/2020
Term
5 years
Option
5 years
Estimated net income
$143,725.20 per annum
Annual review
5%
Market review
30/09/2020
% of outgoings
37.05%*
Cash bond
$20,000
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Financials Estimated outgoings Annual estimated outgoings budget for the period 1 July 2015 to 30 June 2016 as provided by the owner are:
Item
$ Per Annum
Administration costs
$
Body corporate levies
$ 8,350.00 (excluding sinking fund)
Cleaning – common area
$ 7,000.00
Cleaning – consumables
$ 1,200.00
Cleaning – garbage bins
$ 1,500.00
Cleaning – kitchen exhausts
$ 3,000.00
Fire protection – extinguisher/reel
$ 1,000.00
Gas – hot water supply
$11,000.00
Hygiene services
$
Management fee
$17,900.00
Repairs & maintenance
$ 5,500.00
Rates
$17,000.00
Rates – water & sewerage
$ 6,500.00
Sinking fund
$ 5,520.00
Trade waste disposal
$ 4,000.00
Estimated annual outgoings
$90,720.00
750.00
500.00
Financial summary Income
Rental
$357,919.96
Outgoings recoveries
$ 85,200.00
Gross income
$443,119.96
Less outgoings
Land tax
$
1,660.95
Estimated budget outgoings 2015/2016
$ 90,720.00
Estimated net income
$350,739.01
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Sales process The property will be presented to the market via Auction.
Auction Details Date
Wednesday 16 March 2016 at 11:00am
Venue
On Site 1/8 Levuka Ave, Kings Beach Qld
4551
Additional information available upon request
Contract of Sale Current Leases Outgoings Notices CMS Property Certificates and Licences Financials
Please contact the marketing agents to obtain further information or to inspect the property.
Jason Wright Ray White Commercial North Coast Central T 1300 255 075 M 0451 497 368 E jason.wright@raywhite.com Michael Shadforth Ray White Commercial North Coast Central T 1300 255 075 M 0488 981 076 E michael.shadforth@raywhite.com Damien Poole Ray White Commercial North Coast Central T 1300 255 075 M 0414 457 022 E damien.poole@raywhite.com Emily Pendleton Ray White Commercial North Coast Central T 1300 255 075 M 0402 435 446 E emily.pendleton@raywhite.com
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Disclaimer The information contained in this Information Memorandum and any other verbal or written information given in respect of the property (“Information”) is provided to the recipient (“you”) on the following conditions: 1.
Cecil Healy Pty Ltd trading as Ray White Commercial North Coast Central and or any of its officers, employees or consultants (“we, us”) make no representation, warranty or guarantee, that the Information, whether or not in writing, is complete, accurate or balanced. Some information has been obtained from third parties and has not been independently verified. Accordingly, no warranty, representation or undertaking, whether express or implied, is made and no responsibility is accepted by us as to the accuracy of any part of this, or any further information supplied by or on our behalf, whether orally or in writing.
2.
All visual images (including but not limited to plans, photographs, specifications, artist impressions) are indicative only and are subject to change. Any measurement noted is indicative and not to scale. All outlines on photographs are indicative only.
3.
The Information does not constitute, and should not be considered as, a recommendation in relation to the purchase of the property or a solicitation or offer to sell the property or a contract of sale for the property.
4.
You should satisfy yourself as to the accuracy and completeness of the Information through your own inspections, surveys, enquiries, and searches by your own independent consultants, and we recommend that you obtain independent legal, financial and taxation advice. This includes as to whether any listing price is inclusive or exclusive of GST.
5.
We are not valuers and make no comment as to value. “Sold/ leased” designations show only that stock is “currently not available” – not that the property is contracted/ settled. If you require a valuation we recommend that you obtain advice from a registered valuer.
6.
The Information does not and will not form part of any contract of sale for the property. If an interested party makes an offer or signs a contract for the property, the only information, representations and warranties upon which you will be entitled to rely will be as expressly set out in such a contract.
7.
Interested parties will be responsible for meeting their own costs of participating in the sale process for the property. We will not be liable to compensate any intending purchasers for any costs or expenses incurred in reviewing, investigating or analysing any Information.
8.
We will not be liable to you (to the full extent permitted by law) for any liabilities, costs or expenses incurred in connection with the Information or subsequent sale of the property whatsoever, whether the loss or damage arises in connection with any negligence, default or lack of care on our part.
9.
No person is authorised to give information other than the Information in this Information Memorandum or in another brochure or document authorised by us. Any statement or representation by an officer, agent, supplier, customer, relative or employee of the vendor will not be binding on the vendor or us.
10. To the extent that any of the above paragraphs may be construed as being a contravention of any law of the State or the Commonwealth, such paragraphs should be read down, severed or both as the case may require and the remaining paragraphs shall continue to have full force and effect. 11. You may not discuss the Information or the proposed sale of the property with the vendors or with any agent, friend, associate or relative of the vendor or any other person connected with the vendor without our prior written consent. We accept no responsibility or liability to any other party who might use or rely upon this report in whole or part of its contents. 12. The Information must not be reproduced, transmitted or otherwise made available to any other person without our prior written consent.
© 2015 Australia Cecil Healy Pty Ltd ABN 98 933 833 870 Current as at November 2015
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Annexure A auction conditions Conditions of Sale 1. All bidders must be registered. The auctioneer may register a person as a bidder only if the person has provided his/her name and address and satisfactory evidence of his/her identify. The auctioneer is required to keep the register of all bidders at the auction in accordance with Queensland Government regulations. 2. Bids will only be accepted from registered bidders. 3. Bidders must use the numbered identifier provided by the auctioneer to make a bid during the auction. 4. The highest approved bidder will be the buyer subject to: the reserve price; and the sellers approval. 5. The seller may bid, either personally or by a representative. 6. The bidder warrants their ability to enter and complete the contract of sale in accordance with the terms. 7. Any person bidding on behalf of another person must provide the auctioneer with a copy of their written authority before the Auction, otherwise the bidder will be taken to be acting on their own behalf. 8. The auctioneer has the discretion to refuse to accept any bid from any person. A bid will be taken to be accepted and irrevocable unless the auctioneer, immediately after it is made, refuses it. 9. The decision of the auctioneer is final in all matters relating to the auction and no bidder has any right of recourse against the auctioneer or the seller. 10. Without affecting condition 9, if there is any dispute over a bid, the auctioneer may: reopen the bidding and resubmit the property for sale starting with the highest bid previously accepted or; determine the dispute in any other way the auctioneer considers appropriate in his/her absolute discretion. 11. Immediately on the fall of the hammer, the bidder of the highest bid accepted must sign, as buyer, the Contract of Sale in the form displayed or circulated with these conditions of sale and pay the deposit to the name nominated stakeholder.
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Conditions of Sale continued 12. The deposit payable under the contract of sale is 10% of the successful bid or any other percentage or figure nominated in the Contract of Sale. 13. The seller and the buyer agree to sign all documents and do everything else necessary to transfer the property to the buyer. The seller and the buyer each appoint the auctioneer their agent to sign the Contract of Sale on their behalf. This appointment is non-revocable. 14. If the buyer does not pay the deposit, at the sellers option; the result of the auction will be treated as invalid and th property may be resubmitted to public auction at the risk and expense of the buyer; or the seller may affirm the Contract for Sale and pursue their legal and other remedies against the buyer as they see fit. All bidders shall be deemed to have read and acknowledged the ‘Contract Warning‘ and the ‘Disclosure Statement’ under the Body Corporate and Community Management Act 1997 which are annexed to the Contract of Sale by virtue of the fact that they have been on display prior to this auction. Cash unconditional basis, not subject to a cooling off period, finance, or building inspection. GST may be applicable to the purchase price.
Terms of sale 10% (or as otherwise agreed by prior arrangement) deposit on the fall of the hammer and the balance in cash in 30 days, or any other such date or terms as specified by the auctioneer prior to auction.
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Annexure B title search
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Annexure C floor plans
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Annexure D survey plan
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Personal service Premium results Ray White Commercial North Coast Central positions itself as the leading commercial real estate and property management agency offering unparalleled market knowledge and expertise from Noosa to Caboolture. Born from a merging of three commercial real estate agency powerhouses – Property Only, Ray White Commercial Maroochydore and Caboolture Commercial - Ray White Commercial North Coast Central combines more than one hundred years combined experience in sales, leasing and property management. With a competitive team of sales agents, property managers, town planners, project managers, marketing, public relations and administration professionals all working towards the shared goal of providing expertise in market intelligence and excellent results, Ray White Commercial North Coast Central prides itself on a reputation of integrity and a strong work ethos. Our sales agents are motivated, focused and willing to go the extra mile to achieve exceptional results and be the best in the industry. Ray White Commercial North Coast Central has an abundance mentality, believes in open communication and promotes respectful conduct with our clients and all Ray White Commercial North Coast Central team members. It is this shared team goal that sets us apart from others within the market and assists us in delivering on clients expectations of Ray White Commercial North Coast Central being leaders within our field. The Ray White Group is now one of Australasia's largest real estate focused businesses and has grown to more than 1,000 offices with 8,000 staff and an annual turnover of A$30 billion across Australia, New Zealand and Indonesia and through offices in Delhi, Bangkok, Hong Kong, Shanghai, Dubai and Abu Dhabi.
Ray White Commercial North Coast Central 1/77 Mooloolaba Esplanade, Mooloolaba Q 4557 raywhitecommercialnorthcoastcentral.com 1300 255 0075 ABN 98 933 833 870