Informer Issue 91 by Resort Brokers

INFORMER I S S U E N O. 9 1 AU S T RAL I A â&#x20AC;&#x2122; S BES T ACCO M MODAT I ON IN V E S T M E N T SH OWCAS E

RESORTBROKERS.COM.AU | I S S U E N O . 9 1

I S S U E N O. 9 1

inside ...

SPOTLIGHT S.A.

ROADSIDE REVERIE

Take a tour of South Australia, a rising market loaded with opportunity

A look back at motels, the backbone of our accommodation industry past, present and future

DAVID BURROUGH

AY AMIGOS!

This lawyer is known far and wide for his deep understanding of accommodation businesses

Check out the after-party action at our mid-year conference. Hot stuff!

DISCOVERY PA R K S

DROUGHT DRIVE

Caravan and camping comeback to reshape the holiday park sector

Pitching in to deliver donations to drought-ravaged farmers was a real eye-opener

R E G U L A R F E AT U R E S

ON THE MARKET

MARKET ACTION

Trudy Crooks discusses interesting developments in the accommodation market

Significant sales and listings grabbing the headlines

AGENT PROFILE

SOLD PROPERTIES

Meet Len and Lynne Booth, our longest-serving brokers

See some of the properties RESORTBROKERS has sold recently

RELIEF MANAGERS

MEET OUR TEAM

Taking a holiday? Need a manager? Find one here

RESORTBROKERSâ&#x20AC;&#x2122; national directory

I S S U E N O . 9 1 | RESORTBROKERS.COM.AU

Welcome to ‘We Say, They Say’ A REGULAR FORUM FOR THE EXCHANGE OF VIEWS, NEWS & IDEAS.

BACK TO OUR ROOTS

P R E FAC E

By Ian Crooks Managing Director

am especially delighted to introduce this edition of Informer, because it takes readers to places that are very dear to my heart. You might think that has something to do with our stunning cover photo of a vineyard. Well, yes, that’s close to my heart too! But I was actually referring to the fact the stories in this issue take me back to where it all began for Resort Brokers. And I think you’ll enjoy the journey too, as we indulge in a bit of nostalgia and return to the heartland of Australia’s accommodation industry. As you turn the pages, you find we have focused quite strongly on regional Australia, because our vibrant tourism industry isn’t just about cosmopolitan cities. Tourism to regional Australia is on an upward trajectory, with visitors increasing on average by 3.4% per annum over the past five years. Tourism Research Australia tells us 55 million more visitor nights were spent in regional Australia in 2017

RESORTBROKERS.COM.AU | I S S U E N O . 9 1

than in 2012. They also estimate more than 44% of Australia’s total tourism expenditure occurs outside the capital cities and Gold Coast. I don’t find that surprising. The regions offer such a multitude of experiences and attractions. Long time friends and associates of Resort Brokers will have heard me tell how, in my early years establishing the company, it wasn’t unusual for me to drive 2,000 kilometres and more a week, calling on motel operators. It was tough, but I have to say I enjoyed it immensely. So, reading this issue is like hitting the road again. You’ll find a terrific feature about the origins of the motel industry in Australia, how it developed over the years, and where it’s now headed. When our writer quizzed me about

the old days, I enjoyed our trip down memory lane. As I said, very close to my heart. And our ‘faces of the industry’ feature profiles someone who travelled through a lot of those years with me – David Burrough, the undisputed expert on all things legal for the accommodation industry. He too describes a real soft spot for the bush. No discussion of tourism in regional Australia would be complete without paying serious attention to the role of caravan parks. So many fond memories are wrapped up in family caravan and camping holidays. Shaping future holiday memories now is Discovery Parks, who are at the forefront of innovation and growth in that sector. I’m sure you’ll enjoy reading their story. I’ve known CEO Grant Wilckens for many years too.

By the numberS they say “In Australia, domestic visitors outspent international visitors by more than two to one ($82.3 billion versus $40.6 billion) in 2016-17, with total tourism spend reaching $122.9 billion. Importantly, 43 cents in every tourism dollar went to regional Australia. In 2016–17, $16.4 billion was spent on commercial accommodation, which paid for 306 million nights across a range of accommodation, from two-man tents to six-star resorts. Nationally, 88,800 people were employed in the accommodation industry.”

MOTEL INDUSTRY ANNUAL REVENUE

$3BIL

Tourism Research Australia State of the Industry, Feb 2018

He’s steered a remarkable turnaround for that company over the last decade. And that brings me nicely back to that enticing vineyard picture on our cover (Discovery Parks is based in Adelaide, not far from where this gorgeous Barossa Valley shot was taken). The enjoyment of food and wine is integral to the Australian tourism experience, and is just one of the pillars of South Australia’s thriving visitor economy. Our Adelaide-based broker, Kelli Crouch, has contributed a great article explaining why her state is attracting so much investment attention. All in all, I am incredibly heartened to see our regions coming back so strongly, particularly those that did it tough after the mining downturn. We’re now handling very strong

enquiry, for example, in the Townsville and central Queensland area. And the Hunter Valley is trading well. Quite recently I also travelled from Albury-Wodonga through the Murray region to Victoria’s snowfields, and I was really impressed by the confidence and market strength now evident. So, enjoy this issue of Informer. You’ll find our usual news and commentary on the market and informative articles by our expert industry associates. You’ll hear from our longest serving brokers, who’ve always specialised in regional Queensland motels, and you’ll meet our newest agents who’ll now be serving some of the regional burgeoning southern states markets I’ve mentioned. Before I go, I thought I might also mention my ‘new look’. You may have noticed the portrait that accompanies this Preface is looking a little less ‘corporate’ this time. Just take it as a sign of the brilliant job the second generation of Crooks is doing to take Resort Brokers into the future. I’m happy to say, I can afford to relax a little more these days. Now … did I say something about the delights of the Barossa? Here’s cheers. End

CARAVAN INDUSTRY NIGHTS IN CARAVAN & CAMPING PARKS IN 2017

51.9M CARAVAN PARK REVENUE 2017

$2.1B T R AV E L L E R S S TAY I N G IN REGIONAL AUSTRALIA

92% Source: IBISWorld Motels Market Report, June 2018 Caravan Industry Association of Australia. 2018 Industry Overview WE’D LOVE TO HEAR FROM YOU:

CARLA@RESORTBROKERS.COM.AU

I S S U E N O . 9 1 | RESORTBROKERS.COM.AU

MANAGEMENT RIGHTS Ref // MR005423

OUTSTANDING LIFESTYLE BUSINESS RIGHT ON THE SANDS OF MERMAID BEACH

Apartments

Letting

Years

Bed

Bath

The lifestyle this property presents is simply the best, with the absolute beach front location second to none. Albatross North is one special business that presents pure luxury in a laid back vibe. This immaculately presented medium-rise complex comprises of a total of 21 units, 9 of which are in the holiday letting pool driving great income due to their luxury nature and high occupancy rate around 75%. The rest of the units are made up by 4 owner occupiers, including the manager’s unit, and some real growth potential via 8 lock-ups. This presents an opportunity to engage with owners to secure letting appointments to grow your income. With a great mixture of 2 and 3 bedroom high quality luxury apartments, repeat business from your guests is a given. Families, international guests and local tourists all contribute to your clientele. The business is set up to be smoothly run by a couple with plenty of time and opportunity to enjoy the beach lifestyle it creates. The incredible 2 bedroom manager’s unit has sweeping ocean views and direct access to the golden sand of Mermaid Beach. It is simply stunning and one of the best you will find on the coast.

›› Incredible absolute beachfront location

Manager’s Residence

›› $162k net profit balanced with lifestyle ›› Luxury building, high quality rooms and high quality guests ›› Superb Manager’s residence with ocean views and direct beach access ›› Great BC committee and supportive owners ›› Ultimate Hedges Ave/Albatross Avenue address ›› Growth opportunities via lock-ups to drive income ›› Awesome repeat business and newly updated online presence ›› Very easy to run business-perfect for 1st timers or semi-retired

NET PROFIT: $162,086

PRICE: $1,450,000

TODD WARNER BROKER +61 438 170 763 todd@resortbrokers.com.au 6

RESORTBROKERS.COM.AU | I S S U E N O . 9 1

MERMAID BEACH

OPPORTUNITY TO BUY IN TAX FREE

Vanuatu!

LIVE THE DREAM IN A TROPICAL PARADISE!

We offer 2 great opportunities below. The chance to purchase the leasehold of a beachfront resort, with 18 self-contained apartments; and the second offering an apartment hotel in the heart of Port Villa with planning approval for a 5 story building on the same title.

TROPICANA RESORT LEASEHOLD The boutique resort is offered on a 30 year lease term under normal Australian conditions, where you, the tenant, pay all the outgoings and the annual rental, which leaves you a tax free net profit of $210,000 AUD. This resort is under full management so there is no need to live onsite and as Vanuatu is very popular this offering will not last. NET PROFIT: $210,000

PRICE: $700,000 AUD

OCEAN VIEW HOTEL FREEHOLD This apartment hotel is built over 4 levels and consists of 24 ocean view apartments, a restaurant able to seat approx. 50 people, a pool and car parking. Being walking distance to Port Villa, this hotel enjoys short and long-term corporate stays and runs at a very high occupancy. Due to the occupancy, the current owner has gained approval for another 5 story building to be built on the same title. Under full management this shows a tax free yield of 10%. PRICE: $3,000,000 USD

IAN CROOKS MANAGING DIRECTOR +61 411 171 648 ian@resortbrokers.com.au

VA N U AT U I S S U E N O . 9 1 | RESORTBROKERS.COM.AU

FREEHOLD GOING CONCERN Ref // FH005393

CONTEMPORARY SEASIDE ACCOMMODATION WITH AMAZING BAY VIEWS

Rooms

Bed

Bath

Situated opposite the Marina and Seaside Walk, the Quays Hotel is draped in style and comfort for guests to enjoy. Comprising of 26 stunning guest rooms, the hotel has received a 9.2 guest rating on booking website Booking.com as well as exceptional reviews and ratings on other booking platforms. Recently rezoned for five storeys (with possibility of seven), with approximately 800sqm of unused land at the rear of the lot certainly creates opportunity to expand. The new marina precinct is expanding with additional parking and shops providing more for visitors to enjoy. The property is currently run under management with casual cleaners and staff assisting during peak season. Livein managers’ residence consists of a fully renovated three bedroom unit. The property was stripped back to lock-up stage, rewired and totally remodelled to include quality inclusions and furnishings. All the rooms are generous in size featuring king size beds as standard together (with king singles in the family and twin rooms), sofas and plush furnishings. The hotel has a consistent occupancy of about 70% and has been trading well since the renovations.

›› Totally renovated

Manager’s Residence

›› Stylish contemporary design throughout ›› Currently run under management ›› Modern 3 bedroom manager’s residence ›› Rezoned for 5-7 storeys ›› 800sqm of unused land ›› Popular tourist destination ›› Additional income from restaurant

NET PROFIT: $491,024 (UNDER FULL MANAGEMENT)

PRICE: $4,900,000

RUSSELL ROGERS BROKER +61 416 166 909 russell@resortbrokers.com.au 8

RESORTBROKERS.COM.AU | I S S U E N O . 9 1

B AT E M A N S B AY

MANAGEMENT RIGHTS

'BUSINESS ONLY' MANAGEMENT RIGHTS PORTFOLIO NETTING $700,000+

384

This type of opportunity is genuinely hard to come by and rarely do 'business only' management rights of this scale hit the market. Huge bonus with no real estate required with purchase. Included on exclusive use are two large offices with great fit outs with heaps of room available for storage. This business presents opportunity for a motivated experienced operator to grow it even further making additional income from maintenance and clawing back outside agents. This portfolio is located approximately 10-15km north from the heart of the Brisbane CBD. These suburbs have experienced massive growth over the past five years, sharing in the huge lift from local and surrounding businesses coming to life. This portfolio performs consistently and has always attracted quality tenants as the buildings are close to hospitals, army barracks and shopping precincts, all sharing public transport amenities close by. The duties within these complexes are quite simple having established gardens, garden beds and trees, without any large lawns to be mowed.

›› Generous body corporate salary

Apartments

185 Letting

20+ Years

›› Lenghtly agreements on all businesses in the portfolio ›› Good relationship with the body corporate and committee ›› Extra income to be attained through maintenance work ›› Multiple exclusive use office space with plenty of storage ›› Prime location close to surrounding amenities ›› Rare opportunity to secure an established portfolio

NET PROFIT: $700,000+

PRICE: POA

GARETH CLOSTER BROKER

B R E N T S TA K E R BROKER

+61 423 182 766 gareth@resortbrokers.com.au

+61 410 344 344 brent@resortbrokers.com.au

BRISBANE NORTH

I S S U E N O . 9 1 | RESORTBROKERS.COM.AU

Noosa MANAGEMENT RIGHTS RARE LARGE HOLIDAY MANAGEMENT RIGHTS ZONED SHORT-TERM ONLY

THIS RARE COMPLEX IS, IN FACT, THE ONLY SUCH RESORT OF SUCH SCALE IN THE REGION STILL INDEPENDENTLY OWNED AND OPERATED, THE OTHER THREE COMPARABLE PROPERTIES ARE NOW IN THE HANDS OF MAJOR CORPORATIONS AND TRADING IN THE 5-STAR CATEGORY. This property boasts an exceptional position within walking distance of the Noosa River, riverside parkland and a growing array of local cafes, restaurants and boutiques. For an experienced incoming operator, the stage is set to make substantial gains. Operational systems and welltrained staff are in place. The property is beautifully established and presented. The extent of upgrades completed in recent years is indicative of a supportive Body Corporate Committee. Included is the freehold of a wood fired pizza cafe (leased), conference facilities, liquor license, reception and office and three bedroom manager’s residence (currently rented out). Any examination of the operation will reveal ample opportunities for market expansion and revenue growth. Confidentiality conditions apply.

›› 132 units with 97 in letting pool ›› Room to grow letting pool ›› $230,000 caretaking salary ›› Zoned short-term only ›› 3 pools, jumping pillow, tennis court, games room, spa and sauna ›› Fully equipped conference room with solar panels installed NET PROFIT: $831,193

PRICE: $6,287,158

GLENN MILLAR BROKER +61 412 277 804 glenn@resortbrokers.com.au 10

RESORTBROKERS.COM.AU | I S S U E N O . 9 1

NOOSAVILLE

FREEHOLD GOING CONCERN Ref // FH005399

BAVARIAN GRILL HAUS AND BREWERY FIRST TIME ON THE MARKET IN 17 YEARS

Bed

Bath

RESORTBROKERS®, in conjunction with LJ Hooker Broadbeach, is excited about this outstanding business operation, together with a substantial freehold property holding, in a prime location set on more than two hectares on lush Tamborine Mountain. This picturesque property has been improved with a number of tourism and hospitality facilities. The very impressive FY17 turnover of more than $800,000, achieved with the property running at less than 50% capacity, is a clear indication of the potential this incredible property presents. A range of quality facilities have been added to tap into lucrative niche markets, namely weddings, functions, and craft beer. Offered in one line along with the popular Bavarian Grill Haus Restaurant are the Red Baron Brewery and associated Red Baron Cellar Door and Beer Hall, a delightful lakeside Chapel with associated function spaces and a spacious 6 bedroom residence. There is undeniable scope to further expand this quality operation, thus increasing revenue. This can be done simply by fully utilising existing infrastructure and catering capacity to take advantage of the visitor numbers already coming to Mt Tamborine.

›› Substantial capacity to pursue multiple growth opportunities

Manager’s Residence

›› Well established, popular tourism and hospitality business ›› Multiple profitable income streams ›› Currently operating at <50% capacity, yet still showed an adjusted net profit of $491,000 for FY 2016/17 ›› Ability to deliver exceptional ROI ›› Poised to exploit lucrative wedding and functions market

NETT PROFIT: $491,000

PRICE: $5,295,000

GREG JAMES

PAUL MUELLER

ROSS LUKIN

Broker, Gold Coast Resort Brokers

Principal LJ Hooker Broadbeach

+61 416 247 068 greg@resortbrokers.com.au

+61 439 255 507 paul@resortbrokers.com.au

+61 419 555 022 ross.lukin@ljhooker.com.au I S S U E N O . 9 1 | RESORTBROKERS.COM.AU

Editorial // B Y K E L L I C R O U C H - S A B R O K E R

SA SPOTLIGHT

Investment sets South Australia on growth path

Efforts are underway to see the Flinders Ranges become one of only 16 UNESCO world heritage-listed natural sites in Australia

RESORTBROKERS.COM.AU | I S S U E N O . 9 1

SOUTH AUSTRALIA’S ABOLITION OF STAMP DUTY ON COMMERCIAL PROPERTY TRANSACTIONS SENT A POWERFUL SIGNAL THAT THE STATE IS SERIOUS ABOUT SUPPORTING INVESTMENT. WITH MAJOR PROJECTS WORTH BILLIONS OF DOLLARS COMMITTED, AND A RENEWED FOCUS ON GROWING REGIONAL ECONOMIES, THIS IS A RISING MARKET LOADED WITH OPPORTUNITY. There’s so much going on in South Australia, it’s difficult to know where to begin in describing the extent of positive activity. Not all of it is related directly to the tourism industry, of course. But all of it certainly supports our thriving visitor economy, adding to the appeal of this vibrant and diverse state, and underlining investor and

industry confidence in its future. South Australia is attracting more visitors than ever before, just notching up a record $6.7 billion in visitor spending for the year. Tourism is big business here. Latest figures show we attracted 6.9 million visitors for the year, fuelling the economy and putting tourism dollars into the pockets of our operators. EVENTFUL

So it’s not surprising major projects in our State capital have focussed heavily on the tourism, hospitality and events sector, and the vital infrastructure needed to drive it. Momentum has built on the back of initiatives including the upgraded Adelaide Oval, redeveloped Adelaide Convention Centre, and the renewed energy of city laneways lined with bars and restaurants. Adelaide does events so well. Adelaide Fringe is Australia’s biggest festival, second only to Edinburgh on the global fringe circuit. Recently, The Art Gallery of SA attracted record numbers with its amazing Colours of Impressionism: Masterpieces from the Musée d’Orsay exhibition. The Clipsal 500 is the nation’s largest domestic motorsport event. Newly opened, The Bend Motorsport Park at Tailem Bend spreads the excitement to the regions, delivering a world-class motorsport facility, including a 100-room Rydges Pit Lane Hotel.

Meanwhile on two wheels, the Tour Down Under Festival of Cycling provides a massive boost for not only Adelaide city, but many surrounding regions. INFRASTRUCTURE

Significant growth in infrastructure is vital to cater for all this activity. In terms of capacity, Adelaide Airport has been one of the country’s fastest growing for some time. Now a $165 million project is underway to expand the terminal, significantly upgrading international arrival and departure facilities and providing more retail and dining options for both domestic and international travellers. Completion is due by 2021. Which brings me to the next big ticket infrastructure investment. A proposed $500 million light rail line linking the airport to the city has been hailed as a ‘must do now’ project to further boost tourism. Providing an easily accessible, world-class short commute to the city’s premier business, retail, tourism, accommodation and dining precinct is important, particularly given the impressive pipeline of hotel investment now on our books. Something like 1,000 new hotel rooms have been added in the last three years, and many more are on the way, particularly targeting high spending travellers. New 5-star offerings include Marriott’s Westin 285-room hotel on Victoria Square, the 165-room Atura Adelaide Airport Hotel (opening this month), plus the 257-room

I S S U E N O . 9 1 | RESORTBROKERS.COM.AU

Sofitel Hotel on Currie Street and new 326-key Crowne Plaza Adelaide hotel on Frome Street, both expected to be finished in 2020. Work has also started on a $330 million redevelopment of Adelaide Casino, including new gaming areas, a rooftop bar and luxury hotel (also due to complete by 2020). And the final stage of Accor’s redevelopment of the famed Sofitel Mount Lofty Estate is underway, including the addition of a 15-villa luxury boutique hotel, for total completion by mid-2019. REGIONAL FOCUS

Visitors come to South Australia for its diverse experiences – unspoilt nature and premium food and wine in particular. The SA Tourism Plan 2020 aims to lift the value of our tourism industry to $8 billion by 2020. The newly elected (Mar 2018) Liberal government came to power on a platform of reinvigorating the regions. Among their key policies was a regional growth fund, a 10-year, $150 million program to support projects that unlock new economic activity. They also pledged to provide dedicated roads and infrastructure funding to regional communities using 30 per cent of mining royalties, estimated at about $750 million over 10 years. The regions generate 40% of South Australia’s visitor revenue, so SA Tourism’s Regional Visitor Strategy will play a large role in achieving our 2020 goals. The strategy has a target to lift visitor expenditure in 11 tourism regions from $2.6 billion to $3.55 billion. It’s all about seizing opportunities, particularly in the areas of accommodation and tourism experience development, events, and visitor infrastructure. ROOM FOR IMPROVEMENT

Accommodation operators and developers will be integral, given an astounding 87% of visitors to our regions self-drive. Quality accommodation propels visitor satisfaction and repeat visitation, and overnight stays deliver significantly more revenue than daytrips. An extensive regional audit of accommodation found new rooms are required across the state, and many existing properties are in need of an upgrade. Many older properties have been held in the same hands for a long time. A focus on upgrading and developing new accommodation will help lift regional room rates, occupancy levels and total visitor spend. This presents terrific opportunities for investors in the accommodation sector, and Resort Brokers is already seeing a surge in demand. Large numbers of South Australia’s accommodation properties are Freehold Going Concerns (far fewer leaseholds than in eastern states), and these are particularly favoured by operators and investors. Demand for a higher standard of accommodation in the regions means buyers stand to be rewarded for upgrading and innovating. When I recently sold a $2.5 million Freehold Going Concern, demand from within SA and from interstate

RESORTBROKERS.COM.AU | I S S U E N O . 9 1

87% VISITORS

$8BIL

40%

THE VALUE OF

OF S.A. VISITOR

TO S.A.

S.A. TOURISM

REVENUE COMES

SELF DRIVE

INDUSTRY BY 2020*

FROM THE REGIONS

* Target of current Liberal Government via the S.A. Tourism Plan

was such that we could have sold it 10 times over. Demand currently outstrips supply, so when quality properties enter the market, they are quickly met with strong enquiry. Caravan parks too are in a phase of growth and renewal, and SA boasts many wonderful parks that take advantage of our strong nature-based tourism. TIME TO INVEST

The Riverland region is the largest producer of wine in Australia

For all these reasons, adequate and well-maintained infrastructure is critical for regional growth, so the government has pledged investment in roads, air access, telecommunications, particularly WiFi, and assets such jetties, wharves, hiking and cycling paths and National Parks. Increasing airline capacity and hotel stock in Adelaide will have a knock-on effect, generating more visitors to the regions. At the same time, huge projects outside the tourism sector will fuel further economic strength and ongoing business opportunity. These include the $9.1 billion Air Warfare Destroyer project at Osborne Naval Shipyard, and the development of the Health Hub in Adelaideâ&#x20AC;&#x2122;s West End, the biggest health and biomedical research precinct in the Southern Hemisphere. My feeling is that we will see investment flowing in from other states, particularly from Victoria and NSW, as accommodation developers, owners, investors and operators are drawn by the exciting new opportunities unfolding in South Australia. End

I S S U E N O . 9 1 | RESORTBROKERS.COM.AU

F O R

S A L E

B Y

P R I VAT E

T R E AT Y

$4.3M NET TOTAL

PROFIT

THREE OUTBACK TRAVEL HUBS WITH UNIQUE MARKET CONTROL Imagine having complete command of your market, where virtually every traveller needs the services you offer, and your location rules out competition entry. That is the genuine proposition presented by a portfolio of three unique Outback Travel Centres. High turnover, strong cashflow, and complete market dominance are the hallmarks of these multi-faceted roadhouse, accommodation, retail, tourism and hospitality assets. Erldunda Roadhouse, Northern Territory, and the Border Village Roadhouse & Nullabor Roadhouse in South Australia, individually and together, deliver proven performance and enduring competitive advantage by virtue of their incomparable highway locations in iconic Outback destinations. Each provides a fuel service, motel/cabins, caravan and camping accommodation, a shop, takeaway food, restaurant and bar. Also part of the portfolio are individual visitor attractions and, in one case, a gaming component. Offered as thriving freehold going concerns, each showing exceptional year-on-year growth as visitor numbers climb, they are well established, high profile businesses, fully staffed and currently run remotely.

RESORTBROKERS.COM.AU | I S S U E N O . 9 1

Border Village Roadhouse S O U T H

A U S T R A L I A

Must-do checkpoint serving every traveller need. Unique position at SA/WA border. One of only two commercial freeholds on the S.A. Nullarbor crossing, 24hr trading. 34 motel rooms, 3 backpacker rooms, 5 cabins, 24 caravan sites. NET PROFIT: $1,073,818

PRICE: $7,500,000

Nullarbor Roadhouse S O U T H

A U S T R A L I A

Synonymous with the globally famous Nullarbor name, this property comes with a rich history and enticing visitor attractions. 65ha site, the other of only two commercial freeholds on the S.A. Nullarbor crossing, 27 motel rooms, 74 caravan sites. NET PROFIT: $1,195,116

PRICE: $8,365,000

Erldunda Roadhouse N o r t h e r n

T e r r i t o r y

Unique â&#x20AC;&#x2DC;Centre of The Centreâ&#x20AC;&#x2122;. Bustling staging post for Uluru, Kata Tjuta, Kings Canyon. Telsta/Optus onsite plus extended retail offer make it a compulsory stop. 27 motel units, 56 caravan sites, great amenities, popular animal and experiential attractions. NET PROFIT: $2,020,332

PRICE: $14,140,000

TRUDY CROOKS

KELLI CROUCH

IAN CROOKS

Sales Manager Nationwide

Broker South Australia

Managing Director Nationwide

0477 882 210 trudy@resortbrokers.com.au

0410 441 750 kelli@resortbrokers.com.au

0411 171 648 ian@resortbrokers.com.au

I S S U E N O . 9 1 | RESORTBROKERS.COM.AU

MANAGEMENT RIGHTS Ref // MR005125

UNHEARD 2.78X MULTIPLIER IN THE HEART OF SOUTHPORT

Units

Year Tenure

Bed

Bath

Manager’s Residence

This is the perfect complex, why not do the caretaking first, then take on the 34 outside agents and get the letting business started, just the way you want it. All this right in the heart of Southport. Perfect for tenants who work in Brisbane but want to live on the Gold Coast, it is in close proximity to Gold Coast University, hospital, TAFE, English teaching colleges, clubs and Australia Fair shopping complex. Very supportive body corporate and committee, massive storage areas which could be turned into rentable storage for tenants which would increase income significantly for very little outlay.

›› ›› ›› ›› ›› ›› ››

Currently caretaking only Separate office that could be used as 3rd bedroom No office hours Great opportunity for repairs and maintenance Get the letting business started from the ground up Terrific room for growth Perfect for a newcomer

NET PROFIT: $36,004

PRICE: $440,000

PAUL MUELLER BROKER +61 439 255 507 paul@resortbrokers.com.au

SOUTHPORT

MANAGEMENT RIGHTS Ref // MR005382

SOLID OPPORTUNITY LOCATED IN A THRIVING NORTHERN SUBURB

50 Townhouses

45 Letting

2.5

Years

Bed

Bath

Manager’s Residence

This opportunity is not to be missed. This easy to run management rights complex is located in a great suburb providing easy access to many amazing amenities close by. The growth in this area has increased significantly in the past ten years attracting new local business co-existing with current well-established businesses. The manager’s residence will be sure to impress with large living spaces. The large master bedroom features an ensuite and walk in wardrobe. The unit is fully air conditioned and comes with ample storage space. This opportunity presents very well for a first time buyer or an established operator looking to secure a neat business.

›› Easy to manage caretaking duties ›› Perfect for a new operator wanting a good lifestyle business in a superb location ›› Experienced staff to assist with transition ›› Beautiful, spacious and modern accommodation ›› Strong letting pool with only 3 outside agents ›› Earn additional income through maintenance NET PROFIT: $121,219

PRICE: $955,000

B R E N T S TA K E R BROKER +61 410 344 344 brent@resortbrokers.com.au 18

RESORTBROKERS.COM.AU | I S S U E N O . 9 1

MANGO HILL

MORE INCOME HIGHER VALUE

EASY TO RETROFIT EXISTING BUILDINGS

VALUE FOR TENANTS Speeds equal to or better than fibre Instant connectivity

If you outsource internet service provision in your permanent building, you are missing out on valuable income. With gigafy’s simple WiFi network system, you become the preferred ISP. Residents enjoy better service. We take care of

Full coverage, including common areas No contracts, flexible plans No set-up fees, no equipment needed No dealing with telcos/ISPs

billing and support. You collect the $$$. It’s why gigafy’s WiFi solutions are found in more than 12,000 apartments (including

VALUE FOR YOU

8,500 residential units) and 300 hotels and resorts across Australia.

New on-going revenue stream Proven 300-500% 5yr ROI Faster, more reliable connections

YOUR BUILDING COULD BE MAKING YOU MORE!

High tenant satisfaction and retention Increased management rights resale value Easy switch between permanent and short-term uses

gigafy.com.au

1300 444 239

I S S U E N O . 9 1 | RESORTBROKERS.COM.AU

Feature Article // M O T E L R E T R O S P E C T I V E

Siesta Motel, Broadbeach, Qld, 1959. Photo by Charles Busch. State Library of Queensland.

ROADSIDE "It stands for a new way of life in tourism – a way that combines convenience, inexpensiveness and informality in a formula that is definitely clicking" 1940 ARTICLE IN AMERICA’S BUSINESS WEEK

RESORTBROKERS.COM.AU | I S S U E N O . 9 1

motels in our highway heritage and future By Catie Langdon Motels are the backbone of our accommodation sector, trendsetters of a modern generation of lodgings. The motel has evolved since its 1950s incarnation, and endured. Now, the roadside romance is celebrated and nostalgia for those simple pleasures is fuelling a highway heritage revival.

As it does for so many things, Australia’s motel heritage owes its origins to the USA. There, in the early 20th century, the rise of the automobile saw Americans take to the road. No longer confined to the railway, tourists could choose their own routes, destinations and timetables. Accommodation choices, usually

hotels beside railway tracks, didn’t suit the new mobile population. Convenient and functional lodgings for motorists was needed. What evolved – tourist cabins, ‘motor courts’ and eventually motels – became part of popular culture. One book that traces this evolution, John Margolies’ Home Away from Home, notes a 1940 article in America’s Business Week that reported: “Actually, the auto court represents more than a different mode of accommodation. It stands for a new way of life in tourism – a way that combines convenience, inexpensiveness and informality in a formula that is definitely clicking.” That was still long before the advent of the motel in Australia. But, with similarly vast distances to travel and motorcars increasingly available to the general populace, the stage was set. All it took was one entrepreneurial Australian, while visiting relatives in the US, to have his first ‘motel experience’.

FATHER OF THE INDUSTRY

Some years ago, I had the privilege of spending a day with the late Hugh McCarron, widely known as the ‘Father of the Australian Motel’. McCarron told the story of visiting his cousin in the scorching desert of Death Valley, outside LA, in 1952. Because the family didn’t have enough room to put him up, he was told he’d been booked into a ‘motel’. “What’s that?” he asks his cousin. “You mean hotel.” “No goddamit,” his cousin retorts. “I mean MOTEL. Don’t you have motels in Australia?” What McCarron found was a row of 10 rooms, built of exposed desert rocks inside and out, with a concrete floor, corner wash basin, electric jug, box air-conditioner on the wall, and a toilet and shower behind a tiny cupboard-like door. It wasn’t much, but it got him thinking. Having travelled extensively throughout NSW selling insurance, he’d stayed in enough

hotels by the railway tracks, with the wooden toilet down the back, to see the potential for motels in Australia. Others, however, took a bit longer to convince. McCarron spent three years putting together plans and gaining financial backing and, in 1955, he opened Australia’s first motel – the Bellair Drive-in Motel in Orange. (Yes, others also claim this title.) With 26 rooms and a revolutionary floor heating system, it was a roaring success from day one – and it’s still there today, as the Mid City Motor Lodge. Soon after, McCarron opened Australia’s first air-conditioned motel in Parkes, and the industry has never looked back. He remained a doyen of the industry, building a chain of dozens of properties, heading the Caravilla chain and overseeing a merger that led to the establishment of Travelodge. From 1962, he operated the Koala chain and, in the 70s, took a half share in Trans World Inns, then owner of the Ramada chain.

Black Dolphin Motel, Merrimbula, NSW, designed by architect Robin Boyd. Photo by Mark Strizic (1928-2012). State Library Victoria

I S S U E N O . 9 1 | RESORTBROKERS.COM.AU

Feature Article continued // B Y C A T I E L A N G D O N

GROWTH AND COMPETITION

Probably the greatest growth period for the motel industry in Australia was from 1975 to 1985. Competition drove owners to offer an ever-increasing array of amenities. In the beginning, a private bathroom and onsite parking were ‘the bee’s knees’. By the 1960s, highway hoardings boasted the latest mod cons, colour TVs and swimming pools. Resort Brokers founding director Ian Crooks, a motelier in New Zealand before moving to Australia in the

days’, he says.” Crooks himself pioneered the next big change in Australia’s motel industry – this time not to what greeted guests, but to how motels were actually owned and operated. REVOLUTIONARY

Motel leases were commonplace in his native New Zealand but, when he moved to Australia in 1985 to establish Resort Brokers, there was none. The traditional model of owner-operation ruled the market. Historically, freehold land and

RESORTBROKERS.COM.AU | I S S U E N O . 9 1

1980s, well remembers the musthaves as the decades rolled by. Spa baths in the seventies, waterbeds in the eighties. “When Bankcard arrived in 1978, there was huge resistance. Everyone always paid cash. I’ll never forget, when we had our motel on Lake Taupo, a guy from the US stayed with us for a while. “I asked him if he’d heard of this Bankcard thing. He flipped open his wallet to show me probably 20 cards. ‘Nobody in the States pays cash these

buildings were seen by moteliers as the key assets – real estate that, independent of the business, would continue to rise in value. But Crooks knew the potential to also create a valuable business component. He established and sold Australia’s first motel lease, and set the scene for motels to be sold in one of three ways – as a freehold going concern to an owner-operator, on a leasehold basis to a business operator, and as a freehold property to a passive investor. “It really opened the market up, enabling ambitious younger operators

Left: Black Dolphin Motel, Merrimbula, designed by architect Robin Boyd. Photo by Mark Strizic (1928-2012). State Library Victoria Below: Mid City Motor Lodge, Orange, opened in 1955 as the Bellair Drive-in Motel, the first motel in Australia.

to buy motel leasehold businesses for less than the cost of freehold,” Crooks says. The concept has certainly stood the test of time. MEMORIES

Memories flooded back, as we took our nostalgic road trip through Australia’s motel history. I recalled a childhood holiday staying every night in a ‘Golden Chain’ motel. We filled a book with stamps or stickers, and our tenth night was free. Flag Inns (a forerunner of Choice Hotels), Crooks says, were considered the cream of the crop. Readers of a certain vintage might remember Flag Inns’ advertising heroine ‘Super Sally’, whose super power was take your booking and get you the best rate. Referral chains published national accommodation directories, which became travellers’ bibles. Though not entirely, these have now largely disappeared, displaced by the Internet and Online Travel Agencies (OTAs). Other former motel industry staples have fallen by the wayside due to new technology and lifestyle preferences. Star ratings, once the benchmark by which you judged properties, have been usurped by online guest reviews. As early as the 1990s, motel advertising signs started disappearing from roadsides. It coincided with the advent of mobile phones, and has accelerated with the proliferation of smart devices and OTAs. Once ubiquitous motel features have disappeared too. Remember the breakfast hatch, through which your

host would push a cooked breakfast at your requested hour? Now, with a café on every corner, most people opt to eat out. “Breakfasts were such a profitable thing for motel operators – probably 70 per cent profit,” Crooks laments. “But now the cooked motel breakfast is pretty much a thing of the past.” FUNDAMENTALS THE SAME

The evolution continues. But the concept endures. Comfort, convenience and value – these are the fundamentals of the motel industry. And, more than 60 years on from the opening of our first motel, they’re every bit as important to travellers and the wider tourism industry. Crooks says the slowdown in development of new motels coincided with the advent of cut-price airline travel. It was suddenly cheaper to fly than drive between cities. “I remember occupancy rates along the Newell and New England highways used to be in the mid to high seventies, yet the national average was more like 58.5 per cent,” he says. “Now, with the growth of other types of accommodation and groups like Quest, Mantra, Accor’s Sebel brand, Ibis, Oaks, etcetera, there is so much more competition. “Having said that, our national occupancy rate is sitting around 60 per cent. So, even though there are so many more rooms, there are a lot more people travelling.” There will always be a place for the traditional motel, he insists. “New motels built in the right place always

do extremely well.” And the buyer profile for motels hasn’t changed – hard-working people from all walks of life who want to own their own business. REWARDING RETURNS

Demand for motels remains high, because they continue to offer fantastic returns. And, in today’s low interest rate environment, yields have tightened. “Freeholds are scarce as hens’ teeth,” Crooks says. “Where they used sell on a 12 per cent yield, now it’s more like eight per cent. Leases used to sell on 35 to 40 per cent yield, but now it’s 25 to 30 percent.” Fundamentally, the key to success is service. Good service is rewarded with good returns. There are imperatives though, in an ever-changing accommodation landscape where OTAs dominate and competition is coming from other operational models including hotels and serviced apartments. Refresh. Differentiate. Innovate. “You definitely need to keep evolving, to create a point of difference for your property, and always to reinvest in your property, to refresh and reinvigorate.” Finally, it’s perhaps reassuring for the industry that there’s truth in the saying ‘everything old is new again’. Nostalgia for the motel heyday is bringing guests flocking back to retro reincarnations like La Costa Motel on the Gold Coast, Halcyon House at Cabarita Beach and Byron Bay’s Hibiscus Motel. Clearly, it’s a formula with a future.

I S S U E N O . 9 1 | RESORTBROKERS.COM.AU

N AT I O N W I D E SPOTLIGHT

ACTIVITY IS

O N T HE M A R K E T

By Trudy Crooks National Sales Manager

GATHERING PACE

WE BEGAN THE 2018-19 FINANCIAL YEAR WITH AN OPTIMISTIC PREDICTION FOR CONTINUED MARKET GROWTH, PARTICULARLY IN REGIONAL AREAS WHERE RECENT HISTORY MAY NOT HAVE BEEN TOO KIND TO SOME ACCOMMODATION OPERATORS. SO, I’M DELIGHTED TO REPORT ACTIVITY IS CERTAINLY GATHERING PACE. In recent months, I can’t tell you how many travel miles I’ve clocked up across this amazing country. I think I’ve touched down in just about every State and Territory, and worn out plenty of tyre rubber on the highways and byways. I’ve been on the road for a number of reasons. Firstly, as foreshadowed in our last edition, Resort Brokers has appointed four new brokers to cover burgeoning regional markets across New South Wales, Victoria and Tasmania. You’ll meet them later in this magazine.

RESORTBROKERS.COM.AU | I S S U E N O . 9 1

But also demanding my attention in far flung places, I’m pleased to say, have been quite a number of significant sales, along with exciting new listings. Buoyed by positive trading results, and with obvious investor demand for accommodation assets, owners are taking the opportunity to sell. MANAGEMENT RIGHTS RUN

Some big ticket management rights sales have been settled recently, underlining the heightened demand for quality properties of scale, particularly shortterm holiday complexes. Most notable have been three sales in prime regional tourist destinations along the coast north of Brisbane that added up to more than $20 million. First came my sale of a portfolio of three high netting, high return beachfront management rights in Yeppoon on the Capricorn Coast near Rockhampton. The business, with 100 of a total 114 units in the letting pool, was netting close to $1 million and included two 2-bedroom managers units. Then came a big day for the guy we like to call ‘Big Band’, our Sunshine Coast broker, Glenn Millar. He settled two landmark oceanfront resorts on the same day. Global hotel group Minor Hotels bought Oceans Resort and Spa Hervey Bay, while experienced local operators snapped up the impressive Rumba Resort at Caloundra on the Sunshine Coast. But, we are particularly pleased to report, not all the management rights action is happening in Queensland. Our off-the-plan specialist, Tim Crooks, wrapped up the first management rights deal of its kind in NSW for more than a decade. Brisbane-based Aurora Assets Management Group acquired the rights to two Sydney apartment projects being developed by ASX-listed Abacus Property Group – the 175-unit One A at Erskineville and 100-unit Ashfield Central, paying $2.2 million for the pair. Aurora now manages more than 4,000 apartments across 18 buildings. Resort Brokers also recently sold them the rights to Melbourne developer Kokoda’s 320-unit twin tower Chester and Ella development for $4.6 million and the 220-unit Haven by HCAP Developments for $3.14 million. Both projects are located in Brisbane’s popular Newstead precinct.

REGIONAL RESURGENCE

You’ll read plenty of positive news about activity in regional Australia in the pages of this edition. Demand for assets in regional locations is currently very strong. And that’s because of the high returns these properties show. Remote location can actually be a major advantage because it means it enjoys a captive market. I’ve actually just gone to contract on a big property in the Northern Territory, outside Darwin, with a sale price of close to $8 million. While yields are tightening in almost every other market, they are holding in the regions, particularly in the more remote areas. In cities and coastal hotspots, motel leases that would once always sell at or above a 30% yield are now coming down into the 20's. Similarly, freeholds that used to sell at 9% or higher are now seeing the figure eight in front. Not so in the regions. Yields are holding, and this makes them all the more desirable for purchasers. ASSET BUNDLES ON THE MOVE

The resurgence of investor demand and market activity is encouraging sales activity across a wide market spectrum. It’s not only individual property owners who are reading the market signs and listing to take advantage of heightened buyer interest. We are seeing a number of larger groups listing bundles of properties and whole portfolios. This is an exciting market development, particularly for new players entering the market or expanding. It gives them the opportunity to secure a collection of properties in a single move, providing a solid foundation for growth. Examples of this trend include our recent sale of a portfolio of six Brisbane management rights in one line, and the imminent listing of two accommodation portfolios, one national and the other with properties in Brisbane, Townsville and Darwin. Resort Brokers has also just listed a portfolio of three incredible multi-faceted travel service centres in Outback Australia, each a onestop accommodation, fuel, retail and hospitality destination with strong cash flow and no competition. So, on that positive note about property parcels, I’ll wrap it up! End

TOP REASONS TO GO BUSH More Aussies are enjoying nature-based activities on overnight trips.

12.2M ENJOYED BUSHWALKING

Up 18%

11.5M WENT TO N AT I O N A L PA R K S

Up 15%

4.7M VISITED PUBLIC GARDENS

Up 13%

I S S U E N O . 9 1 | RESORTBROKERS.COM.AU

R EG ULAR FEATURE

market action

Take a tour of some of our latest sales spanning diverse locations and accommodation types. The market for motels, management rights and apartment hotels is buoyant right across Australia.

Vue to a $5 million deal Experienced operator, TDK, has secured the management rights to Robina Group's Vue Terrace Homes community in Robina for $5 million. The deal, handled by Resort Brokersâ&#x20AC;&#x2122; Alex Cook, set a new record for the central Gold Coast suburb. TDK, headed by John Burke, Troy Edwards, Damien Windle and Kelvin Cotter, bought the rights to the $170 million community after a highly competitive EOI campaign that attracted 14 offers.

RESORTBROKERS.COM.AU | I S S U E N O . 9 1

The sale included a three-bedroom terrace home, to be occupied by resident managers. Mr Burke, alongside the onsite team, will oversee the management of Vue, a secure gated community of architecturally-designed three-bedroom terraces overlooking Gold Coast City Council's 17-hectare Robina City Parklands. More than $83 million of homes have already sold, with stage one under construction and due for completion

early next year. TDK holds the management rights to nine communities in Southeast Queensland, and said Vue Terrace Homes would complement that portfolio. "We see it as a fantastic investment due to the high quality of homes and the ideal location, opposite major transport, close to Robina Town Centre, Bond University, popular schools and Robina’s medical precinct," he said. Robina Group sales manager, Azura Griffen, said TDK's impressive track record of maintaining high quality communities, with low vacancy rates had given them the edge over the other quality contenders who submitted expressions of interest. "In the end, TDK ticked all the right boxes, including its proven experience in managing communities across South East Queensland from the off-the-plan stage. Alex Cook described Vue Terrace Homes' management rights as a “prized asset for which many parties were willing to pay well. "Demand for management rights offering a high net income outnumber the opportunities available - particularly from the off-the-plan stage," he said. "On the Gold Coast, management rights of this size are extremely rare and it would be several years since anything like this has been offered to the market."

Offers flowed for quality Coonawarra offering Experienced moteliers from Victoria have seen off stiff competition to secure an outstanding freehold going concern motel in South Australia’s Coonawarra region. The multiaward-winning Penola property drew four offers in a single day. Developed in 2003-04 by a syndicate of local investors, the 4-star

Alexander Cameron Suites has sold for the first time through Resort Brokers’ South Australia broker, Kelli Crouch, settling at the end of August. Listed at $2.5 million, the quality offering actually exceeded that target after a flood of enquiries culminated in four offers landing on Kelli’s desk as soon as S.A’s abolition of stamp duty on commercial property took effect on 1 July. The delighted buyers are Paul and Tania Morris from across the border in Victoria, former moteliers who saw it as an unmissable opportunity to return to the industry. Alexander Cameron Suites enjoys a prominent location opposite Penola’s hospital in the prime Coonawarra destination midway between Adelaide and Melbourne. Built to exacting standards, it features 18 self-contained units, a 1916 timber cottage operated as a B&B, picturesque grounds, and a spacious 3brm manager’s residence.

The multi-awardwinning Penola property drew four offers in a single day. The motel had been operated under management since new, attracting many industry honours. Vendors’ spokesman, Bill Murray, congratulated the various management teams and staff, some of whom had been with the motel since opening. He singled out current managers, Sue and Ralph Sharp, for special mention “for their complete support over the sale process and unwavering commitment to quality leadership.” He also congratulated Kelli Crouch for “her outstanding professionalism, industry knowledge and considerable skill in identifying potential buyers and hosting a revolving door of inspections. “She made the sale process a pleasant experience, especially for a first-timer like me, and I will unreservedly recommend her to any seller or buyer,” he said. Well done Kelli. We might have to raise a glass of Coonawarra’s best to that!

Buyers pursue Quest for quality Strengthening interest in Australia’s regional hotel market is evident in the significant number of Quest Apartment Hotels sales recorded by Resort Brokers this year. Quest business sales to date this year total more than $18 million. These include five settled sales of properties in Werribee, Mildura and Geelong in Victoria, Woollongong in NSW and Ipswich in Queensland. A further three are under contract in the Hunter Valley, greater Sydney and Brisbane. As Quest’s ‘preferred broker’, Resort Brokers has long specialised in handling transactions for this quality brand, which is now the largest and fastest growing apartment hotel brand in Australasia with more than 160 properties across Australia, New Zealand and Fiji. “Quest’s proven franchise model, the prime locations the properties offer, and the tremendous support provided by Quest head office, make these businesses extremely attractive,” said our dedicated national Quest broker, Liz Galea, herself a former multi-Quest franchisee. Quest properties also attract buyers across a broad market, with sales to date this year ranging from $1 million up to around $5 million.

I S S U E N O . 9 1 | RESORTBROKERS.COM.AU

Olé! Bravo! Close to 35 years ago, the Matador Motor Inn in Coffs Harbour had the distinction of being the very first motel sold in Australia by Resort Brokers founding director Ian Crooks. Now, we’ve just listed this popular Pacific Highway landmark once again. When Northern NSW broker Greg James mentioned his latest listing, it was a déjà vu moment for Crooks, who even remembered the name of his buyer all those years ago. Resort Brokers has sold the Matador several times over since then, and its recent listing underlines our longevity and experience in this market.

RESORTBROKERS.COM.AU | I S S U E N O . 9 1

For the record, the hilltop Matador in central Coffs Harbour has been operating continuously for more than 40 years, an ever-popular stopover halfway between Sydney and Brisbane. The distinctive motel faces due north and affords great views from its upper level. “It’s neat as a pin, has strong repeat corporate business, and excellent forward bookings from multiple markets, including regular visitors for Coffs Harbour’s many sporting events,” Greg said. The 17-room leasehold is on the market for $410,000, and the vendor is keen to hear offers. End

MANAGEMENT RIGHTS Ref // MR005431

PERCHED ON STUNNING HEADLAND UNRIVALLED OCEAN VIEWS KEPPEL ISLANDS

Apartments

Letting

Years

Bed

Bath

A unique opportunity to purchase the management rights of Oshen Yeppoon, one of the Capricorn Coast’s newest accommodation complexes offering unrivalled ocean views of the Keppel Islands. Perched on a stunning headland in the CBD, Oshen Yeppoon is the ideal choice for both couples and families. The complex offers all styles of accommodation, from hotel rooms to one, two and three bedroom fully self-contained apartments. Oshen is the natural choice for groups, corporate and holiday clientele as it has lots of facilities to keep the guests entertained for hours. Yeppoon is set to benefit from the recently completed $53 million redevelopment of the waterfront precinct, boasting a world class lagoon pool, zero depth children’s water play park, boardwalks, amphitheatre and a multi-storey car park, which are all free to access. The Capricorn Coast with its idyllic climate a nature lover’s playground, blessed with tropical islands just offshore and stunning National Parks within a short drive. Featuring lift access to all floors, secure underground parking, pool overlooking North Keppel island and a BBQ area complete with servery.

›› Consistent year on year growth

Manager’s Residence

›› Only four years old ›› Seaside lifestyle opportunity ›› Additional income from conference room ›› Lifts access all levels in including both car parks ›› Spacious /modern living accommodation

NET PROFIT: $638,627

PRICE: $3,865,000

LINDSAY COOPER BROKER +61 418 711 047 lindsay@resortbrokers.com.au

YEPPOON I S S U E N O . 9 1 | RESORTBROKERS.COM.AU

FREEHOLD GOING CONCERN Ref // FH005422

RIVERFRONT FREEHOLD MOTEL AND PASSIVE PARK ASSET ON NSW MID NORTH COAST

Rooms

Caravan Park Sites

Bed

Bath

RESORTBROKERS® proudly presents an asset with guaranteed income creating the foundation to secure ongoing financial wealth. The best of both worlds, a renovated 3.5 AAA star rated 23 room motel, ideally located on the entrance into town. Full renovations recently completed to ensure a great upside potential for the incoming owner. Plus the security of 36 site caravan park with income primarily passive, thus creating the perfect commercial platform to grow. The property has a 3 bedroom, 2 bathroom manager’s residence plus a separate 2 bedroom, 1 bathroom renovated flat, utilised for a long-term tenant or extended family operation. All set on 1 hectare of riverfront property. The motel has a strong following from tourists and corporate travellers whilst the caravan park caters to a variety of clientele that includes permanent residents, semipermanent residents and weekly / overnight guests. Showing consistent income, this is an excellent opportunity to tap into two sectors of the tourism industry and continue to grow this lucrative property.

›› First motel / caravan park heading north into CBD

Manager’s Residence

›› Tranquil river side location ›› Great guest reviews ›› Hybrid business offering to cater for all seasons ›› 23 suites of 3.5 AAA rated ›› 36 dwelling and camp sites with neat function amenities ›› Circa 30% of total income primarily passive ›› Fully renovated with extensive history of maintenance and capital improvement ›› Manicured gardens and surrounds – neat as a pin ›› Strong finance supportive cap rate

NET PROFIT: $398,551

PRICE: $2,900,000

JAMES CARRICK BROKER +61 0400 664 065 james@resortbrokers.com.au 30

RESORTBROKERS.COM.AU | I S S U E N O . 9 1

KEMPSEY

MANAGEMENT RIGHTS Ref // MRC005425

CARETAKING AGREEMENT MELBOURNE EASTERN SUBURB LONG TENURE MINIMAL HOURS

Townhouses

Apartments

House

Years

Canterbury Rise is located in a safe and tranquil pocket of Box Hill South adjacent to parklands, walking tracks and bicycle paths yet, in close proximity to Box Hill Central shopping centre and railway station. The property was opened in September 2017 and represents a diverse mixture of accommodation properties including 42 townhouses, 21 apartments and one house. The caretaking service agreement tenure is 30 years from 27th September, 2017 (10 years with four further terms of five years.) The annual remuneration commenced at $50,000 (plus GST) with annual increases of 3%. The agreement requires these services to be provided during the hours of 10:00am to 4:00pm Monday to Friday with the provider to be contactable outside these hours for emergencies. This opportunity would ideally suit an existing caretaker as an add on operation or a person seeking a second income opportunity.

›› Secure 30 year agreement ›› No requirement to reside on site ›› Limited hours of attendance ›› Operator may assign the agreement without requiring the consent of the OC ›› Initial annual remuneration $50,000 (plus GST). ›› Annual 3% Increases ›› New development completed in 2017

NETT PROFIT: $46,800

PRICE: $180,000

JIM CHAPMAN V I C TO R I A N S TAT E M A N A G E R +61 413 444 782 jim@resortbrokers.com.au

BOX HILL I S S U E N O . 9 1 | RESORTBROKERS.COM.AU

MOTEL LEASEHOLD Ref // LH005427

IMPRESSIVE ARCHITECTURALLY DESIGNED MOTEL LEASEHOLD IN SOUTHERN NSW

Rooms

Bed

Bath

Recently refurbished 24-room motel in the town of Eden. Located in the centre of town and across the road from the Eden Fishermen’s Club, Twofold Bay Motor Inn is a short walking distance from all amenities, cafes, restaurants and watering holes. Architecturally designed solid construction, built in 1990 to the specifications of the original owner, the rooms are generous and comfortable. Recent refurbishment has modernised and updated the décor of several rooms. This motel offers a wide range of accommodation choices to suit couples, families and groups. Configurations include king and queen suites, spa suites, twin and triple rooms as well as a family suite. The facilities include a heated indoor pool, free WiFi internet access, Foxtel TV, charge back from local restaurants, room service breakfast, guest laundry facilities, tour desk and much more. Currently run by a couple with casual staff to assist. If you’re looking for a sea change, this could be an excellent opportunity for a great lifestyle with a steady income. Good earning capacity with potential for growth.

›› Central location close to all amenities and across the road from the Eden Fishermen’s Club

Manager’s Residence

›› Recently renovated with quality inclusions ›› Sizeable 3 bedroom residence with impressive ocean views ›› Turn-key operation producing immediate income for new owners ›› Regular and repeat clientele ›› Potential to increase occupancy ›› Currently run under management ›› Exciting opportunity for a lifestyle change

NETT PROFIT: $325,520

PRICE: $1,250,000

RUSSELL ROGERS BROKER +61 416 166 909 russell@resortbrokers.com.au 32

RESORTBROKERS.COM.AU | I S S U E N O . 9 1

EDEN

HOTEL LEASEHOLD Ref // LH005251

QUALITY BRISBANE LEASEHOLD WITH SIGNIFICANT UPSIDE

Apartments

Years

A great opportunity to acquire the leasehold interest to a high quality, well-presented serviced apartment hotel, located in one of Brisbane’s strongest growth areas. Underpinned by the very strong Quest brand, this property benefits from being in a significant commercial hub of Brisbane. Opened in November 2008, Quest Chermside is a 4.5 star serviced apartment complex comprising of 28 apartments (54 keys). The eight-storey property has been beautifully maintained and presents to a very high standard. Most levels feature four apartments (eight keys) arranged around a central lift lobby. Additional facilities include an outdoor heated swimming pool, onsite car parking and conference facilities. Quest Chermside offers a 20 year lease and the opportunity for a new owner to come in with a hands on approach to bring the occupancy and average room rate up to meet the market. There is definite upside, and an ideal size for an experienced or new hotel buyer.

›› Modern serviced apartment hotel consisting of 28 apartments (54 keys) ›› Mix of studios, 1 and 2 bedroom apartments ›› Opportunity for a hands on operator to increase OCC and ARR ›› Very well maintained property; rooms recently re-carpeted and repainted ›› Located just off Gympie Road, directly adjacent to Westfield Chermside ›› Easy access to Brisbane CBD, Brisbane Airport, Nth Brisbane Sunshine Coast growth corridor ›› Solid corporate client base including industrial, health, airport and government

PRICE: $1,130,000

LIZ GALEA BROKER +61 427 218 353 liz@resortbrokers.com.au

CHERMSIDE I S S U E N O . 9 1 | RESORTBROKERS.COM.AU

CONTINUING OUR SERIES PROFILING THE MANY FACES O F A U S T R A L I A N TO U R I S M A N D A C C O M M O D AT I O N SECTORS, WE INTRODUCE YOU TO THE LEADERS AND I N N O VATO R S , C H A R A C T E R S A N D C A N N Y O P E R ATO R S O F OUR INDUSTRY. THESE ARE THEIR STORIES.

Regular Feature // TH E FAC ES O F TH E AC C O M M O DATIO N IND USTRY

CITY SMART, bush wise From the city to the bush, in boardrooms and back offices, David Burrough is known as lawyer to the accommodation industry. More than that, heâ&#x20AC;&#x2122;s known for his deep understanding of accommodation businesses, and genuine connection with the people who run them. Admitted to practice in 1981, David has worked almost exclusively in tourism and hospitality law. It began, as it did for many commercial law aspirants in the 1980s, with chasing the big investment dollars flowing out of Southeast Asia into Australian tourism assets.

RESORTBROKERS.COM.AU | I S S U E N O . 9 1

“In the early 1990s, the HMAA (Hotel Motel & Accommodation Association, now AAA) was referring lease disputes to me,” David recalls. “I realised what was out there wasn’t really good enough anymore. When you read a lease back then, you couldn’t really tell who was responsible for what.”

“Much to my family’s chagrin, travel to Taiwan, Singapore and Hong Kong was almost a way of life,” he recalls. “In one year, I think I went to Singapore nine times.” But, to this unpretentious Brisbane lawyer, a highflying lifestyle didn’t strike him as all that important. It was actually a chance meeting with Resort Brokers founding director, Ian Crooks, that would ultimately set David on the professional course he’d find inspiring and satisfying for decades to come. “We met as members of a running group, and got on well,” he said. “We quizzed each other about what each did, and found we had a lot in common, dealing in tourismrelated property. “It led me to understand the system of motel leasing Ian had invented, which I found legally fascinating. I was intrigued and impressed that he’d come up with this concept of leasing a tourism asset long-term, to the extent that a bank would take security over that lease. It was absolutely a new thing. “The reason was that the goodwill of the business is geographic. It can’t go anywhere. It’s tied to that site. Legally, this is very interesting. I started to look at those

leases, and I’ve been interested ever since.” As it happened, there was really only one lawyer in Australia then who specialised in the field, David l’Estrange, who’d written that first motel lease. By now, with leasehold transactions on the rise, there was a crying need for more industry-specific legal expertise. “In the early 1990s, the HMAA (Hotel Motel & Accommodation Association, now AAA) was referring lease disputes to me,” David recalls. “I realised what was out there wasn’t really good enough anymore. When you read a lease back then, you couldn’t really tell who was responsible for what.” So he set about developing better agreements. The motel lease he crafted is now one of the most widely-used in the industry. But it wasn’t solely a professional interest that drove David to dedicate his career to the sector. It was also the pull of regional Australia. “I was Brisbane born and bred, but I had friends from the bush and always felt a connection. We used to go on holidays out west rather than to the beach very often.” His love of the bush also inspired David to become

I S S U E N O . 9 1 | RESORTBROKERS.COM.AU

“We’d have board meetings all over Australia, and I continued to travel out west frequently with my family. I could see clients and stay with them, talk to them, which was really nice for me. The operators, in remote places in particular, just love talking to someone about their business,”

RESORTBROKERS.COM.AU | I S S U E N O . 9 1

involved with the Royal Flying Doctor Service, the iconic Australian organisation with which he served on the Board of Directors for 17 years. That role and his increasing work advising on all legal issues for hotels, motels and caravan parks were not incompatible. “We’d have board meetings all over Australia, and I continued to travel out west frequently with my family. I could see clients and stay with them, talk to them, which was really nice for me. The operators, in remote places in particular, just love talking to someone about their business,” he says. “I find it a great thing to have an enthusiastic client wanting to talk to you about their business. They’re such genuine, hard-working people. And for me, coming from a frantic city life, I really enjoy it.” Of course, not all David’s work takes him bush. His expertise is applied to transactions across the full spectrum, from complex international hotel acquisitions to rural and regional tourist facilities. But it’s the small business people who seem to strike the loudest chord. “You need to understand how they feel about their business, their life goals, what their exit strategy is, to tailor the advice. You can only do that by having an interest in those people,” he says with obvious conviction. This is how David measures his success. Not by his own, but by that of others. “The most memorable thing for me is acting for people who started out in the accommodation industry with nothing, knowing nothing about it. After 20 years, they are really successful, and own multiple properties. “That’s the best achievement. Not the biggest deal – that doesn’t really tickle my fancy much – but watching people grow and be good at the industry is a great thing.” David’s legal career has been

successful by any measure. With Ian Hillhouse in 1987, he co-founded the firm that became Hillhouse Burrough McKeown. Now Hillhouse Legal Partners, the practice takes a ‘simply strategic’ approach across a wide range of corporate and private legal specialities, with expertise in everything from the aged care, health and medical industries, to technology, agribusiness, mining and, of course, property, hotels, accommodation and resorts. As at June 30 this year, the founding partners sold their equity to the next generation of partners. Now a Consultant and less burdened by day-to-day management, David sounds more enthusiastic than ever about planned further expansion in the accommodation sector. Enter David Adolphe, who you might say is his understudy. Although, David Burrough humbly describes him as “way smarter than me”. As Special Counsel, this new face of legal expertise for the accommodation industry has been working closely with David as his mentor for more than 18 months. “He is a Queensland Law Society accredited Specialist in Business Law, which is very rare and difficult to achieve,” he says. “He is very clever, has taken a real shine to the accommodation business, and is tremendously keen to expand the practice further across Australia.” So does that mean an opportunity for this long-time industry advocate to ease the pace a little? “I’d certainly like to devote more time to family and travel,” David admits. The two will no doubt go hand in hand. He and his wife have three talented adult children – eldest daughter in Brisbane with three young children, a son who moved to Berlin as a successful musician and stayed to start a family, and youngest daughter a talented Melbourne-based artist who’s beginning to gain serious attention for

T HE N E W FAC E O F AC C O M M O DATIO N IND USTRY L EGA L E X P ERTIS E

her oil paintings. His has been a rich and rewarding career. And, if asked to nominate the key to success, David sums it up in one word, ‘service’ – true for his own business and that of his accommodation industry clients. One lasting memory, though a source of some amusement, perfectly illustrates the point. “It was on one of our trips out west. There were three families that used to trek out every Easter. We stopped at quite a nice looking motel. I remember going in with my youngest daughter, then about six, and the guy behind the counter breathed scotch fumes all over us,” he tells. “There was a restaurant, but said he’d shut it because he couldn’t afford to pay the chef. He handed me a bread and butter plate piled high with white bread and said ‘there’s your breakfast’, waved in the general direction of our room, and that was the last we saw of him. “As an illustration of what not to be in a motelier, it was perfect,” David laughs. “I went back about three years later (knowing the motel had sold). A man was behind the desk, and he says ‘hi, great to see you both.’ He gave my daughter a can of lemonade and me a cold XXXX Gold. He said the restaurant was open for us, before taking us to our rooms and showing us how everything worked. “When we were leaving next morning – I think there were eight children – he gave all the kids a bag of lollies for the trip on the way out. Of course we told everyone, and no one we know ever stayed anywhere else in that town. That’s the difference.” You can be sure there are plenty of accommodation operators who tell similar stories of exemplary service about David Burrough, about how he makes a difference. Once a client, you wouldn’t want to go anywhere else. End

David Adolphe SPECIAL COUNSEL, HILLHOUSE LEGAL PARTNERS

Accredited by the Queensland Law Society as a Specialist Business Law practitioner, David has the experience and expertise to offer legal advice for businesses of all sizes. In particular, he strives to ensure his clients’ legal interests are protected whilst delivering quality personal service. Excelling across many areas of business, property and commercial law, he has developed a niche specialty advising clients in relation to accommodation industry matters, including the buying and selling of motels, hotels, pubs and caravan parks. He prides himself on being proactive in reducing clients’ risk and protecting their legal rights, including in relation to business structures and shareholder agreements, franchising, leasing, employment law, intellectual property rights, debt recovery and commercial litigation.

I S S U E N O . 9 1 | RESORTBROKERS.COM.AU

FREEHOLD GOING CONCERN Ref // FH005415

BEAUTIFULLY PRESENTED MOTEL IN THE HEART OF THE GRAMPIANS

Rooms

Bed

Bath

New to the market is the freehold and business interest in a beautifully presented motel comprising of 51 rooms, outdoor pool area, well-tended gardens, conference and meeting rooms as well as a fully licensed restaurant. Built in 1984, the property is a solid brick motel that has been very well maintained. The grounds offer parking for trailers, buses, vans and coach tours. The motel provides a good mix of standard rooms, including standard family rooms and family suites (2 rooms), executive rooms and deluxe spa suites. The mix caters for both leisure and business travellers. Situated close to all amenities, bars and restaurants, the location offers guests plenty of choice for entertainment and dining options. Facilities include a guest BBQ, guest laundry, off-street parking, bus parking, outdoor swimming pool, restaurant, conference/meeting rooms and room service meals. The conference facilities and licensed bar cater for up to 200 people and is one of the largest venues in the region.

›› Consistent year on year profits

Manager’s Residence

›› Opportunity to grow the business ›› Sustainable occupancy with growth potential ›› Spacious living accommodation ›› Outstanding location in the heart of the Grampians ›› Licensed bar and restaurant ›› Conference facilities for up to 200 people

NETT PROFIT: $523,128

PRICE: $3,640,000

RUSSELL ROGERS BROKER

DAMON LUNARDELLO BROKER

+61 416 166 909 russell@resortbrokers.com.au

+61 403 730 071 damon@resortbrokers.com.au

RESORTBROKERS.COM.AU | I S S U E N O . 9 1

HALLS GAP

MOTEL LEASEHOLD Ref // LH005434

MOTEL LEASEHOLD GOLD MINE IN THE HEART OF THE SAVANNAH WAY

Units

Years

Bed

Bath

RESORTBROKERS® are proud to exclusively offer this rare opportunity to acquire the Latara Resort Motel leasehold. Spread over seven acres of natural bushland gardens and sweeping lawns, this profitable motel creates an oasis in the rich beef cattle and gold mining region of Georgetown, Queensland. There are 31 well-appointed rooms offering modern conveniences including air conditioned rooms, guest laundry, saltwater swimming pool, BBQ area and fully licensed restaurant and bar open 7 days. With consistent year-on-year growth, Latara is the number one choice for corporate and government workers, including Flying Doctors, contractors and Health Workers as well as a strong tourist trade who explore unique attractions such as the Cobbold Gorge, Talaroo Mineral Hot Springs, Undara Lava Tubes and Etheridge Shore Goldfields. The motel is currently under management and is extremely attractive, profitable and ready for an investor or owner/operator to capitalise off this exceptional opportunity.

›› Located on the highway

Manager’s Residence

›› 31 unit motel with excellent reputation ›› 30 year lease ›› 4-bedroom manager’s residence ›› Saltwater swimming pool ›› 45 seat licensed restaurant and bar (open 7 days) ›› Strong corporate clientele ›› Family owned and operated ›› Recently refurbished ›› Ample car parking ›› Only motel in town ›› Close to Georgetown Airport

NET PROFIT: $407,349

PRICE: $780,000 + SAV

KIRSTEN LOWIS BROKER +61 428 499 620 kirstenlowis@resortbrokers.com.au

GEORGETOWN I S S U E N O . 9 1 | RESORTBROKERS.COM.AU

icas de marketing ch

Departmento

Head honchos

MEXICAN CHEERS!

Casa Cantina at HQ Oh

oh h

e's c

actus !

La K

-K-ra

RESORTBROKERS.COM.AU | I S S U E N O . 9 1

cha!

YUM Ay caramba! It may have been a chilly winter’s night, but our recent Resort Brokers 2018 Mid-Year Conference after-party was ‘hot, hot, hot!’ An enthusiastic band of amigos, including brokers from around the country, our terrific admin team and professional associates got into the spirit of the Mexican theme, and shook their maracas well into the night.

FIESTA They like theirs with Tequila and Lime

weet

enor

as!

Three Amigos

no caption required

I S S U E N O . 9 1 | RESORTBROKERS.COM.AU

FREEHOLD GOING CONCERN Ref // FH005387

RARE FREEHOLD CARAVAN PARK WITH ROOM FOR EXPANSION! Woombah Woods Caravan Park is centrally located in the beautiful Clarence Valley in Northern NSW, only five mins to the Clarence river on one side and the ocean on the other. This is a very popular park. It caters for travellers, longer stay guests and residents with spacious sites available. With land to spare, there is the opportunity to expand and take advantage of the new visitors coming to the area that the dual lane highway currently under construction will bring. Woombah Woods is set in a relaxing bush land setting with a myriad of birds and wildlife. Kangaroos and possums abound. It has an outdoor swimming pool as well as a camp kitchen, and other amenities which keeps the guests staying at the park entertained when they are not fishing, hiking, surfing or exploring the Clarence river and all the other natural attributes of the area

›› Major Tourist and Lifestyle Development area ›› Ample room for expansion from 64 sites to 122 (subject to council approval) ›› Major refurbishments have been completed ›› Consistent year on year growth ›› Spacious / modern 2 bedroom, 2 bathroom living accommodation ›› Additional income such as convenience store and coffee shop ›› Iluka is set to expand with new highway access point with major development ›› Combination of various tenancies such as permanent rental, long and short term leasing

NETT PROFIT: $340,159

PRICE: $2,795,000

GREG JAMES BROKER +61 416 247 068 greg@resortbrokers.com.au 42

RESORTBROKERS.COM.AU | I S S U E N O . 9 1

WOOMBAH WOODS

FREEHOLD GOING CONCERN Ref // FH005375

INDEPENDENT MANUFACTURED HOME VILLAGE FOR OVER 50’S

This 59-site home village is located in a prime location on approximately 6 acres of land overlooking St. Georges Basin and only a short walk from the shopping village which includes many amenities such as a medical practice, chemist, post office, hairdressers, local hotel and much more. Each home is owned and occupied by individuals and they are responsible for the maintenance of the interior and exterior including repairs. The common grounds are meticulously maintained by the caretaker while the surrounding landscape of each individual home is maintained by the owner. The village is pet friendly, dogs must be kept on a leash on common grounds. The village offers a community hall available to all for gatherings and events as well as BBQ areas. The operation of the business is guided under the Residential Communities Act. Site fees are approximately $125.00 per week, payable on a fortnightly basis with annual increases from 1 July. This is a turn-key investment with income not to be missed.

›› Turn-key operation generating immediate income

Homes

›› Situated close to town centre ›› Easy takeover for new owners ›› Great investment and long term returns ›› Residents live with superb climate and friendly neighbours ›› Incredibly neat, planned, village with wide streets

NETT PROFIT: $268,293

EXPRESSIONS OF INTEREST

RUSSELL ROGERS BROKER +61 416 166 909 russell@resortbrokers.com.au

S T. G E O R G E S B A S I N I S S U E N O . 9 1 | RESORTBROKERS.COM.AU

MANAGEMENT RIGHTS Ref // MR005424

STRONG PERMANENT COMPLEX NETTING 12.8% INC. REAL ESTATE

Townhouses

Letting

Years

Bed

Bath

RESORTBROKERS® are excited to present Wynnum Shores exclusively to market. This complex is ideal for a newcomer to the industry with strong, established relationships with owners and the body corporate in place for many years. In fact, this is the first time this business is going to market in 15 years. The complex offers a strong yield in combination with a three bedroom manager's residence with large office attached and on title. Modern and attractive in design, this spacious open-plan home combines a light and airy living and dining space that flows onto a large outdoor area that is perfect for balmy summer nights and enjoying alfresco entertaining with friends. Close to Carindale Shopping Precinct and the Oxford Street business hub makes it easy for locals to commute to and from restaurants, cinemas and recreational activities. This business and home offers the perfect introduction to the industry with consistent strong income generation and long tenure on the agreements.

›› Easy to maintain complex with pool in convenient Bayside suburb.

Manager’s Residence

›› Lengthy tenure remaining on management agreements ›› Generous caretaker's salary with strong, permanent letting pool ›› Well presented manager’s unit with attached office with A/C on title ›› Great location for a relaxed lifestyle, suitable for a couple or young family

NETT PROFIT: $126,613

PRICE: $985,000 INC. UNIT

B R E N T S TA K E R BROKER

TIM CROOKS BROKER

+61 410 344 344 brent@resortbrokers.com.au

+61 417 544 562 tim@resortbrokers.com.au

RESORTBROKERS.COM.AU | I S S U E N O . 9 1

WYNNUM

MOTEL LEASEHOLD Ref // LH005397

PREMIER MOTEL - PERFECT SIZE LEASEHOLD BUSINESS OPPORTUNITY - 32% + ROI

Bed

Bath

Cousins Motor Inn is regarded as the premier motel in Inverell, nestled in a picturesque valley beside the Macintyre River of NSW. This New England North West region is renowned for its proud pioneering history, its beautiful restored buildings and a thriving business community. Without rival on the current market this opportunity is ripe for the picking - ready to repay the new owners for the refurbishment and internal business preparation invested by the current operators over the past few years. Both corporates and tourists alike choose Cousins as their preferred place of abode when in Inverell. Attracting many repeat clients through great service and exceptionally well-presented rooms, Cousins Motor Inn has a very strong turnover and net profit.

›› Premium motel in town

Manager’s Residence

›› Regarded as the benchmark of provincial town motels for corporate clients ›› A rare 19 room refurbished 3.5 star rooms ›› Various accommodation configurations ›› Consistent year on year grow ›› Large four bedroom, two bathroom, large living with private courtyard manager's residence ›› All rooms recently refurbished - no more to spend

NET PROFIT: $236,400

PRICE: $720,000

GREG JAMES BROKER +61 416 247 068 greg@resortbrokers.com.au

INVERELL I S S U E N O . 9 1 | RESORTBROKERS.COM.AU

MANAGEMENT RIGHTS Ref // MR005441

T1 SETTING A NEW BENCHMARK FOR STYLISH LIVING IN THE CBD

Apartments

Letting

Years

Bed

Bath

Joining the Australia-wide shift to move from the suburbs into the inner city, T1 offers all the benefits of city living. T1 Apartments is an 18-level high rise located in the Townsville CBD. The building’s profile has been purposely positioned to capture the natural northerly light, cooling sea breezes and, of course, to maximize stunning views of surrounding vistas. It consists of 53 apartments in total. There are a variety of floor plans including 2 and 3 bedroom and some penthouses. All the apartments have sweeping views from very large balconies and the complex is situated in easy walking distance to all the CBD has to offer. There are 2 levels of underground parking and each apartment has allocated secure parking and additional storage. This is an easily managed building and can easily be operated by a couple. There are no gardens to maintain and all the apartments in the rental pool have permanent tenants.

›› 18 storey tower

Manager’s Residence

›› Opportunity for further growth ›› Experienced staff to assist with transition ›› Spacious / modern living accommodation ›› Units with outside agents to increase letting pool ›› Long tenure agreements

NETT PROFIT: $124,000

PRICE: $1,100,000

DES FAGG BROKER +61 427 849 119 des@resortbrokers.com.au 46

RESORTBROKERS.COM.AU | I S S U E N O . 9 1

TOWNSVILLE CBD

MOTEL LEASEHOLD Ref // LH005386

SKI-OUT INVESTMENT – AN OPPORTUNITY NOT TO BE MISSED

Rooms

Bed

Bath

Walk in and start trading! Nestled high in the snowfields of Perisher, this charming mountain chalet is new to the market and available for purchase. Located in an excellent position with fabulous views of Perisher Valley, the Chalet Sonnenhof is a 17-room lodge providing comfortable accommodation for couples and families. Facilities in the lodge include restaurant and two bars, sauna and spa, games room, communal lounge with open fireplace, guest laundry and in room tea / coffee. All guest rooms have their own en-suites and configure to suit a range of requirements, including family rooms. The inclusions of this sale are generous with a Bombardier Snowcat and Arctic Cat snowmobile together with recent updates such as latest state of the art fire protection system and new roof. Perisher is the largest and most popular ski resort and destination in NSW and the Sonnenhof provides a ski-out experience for all. The popularity of the Chalet Sonnenhof is reflected on several booking sites with guests providing excellent reviews.

›› Turn-key operation ready for immediate trade

Manager’s Residence

›› Snow vehicles included ›› Recently painted inside & out with new carpet ›› New diesel boiler ›› Located in an excellent position with fabulous views of Perisher Valley ›› Popular in-house restaurant & two bars ›› 4 Bed, 2 Bath owners/manager’s residence ›› Excellent reviews on all booking sites

PRICE: $2,300,000

RUSSELL ROGERS BROKER +61 416 166 909 russell@resortbrokers.com.au

PERISHER I S S U E N O . 9 1 | RESORTBROKERS.COM.AU

MANAGEMENT RIGHTS Ref // MR005447

MANAGEMENT RIGHTS IN NSW/VIC BORDER TOURISM MECCA

Cottages

Bed

Bath

Situated at Moama/Echuca on the southern border of New South Wales, the Murray River Resort provides an ideal management rights opportunity for a couple or two partners. The property consists 40 individual two and three bedroom spa cottages in 13 acres of manicured lawns and gardens. Resort facilities including three solar heated saltwater pools with shade sails, 2 children’s playgrounds, 2 tennis courts, 5 undercover barbeque facilities with tables and seating. New 6 year caretaking agreement with salary of $112,512 (ex GST). Four bedroom manager’s house with large kitchen, family room, two bathrooms, lounge, laundry, garage, shed and private back yard. Direct access to ofﬁce/reception. The Moama Echuca area has recently undergone a massive resurgence in people moving from Melbourne seeking a ‘tree change’ and the area has approved new developments in retail, sporting and residential sub-divisions.

›› Situated in Victorian/New South Wales border city tourism mecca

Manager’s Residence

›› 40 villa complex on 13 acres ›› Facilities include 3 swimming pools, 5 BBQ facilities, 2 tennis courts and 2 children’s playgrounds ›› New 6 year caretaking agreement with annual salary of $112,512 (ex GST) ›› Magnificent 4 bedroom manager’s residence. Asking $550,000

NET PROFIT: $170,955 BUSINESS PRICE: $600,000 MANAGERS RESIDENCE: $550,000

PRICE: $1,150,000

JIM CHAPMAN V I C TO R I A N S TAT E M A N A G E R +61 413 444 782 jim@resortbrokers.com.au 48

RESORTBROKERS.COM.AU | I S S U E N O . 9 1

MOAMA

MANAGEMENT RIGHTS Ref // MR005304

FULL TEN YEAR TERM - RECENTLY TOPPED UP. 3.9X MULTIPLIER ON A SOLID BUSINESS!

Units

Letting

Years

Bed

Bath

Modern resort style living in a fantastic complex right on the city reach of the Brisbane River in Auchenflower. This property is easily managed and has strong and consistent letting targeted at young professionals and families. Featuring 41 units with 13 in the letting pool with strong upside potential. This complex offers a lavish and spacious office that would rival any on-site office in the country. An arsenal of caretaking equipment supplied by the body corporate gives any operator a walk up start in this riverfront complex. The current vendors have left this building in great condition and the clearly outlined duties are rewarded with a supportive body corporate and strong caretaking salary of over $1,700 a lot per year. With the added security of owning a manager’s unit, this two bedroom apartment, which has been fully renovated, provides a luxurious and comfortable residence within the scheme. This property has a full 10 year term on a standard module, as recently topped up in early September.

›› Huge caretaking salary of $1,700+ per lot

Manager’s Residence

›› Solid foundation to continue to grow into a long term business ›› Experienced or first time operators encouraged ›› High rents which have been unaffected by supply issues in other suburbs ›› Supportive Body Corporate with strong top up history

NETT PROFIT: $108,051

PRICE: $1,171,400

N AT H A N E A D E S BROKER +61 448 339 920 nathan@resortbrokers.com.au

AUCHENFLOWER I S S U E N O . 9 1 | RESORTBROKERS.COM.AU

FREEHOLD GOING CONCERN Ref // FH005430

FREEHOLD GOING CONCERN RARELY ON OFFER THESE DAYS IN A WORLD OF LEASEHOLDS

Units

Bed

Bath

Fabulous opportunity to purchase the freehold going concern of a well established property on the motel strip of Mackay. All 20 units are on the ground floor and a very generous size including self-contained and family units. Another appealing benefit to an existing motelier is that the property owns all their own linen and launders it onsite in their own laundry. The current owners recently spent in excess of $500,000 doing a major refurbishment on the property, including carpets and bathrooms, which has given it a distinct advantage to its competition. Another tick for this property is that it claims a prime corner position and best of all can be managed by one person as it does not have an onsite restaurant. There are however plenty to choose from close by. As a place of residence, Mackay offers excellent schools, both private and state, well respected hospitals, one of the prettiest tropical main streets you could hope to encounter and shopping for the ladies is extensive, with both shopping centres and a fine selection of boutiques.

›› Spacious 3 bedroom residence

Manager’s Residence

›› Opportunity for further growth ›› Experienced staff to assist with transition ›› Undercover parking ›› Good variety of rooms to offer guests ›› Last but definitely the best is the fact that you could sell the lease in the future and retain the freehold investment for your retirement

NET PROFIT: $205,904

PRICE: $1,700,000

LEN BOOTH BROKER +61 438 139 422 len@resortbrokers.com.au 50

RESORTBROKERS.COM.AU | I S S U E N O . 9 1

MACKAY

FREEHOLD GOING CONCERN Ref // FH005407

BYRON BAY FREEHOLD WHEN LOCATION IS EVERYTHING When location is everything, you can’t get any better than Byron Bay. And this is freehold - yes, that’s right - freehold in Byron Bay. RESORTBROKERS® is delighted to present this unique property to market for the first time in six years. A magnificent slice of Byron beachside real estate is an opportunity in itself. The fact it generates a great income as a fully approved shortterm accommodation house is indeed a rarity. (Note: the NSW State and Local Governments crack down on illegal shortterm accommodation such as AirBnB and Home Stay will not affect this property, in fact, it will only enhance it!). This fully refurbished, fully licensed holiday accommodation property is situated in a beachside precinct many regard as Byron’s best-kept secret. Guests delight in an authentic beach house, perfectly situated to park the car and explore on foot or bicycle. Beautiful Belongil Beach is within metres, a short beach track walk from the front gate. Town is close enough for easy access to the best shopping and dining, but far enough to escape the crowds and revel in solitude.

›› Location, location, location! ›› FREEHOLD – Byron Bay beachside ›› Approved short-term accommodation licence ›› Strong net profit demonstrated ›› Only 4 rooms to service – easy routines ›› Room to grow accommodation income ›› Anticipated strong appreciation in freehold equity ›› Established in 2003 ›› Fully renovated and beautifully presented ›› Idyllic lifestyle

NETT PROFIT: $249,995

PRICE: $3,600,000

GREG JAMES BROKER +61 416 247 068 greg@resortbrokers.com.au

BYRON BAY I S S U E N O . 9 1 | RESORTBROKERS.COM.AU

F OC U S

O N :

SOUTH BRISBANE Ref // MR005364

UNMISSABLE MANAGEMENT RIGHTS IN SOUTHBANK, BRISBANE

117

Units

Letting Pool

Years

Bed

Bath

Manager’s Residence

Opportunity for a hands on operator looking for a solid net profit with incredible upside. Located in the heart of South Brisbane, just 3 minutes walk from Southbank Parklands, Convention Centre and train station. Consisting of 117 apartments with 59 permanent units and 18 in the short term letting pool - plenty of room to grow! There is a sizeable manager’s unit - three bedrooms, two bathroom, but there is no requirement to live on-site.

›› ›› ›› ››

Excellent body corporate relationship Experienced staff to assist with transition Building repainted externally in 2017 Mixed use building short term and permanent opportunity to grow income

NET PROFIT: $480,037

PRICE: $3,376,000

Ref // MR005349

SOUTH BRISBANE STUDENT ACCOMMODATION OPPORTUNITY

Rooms

Letting Pool

Years

Bed

Bath

Manager’s Residence

This rare, student-focused residential property is ideally located in the centre of the booming South Brisbane precinct. The mid-rise building consists of a total of 75 units, 40 of which are managed in the on-site letting pool. There is plenty of space in the office and reception area, ample storage plus a sizeable three bedroom, two bathroom manager’s unit. This property has huge upside and potential for growth.

›› Large enough net profit to run under management ›› Two distinctive peak periods per year with very manageable caretaking role ›› Good upside potential for a pro-active hands-on operator NET PROFIT: $416,302

PRICE: $2,625,000

JESSICA WILKIE BROKER +61 401 003 023 jessica@resortbrokers.com.au 52

RESORTBROKERS.COM.AU | I S S U E N O . 9 1

SOUTH BRISBANE

MANAGEMENT RIGHTS Ref // MR005194

INCREDIBLE BURLEIGH HEADS BEACH FRONT LUXURY Book your inspection today as this property needs to be seen to be appreciated. The luxury three bedroom, 2.5 bathroom manager’s beach villa is nothing short of incredible. This two story villa is like no other when it comes to quality, size and location. Boasting high quality finishes, two spacious living areas, ocean views and two sun-filled courtyards, providing a lifestyle that is second to none. Balanced out perfectly with a thriving holiday business that is easy to run by first-time or experienced operators looking for a change of pace. With 13 holiday and 3 permanent lettings to manage out of a total 44, there is still room to grow the income via 9 lock-ups.

2.5

Apartments

Letting

Years

Bed

Bath

Manager’s Residence

›› Incredible Burleigh Heads beachfront location ›› Spectacular 3 bed, 2.5 bath luxury manager’s beach villa with ocean views ›› Premium luxury resort facilities for residents and guests ›› 19 year agreement - accommodation module ›› Engaged, positive & proactive BC committee

NET PROFIT: $176,278

PRICE: $2,065,000

TODD WARNER BROKER +61 438 170 763 todd@resortbrokers.com.au

BURLEIGH HEADS

Management Rights Law Specialists Australia Wide Our trusted team of legal experts, led by Col Myers, draws on over 30 years experience to get you the best possible outcome. Although our full suite of services is more comprehensive, particular expertise covers: - Buying & Selling - Structuring - Variations - Renewals - Establishments - Licences & Letting Appointments - Advice on all Body Corporate Issues - GST, Stamp Duty and Tax - Exit strategies - Dispute resolution - Legal due diligence reports

Contact us today to find out how we can assist you; P: +61 (0)7 5552 6666 M: +61 (0)417 620 516 E: cmyers@smh.net.au W: smhmanagementrightslawyers.net.au

I S S U E N O . 9 1 | RESORTBROKERS.COM.AU

REGULAR FEATURE

MISSION TO MAKE CAMPING COOL AGAIN

Discovery Parks

After a phoenix-like rise from the ashes of the global financial crisis, Adelaide-based Discovery Parks is on a trajectory to become a $1 billion company, transforming the caravan parks industry. Over the past decade the company has reshaped the holiday park sector, investing in resort-style parks in some of the nation’s most beautiful destinations. Having brought the company back from the brink of disaster in 2009, CEO Grant Wilckens, backed by majority shareholder Sunsuper and the Discovery Parks board, has built Australia’s largest network of holiday parks. Under his stewardship, the business has evolved as a digital challenger brand to shake up the Australian

RESORTBROKERS.COM.AU | I S S U E N O . 9 1

accommodation category with a mission to make camping cool again. Discovery Parks has invested heavily in waterparks, resort-style pools, and safari-style glamping accommodation in Byron Bay and the Barossa Valley. There’s even an eco-resort in the pipeline with a jointventure development on Rottnest Island to come on line by the summer of 2018-19. “Many kids of the 1970s probably remember holiday parks as a daggy affordable holiday option, mostly sites with some rough and ready shower blocks, and a few creaky swings,” Wilckens says. “What Discovery Parks has done is bring holiday parks into the future. We wanted to keep that sense of the

We’re about bringing the authentic Aussie holiday to new audiences, recognising that people are timepoor and they expect a greater level of customer service and digital connectivity when they are away from home.

Far left: Discovery Parks recent launched Deluxe Safari Tents at their Tanunda, Barossa Valley destination. Left: View from the deck at Discovery Parks’ Airlie Beach, Whitsunday Coast holiday park.

authentic Aussie holiday, where the kids can roam free on their bikes and mum and dad can sit by the pool and relax with their friends. “But we wanted to add the modern ‘wow’ factor with fabulous resort-style pools, waterparks and jumping pillows. We’ve created comfortable cabins for quick and easy minibreaks, and an easy digital booking system,” he explains. It’s a rollercoaster ride that began in 2004 when Wilckens and a couple of business partners conceived of a plan to establish Beston Parks, buying holiday parks in prime locations to bring corporate systems to largely family owned and operated businesses. They expanded quickly after their initial investment

in four parks, but were forced to restructure and sell parks when the GFC hit and their property portfolio was revalued. When the partners exited the business, Wilckens – with a background in accountancy at KPMG and corporate finance at Rothschild – faced the daunting task of rebuilding the balance sheet and finding new investors and a new board. Beston Parks became Discovery Parks with a new purpose: to help people “discover what matters”. “We nearly lost everything in the GFC, but it was a matter of determination to turn it around. We’ve worked incredibly hard to create a culture where people are encouraged to reach ambitious goals: we’re always about

I S S U E N O . 9 1 | RESORTBROKERS.COM.AU

driving forward at a cracking pace,” he says. Parks have been reimagined as resort-style sanctuaries for families, gateways to the wilderness, havens for grey nomad travellers, and mining support villages. Increasingly, there is a focus on eco-tourism and glamping to provide a luxurious experience in nature. The company uses sophisticated data-based systems and artificial intelligence to truly understand and deliver on what the customer wants, and has implemented rigorous quality standards in park maintenance and customer service. “We’re about bringing the authentic Aussie holiday to new audiences, recognising that people are time-poor and they expect a greater level of customer service and digital connectivity when they are away from home.” With this strategy, Discovery Parks has emerged as a force to be reckoned with. Complementing its range of holiday parks, corporate workstay parks for fly-in-fly-out workers provide revenue outside peak seasons. Having grown revenues to more than $150 million and recently negotiated a licencing deal with the Top Parks holiday group to form a national network of 250 parks, Wilckens now has his sights firmly fixed on new ventures. These include new digital services for customers, more parks, and further investment in cabins, waterparks and glamping. Discovery Parks owns and operates 65 parks and, with Top Parks on board, Wilckens expects the network to grow to 400 parks generating $184 million in revenue by 2020. The company has recently acquired parks in Airlie Beach, Broome, Coolwaters Yeppoon and Fraser Street, Streaky Bay, Townsville and unveiled 12 luxury glamping tents in the Barossa. Rather than sticking to the

Top to bottom: 1. Discovery Parks CEO Grant Wilckens (centre) with Barossa Valley park managers Bill and Jacky Jones at their recent safari tents launch. 2. Cabin in the woods at Cradle Mountain, Tasmania 3. Powered site, Boat Harbour Drive, Hervey Bay 4. Discovery Park Byron Bay waterpark

RESORTBROKERS.COM.AU | I S S U E N O . 9 1

traditional approach of charging a flat rate, irrespective of demand, Wilckens has developed a pricing model where rates rise and fall with demand – as they do for airlines and hotels. A new loyalty program ‘G'day Rewards’, involving a range of partnerships with major corporates, also promises to shake up the sector. It grew to more than 140,000 paid members in just three months. And, for Wilckens, what began as a corporate challenge has become a labour of love and deep engagement with the caravan industry. He is Chair of the Caravan Industry Association of Australia and a fierce advocate for its growth and development. “I’m passionate about this industry – it’s a massive industry, worth $20 billion to the Australian economy. “Most of the revenue generated by the caravan and camping industry occurs in the regions and we are a major employer, providing opportunities for regional communities,” he says. “Our industry is full of passionate people: these passionate people deliver great experiences. We connect Australians, and increasingly visitors from overseas, with nature and the outdoors. “Industry research comparing campers and non-campers tells us that campers are comparatively happier, more satisfied, optimistic and energised. Campers are less stressed, bored, frustrated and lonely. “From my perspective – what a fabulous business to be in! I love being out of the office, talking to park staff and our guests, and reminding myself that this industry happens on the road, in the field.” And while some in the industry have been wary of corporates, Wilckens is adamant they have delivered for customers and family businesses alike, attracting capital, providing training, building professionalism and driving up property values. “Companies like ours have ambitious goals and dreams but, in the caravan and camping industry, the project has to be more than a business if we are truly to engage with our customers. “I’m passionate about helping people to connect, unwind and have wonderful holiday experiences and, as a company, being the best we can be.” End

OFF THE PLAN MANAGEMENT RIGHTS

O ING T M O C KET! MAR

GALLERY HOUSE - LARGE SCALE BRISBANE OFF THE PLAN MANAGEMENT RIGHTS Brookfield Residential Properties' absolute riverfront ‘Gallery House’ project in Northshore Hamilton is a strong portrait of Brisbane's luxury apartment market. Located six kilometres from the CBD with easy access to CityCat, motorways, employment hubs and Brisbane Airport, Gallery House forms part of the greater Northshore Hamilton urban renewal project. Featuring 319 contemporary apartments across two towers with exclusive facilities including infinity edge rooftop pool, with lounge and barbecue spaces taking in the river, city and mountain views, as well as lush private garden on the podium level to relax and unwind. The $271 million dualtower project will comprise a range of high quality one, two, three and four bedroom residences. Currently under construction by leading global contractor Multiplex who bring their enviable track record of completing major projects on time, on budget and to the highest quality. Completion is anticipated in mid-late 2019 (Gallery House One) and early 2020 (Gallery House Two).

319

Apartments

Towers

19/20

Storey

Years

›› 319 apartments across two towers ›› Residents only facilities: rooftop pool, lounge, BBQ, lush gardens ›› Under construction by leading builder; Multiplex ›› Absolute riverfront location, just 6 kilometres from the Brisbane CBD ›› Anticipated investor profile of 60% ›› Limited OTP management rights opportunities ›› Project over 70% sold

EXPRESSIONS OF INTEREST

ALEX COOK

TIM CROOKS

SENIOR BROKER

OFF THE PLAN

+61 467 600 610 alex@resortbrokers.com.au

SPECIALIST +61 422 208 450 tim@resortbrokers.com.au

HAMILTON

I S S U E N O . 9 1 | RESORTBROKERS.COM.AU

REGIONAL SPOTLIGHT

Our brokers cover a lot of territory on their travels. So, when Gold Coast agent Greg James needed to head to Moree to conduct an inspection, it provided the perfect opportunity to lend a hand to a mate helping drought-ravaged farmers. Knowing his friend, Dave Randle of Gold Coast Care Packages, had been collecting goods to donate to struggling farmers, Greg loaded his trusty van to help deliver the generous donations. Bound for Narrabri, Greg, Dave and another friend Bruce Hale hit the road with more than four tonnes of food, water and other necessities on board the van, two utes and a covered trailer, also donated for the purpose. Meeting them at the other end were Darrel Tiemens of the Narrabri Rotary Club and Presbyterian Church minister, Pastor Sam Smith from the Shared Table. They’re working together to see the donations distributed to those in need through a Neighbour in Need coupon system. “They couldn’t believe the amount that had been donated by Gold Coast businesses, individuals and school children,” Greg said. “They appreciated it so much.” Donated goods included bottled water, tinned food, noodles, cereal, long life milk, flour, rice, dog food, a range of toiletries, and many more essentials. The items are being delivered to farmers as well as to farmworkers who are often overlooked by other assistance efforts. Greg says, while Gold Coast Care Packages usually dedicates its efforts to helping the homeless, the plight of the farming community had really tugged at their heartstrings. “Dave doesn’t want any recognition,” he said. “He and everyone who pitched in just want to help those in need and inspire others to show some compassion. It was a real privilege to be able to play a small part and help ensure these donated goods made it to where they are so needed. “It certainly was an eye-opener. I was told, even if the rain came tomorrow and crops planted, the awful impact of this drought on the area would be felt for another three years.” In a cruel reminder of how fickle the weather can be, when the convoy departed the Gold Coast with their valuable cargo, the rain was bucketing down. “We really hoped we could take it with us,” Greg said. “But I’m afraid it stopped around Warwick, before we even made the New South Wales border. “To all the people who donated, once again many thanks. Your donations will go a long way in assisting farmers, farm hands and their families through these challenging times.” Neighbours in Need is a registered tax-deductible project run by the Rotary Club of Narribri in partnership with the Rotary Clubs of Wee Waa and Boggabri under the umbrella of the Rotary Australia Benevolent Society. End

RESORTBROKERS.COM.AU | I S S U E N O . 9 1

Above Middle: Darrel Tiemens of Narrabri Rotary with Pastor Sam Smith and his wife Michelle.

LETTING THEM KNOW THE

Coast Cares

WANT TO HELP? For more information visit www.neighboursinneed.com.au or Gold Coast Care Packages at www.facebook.com/goldcoastcarepackages

I S S U E N O . 9 1 | RESORTBROKERS.COM.AU

Regular Feature // NEW KIDS ON THE BLOCK

INTRODUCING OUR

NEW KIDS ON THE BLOCK 60

RESORTBROKERS.COM.AU | I S S U E N O . 9 1

Resort Brokers Australia has again expanded our broker network to meet the demands of a thriving market and deliver first class service across the sector. New brokers are handpicked for their talent, drive, and enthusiasm. We provide extensive training in our specialist market. But you canâ&#x20AC;&#x2122;t teach determination and tenacity - qualities that have clearly fuelled the successful business careers of our four latest appointees. Their focus will be in key regional growth areas across NSW, Victoria and Tasmania.

THE GOLD COAST REGIONAL SPOTLIGHT • Tourism is a major pillar of the Gold Coast economy, worth more than $5B a year •$ 400M Commonwealth Games legacy infrastructure • $2B Star Gold Coast master plan • $3B Light Rail network - $660M Stage 3 Broadbeach to Burleigh starting • 16.9ha Gold Coast Cultural Precinct to offer world-class artistic and cultural facilities • 4,500 new dwellings forecast for the RobinaVarsity Lakes district alone by 2021

Mark Crapper

CENTRAL GOLD COAST

ark has excelled in business ownership, development and consulting, in the pursuit of betterment and growth, for himself and for others. “Working with business owners and helping them achieve their goals are incredibly satisfying,” he says. Though initially qualifying as an electrician, Mark’s instincts took him straight into small business. Starting as a partner in one of the earliest Donut King stores in Australia, he went on to spend 20 years developing a home-grown brand into the largest

and most successful food franchise brand in its category in Australia. Other brands were added, before he ultimately sold out of a successful company with 366 stores across six countries and over $100 million turnover per annum. It was time for a new challenge. From 2005 to 2012, Mark was a director and shareholder in a mag wheel wholesale company and exclusive Australasian distributor for American Racing Equipment, the largest manufacturer of mag wheels in the world. He then moved back into the franchise sector and has consulted to

a number of franchisors to grow their businesses and sites. Recent roles included franchise development manager (Aust/NZ) for Domino’s Pizza and advisor to clients including the Hairhouse Warehouse Group, Australian Skin Clinics, and Nutrition Warehouse. Such a valuable range of skills – from business start-up and development to lease negotiation, franchisee selection, sales and business training – are now applied for the benefit of Resort Brokers’ clients pursuing growth in the lucrative management rights sector.

I S S U E N O . 9 1 | RESORTBROKERS.COM.AU

Regular Feature // NEW KIDS ON THE BLOCK

Joy de Zilva

UE MTNS, GREATER SYDNEY, BL TER CENTRAL COAST, HUN

oy has joined Resort Brokers after five successful years as owner-operator of the Tumut Motor Inn. She had bought the business, built it up and sold it through us for a healthy gain.

But it wasn’t only this vital motel experience that ideally equipped Joy to specialise in accommodation property sales. She also came with an impressive background in sales and marketing, valuable resort operations experience, and plenty of knowledge of the regions to the west and north of Sydney. Joy’s early working life included roles in motel reception and as part of the start-up team at the upscale Fairmont Resort Blue Mountains. She soon discovered her great talent for selling, and became Account Manager for Smartforce, placing her at the forefront of new technology. Covering NSW and Victoria, she was very successful selling IT training solutions to keep IT professionals and managers up to speed as new platforms and upgrades rolled out. Joy’s sales expertise then saw her move into advertising as Sales Manager at Universal Magazines, covering the weddings and outdoor sectors. It was then she came to know and love her sales area, which included the Hunter and Central Coast. Before backing herself to take on her own motel business, Joy then became National Sales Manager for The Intermedia Group, a leading B2B publisher whose stable includes many hospitality titles and the respected Hotel Management industry journal. Now covering a wide region from her base in Newcastle, Joy brings proven sales ability plus all-important direct knowledge of the motel buying, business operation and selling processes.

REGIONAL SPOTLIGHT: BLUE MOUNTAINS, CENTRAL COAST, HUNTER • NSW is aiming for $20B in visitor expenditure in rural and regional areas by 2025, rising to $25B by 2030. • $5.3B Western Sydney Airport being developed at Badgerys Creek to open 2026 • Blue Mountains received over 1.1M domestic overnight visitors in YE March 2018, up by 17.6%. Visitors spent over 2.5M nights in the region, up 9.9%. • The Hunter is Australia’s largest regional economy, valued at over $40M • Located at the centre of NSW’s fastest growing corridor (Sydney-Newcastle), the Central Coast’s access to major markets makes it an ideal location for business • Takings from accommodation in NSW rose 7.5% in the YE March 2018, mainly due to revenue growth in regional NSW (+13.1%)

RESORTBROKERS.COM.AU | I S S U E N O . 9 1

Mike Oliver TASMANIA

rmed with exceptional business skills, plus broad hands-on experience in leisure, accommodation and hospitality, Mike Oliver has joined Resort Brokers to help others enjoy the financial rewards and lifestyle benefits offered by the sector in Tasmania. But, if Mike suggests discussing your deal over a game of golf, be warned! This man knows his way around a course. His career began in NZ as PGA Golf Professional. His course management roles included NZ’s Queenstown Golf Club, regarded

as one of the world’s most picturesque. With an eye for opportunity though, Mike soon leveraged his golfing expertise to become owner and CEO of a national distribution company for USA performance golf brand, Powerbilt. He then launched a successful start-up, patenting, manufacturing and selling his own invention – an ingenious glove and grip combination. The first approved for competition use, it sold in 15 countries, with Tiger Woods’ Kiwi caddy Steve Williams as ambassador. Next move was to Tassie where Mike bought the Beachway Motel, Restaurant and Function centre at Ulverstone. Five years on, he sold the quality freehold business through Resort Brokers, effectively opening the door to another opportunity. His proven business skills and years of experience in motels, resorts and hospitality ideally equip Mike to guide others on the rewards available in Tasmania’s thriving tourism industry. Dare we say it, if you want a broker with know-how and real ‘drive’, Mike’s your man.

TASMANIA

REGIONAL SPOTLIGHT

• Acknowledged for one of the most innovative, progressive tourism sectors in the nation • 2017 saw a 12% increase in visitation to Tasmania, with 1.28M visiting the state • Visitor numbers are forecast to grow at a rate of 5% p.a. for the next 10 years • More than a billion dollars is earmarked to be invested in hotel developments • Investment in Tasmania grew by an amazing 32% in Q2 2018 and is up 44% compared to June 2017, with the value of projects jumping by $2.4B over the year (Tourism Tasmania) • Major projects include Devonport Living City, the Northern Cities University redevelopments, C.H. Smith building revival and City Heart project in Launceston, and the Macquarie Point redevelopment in Hobart.

I S S U E N O . 9 1 | RESORTBROKERS.COM.AU

BEAUTIFUL BRIGHT

Jason Porteous

NORTHERN VICTORIA, S SW NEW SOUTH WALE

REGIONAL SPOTLIGHT:

Northern Victoria & SW NSW

ason is a second-generation real estate agent and successful property professional who established a strong reputation for integrity and quality service as a director of an award-winning agency at Batemans Bay on the South Coast of NSW for 15 years. Diverse career experience, from early roles in the hospitality and accommodation industry (reception, F&B) to working in finance as a futures trader, and more recently as a successful sales consultant in the housing industry, has added valuable depth to his skill set. Jason has expertise across a wide range of property and business sales, letting, and management (commercial, holiday and strata). So he knows what it takes to gain the right exposure and present property for the best results in local, regional, national and

RESORTBROKERS.COM.AU | I S S U E N O . 9 1

international markets. As a small business owner, he also came to understand the value of engaging expert consultants to achieve the best results in all business transactions. “Having access to the best information available, allows you to make the right decisions”. Delivering service to the highest standard has always been a hallmark of Jason’s career progression, and he continues to do so as part of the Resort Brokers team. He and his family moved to the Albury-Wodonga region after travelling around Australia looking to settle for a great quality of life. He finds the four very distinct seasons a real feature of the region and enjoys an active outdoors lifestyle, including motor cycle and horse riding, bush walking, cycling, quality food, wine and music, all so easily accessible in the region.

• A record 31.6M Aussie tourists travelled across NSW in 2017, staying over 100M nights • Riverina received over 1.1M domestic overnight visitors in YE March 2018, up 11.2% • Combined cross-border Murray Region (from Albury-Wodonga to Mildura and Wentworth) welcomed a total of 2.8M domestic overnight visitors (+6.6%) staying 7.8M nights (+5.2%) and spending $1.2B (+12.6%) for YE March 2018 • In a first for High Country tourism (NE Vic), visitors spent more than $1B in YE Dec 2017. The region attracted 3.4M visitors, an increase of 12% • Victoria’s snow resorts contributed $434M to regional economies in 2016 and have since enjoyed two of the best snow seasons in a decade, boosted further by investment in snow-making infrastructure to secure the future of the ski fields •H igh Country is also pursuing growth in cultural, cycling, wine, walking and agri-tourism End

I S S U E N O . 9 1 | RESORTBROKERS.COM.AU

FREEHOLD GOING CONCERN

STUNNING ECO-RESORT HAS IT ALL – HIGH RETURNS + PRIME LOCATION + LIFESTYLE

96.3

This is the kind of opportunity that comes along once in a lifetime. Midginbil Hill EcoResort is a unique package combining high returns, prized position and idyllic lifestyle. Located in the Tweed Valley, an hour from the Gold Coast and Byron Bay, it combines an ingenious business model with a postcard setting. It’s difficult to highlight any one of its exceptional attributes above another. The phrase ‘triple bottom line’ comes to mind – financial, social and environmental benefits - this ticks every box. It has operated as both working farm and accommodation destination for more than 40 years. In recent years, the business model has been refined to focus on ‘weekend away weddings’, which are largely DIY affairs for the guests, and school camps that provide mid-week occupancy. The formula is lucrative, turning over $1 million-plus per annum since 2016, and virtually self-sustaining. Owners can work part-time and take extended leave. A secure high nett business heavily booked two years in advance, with low operational demands and room for growth.

›› Prime 96.3ha approx. (238 acres) in sought-after coastal rainforest destination

Hectares

128 Beds

150 Pax Function Venue

›› 128 beds including motel-style lodge, luxury glamping tents, 68-bed bunkhouse ›› Fully registered campground, country barn function venue (150 pax), commercial kitchen, homestead, pool, tennis court, 6 dams, 2 creeks, fully sealed road access ›› 3brm plus office pole home owner’s residence with spectacular views ›› Quality, elevated, north-facing frost-free farm property and substantial forestry asset ›› Consistent solid bookings two years in advance – demand exceed capacity

NETT PROFIT: $542,265

PRICE: $4,800,000

GREG JAMES BROKER +61 416 247 068 greg@resortbrokers.com.au 66

RESORTBROKERS.COM.AU | I S S U E N O . 9 1

NORTHERN RIVERS

MOTEL FREEHOLD Ref // LH005397

CENTRAL ALBURY FREEHOLD FIRST TIME ON THE MARKET IN 29 YEARS

Albury Allawa Motor Inn is a well established, 3.5 star family run motel located on the corner of the Riverina Highway (Hume Street) and Olive Street, just 450m level walk to Dean Street (CBD/Cafe precinct), and 300m to Albury Public School. Constructed in 1984, this well maintained solid brick and tile property includes 16 motel units (family-queen), solar heated pool, BBQ area and ample parking plus a three-bedroom, twobathroom owners residence with a private covered outdoor/ alfresco garden area, carport and garage/storage. Currently run by a couple with contract cleaners, this property is ideal for a family owner/operator looking for a solid income and a strong investment return, with future re-development options. This strong performing business currently generates 67% occupancy including a 35% repeat client base. Throughout the year, it attracts weekend bookings from a variety of regional sporting and cultural events, plus overnight stays from the Hume Freeway, one of Australia's major inter-city national highways between Melbourne and Sydney. Albury Wodgonga is an iconic Australian region and offers nature just 10 minutes drive in any direction.

›› Prime Albury CBD location

Rooms

Bed

Bath

Manager’s Residence

›› 16 motel units, pool/BBQ area, plus three bed owners residence ›› Solid investment performance with 35% repeat business ›› Future redevelopment potential ›› Offers a tree change with income and regional city facilities ›› Independent operation

NET PROFIT: $281,000

PRICE: $2,150,000

JASON PORTEOUS BROKER +61 414 726 085 jason@resortbrokers.com.au

ALBURY I S S U E N O . 9 1 | RESORTBROKERS.COM.AU

and prevailed will be well regarded by lenders. This is as it should be. Obviously, credit history and full disclosure of all matters that form part of the assessment is essential. A strong CV and credible references carry a lot of weight as well. Ultimately, if a bank is going to approve a deal outside policy, character is the most important attribute that a borrower needs to demonstrate. CAPACITY

the rules have changed... game on... maybe! By Mike Phipps

was once told that the definition of a consultant is someone who steals your watch and then asks you the time. I have also heard that a good accountant, when asked the total of 2 + 2 will reply, “What would you like it to be ?” Perhaps fortunately, in our world, things are a bit more cut and dried. We are certainly seeing a quantum shift in the banks’ approach to loan assessment and obviously the various investigations and commissions currently under way are driving a far more conservative credit environment. Interestingly, this is leading to a refocus on lending fundamentals and, in my view, that’s not necessarily a bad thing. However, here’s a caveat. If the trend swings too far toward absolute compliance with credit policies we run the very real danger of a serious credit crunch, particularly impacting small business. There is no such thing as a

RESORTBROKERS.COM.AU | I S S U E N O . 9 1

perfect business credit application so there always needs to be some room for lenders to make reasoned decisions within a flexible policy framework. When I was a young bloke, many moons ago, I had various old and wise credit managers attempt to beat credit theory into me and, in particular, the so called five Cs of credit. My view is that the fundamental rules still apply and are worth revisiting given the current banking environment. CHARACTER

Some say that this is the test of a borrower’s ability to pay back debt. I disagree. In my mind what we are talking about here is a desire to take responsibility for the debt and repay it. It’s one thing to be able to meet your obligations, a whole different thing to want to meet them. That can sometimes mean that a borrower who has faced financial adversity

The empirical measurement of a borrower’s financial ability to meet commitments coupled with a degree of income and interest rate risk assessment. Recent events have seen lenders tighten up on capacity assessments and it’s important to understand the state of play. In order for a borrower to have finance approved we must be able to demonstrate that loan commitments can be met on a Principal and Interest basis with a 3% lift in current rates. Furthermore, we must be able to prove this capacity over the balance term of the loan after any interest only period and after reasonable allowances for living expenses and tax. As you can see this means that the longer the interest only period, the higher the post IO payments assuming a specific loan term. Some lenders do 3 year total loan terms but we still need to be able to show notional debt servicing over the long term. The days of making a standard living expense allowance are gone and borrowers must provide a personal budget when applying for credit. We must be able to confirm all income sources and we must be able to demonstrate that there is a reasonable expectation that this income will continue. In the case of investment property rental income, we must discount the gross rent to allow for costs and a vacancy factor. Income associated with employment that is subject to a short term contract or probation is extremely hard to rely on, as is income from some pension and retirement schemes such as public service pensions. We talk to many borrowers who, in their minds, have self-servicing property debt. That is, the rental income pays the interest. As we can see borrowers need to modify their

thinking and take into account the sensitivity tests I have outlined. In terms of taxation strategies lenders have a variety of views. It’s important to understand that banks are fearful of any changes in tax law that may adversely impact borrower’s capacity to service debt. Recent discussions regarding negative gearing being a case in point with some lenders not recognising the tax savings inherent in a negative gearing arrangement. CAPITAL

There is no such thing as a perfect business credit application, so there always needs to be some room for lenders to make reasoned decisions within a flexible policy framework.

Also know as equity and fall-back capital this section refers to the amount of cash or value of supporting assets the borrower can, or is willing, to contribute to a transaction. Lenders quite rightly see a large equity contribution as both a positive impact on the transaction risk and also an indication of the borrower’s commitment to the arrangements. In essence, the more the borrower has to lose, the harder they try and make sure they meet their commitments. Often referred to as the hurt in the deal or skin in the game. I like neither expression, but you get the picture. It’s important to note that having sufficient equity to carry a minimum deposit and costs is not enough, particularly for business finance. Lenders want to see that the borrower has enough money left over to cover any contingencies and general cash flow fluctuations. Often referred to as a working capital reserve. Another important point here is that banks will also look at the borrower’s capital reserve in terms of the applicants age and their historical spending habits. Trends that reflect a preference for lifestyle over prudent investment don’t always go down well with credit departments. Lenders are not favourably disposed to equity coming from inter family loans or indeed vendor finance. Family gifts are acceptable but need to be confirmed via statutory declaration. COLLATERAL

More commonly referred to in Australia as security. Obviously, the more security the better from a lenders point of view. The usual security mix for a business loan will be a charge over the asset being purchased combined with the personal guarantees of the people controlling and benefiting from

the acquisition. If a company or trust is involved lenders will seek guarantees from directors, shareholders and beneficiaries. Mortgages over any supporting security will be taken. Most lenders will not (and should not) contemplate taking security from a third party who is not receiving a commercial benefit from the transaction. Forget about having your 90- year old mum putting her house up, it simply won’t be acceptable. Back in the day you might have got around this by making mum a beneficiary of your trust. Those days are over. The banks are not interested in being featured on A Current Affair as they throw mum out on the street. Limited recourse lending refers to a loan with only the asset being purchased being offered as security. There may be perfectly valid reasons why a director does not want to offer a personal guarantee, albeit the explanation of the strategy needs to be pretty compelling. We have had some success with this style of lending but always at reduced gearing and higher rates. It’s a higher risk for the lender so no surprises there. Limited guarantees , particularly for partnerships, are available and generally reflect personal guarantees limited to the partners percentage shareholding in the purchase entity. CONDITIONS

Generally referred to as Conditions Precedent and Conditions Subsequent. As the names suggest there will be loan approval conditions that need to be met prior to settlement. Confirmation of assignment approval for management rights is a prime example. Conditions Subsequent to settlement can be a bit more interesting. A business loan will have a term, anything from 3 years to 15 years is the norm. In many cases there will be an interest only period during which the loan and therefore the lenders risk does not amortize. Banks will seek to keep an eye on the financial health of their client by regularly seeking information over the course of the loan. The obligations of the borrower to provide this information are outlined in the Conditions Subsequent section of the Letter of Offer. Some obligations are regular, such as annual financial statements while others are event

I S S U E N O . 9 1 | RESORTBROKERS.COM.AU

driven. Reporting loss of units in a letting pool falls into this category. There will also be default conditions and here’s where things get a bit more complicated. There are monetary defaults and there are non-monetary defaults. Triggering either would once have led to anything from a warning letter to penalty interest being applied or, in extreme cases, formal debt recovery action commencing. I have never been a supporter of penalty interest in cases of monetary default. It’s a bit like kicking someone when they are down and, in my mind, not a good look. However, a financial penalty for a borrower who simply refuses to supply reasonable information for an annual review seems like a good way to focus that borrower on meeting their reporting obligations. Recent investigations into the banking sector have led to a discussion around loan conditions for business finance with the result that banks will not be allowed to include a raft of Conditions Subsequent in their finance offers. The Carnell Report into banking practices makes numerous recommendations and for business borrowers the report summary is well worth a read. Recommendations in regard to banks being unable to pursue borrowers on non-monetary default, reporting and adequate time for borrowers to roll expiring business facilities are of particular interest, as is a recommendation to cease the revaluation of security assets where there has been no monetary default. You can read more about the Carnell Report at http://kmo. ministers.treasury.gov.au/mediarelease/005-2017/ While all this sounds like a win for the borrower the downside of less stringent loan conditions and monitoring may well be a move to higher rates and shorter loan terms. Think about it. If a lender is limited in what they can monitor, revalue and enforce after settlement then that’s a higher risk loan. That risk can be compensated for through a higher risk rated interest rate and a shorter loan term. I suspect this consequence may not have been completely considered or appreciated by the authors of the report. Based on our current dealings with some banks I am working on a theory that there may be sixth C but let’s not go there. End

RESORTBROKERS.COM.AU | I S S U E N O . 9 1

Our agents pride themselves on their specialist industry expertise and the detailed local knowledge they have accumulated about the geographical territory they cover. In some cases, that intimate knowledge has been gained over many years, making them the region’s undisputed market leader. In this issue, we hear from our agency’s longest-serving brokers. Lynne tells their story.

REVISITED

LYNNE & LEN BOOTH CENTRAL QUEENSLAND

HOW LONG HAVE YOU WORKED AT RESORT BROKERS?

Almost 19 years. Len originally started on his own, but soon realised the value of partnership (particularly when it came to paperwork and motel stocktakes!) so I came on board. Len is now the longest-serving broker at Resort Brokers, and is truly dedicated to the business. WHAT WAS YOUR BACKGROUND?

We had motels with restaurants, on the Sunshine Coast and in Western Queensland. After that, we had an award-winning Italian restaurant for seven years. Actually, we still had it when we started at Resort Brokers. Thankfully, our daughter took the reins for us.

We specialise in motels and resorts, probably because we had motels ourselves and know the day-to-day operations. Len always thinks outside the box when looking at a deal, and has come up with some creative and successful ways to make a deal happen. Sometimes, I think he even surprises himself. We've never begrudged ourselves the luxury of staying in nice properties and enjoying good food while travelling. We rarely have vacations, but enjoy lots of mini-breaks scheduled to coincide with settlements and visiting clients. I'm probably an expert on where all the best boutiques and homewares stores are right up the east coast! WHAT ARE THE ADVANTAGES OF WORKING AS A TEAM?

Of course, sharing the workload is the main advantage. But I guess having company when travelling We look after Central Queensland, and not sitting alone in restaurants, Mackay and Whitsundays. It means we cover long distances for inspections wishing you were home, is another. Sometimes, after a big trip, we retreat and listings but, thankfully, Len loves to our own corners when we return driving and I like giving instructions, home. Obviously, sitting 40cm from so it works fairly well. TELL US ABOUT YOUR REGION AND SPECIALTY

Brokers website is second to none, and we are very proud to be associated with it. Secondly, this Informer magazine has been a great tool for selling, and an informative platform for new and experienced industry performers to access some of the best minds in the business, including financial and legal. Laws can change without us realising, and these articles often take the unknown out of the equation. Where else can you get a free legal opinion?! From another angle, the mining downturn recently had an adverse affect on the industry, particularly in our area. But, as usually happens, times are changing and the towns most affected are now bouncing back with great optimism and a definite upturn. Well done them, we say! For the savvy buyer, the time is perfect to buy. WHAT DO YOU LOVE ABOUT SELLING ACCOMMODATION PROPERTIES AND BUSINESSES?

each other for thousands of kilometres can be exhausting, especially if I get on a roll about something I think Len should or shouldn't do!

benefits of being your own boss. There is no retirement age for a motelier, so we often have people looking to invest their super or employment payout.

WHAT HAVE BEEN THE HIGHLIGHTS OF YOUR YEARS WITH RESORT BROKERS?

WHAT HAS BEEN YOUR BIGGEST SUCCESS OR ACHIEVEMENT?

In the beginning, we split freeholds into leases and investments. It was a great way of giving clients a chance to purchase a business and home all in one without having to outlay large amounts. Also, small, medium and large investors were able to build a property portfolio to enhance their income and / or retirement resources. We've made lots of friends in the industry over the years, and we're still working with clients we met in the very early days. We've grown together and are pleased to call them friends. We often sell a lease and the vendors state categorically they will not buy another motel but, low and behold, a few months later we get the call to see what's on the market. It’s a great way of life, and often for the price of a house, you can have a business and a home and enjoy the

Early on, we sold the biggest lease ever sold in Australia, which at the time was in excess of $3 million. Since then of course, there have been many sold at much higher prices. We did recently settle a freehold sale in excess of $8 million, which shows how much the industry and standards have grown. On a personal note, winning Resort Brokers’ top salesman award for eight years was an absolute delight, and always a great incentive to push Len into the next phase of sales. WHAT ARE SOME OF THE BIGGET CHANGES YOU’VE SEEN IN YOUR MANY YEARS WORKING IN THE INDUSTRY?

First, of course, has been the development of online which, as we all know now, has taken over from newspaper advertising. The Resort

Meeting clients and matching their requirements with the right property are the most rewarding aspects. Settlement days can be frantic, but also happy and celebratory. Change-overs are emotional at times, but new energy and capital can be very beneficial. Lenny always says ‘gold ointment cures everything’. I remind him of this constantly! WHAT DO YOU ENJOY DOING IN YOUR SPARE TIME?

Up until a few years ago, our farm was a great diversion and relaxer. But these days, as our family has grown and most live close by, we are very involved with them. We now live with fabulous river views and are thankful every day for enjoying our work and our friends and family. We still have a freehold going concern motel, which is run under management. I would like to say we love cooking but, after having restaurants for so long, that's not true. Eleven for family dinner every Sunday night is the only time I go online looking for recipes. We don't keep office hours and are happy to discuss business at night and on weekends, probably because we don’t see it as a normal nine-to-five job. It is what it is, and it's very rewarding.

I S S U E N O . 9 1 | RESORTBROKERS.COM.AU

Made Easy By John Mahoney

It is fairly widely accepted that in the past couple of years there has been a noticeable increase in the numbers of bodies corporate opposing attempts by resident managers to top up their management rights agreements. It is a trend I have noticed with some concern. Even some of the best managers are facing scrutiny and opposition. Such opposition stems from problems that a minority of bodies corporate have faced with poorly performing managers encouraging opponents of management rights to tar all managers with the same brush in arguing why agreements should not be extended or topped up. Whilst unfortunate that there have in recent years been a number

RESORTBROKERS.COM.AU | I S S U E N O . 9 1

of people buying management rights without really understanding what they have purchased, leading to performance issues and conflict, the vast majority of resident managers go about the performance of their duties competently and diligently. As I have written many times, a manager should not start thinking about a top up only when the time comes to propose a motion for that on the AGM agenda. The time to start thinking about it is when you purchase your management rights. At that time you need to recognize that at some stage during your time at that complex you will need to top up your agreement/s and that when you do you will need to have your owners support you.

It helps to recognize that a top up is not a “right”. It is more in the nature of a reward for good performance. A body corporate is under no compulsion or duty to support a top up. Owners are quite entitled to vote no. You need to give them every reason to vote yes and no reason to vote no. From the very beginning you need to build a strong relationship with your owners (whose votes will one day determine whether you top up your agreements). You need to demonstrate to your owners that you care about them, about their complex and about their investment. As I have written before, rather than ask “How can I do less work and be paid more for it?” ask “How can I

REG ULA R FE ATUR E

THE MOTEL LEASE:

The Landlords Obligations By David Burrough

improve this complex for my owners and build a good relationship with them?” Do that from day 1. Understand your duties, perform your duties to or in excess of the owners’ expectations and don’t be afraid to go the extra mile even if something may not strictly speaking be part of your specified duties. Just as importantly you need to make sure owners (especially your investment owners) are aware of the good work you are doing. Keep them regularly informed with newsletters or social media posts. Send photos of how good the complex looks and point out your high occupancy rates and rents. Talk to those on the committee with whom you enjoy a good relationship about your proposed top up before you submit your top up motion. Your lawyer should be able to arm you with the wording for communications to your committee about the benefits to the owners of supporting your top up. If you have built the right relationship with your owners you should not face too many difficulties or opposition. Mahoneys have lots of material to give our clients facing opposition to a top up from a committee or owners but if you start thinking about a top up from the beginning of your tenure as manager and follow the advice in this article you will hopefully not have too much need for that. End

In most of our articles to date, we have considered the obligations of a tenant under a Motel Lease. A landlord will also have some obligations. Whilst the obligations of the landlord are not as numerous as those of the tenant, they are of equal importance. Generally a landlord will be required to: 1. Allow the tenant quiet enjoyment of the Motel. This means that the tenant is entitled to occupy the Motel peaceably and without interruption or disturbance from the landlord or the landlord's agents. A tenant is entitled to exclusive possession and as such is entitled to exclude all others, including the landlord. 2. Ensure that the services are made available and continue to the Motel. The term services is usually defined in a Motel Lease to mean the services running through or servicing the Motel and will include services such as: power, water, gas, sewerage, drainage, the fire sprinkler and fire protection systems, alarm systems, automatic opening and closing door systems, lifts and elevators, telecommunications, piped music and any public address system. 3. Finally a landlord should also be required to purchase the tenant's property at the end of the Lease. The Motel Lease should be clear in relation to how this is to be achieved. And should address the following issues: (a) Purchase Price - usually the purchase price of the tenant's property will be that value as agreed on by the landlord and the tenant. If a purchase price can not be agreed then it should be determined by a valuer and the costs of the valuation should be paid equally by the landlord and the tenant. (b) Qualifications of any Valuer – usually the Motel Lease will specify that any valuer appointed to value the tenant's property must:

I S S U E N O . 9 1 | RESORTBROKERS.COM.AU

(i) be a member of the Australian Institute of Valuers; and (ii) have a minimum of 5 years experience in valuing similar property; and (iii) value the Tenant's Property on their existing use in situ in the Motel and as a going concern. (c) Deduction to be made from the Purchase Price – the landlord should be entitled to deduct from the amount to be paid to the tenant the following amounts:

By the numberS YEAR ENDING MARCH 2018

$65.1 Bil OVERNIGHT SPEND

Up 5%

(i) any amount payable by the Tenant under the Lease which is unpaid; and (ii) all reasonable costs and expenses incurred by the Landlord as a result of the Tenant's default. (d) Transfer of Ownership - the ownership of the tenant's property should not pass to the landlord until the purchase price has been paid to the tenant.

97.8 MIL OVERNIGHT TRIPS

Up 7%

The above obligations are important to consider when negotiating the terms of a new Motel Lease and are important from both the landlord's and the tenant's point of view. From the tenant's point of view the tenant's property has the most value when sold to the landlord as a going concern. From the landlord's point of view, the landlord does not want a tenant stripping the motel and removing all of their property at the end of the lease. Purchasing the tenant's property is the most cost effective way for the landlord to fit-out the motel to allow the landlord to run the motel himself or to sell the business to a new tenant. End

350.6 MIL NIGHTS

Up 5%

Experts in Management Rights law Mahoneys law firm has represented the Management Rights industry and the Australian Resident Accommodation Managers Association (ARAMA) for more than 25 years.

With offices in Brisbane and on the Gold Coast, Mahoneys’ Management Rights team regularly: • Acts in the sale and purchase of management rights • Develops strategies to approach bodies corporate to secure new agreements • Attends and addresses body corporate meetings • Handles dispute resolution matters • Prepares letting appointments or special conditions • O ffers general advice and assistance on all management rights issues.

For advice from one of our Management Rights experts, call:

RESORTBROKERS.COM.AU | I S S U E N O . 9 1

Brisbane: +61 7 3007 3777

Gold Coast: +61 7 5562 2959

www.mahoneys.com.au

Regular Feature // S O L D P R O P E R T I E S

SOLD PROPERTIES RESORT BROKERS AUSTRALIA HAS SOLD AND SETTLED 176 PROPERTIES SINCE THE 6TH JA N UA R Y 2 0 1 8 . W E H AV E A F U R T H E R 1 3 1 U N D E R CO N T R AC T.

FREEHOLD GOING CONCERN

MANAGEMENT RIGHTS

OFF THE PLAN M.R.

LEASEHOLD MOTEL

MANAGEMENT RIGHTS

FREEHOLD GOING CONCERN

SERVICE APARTMENTS L.H.

FREEHOLD GOING CONCERN

MANAGEMENT RIGHTS

MOTEL LH

MANAGEMENT RIGHTS

SERVICE APARTMENTS L.H.

MANAGEMENT RIGHTS

FREEHOLD GOING CONCERN

MANAGEMENT RIGHTS

LEASEHOLD MOTEL

MANAGEMENT RIGHTS

LEASEHOLD MOTEL

MANAGEMENT RIGHTS

FREEHOLD GOING CONCERN

MANAGEMENT RIGHTS

Devonport, TAS

Caloundra, QLD

Echuca, VIC

Penola, SA

Kiama, NSW

Melbourne, VIC

St Lucia, QLD

Bridgeman Downs, QLD

Malanda, QLD

Everton Hills, QLD

Hervey Bay, QLD

Murray Downs, NSW

Palm Cove, QLD

Stones Corner, QLD

Varsity Lakes, QLD

Campbeltown, NSW

Geelong, VIC

Kilcoy, QLD

Maroochydore, QLD

Yeppoon, NSW

MANAGEMENT RIGHTS

Surfers Paradise, QLD

Emerald, QLD

Mildura, VIC

Forest Lake, QLD

Kallangur, QLD

Wollongong, NSW

Port Douglas, QLD

Southport, QLD

Byron Bay, QLD

Deception Bay, QLD

MOTEL LH

Holbrook, NSW

LEASEHOLD MOTEL

Lismore, QLD

Wonboyn Lake, NSW

Southport, QLD

Surfers Paradise, QLD

I S S U E N O . 9 1 | RESORTBROKERS.COM.AU

Regular Feature // R E L I E F M A N A G E R S

RELIEF MANAGERS P L E A S E N O T E : T H I S I S S I M P L Y A D I R E C TO R Y S E R V I C E T H AT W E P R O V I D E TO A S S I S T YO U . S H O U L D YO U C H O O S E TO G O O N H O L I D AY O R TA K E A B R E A K , W E R E C O M M E N D YO U I N T E R VIEW AND QUALIFY RELIEF MANAGERS YOURSELF, BEFORE HIRING. NB. YOU’LL FIND MORE MANAGERS LISTED ON OUR WEBSITE: RESORTBROKERS.COM.AU/BUY/RELIEFMANAGERS

RAMON SPIDLA

STEVE REYNOLDS

BARRY & LESLEY ROBERTS

Motels, Resorts & Caravan Parks Nationwide

Management Rights & Motels Brisbane, Gold & Sunshine Coast

Motel Nationwide

0402 255 078 rayann3010@hotmail.com

0413 614 936 steve.managementrightsrelief@gmail.com

0428 422 456 lez.baz@bigpond.com

LLEW & TRISHA POINTON

MARION & PETER KEULEN

MICHAEL STIRLING

Resort & Motels Nationwide

Caravan & holiday parks Nationwide

Management Rights, Resorts & Motels QLD & NSW

0400 035 359 llewp@tpg.com.au

0411 865 905 marion_keulen@hotmail.com

0437 455 865 stirling6298@yahoo.com

MICHAEL & CAROLYN GREALY

MIKE AND TERESA THOMSON

NANETTE MORTIMORE

Motels, Hotels & Caravan Parks QLD, NSW & VIC

Motels Nationwide

Management Rights Brisbane

0437 697 772 cmgrealy@optusnet.com.au

0419 174 221 info@mitemgt.com.au

0419 707 773 nanette.mortimore@gmail.com

PAT R I C I A L AV E R T Y

PAUL & JANE HANSEN

PETER & JANINE TEMPLETON

Motels & Resorts QLD, NSW & VIC

Caravan Park & Villa QLD, NSW & VIC

Caravan Park & Motels Nationwide

0478 611 202 patricia_laverty@hotmail.com

0438 877 932 happycamperparkmanagement@gmail.com

0408 178 130 tempy7@bigpond.com

P H I L L I P & S H A R Y N S TA L L M A N

ROB & LYN KEEN

KAREN & PETER DEACON

Motels Nationwide

Management Rights QLD & NSW

Motel Managers VIC

0428 931 589 pjstal@bigpond.com

0406 884 343 roblynkeen@gmail.com

0400 997 877 peterdeax@gmail.com

SALLY & EDWARD SHIRKE

SHANE & JODIE ADAMSON

SHANE & MADONNA ASHMAN

All Property Types Nationwide

Caravan Park Queensland

Management Rights NATIONWIDE

0437 606 918 sshirkie@gmail.com

0427 155 399 info@safejourneyaustralia.com.au

0400 997 877 peterdeax@gmail.com

VICKI & WAYNE GOWL AND

Y V O N N E & G E O R G E A R ATO

CHARLIE & JACKY

Management Rights & Motels QLD, NSW & VIC

All Property Types Nationwide

Caravan Parks & Motels QLD & NSW

0434 200 110 vickigowland@hotmail.com

0410 685 003 hgarato@bigpond.com

07 4622 3221 jacquelineryan1@bigpond.com

B E L I N D A & D AV I D G U S TA S O N

CARMEL MOLONEY & CHRIS BALEY

CHRISTIAN CARBONE

All property types QLD & NSW

Motel QLD - Gold & Sunshine Coast

All Property Types Nationwide

0403 219 562 gustafsondavid@hotmail.com

0400 483 291 c.m.j64@hotmail.com.

0432 008 988 alisonandlinley@icloud.com

RESORTBROKERS.COM.AU | I S S U E N O . 9 1

JEFF MITCHELL & COLLEEN BARNES

THE GOOD KNIGHTS

PAULINE & ROBERT DONALD

Hotel & Motels Nationwide

Resorts, Motel & Management Rights Australia Wide, Overseas, East Coast Based

Motels & Caravan Parks QLD & Northern NSW

0418 728 493 jeff.colleen@bigpond.com.au

0412 005 537 julia@brightandbold.com.au

0419 810 052 donaldhospitality@gmail.com

GARY & ROBYN LOAKES

JIM & CARMEL RYAN

JOHN & LESLEY GIBSON

All Property Types Nationwide

Motels Australia & New Zealand

Motels Nationwide

0408 798 352 grl21@bigpond.com

0437 404 079 muttley8@optusnet.com.au

0418 681 124 long.yard@bigpond.com

JOHN & SUSAN CONDE

KANE ANSELL & ROBYN HALL

KRISTY & LANCE BUTT

Motels QLD & NSW

Motels South East QLD & Northern NSW

Motels South East QLD

0438 488 738 jnsmotelrelief@internode.on.net

0416 016 614 info@businessbay6.com.au

0428 902 878 nqpropertygroup@gmail.com

MARIA DELANGE

PAUL & ARLEENE MOORE

PAU L A N T H O N Y K I R K PAT R I C K

Motel & Management Rights Central QLD

Motel Managers QLD & NSW

Motel, Resort & Hotel Nationwide

0425 732 569 mariajdl@bigpond.com

0404 855 711 pfandammoore@live.com

0419 675 671 paul.kirkpatrick@gmail.com

ANNIE & GARY MIEGEL

GARRY BAKER

CHRIS CAMPBELL

Operations Managers Nationwide

All Property Types Nationwide

Motels & Management Rights South East QLD & Northern NSW

0449 790 039 annieandgaz@hotmail.com

0437 455 865

garrybaker7@hotmail.com

0449 957 414 cj.campbell@gmail.com

CHRISTOPHER HILLMAN

COLIN & LARAINE FIELDS

ELIZABETH GRIMM

Management Rights, Motels & Resorts QLD & NSW

All Property Types QLD & NSW

Management Rights Gold Coast

0488 550 005 christopher.hillman@bigpond.com

0402 176 933 larainefields@gmail.com

0408 000 891 yellowroses4me2222@yahoo.com.au

GARTH & TRISH CAREY

GEOFF & MARYANNE CHEESEMAN

G R A E M E & D E B O R A H WA L L AC E

Resort & Motel QLD & NSW

All Property Types Nationwide

Motels QLD & NSW

0421 359 059 garth@careynominees.com.au

0410 662 963 cheezmg@bigpond.com

0427 512 751 graemedeb@motelmanagers.com.au

PETER MACKAY

KAREN & ROBERT NISBET

KARLA HARDING

Motels & Caravan Parks NSW 0408 000 554 mackas@gmail.com

Motel & Caravan Parks Nationwide

B&B + Guesthouse Australia & New Zealand

0488 934 899 karen.nisbet70@gmail.com.au

0414 767 499 bnbangel@fastmail.net

GRANT & KERRY Oâ&#x20AC;&#x2122;SULLIVAN

LAUREN KROPP

LINLEY AND ALISON MADDICK

All Property Types Nationwide

All Property Types QLD & NSW

Motels Northern NSW & Southern QLD

0404 473 100 grant2466@bigpond.com

0458 416 484 lauren@realstrategix.com.au

0432 008 988 alisonandlinley@icloud.com

I S S U E N O . 9 1 | RESORTBROKERS.COM.AU

Regular Feature // M E E T O U R T E A M

MEET OUR TEAM I N T R O D U C I N G R E S O R T B R O K E R S A U S T R A L I A â&#x20AC;&#x2122; S N AT I O N A L T E A M O F A C C O M M O D AT I O N B U S I N E S S A N D P R O P E R T Y B R O K E R S . W E A R E T H E I N D U S T R Y E X P E R T S AT YO U R S E R V I C E I N E V E R Y S TAT E A N D T E R R I TO R Y .

IAN CROOKS

TRUDY CROOKS

TIM CROOKS

ALEX COOK

Managing Director Nationwide

Sales Manager Nationwide

Off The Plan Specialist Nationwide

Senior Broker Nationwide

0411 171 648 ian@resortbrokers.com.au

0477 882 210 trudy@resortbrokers.com.au

0422 208 450 tim@resortbrokers.com.au

0467 600 610 alex@resortbrokers.com.au

CARLA COOK

MARISSA MASLEN

JANE FANG

N AT H A N E A D E S

Marketing Manager Nationwide

Operations Manager Nationwide

Chinese Liaison Broker National

Broker Brisbane

0467 600 611 carla@resortbrokers.com.au

0437 198 164 marissa@resortbrokers.com.au

0402 399 613 jane@resortbrokers.com.au

0448 339 920 nathan@resortbrokers.com.au

GARETH CLOSTER

B R E N T S TA K E R

JESSICA WILKIE

GLENN MILLAR

Broker Brisbane Central

Broker Brisbane North

Broker Brisbane South

Senior Broker Sunshine Coast

0423 182 766 gareth@resortbrokers.com.au

0410 344 344 brent@resortbrokers.com.au

0401 003 023 jessica@resortbrokers.com.au

0412 277 804 glenn@resortbrokers.com.au

RESORTBROKERS.COM.AU | I S S U E N O . 9 1

PAUL MUELLER

TODD WARNER

MARK CRAPPER

GREG JAMES

Broker Gold Coast North

Broker Gold Coast South & Northern NSW

Broker Gold Coast Central

Broker Gold Coast & Northern NSW

0439 255 507 paul@resortbrokers.com.au

0438 170 763 todd@resortbrokers.com.au

0490 136 215 mark@resortbrokers.com.au

0416 247 068 greg@resortbrokers.com.au

LINDSAY COOPER

LYNNE BOOTH

LEN BOOTH

DES FAGG

Broker South East & Central West QLD

Broker Central QLD

Broker North QLD

0418 711 047 lindsay@resortbrokers.com.au

0408 704 778 lynne@resortbrokers.com.au

0438 139 422 len@resortbrokers.com.au

0427 849 119 des@resortbrokers.com.au

CHENOA DANIEL

KIRSTEN LOWIS

RUSSELL ROGERS

JAMES CARRICK

Broker Far North QLD

Broker South Coast NSW

Broker Mid North & North West NSW

0403 143 151 chenoa@resortbrokers.com.au

0428 499 620 kirstenl@resortbrokers.com.au

0416 166 909 russell@resortbrokers.com.au

0400 664 065 james@resortbrokers.com.au

JOY DE SILVA

JASON PORTEOUS

JIM CHAPMAN

LIZ GALEA

Broker Central Coast, Greater Sydney & Hunter Valley

Broker Northern VIC & South West NSW

Victorian State Manager & Quest Apartment Hotels Specialist - Nationwide

Quest Apartment Hotels Specialist - Nationwide

0432 402 360 joy@resortbrokers.com.au

0414 726 085 jason@resortbrokers.com.au

0413 444 782 jim@resortbrokers.com.au

0427 218 353 liz@resortbrokers.com.au

I S S U E N O . 9 1 | RESORTBROKERS.COM.AU

DAMON LUNARDELLO

DAMIEN LOORHAM

Broker West VIC

Broker North East VIC

0403 730 071 damon@resortbrokers.com.au

0410 062 177 damien@resortbrokers.com.au

KELLI CROUCH

MIKE OLIVER

Broker South Australia

Broker Tasmania

0410 441 750 kelli@resortbrokers.com.au

0410 062 177 mike@resortbrokers.com.au

QUEENSLAND

PO BOX 5004 WEST END, QLD 4101 (07) 3878 3999

N E W S O U T H WA L E S PO BOX 567 ULLADULLA NSW 2539 (02) 9904 8224

VICTORIA

PO BOX 1100 CARLTON, VIC 3053 (03) 9347 3100

SOUTH AUSTRALIA PO BOX 327 FULHAM GARDENS, SA 5024 (08) 8356 5057

TA S M A N I A

PO BOX 3024 DEVONPORT, TAS 7310 (03) 6424 3474 FOLLOW US ON SOCIAL MEDIA

QUEENSLAND

PO BOX 5004 WEST END, QLD 4101 (07) 3878 3999

N E W S O U T H WA L E S PO BOX 567 ULLADULLA NSW 2539 (02) 9904 8224

VICTORIA

PO BOX 1100 CARLTON, VIC 3053 (03) 9347 3100

SOUTH AUSTRALIA PO BOX 327 FULHAM GARDENS, SA 5024 (08) 8356 5057

TA S M A N I A

PO BOX 3024 DEVONPORT, TAS 7310 (03) 6424 3474

1300 665 966 RESORTBROKERS.COM.AU

I S S U E N O . 9 1 | RESORTBROKERS.COM.AU