Informer Issue 92 by Resort Brokers

INFORMER I S S U E N O. 9 2 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 2

I S S U E N O. 9 2

inside...

AWARD WINNERS

HOTEL CONNECTION

Hit the red carpet at the augural Industry Recommended Professional Awards

Get to know Federal Group, the oldest operating hotel group in Australia

FAR FROM ORDINARY

MANAGERS GET SOCIAL

Why Tasmania is now considered Australia’s most progressive tourism state

Management rights industry enjoys their ‘day on the green’

JOHN ZECKENDORF

NEW! WORD OF MOUTH

Asset manager. Adventurer. Altruist.

What our customers are saying about RESORTBROKERS

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

NEW!

Cover Photo: MACq 01 Hobart hotel exterior by Adam Gibson. Supplied by Federal Group.

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

Tim Crooks has made his mark in Off The Plan Management Rights sales

See some of the properties RESORTBROKERS has sold recently

RELIEF MANAGERS

MEET OUR TEAM

Taking a holiday? Need a manager? Find one here

RESORTBROKERS’ national directory

I S S U E N O . 9 2 | RESORTBROKERS.COM.AU

Welcome to ‘We Say, They Say, You Say' A regular forum for the exchange of views, news & ideas.

We Say

LOOKING FORWARD

P R E FAC E

By Ian Crooks Managing Director

n many ways, our final edition of Informer for 2018 is about the future, about looking forward with confidence and optimism. Although the articles on the following pages are many and varied, it seems to me there’s a common thread, reminding us of what can be achieved if we take a progressive approach, focus on our unique talents, and aim high. It’s a timely message really, as we near the end of another year (RESORTBROKERS’ 34th in business) and look ahead to the next. I’m very encouraged by plenty of rosy economic news for Australia, the slower residential housing market in Sydney and Melbourne not withstanding. The Reserve Bank has GDP growth rising to 3.5% by the end of the year, and then continuing to motor along at above 3.0% well into 2020. The mining downturn is done and dusted, LNG exports are rising, population growth is driving infrastructure spending and jobs, tourism continues to surge, and commercial property is performing

RESORTBROKERS.COM.AU | I S S U E N O . 9 2

Family business: pictured at the RESORTBROKERS Brisbane head office (from left) Tim Crooks, National Off The Plan Specialist, Alex Cook, Senior Broker, Carla Cook, Marketing Manager, Trudy Crooks, National Sales Manager, and Ian Crooks, Managing Director.

very strongly indeed. Consequently, the accommodation sector is tracking well, and I believe we can expect more of the same in 2019. The signs for RESORTBROKERS are certainly positive, which is a rewarding outcome for all our years of specialist experience in this sector. We are now being appointed to handle deals of increasing scale, and many more sizeable multi-property parcels. As you’ll read in Trudy’s ‘On the Market’ column, we are now working on a number of significant management rights and resort portfolios across the country – recognition that our professional team has what it takes to achieve results in this distinct market. Which brings me to an important point: one outcome of the banking royal commission has been a degree of credit tightening, a more cautious approach by banks to finance approvals. As a result, it is more important than ever for you to have the

help of an experienced broker with the skills and know-how to help guide your deals through this process. It’s all part of our valuable service. Now, let me return to what I was saying about our forward-looking theme. In this issue, we continue our tour around the country, this time looking at the exciting position Tasmania has found itself in thanks to its progressive and innovative tourism attitude. One of the newest recruits to our team, Tasmania broker Mike Oliver, introduces you to his ‘far from ordinary’ home state. The island state is also home to this edition’s ‘face’ of the accommodation industry. John Zeckendorf is a guy who has scaled some very impressive heights, and not just in business. You’ll be very encouraged to hear what he has to say about accommodation property investment prospects in regional Australia. And, if you need any more evidence

Tasmania

I want to thank all of you – clients, associates, friends and colleagues – for your continued support and confidence. My family and I, and our entire team, wish you all the very best for a safe and happy festive season, and a very healthy, prosperous 2019 ahead.

By the numbers 1642 YEAR DISCOVERED BY E X P L O R E R A B E L TA S M A N -

26TH LARGEST ISLAND IN THE WORLD -

334 SURROUNDING ISLANDS -

of Tasmania’s exceptional tourism credentials, just look what Australia’s oldest operating hotel group is achieving at the premium end of the market. Federal Group is featured in this issue’s regular operator profile. Before I sign off for the year, while talking about the importance of progress, I want to make mention of RESORTBROKERS' plans for the future. Firstly, you may have noticed a new look being introduced to our magazine and marketing materials. We are in the process of implementing new branding – bidding a fond farewell to the green colour scheme and logo design of old, and introducing a striking new look. Crisp, clear typography in black and white, coupled with strong, imageled designs are indicative of our own progression and maturity, a confident contemporary statement of evolving identity. The branding will be rolled out over the coming year, on our stationery,

printed brochures and investment summaries, website and online communications. An exciting new look for exciting new times. Also on our agenda for 2019, is the size and structure of RESORTBROKERS. The second generation will increasingly take more senior roles in the family company that I established back in 1985. They are already instrumental in RESORTBROKERS’ growth, and will step up further in the year ahead. And, given the increasing demand for our specialist expertise and services, and the positive market outlook, we will be recruiting more experienced commercial sales professionals to join our expanding national team. So, on that positive note, I want to thank all of you – clients, associates, friends and colleagues – for your continued support and confidence. My family and I, and our entire team, wish you all the very best for a safe and happy festive season, and a very healthy, prosperous 2019 ahead. There’s plenty to look forward to. Cheers! [ END ]

42% OF ITS AREA IS PROTECTED -

20%+ IS WORLD H E R I TA G E A R E A -

1.3M V I S I TO R S TO TA S M A N I A YE JUN 2018 -

69 GOLF COURSES ( H I G H E S T S TAT E P E R C A P I TA I N A U S T. )

We'd love to hear from you carla@resortbrokers.com.au I S S U E N O . 9 2 | RESORTBROKERS.COM.AU

+ you say INDU ST RY NAMES

RESORTBROKERS Management rights agency of the year

There’s no better honour than one given by the industry we serve. So, a huge ‘thank you’ to all the management rights operators who voted for resortbrokers as your agency of the year in the onsite manager’s inaugural industry recommended professional awards. We really appreciate it. Recently, dedicated management rights industry property portal, The Onsite Manager, launched a new ‘Industry Recommended Professional’ program by asking onsite managers across Australia to nominate their best suppliers in a range of categories. The new annual survey of some 420 onsite managers was designed to identify industry service-providers operating at the highest levels of integrity and merit. So, from now on, any supplier displaying an ‘Industry Recommended Professional’ decal can be regarded as coming highly recommended by those that know. The glittering inaugural awards night was held in mid-October at Brisbane’s exclusive Cloudland Heritage Room. It was a tremendous night, not only for award recipients, but for suppliers and managers to meet and mingle in a social setting. So congratulations to The Onsite Manager’s Nick Buick for this great initiative. As 2018 Management Rights Broker of the Year, RESORTBROKERS really appreciates Nick’s efforts in launching these unique industry-driven awards that can’t be bought or influenced. They really do showcase true industry excellence delivered at the coalface. Thank you to all the onsite managers who voted us No.1. And congratulations go out to all our industry colleagues who were also recognised for their quality service. They include many professionals RESORTBROKERS recommend and work with on a daily basis. And the winners are …. Legal: Hynes Legal Accounting: McAdam Siemon Accounting Broker: RESORTBROKERS Insurance: EBM Relief management: Solution Management, Gary & Helen Sheppard Body Corporate Management: Archers Body Corporate Management Finance: Mike Phipps Finance So keep an eye out for suppliers displaying the ‘Industry Recommended Professional’ decal. It’s a real stamp of approval!

RESORTBROKERS.COM.AU | I S S U E N O . 9 2

grinne

The RESORTBROKERS management rights team celebrate receiving The Onsite Manager's inaugural industry-voted Broker of the Year Award.

winner

I S S U E N O . 9 2 | RESORTBROKERS.COM.AU

FREEHOLD GOING CONCERN Ref // FH005504

LARGE FREEHOLD MOTEL – FIRST TIME ON THE MARKET FOR 10 YEARS!

Offered exclusively, this 32-room traditional freehold motel, owned by the same family for 10 years, has it all – proven trading results and a prominent corner position with dual frontage exposure in the heart of thriving Hamilton, Victoria. The manager’s residence, easily accessed from reception, boasts two double bedrooms and a private deck. Two more rooms are available to make it a spacious 4brm family home. The motel enjoys strong corporate and tourist trade attracted by newly refurbished rooms and great food. The onsite restaurant, overlooking the gardens, is a local institution, a meeting place for locals and visitors. With fantastic long-serving staff, this motel could easily be run under management. State-of-the-art CCTV can be accessed remotely to keep your finger on the pulse from off-site. Nothing to spend, as every room has new fixed and soft furnishings plus brand new bathrooms. To top it off, there’s spare land where more rooms could to be added. Strong occupancy and restaurant trade certainly confirms expansion would be very beneficial.

›› Strong year on year trading history

Rooms

›› Large 2/4 bedroom family residence ›› Good staff and CCTV – ideal for being run under management ›› Fully refurbished rooms – no money to spend ›› Land for extra rooms included ›› Prominent dual street frontage

NET PROFIT: $588,000

PRICE: $4,200,000

DAMON LUNARDELLO BROKER +61 403 730 071 damon@resortbrokers.com.au 8

RESORTBROKERS.COM.AU | I S S U E N O . 9 2

HAMILTON

MANAGEMENT RIGHTS Ref // MR005517

SUPERB NEAR NEW PERMANENT COMPLEX IN BOOMING ROBINA

2.5

Townhouses

Letting

Years

Bed

Bath

RESORTBROKERS is delighted to offer to market, this modern townhouse complex right in the heart of Robina, situated adjacent to CBUS Stadium. Perfectly located minute’s from Westfield Robina, the hospital, train station and all other key amenities this highly sought after Gold Coast suburb provides. This three year old complex is perfectly set up to suit investors, with only four owner occupiers living on-site (including the manager). The rest of the 71 two and three bedroom townhouses are made up by 45 long term letting appointments and 22 outside agents ripe for the picking. This screams growth opportunity as well as a solid letting income! With easy to manage facilities of one small pool and BBQ area, plus minimal lawns and gardening, this complex is currently run by a solo operator who purchased off the plan. He has left some growth opportunities for the incoming managers to persue and take this business to the next level of earning potential. This terrific complex comes complete with a spacious three bedroom, two and a half bathroom manager’s residence with a large office also on title.

›› $177k net profit with room to grow via outside agents and repairs/maintenance

Manager’s Residence

›› 22 year agreements ›› 71 units with 22 outside agents and 45 permanent letting - great business to grow ›› Modern, easy to manage complex perfect for solo or first time operators ›› Incredible central location in highly sought-after Robina ›› Business is thriving - now it’s time for new owner to take to next level ›› Modern three bedroom manager’s residence and large separate office on title

NET PROFIT: $177,082

PRICE: $1,525,000

TODD WARNER BROKER

ALEX COOK SENIOR BROKER

+61 438 170 763 todd@resortbrokers.com.au

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

ROBINA

I S S U E N O . 9 2 | RESORTBROKERS.COM.AU

MOTEL FREEHOLD Ref // FH005252

FREEHOLD IN NORTHERN NSW NEXT MAJOR TOURISM HOTSPOT

Rooms

Bed

Bath

We are pleased to present to market the Iluka Motel, a highly-rated freehold motel, for only the third time in 33 years. This is the only motel in town with no competition. Trading at over 70% occupancy, Iluka is on the cusp of a boom. Across the Clarence River from Yamba, with stunning beaches and national parks on it’s door step, it’s destined to become a tourist mecca. This lifestyle business has nine rooms comprising of studio, family and one bedroom rooms and is easily managed by a couple, with the opportunity to expand (with land available) to take advantage of the ever increasing clientele. This very popular motel has exceptionally large rooms, each sleeping four people, in a queen and two single beds. Rooms range in size from studios of 40m2 to even larger family suites with a separate bedroom. All rooms enjoy a full kitchenette with dining table, cooking facilities, microwave, crockery and cutlery. All rooms are air-conditioned (as well as offering ceiling fans), and has either a private balcony or garden courtyard. Tariffs range from $124 to $280 per night.

›› Opportunity to build an additional five to ten motel rooms

Manager’s Residence

›› Dual highway near completion which will bring further growth to the area ›› Option to purchase more land on adjoining property for further business opportunity ›› 3.5 star AAA rated ›› Consistent year on year growth with huge upside ›› Beach lifestyle secured by consistent strong net profit ›› Awarded “Certificate of Excellence” for five consecutive years from Trip Advisor and Hotels Combined for the last two years

NET PROFIT: $187,845

PRICE: $1,620,000

GREG JAMES BROKER +61 416 247 068 greg@resortbrokers.com.au 10

RESORTBROKERS.COM.AU | I S S U E N O . 9 2

ILUKA

MANAGEMENT RIGHTS Ref // MR005489

PERMANENT MANAGEMENT RIGHTS IN SOUTHPORT ONLY TWO YEARS OLD

Apartments

Letting

Years

Bed

Bath

RESORTBROKERS is delighted to offer to the market the management rights and manager’s residence to South Hamptons. This is a two-year-old permanent residential midrise located in a prime Southport location. South Hamptons consists of 48 two-bedroom, twobathroom apartments and two three-bedroom penthouses, all finished to a high and exacting standard. The property itself has been presented in a relaxed, yet modern and sophisticated style. The ground level foyer is sleek, welcoming and expansive, the large rooftop sanctuary offers ample space to take in the superb Gold Coast views and to enjoy the BBQ facilities. From a caretaking perspective, the manager’s workload is relatively light. The gardening is limited to a small number of lightly populated self-maintaining planter beds. This is an exceptionally rare opportunity to purchase a business that has already had the hard work of securing letting appointments and tenanting apartments done for you. When combined with the prime location and first-class manager’s residence, this quickly becomes an opportunity not to be missed.

›› Two years' old residential mid rise development

Manager’s Residence

›› 23 year management agreements ›› Prime location ›› Minimal caretaking workload ›› No set office hours

NET PROFIT: $145,525

PRICE: $1,195,000

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

SOUTHPORT I S S U E N O . 9 2 | RESORTBROKERS.COM.AU

FREEHOLD GOING CONCERN Ref // FH005554

HIGH NETTING, COMPLETELY TRANSFORMED FREEHOLD AND BUSINESS

Rooms

Bed

Bath

This completely refurbished 36 room freehold and business, boasts affordable luxury and has been totally transformed by the current vendors. With year to date occupancy at 68%, this property enjoys excellent repeat business and has a range of room offerings to suit both corporate and leisure travelers. Other facilities include a sparkling in-ground pool, tennis court, outdoor BBQ area and recently completed alfresco dining area. The 120 seat restaurant is open for dinner and breakfast, catering for in-house guests, visitors and locals. There is a spacious three bedroom manager’s residence and all of this is set on two large blocks that would allow for expansion down the track. South Australia’s latest tourism data shows visitor expenditure has reached a record high level, up 8% for the year ending June 2018. Tourism is booming in regional SA and with major upgrades to Adelaide airport increasing airline capacity. This coupled with the abolition of stamp duty on commercial property make this a perfect time to buy in SA. The opportunity is perfect for a couple to operate and equally suited for investors to run under management. The hard work has been done.

›› High netting

Manager’s Residence

›› Fully refurbished rooms, restaurant and main building ›› Large three bedroom manager’s residence ›› South Australia abolition of stamp duty ›› Ideal for owner operators or investors to run under management ›› Large land with room for expansion ›› Perfect for a couple to run or equally suited for investor

NET PROFIT: $601,102

PRICE: $3,500,000

KELLI CROUCH BROKER +61 410 441 750 kelli@resortbrokers.com.au 12

RESORTBROKERS.COM.AU | I S S U E N O . 9 2

PORT PIRIE

I S S U E N O . 9 2 | RESORTBROKERS.COM.AU

IN THIS SE R IES OF ARTICLES , W E P R O FI LE LE AD I NG S H O RT-T E R M ACCOM M ODATION OPE R ATO R S – T H E I R O R I G I NS , G R OWT H , M AR K ET POSIT I O N, A ND FU T U R E P LA NS .

EXPERIENCE COUNTS in the business of creating emotional connections It is only fitting the latest luxury offering by Tasmania’s Federal Group, MACq 01 on Hobart’s waterfront, should distinguish itself as Australia’s first ‘storytelling hotel’. Its creators have quite the story too. Dating to 1885 and the famed 450-room Federal Coffee Palace in Melbourne, the Federal Group is the oldest operating hotel group in Australia. Fitting too that Federal Group should now be so heavily invested in Tasmania, a state for which heritage is tourism gold. As MACq 01’s master storyteller Justin Johnstone puts it, “you just have to scratch the surface and it bleeds history.” Federal Group is a private family company that operates significant tourism, hospitality retail, casino and gaming assets statewide. Their accommodation pedigree includes some of Australia’s finest hotels of days past, The Menzies, Savoy Plaza, Hotel Australia and Lennon’s Sydney. The same can be said for their portfolio of modern-day offerings. But first, their story.

beautiful Derwent Estuary with the backdrop of Mount Wellington.” In 1956, Federal Hotels bought that iconic establishment and, at an historic 1968 state referendum, Tasmania said ‘yes’ to hosting Australia’s first legal casino. On February 10, 1973, Federal Group catapulted Tasmania onto the national stage with the gala opening of Wrest Point Hotel and Casino, featuring a landmark 17-storey dodecagonal prism tower. Since those days, the company has continued its pioneering ways, opening Country Club Casino & Resort on Launceston’s rural fringe in 1982 (Australia’s first integrated resort-style casino development) and, in 1984, the first purpose-built conference and convention centre at Wrest Point. Both remain in the group’s accommodation and hospitality stable, but are today operated under their casino division. Instigated by CEO and managing director, Greg Farrell (son of the former chairman), a dedicated Tourism Division now focuses on the premium visitor market.

PIONEERING

ADD VALUE

It is many decades since Federal Group, owned and operated by the Farrell family, first invested in Tasmania, instigated by the late Greg Farrell Snr, father of the current owners. In the 1940s, he and his wife Delores honeymooned at a prestigious and much-loved Hobart institution, the Wrest Point Riviera Hotel. Farrell declared it “the greatest hotel site in the world – right on the shore of the

RESORTBROKERS.COM.AU | I S S U E N O . 9 2

This page: Top - MACq 01, Hobart. Photo Adam Gibson. Above - Saffire Freycinet’s Palate restaurant is Tasmania’s most exclusive. Opposite page: Top - Saffire Freycinet in the midst of stunning coastal scenery. Bottom - Henry Jones Art Hotel, Hobart. Photo Adam Gibson.

General Manager Tourism, Matt Casey, explains: “The units are differentiated according to customer base. Our Tourism Division is all about how we add value to our customers, and that is really through unique and memorable experiences.” The 5-star Henry Jones Art Hotel launched in 2007 on one of Hobart’s most significant industrial heritage sites, H. Jones & Co. Pty Ltd ILX. And in

TA S M A N I A SPOTLIGHT

I S S U E N O . 9 2 | RESORTBROKERS.COM.AU

Clockwise from top left: The Lounge at MACq 01. Photo by Adam Gibson. Henry Jones Art Hotel, Hobart. Photo by Adam Gibson. MACq 01, Hobart’s newest waterfront hotel. Photo by Adam Gibson. Saffire Freycinet, breathtaking discovery around every bend.

a super luxury category on its own, the globally acclaimed Saffire Freycinet has operated since 2010. Federal’s Tourism Division once had a more diverse portfolio, including businesses run under the ‘Pure Tasmania’ brand - Cradle Mountain Chateau, Freycinet Lodge, Gordon River Cruises, Strahan Village accommodation, and the West Coast Wilderness Railway from Strahan to Queenstown. But these were divested. The more family-oriented properties were sold to motoring company, the RACT, a satisfying deal that kept them in local hands and secured jobs for existing staff. “Given the success of Henry Jones and Saffire, we decided our greatest capability lay at the premium end of the market,” Matt says. “Our expertise meant we were better placed to grow that segment, and our studies showed that’s where the greatest long-term potential was. These are nationally and internationally recognised properties.” So what lies behind that success? “We don’t see our hotels as ‘properties’ or ‘developments’,” Matt explains. “We view them more in terms of emotional connections with customers, what value we can bring that is deeply connected to our guests’ experience of place.” DIFFERENTIATE

That approach manifests in Federal Group’s significant investment in what might broadly be termed ‘the arts’ –

RESORTBROKERS.COM.AU | I S S U E N O . 9 2

visual and fine arts, architecture and design, storytelling, and the celebration of the landscape. They understand that expressions borne of skill and imagination are powerful emotional triggers. Even building and interior design is less about ‘the look’ and more about how guests experience their destinations, and Tasmania more broadly. “This is Tasmania,” Matt says with obvious pride. “It is a different destination – its environment, culture, people. This is a quirky island, steeped in history and conflict. “We need to differentiate, and if those things are the drivers that bring people here, and if we are to be the best in Tasmania, we need to be part of that experience.” Such is their passion for heightening the visitor experience, key personnel at Henry Jones Art Hotel include full-time art and history curators. The hotel is a working gallery.

Up to 500 original and contemporary artworks are exhibited at any one time, showcasing Tasmania’s artists in every room and space. Intriguing, sometimes provocative, they depict history, cultural identity and place. Housed within the nineteenth century sandstone walls of Henry Jones’ IXL jam factory and warehouses, Australia’s first dedicated ‘art hotel’ features 52 rooms and suites, signature Landscape Restaurant & Grill, more relaxed Peacock and Jones restaurant, a soaring glass atrium public space, and the IXL Long Bar, a classic but edgy cocktail bar. The Packing Room presents exhibitions in a high-end gallery environment, while the award-winning

On 114 doors, the stories of 114 characters are told, each one with an original illustration. They are native Tasmanians, inventors, explorers, convicts, heroes and others. At checkin, guests learn which trait their room reflects, but they don’t discover their unique character story until they arrive at the door. This is also a hotel of striking architectural form with breathtaking direct waterfront position. On the ground floor are The Story Bar (what else?), the Old Wharf Restaurant and an atmospheric lounge. STRIKING

Clockwise from top left: Saffire Freycinet connects with its environment. Henry Jones Art Hotel lobby. Photo by Adam Gibson. Saffire Freycinet Luxury Suite.

Landscape Restaurant showcases the iconic art of John Glover alongside a selection of winning contemporary landscapes from the John Glover Prize. Recently, the group also launched the Henry Jones Art Prize, building on 21 years of the Wrest Point Art Awards, offering a $20,000 prize to support early career artists. NARRATIVE

Cross to the other side of historic Hunter Street, and the experience moves from the figurative to the narrative. Here, in June 2017, Federal opened MACq 01 on the docks of Hobart’s Macquarie Wharf. GM Matt Casey tells its story. “The typical visitor to Tasmania seeks so much more than cocktails and selfies; instead drawn by adventure, learning, authentic experience and

genuine connection. So we have created a new category of hotel, a ‘storytelling hotel’, that goes well beyond mere historical interpretation to become an immersive storytelling experience. “Our guests are engaged in the historical narrative at every touch point through our architecture, interiors, multimedia, food and beverage and, most importantly, our people.” Key personnel here include the Master Storyteller and his team of full-time storytellers who bring the adventure to life. And all around are materials and artefacts, selected by antiques curator, Warwick Oakman, to tangibly connect visitors to the stories. Tasmania’s people, they say, embody distinct character traits: Colourful & Quirky, Hearty & Resilient, Curious & Creative, Grounded Yet Exceptional, and the Fighting Believer. Each is represented throughout MACq 01.

Speaking of striking architecture, however, it’s hard to go past Saffire Freycinet, a luxury lodge on the Freycinet Peninsula that seeks to reflect the beauty and depth of nature in all its facets. Designed by Tasmanian architect Robert Morris Nunn and associates Circa Architecture, the buildings evoke a connection to the sea through references to waves, sea creatures, sand dunes and a flowing, organic form. It looks for all the world like a giant, graceful ray. Here, it is the connection with its environment that generates the authentic, enriching, rejuvenating and uplifting experience. It is also set apart by its tailored, personal experiences and services – indulgent, inspiring and unforgettable. With rates that start at $2,100 per suite per night, it does stand alone for ‘super luxury’. An ever-growing list of national and international awards acknowledges Saffire’s excellence, too many to name. As for the future, Federal Group Tourism has two more exceptional

I S S U E N O . 9 2 | RESORTBROKERS.COM.AU

destinations in the pipeline, at Port Arthur and Cradle Mountain. But they will take their time to get them right. “To deliver exceptional experiences, particularly on sites that are so iconic, we have to be very considered and careful. They are just too important,” Matt says. He says the Port Arthur plan is in the advanced concept development stage. It will be a luxury sister resort to Saffire to be developed on the site of the current Comfort Inn, which looks across the historic Port Arthur site.

ON THE MARKET

GETTING IT RIGHT

Extensive customer testing is being undertaken, sensitive to myriad environmental, social, heritage, aesthetic and regulatory imperatives. Where Saffire is a building like no other, the feeling is the Port Arthur design needs to defer to its landmark surroundings. “We’re not yet sure how it will resolve,” says Matt. Although he hints at a huge opportunity linked to the original gardens of the settlement where heirloom vegetable varieties and an array of produce might suggest an agrarian or epicurean experience is on the cards. The Cradle Mountain site is further down the track. This land is immersed in the wilderness, with a view of the cradle, so it holds incredible promise. “For now the focus is on bedding down MACq 01 and some other restaurants and bars in the precinct, and next will come Port Arthur.” Meanwhile, as visitor numbers to Tasmania grow, so too is the hotel room pipeline. Matt estimates there may be 1000 rooms coming on line in the premium category alone in the next three to four years. But he’s not concerned. “To some extent, Tasmania has been hamstrung for some time by lack of room supply. And competition is healthy. We all lift our game and the destination becomes more appealing. From a business point of view, it’s about differentiation and value proposition and knowing your customer. If you do, you’ll be fine. “Experiential development is very important – new products, new experiences. Look at Mona. The triggers to travel have to grow, and that’s exciting.” [ END ]

RESORTBROKERS.COM.AU | I S S U E N O . 9 2

WORDS TRUDY CROOKS NATIONAL SALES MANAGER

IN NUMBERS n our previous edition, I foreshadowed heightened interest in the accommodation portfolio market. after a year punctuated by significant amalgamations, we can expect more portfolios to be assembled and divested as both buyers and sellers find strength in numbers. We’ve seen amalgamations accelerate at the top end of town. Last year closed with Mantra Group buying Deague Group’s Art Series Hotels portfolio for $52 million (through RESORTBROKERS). Then, in turn, Mantra Group was taken over. AccorHotels completed its $1.2 billion acquisition of Mantra in May, with Asia Pacific chairman and COO, Michael Issenberg, telling the Financial Review the global giant (with one of the world’s biggest loyalty programs) would help “push visitors beyond the gateway capital cities into regional areas like the Sunshine Coast, Far

North Queensland, Tasmania, Northern NSW coast and Victoria’s Mornington Peninsula. “One of the attractions of combining Accor and Mantra is that our networks are complementary,” he said. “Mantra is more represented in regional areas … while we are stronger in the capital cities.” SCALING UP

This landmark hotel deal is an extreme example. But what it highlights is that ‘scale’ has its advantages. And that is the clear motivation driving a host of deals now in the pipeline. RESORTBROKERS has seen it in the high level of demand for a number of smaller portfolios we have taken and are now taking to market. And the interest is coming from a broad range of buyers – investment syndicates and funds, experienced operators and new players. In fact, the number of newcomers to the market is very encouraging. As I mentioned in my last column, a large private syndicate recently picked up a three-property management rights portfolio through us at Yeppoon on Queensland’s Capricorn Coast. In October, we took a big destination management rights portfolio to market for Blue Sky Alternative Investments – seven locations across Queensland and the Northern Territory, with 456 units in the letting pool, holiday and permanent. Already deals are getting very close as these properties are under negotiation with numerous parties.

returns, how secure they are, and the solid bank support they attract. All this considered, my crystal ball tells me regional centres are going to be the big beneficiaries in the year head. The regions are increasingly being targeted as strengthening tourism and accommodation investment destinations. The smart money has already been making counter-cyclical investments. The Hunter Valley region has seen a turnaround, and now green shoots are growing strongly in areas like Townsville and regional South Australia, where we’ve been involved in some big transactions. Mackay is on its way. Turn to P.42, and you’ll read about plans for a new investment fund to be launched by Mandala Asset Solutions, which has been a valued RESORTBROKERS client for quite some time. Mandala will assemble its biggest portfolio yet, and all by investing primarily in accommodation-driven assets in regional Australia. Ultimately, this new fund could be valued in the hundreds of millions of dollars.

property portfolios that appeal to both established operators who know critical mass is key, and market newcomers seeking to gain a foothold with sufficient volume to achieve a presence. For example, RESORTBROKERS has just been appointed by developer Pointcorp to sell a sizeable portfolio of management rights in Brisbane, Mackay and Townsville. We are also quietly handling the sale off-market of a significant national portfolio of hotels and resorts in eight prime destinations across four states. And this brings me to my final point. I strongly recommend anyone in this market looking for investment and business opportunities to contact us directly. While taking properties to the open market will always create the greatest exposure and competition, some vendors opt for a more discreet approach. Not all opportunities are ‘on market’. So we need to know if you are in the market. [ END ]

IN TOUCH WITH THE MARKET

Sellers are also recognising the current strong appetite for multi-

SECRET NO MORE

One thing is clear. The secret is out. Industry insiders have long understood the strength of accommodation businesses, both management rights and leaseholds. Now larger investment players have come to understand the ability of these asset classes to generate high

I S S U E N O . 9 2 | RESORTBROKERS.COM.AU

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

RESORTBROKERS.COM.AU | I S S U E N O . 9 2

gigafy.com.au

1300 444 239

G O L D

S U R F E R S

COA S T

OFF THE PLAN PA R A D I S E

CO M MA IN G SO RKE TO ON T !

C H E V R O N

I S L A N D

OUTSTANDING QUALITY! TWO PREMIUM BUSINESS-ONLY MANAGEMENT RIGHTS IN SURFERS PARADISE & CHEVRON ISLAND A rare and exceptional opportunity to acquire TWO mid-scale management rights businesses in one-line from this esteemed developer partnership. With both buildings being situated in close proximity to each other, it allows for seamless operation by an experienced off the plan manager or team. In addition, there is no restriction on office hours or any requirement to live on-site. This is a prime buy for an astute operator.

INVESTMENT HIGHLIGHTS ›› ›› ›› ›› ›› ››

17sqm office on title in Peninsular Residences 28sqm office on title in Stanhill Strong projected investor profile Brand new 25 year agreements Manageable caretaking duties in both buildings High rental demand and low vacancy rates

Peninsular Residences makes an architectural statement with expansive Broadwater and Surfers Paradise skyline views for all apartments. It hosts 60 luxurious apartments with private rooftop terrace including gym, spa, yoga lawn, lounges and dining areas. (Expected completion mid 2019)

Stanhill’s nine storey building will offer 61 spacious apartments on Chevron Island in proximity to the new HOTA pedestrian bridge. Each apartment has panoramic Broadwater, Skyline and hinterland views, with a ground floor pool terrace, rooftop spa, gym, indoor and outdoor dining facilities and business centre. (Expected completion early 2020) Purchase of an apartment within Stanhill is encouraged but not a legal requirement.

121 Units

103

Letting Pool

Years

›› Close to the beach, CBD and key revenue drivers ›› Walkability to G:Link and buses, local shops, schools and recreational facilities. Quick access to Pacific Fair, Convention Centre and Star Casino ›› 2 minutes’ walk to the rejuvenated $395 million cultural precinct, across new pedestrian bridge

TIM CROOKS OFF THE PLAN SPECIALIST

MARK CRAPPER BROKER

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

+61 490 136 215 mark@resortbrokers.com.au I S S U E N O . 9 2 | RESORTBROKERS.COM.AU

TA S M A N I A SPOTLIGHT

RESORTBROKERS.COM.AU | I S S U E N O . 9 2

FROM ORDINARY There’s a bold new edge to Tasmanian tourism WORDS MIKE OLIVER

Tasmania has always held the allure of pristine wilderness, breathtaking scenery, unique flora and fauna. Now there’s so much more. Our island state has dared to be different. The result is a tourism sector now widely regarded to be Australia’s most progressive. Let’s admit it. Tassie was once the butt of ‘backwater’ jibes, some of them downright insulting. No more. The ‘Apple Isle’ of old has morphed from ‘The Natural State’ to the ‘Island of Inspiration’, and it’s not stopping there. Last year, visitors spent around $140 million more in Tasmania than in the previous year, expenditure rising 6% to a record $2.4 billion for YE June 2018. Visitor numbers rose again too, up 2% to 1.3 million. That’s after an increase of 9% last year. Premier, Will Hodgman, who also doubles as Minister for Tourism Hospitality and Events, has boldly declared, “Tasmania’s tourism industry is the best in the country.” His enthusiasm is understandable given the pivotal role a growing visitor economy plays in supporting businesses and jobs across the state. PROVOCATEUR The game-changing Museum of Old and New Art, Mona, is Australia’s largest private museum. Mike Oliver (inset), RESORTBROKERS Tasmania broker

Of course any discussion about this trailblazing tourism trajectory has to begin with Tasmania’s most audacious benefactor, David Walsh. He rose from Hobart’s working class Glenorchy to become a professional gambler, art collector, wealthy philanthropist and founder of Australia’s largest private museum, the Museum Of Old And New Art (MONA).

I S S U E N O . 9 2 | RESORTBROKERS.COM.AU

Left to right: Freycinet National Park, winter festival Dark Mofo lights up Hobart, Brooke Street Pier, Hobart, Cradle Mountain.

Within 12 months of its 2011 opening, MONA became Tasmania’s top tourism attraction, eclipsing even Port Arthur and Cradle Mountain. By 2015, Lonely Planet listed it at No.3 on Australia’s Top 10 ‘ultimate’ sights, beaten only by the Great Barrier Reef and Twelve Apostles. MONA even ranked No.20 on their worldwide Top 500 Places to Visit list, beating Sydney Opera House (#57). Walsh is widely credited with turning around Tasmania’s tourism industry, MONA’s impact is compared to that of the Guggenheim Museum on Spain’s once drab industrial city, Bilbao. It is a masterstroke – a showcase of art and history, architecture and indulgence. It’s an attention-grabber, confronting, challenging, engaging, playful, frequently controversial. The museum itself houses Walsh’s general collection, which is constantly refreshed, some amazing permanent structural elements and installations, and a remarkable rolling exhibition program showcasing the diversity and importance of creativity. Then there are all the other experiences: the subterranean building itself (all steel and stone, built into a riverside rock face), outdoor sculptures, the Mona Roma ferry to transfer visitors, a library and cinema, Moorilla Winery, The Source fine dining restaurant, and Faro, the latest bar and restaurant in the new Pharos wing. You can stay there too. Eight striking architect-designed riverfront pavilions welcome guests (from $700 per night including breakfast at The Source and museum entry).

RESORTBROKERS.COM.AU | I S S U E N O . 9 2

Next will come HOMO (HOtel MOna), a planned $300 million 172-room 5-star hotel of monumental design, cantilevered out 53 metres over water. LEGACY

It’s easy to go on about MONA’s many innovative and provocative features. But the point really lies in the impact it has had. After all, Walsh’s big motivation (other than that he likes building things) is that MONA’s legacy will be to give others the courage to think outside the box, to take risks. As Gregor Salmon wrote for the ABC: “…it has changed the way Hobart (I’d say wider Tasmania too) is viewed both from within and without, and prompted (it) to lift its game". In the first two months after MONA opened, Hobartrelated traffic on Hotels.com apparently spiked 40%, and the search figures just kept on rising. “MONA was not just another gallery. David Walsh's exhibit was renegade stuff, put together with such audacious nous that its shocking brilliance won critics over wholesale. There was simply nothing like it on Earth.” Speaking to a tourism and business leaders lunch last year, Walsh said: “You don’t need a plan, you don’t need a vision, you just need to do stuff, and governments, tourist authorities, individuals need to find ways of encouraging others to do things. “It’s incremental advances, that’s what creates wealth in communities, but what you want is for individuals to take risks.”

It’s a lesson we can all take on board – even the smallest accommodation business – to be creative, celebrate unique character and local assets, be willing to do something new or different. INVESTMENT

One thing is for sure, whether inspired by MONA’s intrepid example or because of its success, many more tourism operators, corporate players and investors are upping the ante to back Tasmania’s tourism future. The state government has better resourced peak marketing bodies Tourism Tasmania and Brand Tasmania, expanding their capacity as statutory authorities. In fact, Brand Tasmania has embraced the gutsy and daring spirit to proudly celebrate our state’s newfound edge with a catchcry proclaiming we are “far from ordinary”. Underlining that claim is a modern crop of festivals that build on Tasmania’s already great reputation for event tourism, long headlined the Sydney to Hobart Yacht Race, Australian Wooden Boat Festival, The Taste and Targa Tasmania. Now (yes, David Walsh had a hand in this too), the program has expanded with bold new offerings. Mona Foma (festival of music and art known as Mofo), previously held at Mona and across Hobart, will move north this summer to Launceston. Each June in Hobart, Dark Mofo is an annual winter solstice festival celebrating the usual Mona obsessions, music, art and food, with a nude icy Derwent River swim thrown in.

VISITOR EXPENDITURE TO A RECORD I S S U E N O . 9 2 | RESORTBROKERS.COM.AU

The Agrarian Kitchen Cooking School and Farm at Lachlan (left) and Eatery in New Norfolk

The entire state is capitalising on the value of event tourism. In the north, I can think of Junction Arts, Festivale, BOFA, and the Tamar Valley Writers Festival. The West Coast embraces the ‘dare to be different’ mantra with its biennial arts festival, The Unconformity. EXPERIENCES

Tasmania’s tourism success is a reward for understanding our unique differences, knowing what we do best, and doing it better. We’ve long focused on core visitor drawcards, especially extraordinary natural assets (the Tasmanian Wilderness World Heritage Area, Cradle Mountain, Freycinet Peninsula, Bay of Fires) and history (Port Arthur and other convict sites, historic buildings such as Ritchie’s Mill in Launceston, Hobart’s Salamanca and Henry Jones Art Hotel). Nature-based tourism is a massive attraction with the figures from the Parks and Wildlife Service showing overall visitation increased by 7% in 2017-18 to 1.4 million. Close to half of all visitors say they came specifically to see our national parks. But, more and more, exceptional gourmet food and cool climate wines are driving visitation, gaining a well-deserved international culinary reputation and ‘paddock to plate’ following. Cider producers, craft breweries, gin and whiskey distillers (we produced the world’s best single malt whisky in 2014 and again his year!) now share top billing with award-

RESORTBROKERS.COM.AU | I S S U E N O . 9 2

winning wineries in the Tamar Valley, Pipers River, East Coast, Derwent Valley and Coal River Valley regions. The list of acclaimed foodie haunts grows ever longer – Stillwater, Black Cow and Geronimo in Launceston, Landscape Bar & Grill, The Glasshouse and Templo in Hobart, The Agrarian Kitchen Eatery and Store in New Norfolk, just a tiny taste. And it’s not only major towns that benefit. The latest Visitor Survey showed all four regions experienced growth in total visitor numbers in FY2018. Holiday nights were up 11% overall, with the Cradle Coast showing the strongest regional visitation growth rate of 4%. More than 85% of Tasmania’s tourism operators are small or microbusinesses. So it’s vital that growth is encouraged across the board. DEVELOPMENT

Investment in new infrastructure is critical. The Overland and Three Capes Tracks captured the world’s attention and have encouraged visitors to spend more time and money in regional communities. Now the government has pledged $20 million to deliver another iconic multi-day, hut-based walk, with submissions open until January 2019. Drive tourism is also a major catalyst. The spectacular West Coast is set to become the next targeted drive experience under the ‘Journeys Project’. Following the success of the Great Eastern Drive, credited

with a 20% increase in visitors to the region since its development, the Western Wilds Drive has tremendous potential. Northern, Southern and North-West Journeys will follow. Far more intensive and ambitious tourism infrastructure proposals include Hobart’s Macquarie Point Masterplan for the 9ha waterfront site adjacent to the CBD, the Mt Wellington Cableway proposal, and controversial Cambria Green megadevelopment proposal overlooking Freycinet National Park. These are not without their opponents, and will need to be managed very carefully to ensure we don’t undermine our hugely valuable reputation for ‘natural charm’. But, with growth comes development. A statement from the Office of the Coordinator General told us an estimated $1.07 billion in total investment was earmarked for Tasmania’s “hotel pipeline projects across the state, as of April 2018.” These projects, it said, would “contribute an additional 4,182 hotel rooms around the state to cater for Tasmania’s growing accommodation demand.” At the time, Tourism Industry Council CEO, Luke Martin agreed careful management was essential, saying: “We need to plan for investment and growth that is really keeping with Tasmania’s brand. There’s enormous opportunity for developers at all ends of the scale.” We’d have to agree. For everyone in the sector, it’s an exciting and inspiring time to be part of Tasmania’s trailblazing tourism story. [ END ]

EXCLUSIVE LISTINGS

ING. LIST

NOOSA

Large integrated holiday complex with café (leased) conference room and extensive facilities

NET: $830,000 | POA

WHY INVEST IN MANAGEMENT RIGHTS ON THE SUNSHINE COAST?

ING. LIST

NOOSA HEADS

Iconic Noosa Resort with extensive facilities in prime location

NET: $565,000+ | POA ING. LIST

By Glenn Millar NOOSA

ith its visitor economy thriving and more than $10 billion worth of major public and private investment underway and in the pipeline, the future of Queensland’s Sunshine Coast region has never looked brighter. The Sunshine Coast Airport is undergoing a $347 million expansion to deliver Australia’s next international airport and massive benefits to the tourism industry and business community, opening direct flights to more locations for travellers and exporters. The new international standard runway and terminal are expected to be operational by 2020. Independent assessments value the economic benefit of the upgrade at $4.1 billion. Occupancies and rates have never been better with the sunshine coast going through a halcyon period and indications point to continued growth into the future. RESORTBROKERS has several

premier management rights listings from large integrated holiday complexes to smaller gated permanent complexes right across the coast and into the hinterland. PRE-SALE CHECKLIST AND EXIT STRATEGY PLAN

Stunning upscale Noosa Resort with extensive ocean views in blue chip location

NET: $570,000 | Price: $3.9m ING. LIST

ING. LIST

Don’t risk sitting on the market forever. Thinking about selling and not sure what your business is worth in today's market? We will prepare a detailed exit plan with an expert industry appraisal, detailing how we can get the best and quickest result for you. Our results speak for themselves!

CURRIMUNDI

MUDJIMBA BEACH

NET: $105,000 Price: $925,000

NET: $160,000 Price: $1.3M

MONTVILLE

KAWANA ISL AND

NET: $312,000 Price: $1.7M

NET: $201,000 Price: $1.73M

GLENN MILLAR

Senior Broker 0412 277 804 glenn@resortbrokers.com.au

ING. LIST

Detailed information memorandums and financials are available for all of these exceptional businesses by contacting Glenn. I S S U E N O . 9 2 | RESORTBROKERS.COM.AU

RESORTBROKERS.COM.AU/JOIN-OUR-TEAM

“It’s too expensive.” “We’re looking at another property.” “It’s not exactly what I’m after.” If you’re an experienced sales professional, and you already know how to answer these objections, we want to hear from you.

we’re HIRING Q U I C K T H I N K E R S . E N T H U S I A S T I C N E G O T I ATO R S . P R O A C T I V E PERFORMERS. PROVEN SELLERS. AMBITIOUS CAREER CLIMBERS. W E WA N T YO U !

RESORTBROKERS is growing. We are now seeking new sales dynamos to join our NSW team, and other key locations around the country. We’re proud of our promise to our clients FASTER. BETTER. MORE. If you want FASTER advancement, BETTER training, MORE in your pocket. Get in touch now.

C O N TA C T T R U D Y C R O O K S TO D AY !

0477 882 210 trudy@resortbrokers.com.au 28

RESORTBROKERS.COM.AU | I S S U E N O . 9 2

MANAGEMENT RIGHTS Ref // MR005278

BLUE CHIP MANAGEMENT RIGHTS BUSINESS NETTING $231K

Apartments

Letting

Years

Bed

Bath

This management rights opportunity presents a solid business with plenty of upside for a new operator. Not only will you get to reside in an amazing suburb, you also have the ability to expand and grow your letting pool. Furthermore, you have the opportunity to add to the existing rent roll that has been organically developed by the current managers. There is the option to live off-site and rent out the manager’s residence, as there is no requirement to reside on-site. The suburb is home to many young professionals that enjoy apartment-style living and access to the amenties 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 lifestyle of Bulimba and the surrounding suburbs provides a warm and welcoming environment. The incoming manager will feel comfortable in their new business enjoying what this cosy community has to offer. Bulimba has an amazing vibe with cool shops, cafes, bars restaurants, movie cinemas and much more.

›› Absolutely amazing location in one of Brisbane’s most desirable suburbs

Manager’s Residence

›› Great opportunity for further growth ›› Experienced operators to assist with transition ›› Stunning three bedroom manager’s residence ›› No requirement to reside on-site ›› Quality mix of one, two and three bedroom apartments ›› Strong agreements and solid sinking fund ›› Additional 12 apartments in outside rent roll ›› Simple and easy caretaking duties

NET PROFIT: $231,000

PRICE: $1,985,000

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

BULIMBA I S S U E N O . 9 2 | RESORTBROKERS.COM.AU

BACKPACKERS FREEHOLD Ref // FH005560

FARMGATE BACKPACKERS SHOWING A MASSIVE 17% NET RETURN

247

Rooms

Beds

Camp Sites

Bed

Bath

We are delighted to have listed exclusively one of Queensland’s best and most profitable backpacker businesses. Located on the Bruce Highway, four hours north of Brisbane and 50km from Bundaberg in the very popular township of Childers. Childers is the centre of Queensland's food growing region. The business has been totally upgraded in the last 12 months and now consists of 81 rooms with a total of 247 beds and 15 camping sites. Farmgate Backpackers is a unique business opportunity and is the major supplier of labour to the surrounding area. The business has strong existing relationships with many of the farms in the area and connects international backpackers with job opportunities.

›› Comfortable two bedroom manager’s unit

Manager’s Residence

›› Fleet of 15 vehicles ›› Ideally located in prime backpacker country ›› 5.19 hectares of land ›› Net profit increasing month by month ›› Unique business with established practices

NET PROFIT: $731,000

PRICE: $4,300,000

IAN CROOKS MANAGING DIRECTOR

LEN BOOTH BROKER

+61 411 171 648 ian@resortbrokers.com.au

+61 438 139 422 len@resortbrokers.com.au

RESORTBROKERS.COM.AU | I S S U E N O . 9 2

CHILDERS

HOTEL LEASEHOLD Ref // LH005552

BEST ACCOMMODATION. BEST RESTAURANT. BEST PERFORMANCE.

Rooms

Years

Bed

Bath

On offer is the leasehold interest to the Horsham International Hotel. Built and finished to an exacting standard, the full service property opened in 2010 offering accommodation, dining and functions to its guests. The two-level motel comprises of 50 rooms, providing queen, king spa, family and 2 bedroom configurations. The rooms, as well as the restaurant and function room, are of an exceptionally high standard .The owners benefit from a well-appointed reception, office, commercial kitchen and private accommodation. Although known for wheat and wool, Horsham’s largest employment driver is health. A new 61 turbine wind-farm is due for delivery in mid-2019. As the halfway point between Melbourne and Adelaide, it is also a popular stop-over town. Close to The Grampians National Park and Wartook Valley, it a great base for outdoor activity enthusiasts. Ideally located on the Northern fringe of town, the Horsham International Hotel offers the best accommodation and dining in a town that is diverse in its leisure and corporate drivers. Poised perfectly for the next owner to take it to the next level.

›› Strong year-on-year trading performance

Manager’s Residence

›› Exceptionally high standard of accommodation ›› Long lease with 26 years remaining ›› Limited competition at a comparable standard ›› Great exposure across two street frontages ›› More than enough capacity to run under management

NET PROFIT: $833,553

PRICE: $3,200,000

DAMON LUNARDELLO BROKER +61 403 730 071 damon@resortbrokers.com.au

HORSHAM I S S U E N O . 9 2 | RESORTBROKERS.COM.AU

MOTEL LEASEHOLD Ref // LH005529

SOUTH-EAST QUEENSLAND SEASIDE NEW 30 YEAR LEASEHOLD MOTEL

Apartments

Years

Bed

Bath

On offer is the leasehold interest of Tin Can Bay’s friendliest accommodation. Established in 2004 and fully refurbished in 2014, the motel has 24 semi self-contained, air-conditioned cabins and a three bedroom holiday house. The manager’s residence is a modern three bedroom and two bathroom house with separate kitchen, dining and lounge. The office is located behind the reception and attached to the residence for ease of operation. Tin Can Bay is an ideal location for guests to base themselves from to explore the Cooloola Coast, Double Island Point, Fraser Island and the colored sands of Rainbow Beach. Take in the beauty of the Mary Valley and the Gympie region and enjoy the many attractions and activities also located close by. It is situated close to the world renowned dolphin feeding at Tin Can Bay which provides a rare opportunity to interact with wild Indo-Pacific humpback dolphins.

›› Opportunity for further growth

Manager’s Residence

›› Experienced staff to assist with transition ›› Spacious and modern living accommodation ›› Lots of repeat customers ›› Tin Can Bay is a tourist destination ›› No restaurant - pub next door ›› Refurbished in 2014

NET PROFIT: $156,000

PRICE: $560,000

LINDSAY COOPER BROKER +61 418 711 047 lindsay@resortbrokers.com.au 32

RESORTBROKERS.COM.AU | I S S U E N O . 9 2

TIN CAN BAY

MOTEL LEASEHOLD Ref // LH005544

STOP LOOKING! YOU’VE FOUND THE ONE!

Rooms

Years

Bed

Bath

Perfectly located in arguably Victoria’s strongest motel town is this beautifully renovated, 17-room motel. All the hard work has been done - new bathrooms, carpets, paint, furniture and bedding has all been replaced over the past few years. The motel currently runs at 89% occupancy and has done so consistently over the past three years. This is your opportunity to make that tree change. Only an hour and a half out of Melbourne, you can set up your financial future with this money making machine. No restaurant and no conference facilities make this a dream to run. Check in your guests and check them out again - that's it. 17 rooms, including four self contained two bedroom apartments, give you the variety of accommodation to cater to the demands of the incredibly busy corporate and trade market, while the drive and tourist markets keep your high occupancy solid all year round. This is a must see motel, don’t miss out!

›› 89% occupancy

Manager’s Residence

›› Affordable rent (16.9% of turnover) ›› Four bedroom, two bathroom manager’s residence ›› Comfort Inn Gold Award 2014 ›› Fantastic guest reviews on Tripadvisor and Booking.com ›› 25 year secure lease ›› Location, location, location

NET PROFIT: $470,135

PRICE: $1,740,000

DAMIEN LOORHAM BROKER +61 409 399 932 damien@resortbrokers.com.au

SEYMOUR I S S U E N O . 9 2 | RESORTBROKERS.COM.AU

HOT SHOTS!

SITTIN

G TH

e m a g s r i a p

IS ON

E OUT

Winning tripl

great v

alue

HeE cCoOmMpP T T h U t O t G u IN o cChHeEcCkKing

RESORTBROKERS.COM.AU | I S S U E N O . 9 2

ON THE MONEY

CHEERS!

VALU

E ADD

TION

E AC H T R O F E T ONSI

Bowls burgers & beers

Specialist professional colleagues, including accountants, solicitors, valuers and financiers, partnered with RESORTBROKERS recently to host our inaugural management rights social at Brisbane’s oldest bowls club, The Boo. No presentations, no sales pitch. Even the bowls were optional! Around 100 managers and industry associates enjoyed fun and fellowship on and off the green. Maybe we’re ‘biased’, but we reckon it was a crackerjack occasion. I S S U E N O . 9 2 | RESORTBROKERS.COM.AU

MOTEL LEASEHOLD Ref // LH005531

GREAT TOWN, GREAT MOTEL, NEW LEASE, $216K NET

Rooms

Years

Bed

Bath

The landlord of this Beaudesert property has set up a brand new and very fair lease at a full term of 30 years, in order to take a more passive role in the business. The rent is below market valuation guidelines and with the business netting over $216k, this is an unbelievable motel to purchase. This also means that there will be an easy and seamless consent to the assignment of the lease to the right buyer. The motel is in fantastic condition with the rooms recently upgraded with new carpets, beds and air-conditioning. Located only an hour from Brisbane, the motel is frequented by leisure travellers, workers, transport companies and visitors to the area for the array of events and social gatherings.

›› Brand new 30 year lease on offer

Manager’s Residence

›› Industry experienced and supportive landlord ›› Net profit of over $216k as verified by leading motel accountant Rob McAdam ›› Recently renovated rooms with new beds, carpet and air conditioning ›› Suitable for an owner occupier or passive investor with approx. 19% ROI with managers in place

NET PROFIT: $216,743

PRICE: $745,000

N AT H A N E A D E S BROKER +61 448 339 920 nathan@resortbrokers.com.au 36

RESORTBROKERS.COM.AU | I S S U E N O . 9 2

BEAUDESERT

MANAGEMENT RIGHTS Ref // MR005564

OUTSTANDING MANAGEMENT AND CARETAKING RIGHTS IN KEY WA LOCATION

Apartments

Letting

Years

Bed

Bath

RESORTBROKERS have been appointed to sell the management and caretaking rights for a 73-unit complex located on the waterfront in the popular West Australian city of Mandurah. Quest Mandurah was built approximately 15 years ago and has run very efficiently during that time. In fact, the same owners have operated the business since its inception. Quest Mandurah operates as a part of Quest Apartment Hotel group which is Australasia’s largest and most successful apartment hotel franchise. The business enjoys the best of both worlds with corporate trade Monday to Thursday nights and family and leisure guests over the weekend (70% corporate, 30% leisure combined). A total of 56 apartments are in the letting pool, offering a range of studio, one, two and three bedroom apartments. The property is securely gated with facilities including a gymnasium, outdoor swimming pool, heated spa, BBQs area, expansive gardens, boat moorings and timbered walkway around the canal. There is also substantial on-site parking in front of units.

›› Offering a 21% return on total investment

Manager’s Residence

›› Substantial mix of corporate and leisure trade ›› Caretaking agreement 19 years from June 18 ›› Current salary $73,036 p.a. ›› Recently negotiated a 17% reduction in laundry costs and looking to install solar to reduce electricity costs ›› Substantial two storey manager’s apartment and office/reception. Asking $450,000 ›› Van available for purchase with carpet cleaning equipment ›› Member of Quest Apartment Hotels franchise

NET PROFIT: $199,837

PRICE: $950,000 (INC. RESIDENCE)

JIM CHAPMAN V I C S TAT E M A N A G E R

LIZ GALEA BROKER

+61 413 444 782 jim@resortbrokers.com.au

+61 427 218 353 liz@resortbrokers.com.au

MANDURAH

I S S U E N O . 9 2 | RESORTBROKERS.COM.AU

MANAGEMENT RIGHTS Ref // MR005567

ALPINE LIFESTYLE – WELL ESTABLISHED BUSINESS

If it’s a tree-change or the pristine alpine lifestyle that you’re after, then this accommodation business is what you’re looking for! Offering a seasonal lifestyle, AMS Mt Buller is a wellestablished apartment management services business located at Mt Buller Ski Resort, just three hours’ drive north of the Melbourne CBD. Successfully operating for 20 years, AMS Mt Buller specialises in providing quality accommodation and management services including the provision of letting via direct and online bookings, and additional services such as linen hire, laundry and cleaning. Family-owned and operated (with seasonal workers in winter) the operation is focused on the ski-season, requiring minimal input during the remainder of the year. The main office is located in Mansfield, and during the winter season it then operates from Mt Buller. This great business caters for annual events such as the Targa High Country. However, there is plenty of potential to increase business by catering to a year-round trade from the growing attractions to this high country destination, such as cycling, mountain biking and hiking group events.

›› Unique ski-season accommodation management opportunity

Apartments

›› Work during the ski season in this stunning environment and live off mountain for the remainder of the year ›› Qualified staff in place - run locally or remotely as an investment outside ski season ›› Multiple revenue streams ›› No requirement to hold bookings in trust accounts ›› Established for 20 years with consistent trade ›› Enjoy a reputation built for excellence ›› One of a kind opportunity

NET PROFIT: $200,000

PRICE: $580,000

JASON PORTEOUS BROKER +61 414 726 085 jason@resortbrokers.com.au 38

RESORTBROKERS.COM.AU | I S S U E N O . 9 2

MT BULLER

MOTEL LEASEHOLD Ref // LH005566

QUEST APARTMENT HOTEL LEASEHOLD CLOSE TO MELBOURNE

Rooms

Years

Bed

Bath

On offer is a unique opportunity to become associated with the Quest group, the most successful serviced apartment hotel franchise system in Australasia. Quest Sanctuary Lakes comprises of 46 two bedroom villa units situated in the Sanctuary Lakes Golf Resort at Point Cook. The resort facilities, available for Quest guests, include indoor heated swimming pool, sauna/spa and a fully equipped gymnasium in the sports centre. Guests also have access to the Greg Norman designed 18 hole golf course, tennis courts and golf driving range. The property presents to the highest standards with the vendors recently completing a $280,000 refurbishment program with new air conditioners, 55 inch televisions, couches and king sized mattresses in main bedrooms. All villas are fully equipped with kitchens, laundry facilities and comfortable dining/living areas. The property has complimentary internet and individual garages at the front door of each villa. Quest Sanctuary Lakes at Point Cook is ideally located just 30 minutes from Melbourne CBD, Tullamarine and Avalon airports.

›› Recently completed major refurbishment program of $280,000

Manager’s Residence

›› Nominated for Quest 2018 Victorian Franchise of the Year ›› Rail and freeway access to Melbourne CBD, Geelong, Tullamarine and Avalon Airports ›› Member of Quest Apartment Hotels franchise ›› Occupancies in excess of 73% with good mix of corporate and leisure guests ›› Access to the Greg Norman designed Sanctuary Lakes Golf Resort and use of facilities ›› Low market rent and long lease ›› Rent review completed Jan 2018 reduction of 20% NET PROFIT: $466,616 TURNOVER: $2,341,095

PRICE: $2,000,000

JIM CHAPMAN V I C S TAT E M A N A G E R

LIZ GALEA BROKER

+61 413 444 782 jim@resortbrokers.com.au

+61 427 218 353 liz@resortbrokers.com.au

POINT COOK

I S S U E N O . 9 2 | RESORTBROKERS.COM.AU

FREEHOLD GOING CONCERN Ref // FH005569

SUBSTANTIAL NORTH-EAST VICTORIAN FREEHOLD MOTEL OFFERING 14.2% ROI

Units

Bed

Bath

RESORTBROKERS are excited to present to the market the freehold and business interest of the Parkview Motor Inn. Located in Wangaratta, a north-eastern Victorian city situated on the Hume Highway, the main highway between Melbourne and Sydney. The city has an estimated population of 19,000+ with an area population in excess of 26,000. This is the first time the motel has been offered for sale in 37 years, the vendors having owned and operated it since 1981. The property has been renovated and maintained to a high standard over this time and has continued to achieve growth in occupancy and room rates. The successful purchaser has the choice to continue running the motel under management or become an owner operator. The Parkview Motor Inn comprises 38 units across the dual-level buildings. It includes a ground floor manager’s residence, reception, commercial-grade kitchen, conference room, laundry, in-ground swimming pool, gardens, driveways and ample carparking.

›› Strongly established, successful business being offered to the market for the first time in 37 years

Manager’s Residence

›› Substantial freehold multi-building motel consisting of 38 well-presented units ›› Currently operated under management ›› Spacious, recently renovated manager’s residence on freehold title ›› Solid history showing consistent profitability ›› Unbranded, independent business in popular, high traffic location ›› Suitable opportunity for an astute owner/operator

NET PROFIT: $851,050 TURNOVER: $1,301,508

PRICE: $5,990,000

JASON PORTEOUS BROKER

DAMIEN LOORHAM BROKER

+61 414 726 085 jason@resortbrokers.com.au

+61 409 399 932 damien@resortbrokers.com.au

RESORTBROKERS.COM.AU | I S S U E N O . 9 2

WA N G A R AT TA

O ING T COM KET! MAR

OFF THE PLAN MANAGEMENT RIGHTS

O ING T COM KET! MAR

GEELONGS’ ICONIC RITZ APARTMENT HOTEL VICTORIAN MANAGEMENT RIGHTS From the group that brought you some of Geelong’s finest developments, such as 'Vue Apartments' and the award-winning 'Devlin', IDS is proud to present the Ritz Apartment Hotel. This rare, off-the-plan, short term offering is situated in an unprecedented growth location. Geelong is Australia’s fastest growing city outside the capitals with overnight visitation surging from 940,000 in 2012 to 1,440,000 in 2017 deeming this an outstanding opportunity. Already a much-loved landmark, The Ritz will soon become Geelong’s first upscale 4.5 star establishment. Ideal for an experienced owner operator or corporate looking to expand their presence in Victoria, this purpose-built short-term high rise consists of 127 keys (109 apartments) over nine executive levels.

›› Striking nine level short-term building with 109 apartments, all with signed letting appointments ›› 1850’s Victorian Heritage Hotel Façade ›› Incredibly strong tourist and corporate market demand in under supplied and growth region ›› Unparalleled location for bay and park views, entertainment and leisure access ›› Meters from Eastern Beach, the cultural precinct and Westfield Shopping Centre ›› Exceptional purpose-built design with luxurious furnishings and fittings ›› Completion due in Spring 2020

Developed by: REGISTER YOUR INTEREST Apartment Hotel

Integrated Deve Solutions Pty Lt

TO RECEIVE AN INFORMATION MEMORANDUM & INCOME PROJECTIONS BY HOLMANS

JIM CHAPMAN SENIOR BROKER

TIM CROOKS OFF THE PLAN SPECIALIST

+61 413 444 782 jim@resortbrokers.com.au

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

GEELONG

I S S U E N O . 9 2 | RESORTBROKERS.COM.AU

RE GUL A R F EATUR E

JOHN ZECKENDORF:

ASSET MANAGER. ADVENTURER. ALTRUIST.

THE MANY FACES OF THE ACCOMMODATION INDUSTRY CONTINUING OUR SERIES PROFILING THE MANY FACES OF AUSTRALIAN TOURISM AND ACCOMMODATION SECTORS, WE INTRODUCE YOU TO THE LEADERS AND INNOVATORS, CHARACTERS AND CANNY OPERATORS OF OUR INDUSTRY. THESE ARE THEIR STORIES.

RESORTBROKERS.COM.AU | I S S U E N O . 9 2

TA S M A N I A SPOTLIGHT

otel investors hail from all walks of life. But how many can say they’ve controlled a $5 billion global asset portfolio by age 30, and conquered the highest mountain on every continent? By any measure, John Zeckendorf has led a life more challenging and purposeful than most. Now, while still acting as a high-level corporate advisor, he oversees two investment funds – soon to be three – focused on regional Australian accommodation assets. And he does it all while enjoying family life with his wife and four children, aged 12 to 21, in Kingston, a quiet upmarket beachside suburb of Hobart. Also a committed Christian, John savours “the magnificent creation we have all around us in Tasmania.” But Tasmania wasn’t always home. He was raised in Sydney, studied accounting and went on to become a Director at Price Waterhouse (now PwC) working in corporate recovery, property and finance for 12 years in the late 1980s and 1990s. It was then John first encountered the hospitality sector. This was a time of global economic turmoil and Paul Keating’s “recession that Australia had to have”. So, as a receiver and liquidator, John took stewardship of many embattled hospitality businesses. But the excesses of 80s were nothing to those he

would confront next. A deceptively unassuming line on his resume reads “worked in Brunei for the Royal Family to help resolve the major litigation and asset recovery that resulted from the Prince Jefri dispute.” What it means is John became asset manager for the notorious playboy brother of the Sultan of Brunei, entering what Vanity Fair described as “a world of orgiastic wealth.” Jefri was the poster boy for conspicuous consumption, said to have “gone through more cash than any other human being on earth” in his pursuit of luxury hotels, planeloads of women, polo ponies, colossal diamonds and more than 2,000 luxury cars. John says landing the role was “a classic case of right place, right time.” He’d been working all over the world for Price Waterhouse, living in Hong Kong then London, when he was offered a position in Brunei. “But the guy I was supposed to work for had burned out, and he asked me if I wanted to replace him. There I was, just turned 30, and basically thrown the keys to $5 billion worth of assets and told ‘here, sort this out.’ “It was fascinating and extremely full-on. I could be on three different continents in a week. We were some airlines’ best customers. I flew more than their pilots.” The 70 mainly property-related assets he oversaw

I S S U E N O . 9 2 | RESORTBROKERS.COM.AU

RE G UL AR F EAT U R E

John Zeckendorf included some of the world’s finest hotels (New York Palace Hotel, Hotel Bel Air in LA and Hotel Plaza Athenee in Paris), jewellers, power stations, a theme park, marina, and many developments. Then there was the amazing garage of cars. “It was fun to work through,” he admits. But John knew from the outset this was a very corrupted environment. “I stipulated from the start I didn’t want to go anywhere near ‘the Court’ – a valuable tip from my predecessor.” In the end, he helped resolve nearly $35 billion worth of debt racked up by the profligate prince. So John Zeckendorf has worked at the highest levels, with giant banks, governments and corporations. But he says there comes a time when you tire of that. The lesson he values most from those years is not about empire building, but about the power of relationships. “You can do entrepreneurial things with a small team. It’s not about size. Relationships and attitude count for a lot more.” This understanding sowed the seed for John’s next step, to return to Australia and, with long-time friend and colleague, Ryan Shaw, establish Mandala Asset Solutions in 2003. Mandala focuses on lifting

RESORTBROKERS.COM.AU | I S S U E N O . 9 2

the value of assets. With a strong emphasis on property, hospitality and turnarounds, it takes a hands-on, solution-focussed approach backed by an incredible depth of experience. “The definition of a Mandala,” he explains, “is something built around a focusing point, where the whole is substantially greater than the sum of the component parts.” Among their many capabilities, a key focus is hospitality. “We came out of London and Brunei with some savings and we were looking for good advice to make it work for us, but it just wasn’t. We wanted a solid investment that would earn a regular income, with a good outlook, and we had time to get involved. “So we looked at what we knew about from our insolvency days, regional motels. The first one we bought was in Berry (2007), two hours south of Sydney, a freehold going concern. In the first year, I think the return was about 12 per cent. In the second, it was around 30 per cent. “We thought this was amazing, so we decided we’d buy another. I remember we looked at one in Dubbo, to which I said a firm ‘no’. We were driving back to Sydney and Ryan said there was another in Orange that might be worth a look. We drove in and I said ‘buy it’ straight away. “We told our friends and, before we knew it, we had our first fund.” So began Trinity Accommodation Master Trust (TAMT), which was launched with the Orange property in May 2010, and ultimately included four leaseholds – Quality inn Ambassador Orange, Parklands Resort and Conference Centre in Mudgee, the Artesian Spa Motel in Moree and Lithgow’s Zigzag Motel. Three have since been sold, and the top-performing Orange property retained. The fund achieved a Year 3 weighted average yield of 22.1% and convinced Mandala to expand its asset management activities. “If we were to no longer rely solely on friends and family investors, we had to professionalise,” John says. “It’s quite a process to gain the

necessary Australian Financial Services Licence (AFSL) and set up the compliance structure.” The Trinity Accommodation Regional Hospitality Fund (TARHF) launched in late 2015. “The value of funds under management (FUM) was around $6 million at the first close, and we have virtually doubled that at every close – to $14 million by the next close, $27 million by the third, and we’re about to do the fourth and final close (14 Dec, 2018),” John says. Now with nearly $30m of FUM, the fund owns six properties comprising 224 rooms: Q Express Townsville, Quality Inn Carriage House Wagga Wagga (passive freeholds), Lincoln Downs Resort Batemans Bay, Thunderbird Motel Yass, Launceston’s Elphin Villas, and Mercure Albury (freehold going concerns). A further 253 rooms are under acquisition, taking the portfolio to nine properties, with capacity for more. Since inception, TARHF has returned an average of nearly 11% p.a. The remaining fund life is four years and the annual capital gains target 5%. “Our relationship with RESORTBROKERS has been critical,” says John. “They have provided us with an excellent pipeline of opportunities to consider and they know that we are fast, agile, fair, discrete and always follow through.” Time then to launch fund #3. But now, the aim is to attract larger investors and achieve a scale that will ultimately appeal to big league buyers, such as superannuation funds, prepared to pay a better yield. To do so requires a forensic eye for compliance. “It’s called ‘a roll up’ – buy from smaller operators, fix the properties with capex and professionalised systems, make sure they are properly capitalised and compliant, maintain strict compliance records for five years, then you can sell to the big end of town. “The process has been applied to all sorts of industries, but no one has

really done it in hospitality yet.” The proven strategy remains: invest in income-producing regional accommodation-driven assets with operational and property upside – motels of course, but potentially caravan parks, backpackers, even student accommodation. Just no pubs, and definitely no gambling. So that’s the next business challenge. John is never one to aim low. This is a man who only started mountaineering in 2010, and has since completed the Seven Summits, conquering the highest mountain on each of the seven continents. Everest was his seventh peak, achieved in May 2017. He’s the first Tasmanian to climb Everest, and only the 25th Australian to achieve the ultimate 7-summit mountaineering challenge. Now he’s about to tackle a series of volcanos in Ecuador – easy by comparison, he says, “except one of them is smoking at the moment!” As well as his business activities across multiple states, family life in Tasmania and training for his incredible climbing exploits, John is also a director of several not-for-profit entities associated with his faith, including in the aged care and drugaddicted youth areas. Clearly not one to pass up any opportunity –business, personal or spiritual – John is excited about the investment outlook in the regional accommodation sector. “I see some really good opportunities coming up, interesting buying,” he says. “This will be a result of tightening credit. There’s no doubt, deals are getting a bit harder and taking longer, and this is where good relationships really come to the fore to access money.” And, having inspected probably 500-plus properties in the last 10 years, it’s clear John knows a good opportunity when he sees one. “You develop good instincts. I know what I’m looking for and I often know well before I get there whether we are going to buy.” ‘High achiever’ is an apt description of John Zeckendorf – metaphorically and literally. Quick-witted too. “I have never been accused of being boring, despite being an accountant!” [ END ]

GIVING BACK

‘MO BROS’

GROW FOR MEN’S HEALTH

WORDS GREG JAMES, BROKER

Lately, some of the guys in our RESORTBROKERS team have been itching (literally!) to help the brotherhood by getting into the spirit of Movember. The Movember Foundation, with the mission of ‘stopping men dying too young’, is the leading charity addressing some of the biggest health issues faced by men: prostate cancer, testicular cancer, and mental health and suicide prevention. So, when I rallied around the troops to form a ‘Mo Bros’ team, the volunteers and sponsorship started rolling in. In 15 years, the Movember Foundation has funded more than 1,200 men’s health projects around the world. And we are more than happy to suffer for the cause. I say ‘suffer’ because none of our participants regularly sports a mo. So the complaints of itching, jibes about ‘lipholstery’, and noticeable lack of ‘face time’ with our partners, are wearing thinner than our facial fur. But we happily consigned the razors to the bathroom cupboard for the month in a valiant attempt to champion a mo for a terrific cause. Find out more: https://moteam.co/resort-brokers-mo-bro-s?mc=1 [ END ] For your entertainment, we’ve published a few progress shots below (clockwise from top left): dapper Damon Lunardello (Vic), yours truly Greg ‘Jesse’ James (Gold Coast/Nth NSW), Russell ‘a bit rough’ Rogers (Sth Coast NSW) and Alex 'what’s that under my nose?' Cook (national).

I S S U E N O . 9 2 | RESORTBROKERS.COM.AU

MARKET ACTION

Here’s just a small selection of our recent sales and listing activity from across Australia. It underlines the market strength and rising demand for motels, caravan parks and management rights, particularly in regional centres.

GOLD COAST RIGHTS FOR CHINESE BUYERS CHINESE BUYERS ARE BEHIND SOMETHING OF A CHANGING OF THE GUARD IN THE GOLD COAST’S SUBSTANTIAL MANAGEMENT RIGHTS INDUSTRY, NOW ACCOUNTING FOR UP TO 30 PER CENT OF BUYERS IN SOME AREAS. RESORTBROKERS’ local team says at least 30% of enquiry for prime management rights listings is now coming from buyers of Chinese origin. Their preference, though, is for permanent residential buildings rather than holiday letting. And top of the shopping list is a substantial body

corporate-funded salary for caretaking. Brokers Paul Mueller and Alex Cook say four of their biggest Gold Coast residential rights sales so far this year have been to Chinese buyers. These included Park Breeze, the twin Nexus Towers and new Allegra apartment buildings in Southport, and Deepwater Point overlooking the Broadwater at Labrador. “Together these sales are worth well over $10 million and were struck at strong multipliers of between 5.5 and six times,” Paul said. “The buyers share a Chinese background, but they are not the migration market. “Among them are Australian, New Zealand and Hong Kong Chinese who Nexus Towers Southport

RESORTBROKERS.COM.AU | I S S U E N O . 9 2

had already settled here and were seeking to buy their own businesses to generate a secure income while offering good prospects for capital gain.” The prices for these properties ranged from more than $1.5 million to well in excess of $3.5 million, and all included a manager’s unit. Where management rights buyers have always typically sought buildings with a high number of units in the letting pool to generate income, these more recent Chinese buyers place greater value on the size of the guaranteed salary, Paul said. He also says bodies corporate are welcoming the incoming generation of Chinese-born managers, who are proving well versed in the industry having undertaken training, and are extremely thorough in regard to caretaking duties. The path to success is made easier for all parties by RESORTBROKERS’ in-house Chinese liaison broker, Jane Fang. [ END ]

KNOTTS CROSSING RESORT

SOLD FOR $7.61 MILLION Comfort Inn Botanical at Hamilton

Trilogy of bestsellers WE’RE EXPECTING QUITE A ‘GOLD RUSH’ IN VICTORIA WHERE A TRILOGY OF TOPPERFORMING FREEHOLD GOING CONCERN MOTELS HAS BEEN LISTED, PRESENTING RARE CHOICE IN THIS ASSET CLASS. The prime offerings are Comfort Inn Country Plaza at Halls Gap, Comfort Inn Botanical in the heart of Hamilton, and Comfort Inn Warrnambool International (pictured right) at the western end of the Great Ocean Road. “In a market now so dominated by motels split into leasehold and freehold investment components, lucrative active freehold opportunities such as these are few and far between", says Victoria West broker, Damon Lunardello. “So buyers in this category have struck gold.

“All three, though listed individually, carry Choice Hotels’ Comfort Inn branding, and are ideally located in strong regional centres. RESORTBROKERS has enjoyed a long-standing affiliation with Choice Hotels so we understand the quality and value their brand delivers.” The beautifully-presented 51-room property in the heart of Halls Gap and the Grampians features a licensed restaurant and bar, conference centre with dedicated commercial kitchen, extensive facilities including pool, gym, sauna, games room and playground, and a three-bed, two-bath manager’s residence. Listed jointly through brokers Russell Rogers and Damon Lunardello, it delivers a robust adjusted net profit of more than $523,000 and is on the market for $3.64 million. At Hamilton, Comfort Inn Botanical has a prominent dual-frontage corner position, newly refurbished rooms, strong corporate and tourist trade, a very successful licensed restaurant and bar, and land for expansion. The 32-room motel comes with a family-sized manager’s residence and has produced excellent year-on-year trading growth to deliver an annual net of close to $588,000. It is priced at $4.2 million. Rounding out the trio is a Warrnambool market leader, running at 88% occupancy. Extensively refurbished and a simple operation of 28 rooms with no restaurant, it is ideal for either owner-operation or to be run under management. Complete with a spacious 3-bed residence, it generates a large annual net in excess of $685,000 and is listed for $4.8 million. [ END ]

NT oasis snapped up KNOTTS CROSSING RESORT IN KATHERINE WAS SNAPPED UP BY A SAVVY FUNDS MANAGER THE INSTANT IT WAS LISTED THROUGH RESORTBROKERS. MANDALA ASSET SOLUTIONS (SEE PROFILE P.42) WASTED NO TIME IN SECURING THIS LUCRATIVE NORTHERN TERRITORY ACCOMMODATION OASIS. “Showing rare 11.5% returns, this highearning freehold investment sold for the asking price of $7.61 million before we took it to market,” said National Sales Manager, Trudy Crooks, who sold it jointly with Managing Director, Ian Crooks, and S.A. broker, Kelli Crouch. “Mandala is very experienced in identifying prime accommodationdriven assets in regional Australia, and Knotts Crossing ticked all the boxes for earnings and growth outlook. “Located just a short drive from world-renowned Katherine Gorge, the resort has been operated by the current lessee for 10 years and, with 13 years remaining on the lease, it is a very secure and profitable long-term freehold investment.” The expansive property covers 3ha housing a range of accommodation to cater to all markets. This includes 35 powered caravan sites (each with private ensuite amenities), 36 cabins with private ensuites, and 86 motel rooms in various configurations. Resort facilities include the Savannah Bar and Restaurant, casual alfresco poolside bistro, two swimming pools, three BBQ areas, function and meeting room, camp kitchen, amenities block, onsite commercial laundry, guest laundry and a wellappointed three-bed manager’s residence. [ END ]

I S S U E N O . 9 2 | RESORTBROKERS.COM.AU

MANAGEMENT RIGHTS

VARIOUS PERMANENT BUSINESS-ONLY RIGHTS WITH UP TO $350K NET INCOME RESORTBROKERS currently has a number of prime, city fringe business-only management rights on the market. This represents outstanding opportunity to get hold of an add-on to bolster your income or to enter the industry without the requirement to purchase a unit or move in to the building. Each of these businesses make for outstanding investments, offering extremely high returns (circa 20%). We have several opportunities, all with long-term agreements. Don’t miss out!

›› City fringe permanent business-only management rights opportunities available ›› Long agreements with 20+ years remaining ›› Solid body corporate salaries with reasonable caretaking requirements ›› No requirement for the manager to reside onsite ›› All have storage areas for caretaking equipment NET PROFIT: $280,000 - $350,000

PRICE: <$2 million

GARETH CLOSTER BROKER +61 423 182 766 gareth@resortbrokers.com.au

RESORTBROKERS.COM.AU | I S S U E N O . 9 2

INNER BRISBANE

FREEHOLD GOING CONCERN Ref // FH005540

FREEHOLD COASTAL BOUTIQUE HOTEL IN TASMANIA

An exciting opportunity to purchase both the freehold and business component of one of Tasmania’s finest ‘old ladies’. On offer, is the beautiful Franklin Manor, nestled in one of Tasmania’s west coast prime tourist destinations, the picturesque harbour-side town of Strahan. This enchanting township is surrounded by rugged and majestic mountains a world of rustic charm, local character and natural beauty. This boutique hotel comprises 14 guest rooms, with a mix of accommodation types from queen to manor spa rooms, many of which have spectacular garden views.

›› ›› ›› ›› ››

Rooms

Magnificent freehold boutique hotel Strong consistent revenue streams Great tourism destination Beautifully restored and maintained building Opportunity for expansion of the food and beverage business ›› Great upside for owner operators NET PROFIT: $238,056

PRICE: $1,660,000

MIKE OLIVER BROKER +61 410 062 177 mike@resortbrokers.com.au

STRAHAN I S S U E N O . 9 2 | RESORTBROKERS.COM.AU

MANAGEMENT RIGHTS Ref // MR005493

A RETREAT WHERE THE RAINFOREST MEETS THE SEA

Rooms

Letting

Years

Bed

Bath

Manager’s Residence

If you’re looking for lifestyle, luxury and a high performing business, consider Port Douglas Retreat management rights as your jumping-off point to the best place on earth to live and work. Colonial-style architecture injects this boutique 36-room resort with charm, and luxuries include a heated outdoor pool and entertainment area. The manager’s apartment provides a comfortable simplistic style, with a mix of indoor and outdoor living. With the Douglas Shire investing $573 million in projects underway and a further $250 million well advanced in the planning stages, Port Douglas is the place to live and invest in 2019.

›› Zoned holiday-only with all apartments in the letting pool ›› Experienced staff to assist with transition ›› Strong 62% occupancy year-round ›› Engaged, positive and proactive BC Committee ›› Premium luxury resort facilities for guests

NET PROFIT: $312,298

PRICE: $500,000

KIRSTEN LOWIS BROKER

CHENOA DANIEL BROKER

+61 428 499 620 kirstenl@resortbrokers.com.au

+61 403 143 151 chenoa@resortbrokers.com.au

PORT DOUGLAS

FREEHOLD GOING CONCERN Ref // FH005142

FREEHOLD GOING CONCERN WITH OUTSTANDING OPTIONS

Rooms

Bed

Bath

Manager’s Residence

An exciting opportunity is offered with this freehold going concern property. You have the option to continue running this successful motel business as it currently operates, or you have the choice of selling the individual strata-titled units, possibly as an aged care or retirement complex. These one or two bedrooms units are completely selfcontained, each comprising of a full size washing machine, flat screen TV, fridge, stove, microwave and cooking facilities, and are fully air-conditioned. Each unit also has a fully covered carport attached.

›› Opportunity to sell units separately ›› Located one street from the beachfront in beautiful coastal town of Tannum Sands ›› Three bedroom manager’s accommodation ›› Beautiful resort-style pool and barbecue area ›› Fully paved courtyard ›› Turnover in excess of $310,000

PRICE: $1,500,000

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

RESORTBROKERS.COM.AU | I S S U E N O . 9 2

TA N N U M S A N D S

MANAGEMENT RIGHTS Ref // MR005097

CAIRNS NORTHERN BEACHES - PERFECT ENTRY LEVEL BEACHSIDE RESORT

Units

Letting

Years

Bed

Bath

Manager’s Residence

Trinity Beach Pacific Apartments offers affordable four star accommodation with a mixture of holiday and permanent letting. The current vendors have built a solid reputation with owners and guests to create a holiday experience with repeat business. As the new managers, you will be able to enjoy the benefits of a newly renovated property. With work completed on the pool area and manicured gardens, your focus can be on the business at hand. With a large three bedroom manager’s residence, newly renovated bathroom and private courtyard, this is the perfect entry level resort for management rights beginners.

›› Close proximity to Trinity Beach precinct restaurants, bars and cafés ›› Great roadside presence on main road to Trinity Beach ›› Large office / reception area and three bedroom manager’s apartment ›› Guest NBN WiFi installed in every apartment in holiday letting pool NET PROFIT: $131,036

PRICE: $730,000

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

TRINITY BEACH

MANAGEMENT RIGHTS Ref // MR005558

NEAR NEW COMPLEX WITH $300K+ INCOME AND LONG TERM AGREEMENTS

Units

Letting

Years

Fantastic near new complex with a very manageable caretaking workload, this complex has 82 units in the letting pool (all permanent) and could easily be run by a husband and wife management team. With 22 years remaining on the agreements, which are Gallery Vie compliant, this is a brilliant opportunity in an area with very few new buildings. This is an outstanding management rights business in a great bayside location, with good tenants and a helpful body corporate to top it off! There is a large office on title with additional back office, as well a garden shed and workshop for manager’s use.

›› Outstanding rental pool – one of only two new townhouse complexes in Wynnum / Manly ›› Long agreements with 22 years remaining Gallery Vie compliant ›› Solid body corporate salary, 10% salary increase granted last year with committee recommendation ›› No requirement for the manager to reside on-site NET PROFIT: $305,460

PRICE: $2,190,000

GARETH CLOSTER BROKER +61 423 182 766 gareth@resortbrokers.com.au

WYNNUM I S S U E N O . 9 2 | RESORTBROKERS.COM.AU

MOTEL FREEHOLD Ref // FH005520

INCREDIBLE OPPORTUNITY TO PURCHASE LONG ESTABLISHED SKI LODGE

Rooms

Bed

Bath

A great opportunity has arisen to own a fully refurbished mountain chalet in this year-round destination for wilderness and adventure lovers. Seated at the edge of a tranquil lake in pristine alpine countryside, Jindabyne is the gateway to the Snowy Mountains. Located only a short distance from the town’s shopping centre, eateries and entertainment precinct, Aalberg Chalet is well placed for guests to enjoy all Jindabyne has to offer. The property is highly rated on major booking sites and also rated as the best value in Jindabyne. This quality accommodation lodge has been recently renovated to include new bathrooms, kitchenettes, contemporary room décor and soft furnishings. The rooms are bright and comfortable catering to couples, families and groups with their various configurations. Revenue is also generated from the in-house bar and an opportunity exists to re-open the restaurant and increase revenue. Continue with the current successful setup of operating 12 weeks per year during the ski season or extend trading to take advantage of all Jindabyne has to offer, year round.

›› Work four months and have the rest of the year off!

Manager’s Residence

›› Excellent occupancy with repeat clientele ›› Strong trading results ›› Extra income generated from bar sales ›› Recent contemporary renovation ›› Commercial kitchen and potential for restaurant trade ›› Word of mouth referrals and exceptional customer reviews ›› Nominated for Recognition of Excellence Award 2018 by Hotels Combined Australia ›› A very simple operation with extremely limited operating costs NET PROFIT: $310,468

PRICE: $2,995,000

RUSSELL ROGERS BROKER

M AT T D AV I D S O N TOURISM PROPERTY SERVICES

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

+61 400 200 139 matt@tourismproperty.com.au

RESORTBROKERS.COM.AU | I S S U E N O . 9 2

JINDABYNE

MOTEL LEASEHOLD Ref // LH005568

SUNNY DAYS... PRIME MURRAY RIVER FRONTAGE RESORT MOTEL AT MOAMA

The award winning Cadell on the Murray Motel Resort is consistently rated ‘Top 20 in Australia’ by Tripadvisor. The business provides a relaxed riverside lifestyle - boating, water skiing, swimming and fishing, located amongst the vines in the Perricoota agricultural district. It feeds off the regions great eco-tourism, wines, farm gate, festivals, events and touring, providing great returns for the owner. Boasting a turnover of circa $750,000 with a good rent ratio, highlights for potential revenue growth include the new waterside function centre, 'Riverpoint 1703' (with a caterer’s kitchen). The 26 rooms, all recently modernised, overlook the river, and are set amongst established grounds rolling 30m to the rivers edge. They comprise of eleven family, nine deluxe queen and six queen rooms. The exceptionally maintained resort facilities include private boat ramp, private river access via jetty, three covered BBQ’s, solar heated swimming pool, refurbished tennis court and guest laundry. Set on eight acres (with 45 megalitres water for irrigation) the property has a parking for boats, trailers, cars, caravans and trucks.

›› Great income and lifestyle opportunity

Rooms

Years

Bed

Bath

Manager’s Residence

›› 30 year lease (inc. options) ›› Recently modernised rooms and facilities ›› Strong repeat business ›› 'New Riverpoint 1703' function centre revenue growth opportunity ›› Ideal for a family ›› Large four bedroom residence with private yard and large shed ›› Space and lifestyle only three hours drive to Melbourne

NET PROFIT: $257,000

PRICE: $985,000

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

MOAMA I S S U E N O . 9 2 | RESORTBROKERS.COM.AU

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: Brisbane: +61 7 3007 3777

www.mahoneys.com.au

Gold Coast: +61 7 5562 2959

LEGAL

THE MOTEL LEASE: OTHER IMPORTANT ISSUES WORDS DAVID BURROUGH

ur previous articles have considered some important issues to be addressed in a Motel Lease. This article brings us to the conclusion of our detailed examination of the Motel Lease. However before we conclude, it is worth mentioning in summary some of the other issues that should be considered when negotiating a Motel Lease.

insurances. For example: (a) public risk insurance; (b) plate glass insurance; (c) building insurance; (d) landlord's loss of profits insurance; (e) workers' compensation; and (f) a ll other insurances reasonably required in connection with the Motel

requirements that that tenant: (a) strictly comply with the Liquor Act; (b) do all things necessary to keep the liquor licence current (including making applications for renewal, complying with all provisions of the Liquor Act); (c) forward a copy of all information supplied by the tenant under the Liquor Act to the landlord.

2. LIQUOR LICENCE

1. INSURANCES

If the Motel is licensed, the lease should contain provisions to protect the liquor licence. For example there should be

3. DAMAGE DESTRUCTION OR RESUMPTION

Generally the tenant will be required to take out and maintain certain

RESORTBROKERS.COM.AU | I S S U E N O . 9 2

Generally if the Motel is destroyed or damaged the lease should require the

landlord to, within a certain period of time, decide whether to reinstate or repair the Motel. There will be no obligation on the landlord to reinstate the motel and if the landlord decides not to reinstate the Motel then either party should have the ability to terminate the lease. If the landlord decides to reinstate the Motel, then the lease should contain obligations for those works to be completed in a timely manner. 4. ABATEMENT OF RENT

If the Motel is destroyed or damaged the lease should provide for an abatement of rent and outgoings so that the tenant is not obliged to pay the rent or outgoings until the Motel has been reinstated. If the Motel is partially damaged, the lease should provide for a partial abatement of rent and outgoings. 5. DEFAULT

As with any commercial lease, a Motel lease should clearly set out the circumstances in which the tenant will be in default of the Lease and the consequences of any such default. 6. WHAT HAPPENS AT THE END OF THE LEASE

A Motel Lease should set out what is to happen at the end of the lease. For example, the tenant will generally be required to: (a) vacate the Motel; (b) leave the Motel in the condition required by the maintenance clauses; (c) t ransfer the business name and any licences (including a liquor licence) to the Landlord; and (d) p rovide to the Landlord the full trading figures for the Motel for certain period of time. If the Motel Lease requires the landlord to purchase the tenant's property at the end of the lease (as discussed in our last article) then it is important that the lease specify that the tenant must not remove that property from the Motel. As mentioned above, this brings us to the end of our detailed consideration of the Motel Lease. Our next few articles will consider the issues to be considered when purchasing a motel business (freehold and leasehold). [ END ]

FINANCE

Bob Was Right The Stones said time is on our side. Prince said it was a sign of the times. The Foo Fighters said times like these. Bob said it best.

THE TIMES THEY ARE A

CHANGIN' WORDS MIKE PHIPPS

COME GATHER 'ROUND PEOPLE WHEREVER YOU ROAM AND ADMIT THAT THE WATERS AROUND YOU HAVE GROWN AND ACCEPT IT THAT SOON YOU'LL BE DRENCHED TO THE BONE. IF YOUR TIME TO YOU IS WORTH SAVIN' THEN YOU BETTER START SWIMMIN' OR YOU'LL SINK LIKE A STONE FOR THE TIMES THEY ARE A-CHANGIN'. Bob Dylan , The Times They Are A Changin’, 1964

ife moves pretty fast and, as Ferris Bueller wisely noted, if you don’t stop and look around, you could miss it. Too young to remember Ferris? May I suggest a run down to your local Blockbuster for an overnight hire, maybe the movie and popcorn package. You could take a cab and if you can’t find the nearest Blockbuster you could search for it on AltaVista. Maybe you could even watch this classic while on holiday. Grab the Yellow

Pages, go to Hotels and Resorts and start ringing around. Only a matter of time before you find a great place to stay at a good price. Or, you could always stream Ferris on Netflix, get Uber to bring you some takeaway, use Google to find an OTA and book online. Things change and, as Mr Bueller noted in 1986, pretty fast. Of course, he had no idea just how fast! If you had invested in taxi licences, dotcom boom search engines, print media advertising and video rental stores back in the day you would now be officially broke. Which, in my usual round about way, leads me to management rights. Like the parent who tries to stay cool by quoting Eminem, the wedding guest who reminisces about the bride and not in a tasteful way, the RN columnist who still uses a 10 year old photo, the socially awkward uncle with the comb over, we need to talk about one of our most out of touch and dated friends. Yes, we still love you P and L, but you’re just so 80s. And now, the serious (boring) stuff. The tried and true sales process for rights has been around for more than 25 years and I would have to

I S S U E N O . 9 2 | RESORTBROKERS.COM.AU

say has served us well. However, in recent times I can’t help noticing that in nearly every transaction one part of the process is proving problematic. No prizes for guessing that verification of net profit is causing more headaches than ever before. I think it’s time to take a much closer look at how our industry treats this part of the process and I think we need to start making changes to protect the credibility of our industry. Too often we are seeing P and Ls being presented by vendors that reflect what they would like to be making, not what they are actually making. There’s always a reason and rarely does that reason hold water. Labour costs are the big one. The vendor will say that some labour costs are discretionary, and the business can really be operated by fewer staff. I say if it costs a particular amount to operate a business successfully then that’s the number that should be used. If the vendor says otherwise then surely it is the responsibility of that party to present an independent assessment of reasonable labour allowances to support adjustments. Of course, vendors will argue that

the current industry standard of a one year adjusted P and L is how they bought the business, so they need to sell it that way. Tell that to the previously mentioned taxi licence holders and Blockbuster franchisees. Unlike these unfortunate business people, we have an opportunity to pre-emptively review our profit verification process and bring it in line with common practices for commercial transactions. When the banks start knocking 20% off the verified net profit when assessing debt service capacity (yes, some are already doing this) you know the clock is ticking. My suggestion is that we need to start working on a new verification model. It needs to take into account the impact on existing operators balanced with the brave new world we are entering post banking royal commission. We need to look at other going concern based industries and review our own standards in the context of the broader commercial transaction framework. Most importantly I think we need to move to restore banking industry faith in the verification process. Trust me,

LEGAL

REAL ESTATE AND THE SALEABILITY OF YOUR RIGHTS WORDS COL MYERS

he eastern states have experienced substantial increases in the value of real estate over the last couple of years. This increase in property values however is not such a great thing when it comes to selling your management rights. The value of manager’s residential units in some areas (particularly those close to the beach or in the Sydney area) has increased to such an extent that it is becoming a liability to the saleability of the management rights. THE PROBLEM

When investors look at purchasing

RESORTBROKERS.COM.AU | I S S U E N O . 9 2

management rights, they look at the total cost of the acquisition - i.e. the cost of the business plus the cost of the residence/office. Where real estate values have escalated substantially, the net return on the total investment can be significantly reduced and the proposed purchase is not as attractive as it is otherwise would have been. Some management rights brokers have reported occasions recently where this reduced rate of return has led buyers to look elsewhere for businesses whilst they chase a better rate of return. Leasehold motels is a classic

they may not admit it openly, but the banks started losing faith some time ago. Overlay our unique standards for profit verification with increasing prudential pressure on lenders and there seems little doubt that bank credit policies will become more conservative if things don’t change. Support from lenders is a key driver of value in any industry and if we start to see gearing levels drop and credit conditions become more onerous then we will see values impacted. If you want proof look no further than the tightening home lending credit environment and the corresponding signs of a significant property value cool off. It’s happening right now. On the flip side I believe that implementing a more commercially realistic set of verification standards will renew confidence in the process and help in supporting continued strong values in the industry. I will leave you with this question. If I am a vendor with 3 years figures and I have an opportunity to present those numbers to a buyer to support strong buyer confidence and potentially a higher price, why would I resist doing so? [ END ]

alternative - with no Owners Corporation to deal with, no real estate to purchase, no real estate licences and trust accounts required, a residence still on-site and long term security of tenure. MINIMISE THE PROBLEM

Unfortunately, options may be limited. If the reception/office is part of the title to your residential unit (or is an exclusive use allocation attaching to your residential unit) then you have no flexibility. The unit cannot be severed from the management rights. In the Sydney area however, many (if not most) of the reception/offices are held as separate freehold lots. Consequently, designated manager’s residential units are irrelevant to the operation of the management rights. It is these types of complexes where there are some real options available. OPTIONS

Your options are twofold:1. If your Owners Corporation will

allow it, sever the management unit completely from the management rights so that the management rights are attached only to the office lot, or 2. Sever the existing management unit from the management rights but provide that the manager must still reside in the complex. By doing this, the manager has the flexibility of either buying a cheaper (say) one bedroom unit in the complex or renting a two or three bedroom unit.

site managers and Owner Corporation employed trades persons. As long as the manager resides in a unit in the complex, ownership of a unit should be irrelevant to the Owners Corporation. ISSUES TO CONSIDER

There are a couple of issues to consider. Firstly, one of the pre requisites to obtain an On-Site Residential Property Manager’s licence in New South Wales is that the licensee’s principal place of residence must be situated in the complex and the licencee owns that SO WHAT’S THE BETTER principal place of residence. This licence OPTION? I remain a firm believer that managers however will soon become obsolete when changes are made to the licencing should at least reside in the complex legislation. they manage. It is difficult to argue I have previously expressed the that Owners Corporations should pay view that On-Site Residential Property managers a caretaking fee (which Managers should, in time, upgrade their may be substantially in excess of licenses to full Real Estate Agent licenses what independent trades persons as it creates all sorts of flexibility from may charge for the same work) if the manager’s point of view. It also gives the manager is not living on-site and effectively on call 24/7 in the case of an the manager a potential new income stream in respect to selling lots in the emergency. This is the ultimate (and complex. This process is not overly unarguable) difference between on-

complex or time consuming and will soon become mandated. Secondly, a change may be required to the by-laws so as to delete reference to the particular nominated manager’s residential lot and to substitute a reference to “any lot occupied by the manager from time to time”. Thirdly, the Caretaking Agreement will also need to be varied to delete reference to the nominated manager’s residential lot and again substitute a reference to “any lot occupied by the manager from time to time”. CONCLUSION

Managers should consider their options as far as severing expensive residential management units from the management rights documentation and thereby provide flexibility moving forward. This flexibility will make a future sale of the management rights more attractive in the market place. [ END ]

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 2 | RESORTBROKERS.COM.AU

ACCOUNTING

TAX OFFICE TARGETS ROGUE ACCOMMODATION OPERATORS WORDS TONY ROSSITER

very year the Australian Taxation Office creates a short list of taxpayers considered worthy of special attention. Typically the focus is on industries deemed to be avoiding their fair share of tax and often includes industries such as building and construction, cleaning and security. This year the focus has turned to accommodation providers or more particularly to the accommodation sharing industry. The ATO has a particular focus on all aspects of the sharing economy and believes that some people using sharing economy platforms are failing to report their income, either on purpose or because they assume their level of activity constitutes a hobby and doesn’t require reporting. The tax office focus is to ensure that people renting a room, their home while away, or an investment property through web or app based platforms in the sharing economy, understand their obligations. In 2016, there were approximately 2 million individual taxpayers who reported rental income totaling $42 billion and claimed rental expenses totaling $45 billion. That equates to $3 billion in tax losses being claimed, which results in substantial potential lost tax revenue. In the Tax Office view “there is an increase in people renting homes, apartments, units or rooms via platform sharing sites to generate income. The increased use of these sites means there is an increased risk of people not understanding their tax obligations when it comes to renting out part or all of their property”. The ATO now has the ability to match the data provided by the rental platforms against ATO records to identify individuals who have not declared their rental income or have over-claimed expenses.

RESORTBROKERS.COM.AU | I S S U E N O . 9 2

This recent announcement comes off the back of other successful sharing economy data matching programs for the ride sourcing industry, which were introduced in 2015. The main source of data will be the accommodation platforms from which payments to individuals who rent out short term accommodation are made and/or the financial institutions used by sharing economy platform providers through which payments are directed to platform users. The type of data obtained will include: • The listing owner and property details • Financial transactions relating to each listing • Property booking activity • Financial institution payment data The number of individuals affected by this data collection is expected to exceed 190,000 over the time period of the program. Where the ATO detect a discrepancy that requires verification they will contact the taxpayer - usually by phone, letter or email. Before any administrative action is taken, taxpayers will be provided with the opportunity to verify the accuracy of the information obtained by the ATO. Taxpayers will be given at least 28 days to respond before administrative action is taken. For example, where discrepancy matching identifies that a taxpayer is not reporting all of their income, but in fact they are reporting the income under another entity, the taxpayer will be given the opportunity to clarify the situation. The data may also be used to ensure that taxpayers are complying with their other taxation and superannuation obligations, including registration requirements, lodgment obligations and payment responsibilities.

In cases where taxpayers fail to comply with these obligations, after being reminded of them, escalation for prosecution action may be instigated in appropriate circumstances. The message is clear – more than ever before – it’s important to declare all income earned and be aware of whose name in which it should be declared. If you suspect you’ve left income out and you could be caught out, it’s better to do something about that now rather than wait for a 'please explain' by the ATO. For accommodation business operators increasingly frustrated by accommodation sharing operators potentially operating outside of the rules, this new measure may well see them mend their ways or potentially leave the industry altogether. GST ON OFFSHORE HOTEL BOOKINGS

Currently, unlike GST-registered businesses in Australia, offshore sellers of Australian hotel accommodation are exempt from including sales of hotel accommodation in their GST turnover. This means they are often not required to register for and charge GST on their mark-up over the wholesale price of the accommodation. Both Australian and foreign consumers are increasingly booking Australian hotel rooms through online

LEGAL

WHY YOU NEED EXPERTISE

UP FRONT

WORDS JOHN MAHONEY

services based offshore, which are taking advantage of an exemption designed for offshore tour operators. Removing the exemption will level the playing field by ensuring the same tax treatment of Australian hotel accommodation, whether booked through a domestic or offshore company. The Accommodation Association of Australia has welcomed the action taken to force offshore online travel agencies to pay their fair share of tax in Australia. Ultimately however, the additional GST charged will be paid by australian hotels and may simply be passed on to australian consumers. The draft measure will apply to sales made on or after 1 July 2019. Sales that occur before 1 July 2019 will not be subject to the measure even if the stay at the hotel occurs after this date. Final legislation on the matter will require the unanimous agreement of all state and territory governments before being passed into law. The information, opinions or conclusions provided above are generic in nature and do not express individual advice or recommendations. You should always consult a suitably qualified professional before taking any course of action outlined above. [ END ]

Holmans welcome any queries you may have in relation to the above matters.

opportunity to move the goalposts and erhaps unsurprisingly, insist on changes to various aspects of many new entrants to the the agreements. management rights industry In another example, a manager had look to save money on legal and other fees when buying management rights. taken an assignment of agreements where the extension of the term was Despite often investing all of their life not done in accordance with the strict savings in buying the business and requirements of the legislation. This paying tens of thousands of dollars meant that the actual term was far less in stamp duty, they elect to save a than the manager (or the manager’s comparably small amount by using a financier) understood it to be. Because lawyer who quotes the lowest. of the 5 year limit As many THE MANAGER WAS on the term of any are finding out, that quote often CONFRONTED WITH HAVING TO additional option, the only way to increases by the GO TO THE BODY CORPORATE then procure the time they get to term understood settlement. But a TO NEGOTIATE to have been more worrying trend NEW AGREEMENTS purchased was to we are seeing is things being missed by the lawyer who enter into new agreements. Again, the manager was confronted does not have the time or the expertise with having to go to the body corporate to identify and deal with problems. to negotiate new agreements and face In one example in which we have the expense of the body corporate, had to get involved, the managers the body corporate’s lawyers and found that the agreements assigned ourselves to overcome the problem. to them when they purchased some These are not isolated cases but time ago were not in fact the current are just two examples of what we have management rights agreements! Instead they had taken an assignment seen recently. The end result is that our clients, for the sake of saving a of previously terminated agreements few hundred or maybe even a couple which had been replaced with new of thousand dollars on their purchase, agreements with the old manager. Whilst it is odd that the body corporate find themselves having to spend many thousands of dollars to clean up and its lawyers had not picked up the someone else’s mess and finish up with rather blatant error, it was something something not as good as they thought that just should not have happened. they were buying. Had the body corporate taken Despite comments you will hear a confrontational approach to the from various self-interested people, problem, the managers could well the buying or selling of a management have found themselves with no management rights at all. Fortunately rights business, to be done correctly, requires expertise properly applied. the body corporate was prepared You rarely if ever get that from a to negotiate new agreements, but lawyer quoting low just to get the job. the managers were put through the Failing to recognise that when your life expense and trauma of having to savings are usually at stake can have negotiate those new agreements with disastrous consequences. [ END ] a body corporate presented with an I S S U E N O . 9 2 | RESORTBROKERS.COM.AU

BROKER PROFILE

REVISITED

TIM CROOKS

National Off The Plan Specialist

HOW DID YOU GET INTO THE INDUSTRY?

My father, Ian Crooks, established RESORTBROKERS 33 years ago. About eight years ago, I saw an opportunity to explore my own passion for this industry and joined the sales team. I’ve since carved out a niche as our national off-the-plan management rights specialist, first securing market leadership in Queensland and, in recent years, successfully brokering deals in both the New South Wales and Victoria market spaces. WHAT ARE SOME CAREER HIGHLIGHTS?

Relationships I’ve established with major developers of new accommodation stock, including Aria, Mirvac, Gurner, Metro, Galileo, Pellicano, Abacus and the Deague Group are very important to me. In terms of results, some of my high profile sales are obvious highlights, including the management rights and associated real estate of many landmarks. Standout deals include the Art Series Hotel portfolio for $52 million, consisting of five hotels and two management rights, and FV by Gurner for $28 million, bought by Mantra as the first Peppers in Brisbane, with 918 apartments and 72 hotel rooms. This year, we also sold the new Melbourne CBD Avant tower (55 levels, 456 apartments) operation for Singapore-listed World Class Global to international group Minor Hotels as Victoria’s first AVANI hotel. WHAT ARE THE BIGGEST ISSUES FACING MANAGEMENT RIGHTS IN AUSTRALIA?

Queensland has a very successful management rights sector worth more than $5 billion, so the advantages of onsite management are well known. But New South Wales and Victoria have been slow on the uptake. The biggest issue is an out-dated but entrenched involvement of real estate agents who expect to get letting appointments for free that would otherwise be of value to the developer. The ultimate value of management rights is derived from the number of letting appointments an operator can secure. So developers need to build relationships with investor unit buyers, to educate them on why onsite

RESORTBROKERS.COM.AU | I S S U E N O . 9 2

management delivers greater service and returns than any outside agent ever can. We need to prevent project marketing agents (many of whom are now setting up property management divisions or touting outside agents so they can collect referral fees) from chasing letting appointments. If considered early, non-competition clauses can be included in agency agreements signed with project selling agents. WHAT TRENDS DO YOU EXPECT WILL EMERGE WITHIN THE NEXT DECADE?

I see Melbourne and Sydney being major growth markets for management rights. And we certainly expect continued growth in apartment hotels. Two things will drive it – the advantages to developers who gain the immediate profit boost at settlement of their management rights sale, and the increasing popularity of the model with major operators, many of whom are now pursuing asset-light expansion strategies. Hotel companies have really taken to management rights. Look at the success Mantra achieved, and now their takeover by Accor. Minor Hotels and their Oaks brand in Australia, have also taken the lead – all major signs of confidence in management rights. Operators know it allows them to secure properties in prime locations and greatly expand room inventory for a relatively low buy-in cost, while still controlling key real estate vital to run the hotel. They also see it as secure and low-risk, with long tenure, a guaranteed salary component and no rental liability on their balance sheet.

Our agents pride themselves on their specialist industry expertise and the detailed knowledge they have accumulated about the markets in which they operate. In some cases, their pioneering involvement in a niche sector of the accommodation industry has made them an acknowledged market leader. In this issue, we hear from RESORTBROKERS’ Off The Plan ‘guru’.

WHAT CHANGES WOULD YOU LIKE TO SEE OVER THE NEXT TWO TO FIVE YEARS IN THE INDUSTRY?

I’d like to see states beyond Queensland embrace management rights more rapidly. Momentum is building and I think we’ll see a domino effect as understanding grows and opportunities for apartment hotels grow in New South Wales and Victoria. And not just in apartment hotels, but also in permanent residential developments where unit investors demand the superior service and returns that flow when management rights are in place.

Top to bottom: Stanhill & Peninsular Residences – Marquee Development Partners, Signature, Broadbeach – Little Projects & KM Develop, Gallery House, Hamilton – Brookfield Residential Properties

WHAT IS YOUR FAVOURITE HOTEL AND HOLIDAY DESTINATION?

That’s a tough call. I’ve been to lots of memorable places and great hotels around the world. But I really don’t think you can beat what we have right here, for weather, beaches, great dining and top hotels. So I’d have to say Sofitel Noosa Pacific Resort. In a busy schedule, it also helps that such an idyllic escape is so close to home. [ END ]

I S S U E N O . 9 2 | RESORTBROKERS.COM.AU

REGULAR FEATURE

WORD OF MOUTH THERE’S NOTHING QUITE LIKE COMMENTS FROM PEOPLE WHO’VE USED OUR SERVICES TO HELP YOU GET TO KNOW US BETTER. SO WE THOUGHT WE’D LET OUR CUSTOMERS DO THE TA L K I N G . H E R E ’ S W H AT T H E Y ' R E S AY I N G A B O U T T H E T E A M AT R E S O R T B R O K E R S .

I initially selected another well-credentialed agent (3-month appointment). We had limited enquiry... no great enthusiasm of interest. I then released the sale to open agency and Kelli Crouch (S.A.), through her enthusiasm and professional expertise, showed considerable skill in identifying potential buyers and we had a revolving door of inspections. Her skill in finding interested buyers was outstanding and her management of the sale process was impeccable. She made (it) a pleasant experience, especially for a first-timer like me. I unreservedly will recommend her to any seller or buyer for her enthusiasm, industry knowledge and commitment to her clients. BILL MURRAY, VENDOR ALEXANDER CAMERON SUITES, PENOLA

I just wanted to pass on my thanks to Resort Brokers and to say how fantastic Alex has been as my broker. Alex Cook sold me my business and acted for me in the disposal and he was faultless in each scenario. His honesty, diligence and trustworthiness are a rare commodity in Real Estate and sales in general. He has a unique skill of delivering hard truth when it’s needed while at the same time maintaining trust and positivity and the result he achieved was better than I could have wished for. Truly a remarkable talent. STEVE BEALE, VENDOR, NOTTING HILL TERRACES & BRIDGEMAN DOWNS

My agent Chenoa Daniel is a rising star of Resort Brokers and the MR industry. Her professionalism, ethics and industry knowledge is above and beyond any other MR broker I have had dealings with. Chenoa is in a class of her own and invests everything she has to make sure you make the best purchase decision for your situation. One of those rare agents who treat your business decisions like her own and will do what it takes to get you over the line, and into a rewarding lucrative business that will suit your needs. Chenoa is with you every step of the way, even providing post-settlement advice and industry contacts. Her support was invaluable, and I can only see great things for her in the future. ANNALIES PLAYER, PURCHASER, CLIFTON WATERS 62

RESORTBROKERS.COM.AU | I S S U E N O . 9 2

We have known Glenn Millar for a number of years as he has helped us with every purchase and sale of our management rights businesses. His honesty, energy and genuine care for both sides in the transaction make him a standout broker in this field. His industry relationships and passion for the industry are second-to-none. You can always trust Glenn to get the job done." CHRIS & OLIVIA TAYLOR OCEA N S R ES OR T & S P A H ER V EY B A Y

REGULAR FEATURE

SOLD PROPERTIES RESORT BROKERS AUSTRALIA HAS SOLD AND SETTLED 186 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 2 5 U N D E R CO N T R AC T.

FREEHOLD GOING CONCERN

MANAGEMENT RIGHTS

LEASEHOLD MOTEL

FREEHOLD GOING CONCERN

LEASEHOLD MOTEL

MANAGEMENT RIGHTS

LEASEHOLD MOTEL

FREEHOLD GOING CONCERN

MANAGEMENT RIGHTS

FREEHOLD GOING CONCERN

LEASEHOLD MOTEL

MANAGEMENT RIGHTS

PASSIVE GOING CONCERN

LEASEHOLD

MANAGEMENT RIGHTS

FREEHOLD GOING CONCERN

MANAGEMENT RIGHTS

LEASEHOLD

MANAGEMENT RIGHTS

FH PASSIVE INVESTMENT

MANAGEMENT RIGHTS

LEASEHOLD MOTEL

MANAGEMENT RIGHTS

LEASEHOLD MOTEL

MANAGEMENT RIGHTS

LEASEHOLD MOTEL

MANAGEMENT RIGHTS

Ballina, NSW

Broadbeach, QLD

Rockhampton, QLD

Woombah, NSW

Cowes, VIC

Maclean, NSW

Northlakes, QLD

Biggera Waters, QLD

Warnambool, VIC

Carrara, QLD

Lutwyche, QLD

Maryville, NSW

West Burleigh, QLD

Port Douglas, QLD

Scarness, QLD

Mittagong, NSW

Longreach, QLD

Milton, QLD

Townsville, QLD

Kingaroy, QLD

MANAGEMENT RIGHTS

Southport, QLD

Bowen, QLD

Cairns, QLD

Brisbane, QLD

West End, QLD

Montville, QLD

Richlands, QLD

Wynnum, QLD

Kingaroy, QLD

Nambucca Heads, QLD

Labrador, QLD

LEASEHOLD MOTEL

Beerwah, QLD

Inverall, NSW

Kempsey, NSW

Springwood, QLD

I S S U E N O . 9 2 | RESORTBROKERS.COM.AU

REGULAR FEATURE

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 2

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

G R A N T & K E R RY Oâ&#x20AC;&#x2122;S U L L I VA N

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 2 | RESORTBROKERS.COM.AU

REGULAR FEATURE

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

KERRY LEWIS

JANE FANG

Marketing Manager Nationwide

Operations Manager Nationwide

Admistration Manager Nationwide

Chinese Liaison Broker National

0467 600 611 carla@resortbrokers.com.au

0437 198 164 marissa@resortbrokers.com.au

0418 771 871 kerry@resortbrokers.com.au

0402 399 613 jane@resortbrokers.com.au

N AT H A N E A D E S

GARETH CLOSTER

B R E N T S TA K E R

GLENN MILLAR

Broker Brisbane

Broker Brisbane Central

Broker Brisbane North

Senior Broker Sunshine Coast

0448 339 920 nathan@resortbrokers.com.au

0423 182 766 gareth@resortbrokers.com.au

0410 344 344 brent@resortbrokers.com.au

0412 277 804 glenn@resortbrokers.com.au

RESORTBROKERS.COM.AU | I S S U E N O . 9 2

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

JASON PORTEOUS

Broker Far North QLD

Broker South Coast NSW

Broker Northern VIC & South West NSW

0403 143 151 chenoa@resortbrokers.com.au

0428 499 620 kirstenl@resortbrokers.com.au

0416 166 909 russell@resortbrokers.com.au

0414 726 085 jason@resortbrokers.com.au

JIM CHAPMAN

LIZ GALEA

DAMON LUNARDELLO

DAMIEN LOORHAM

Victorian State Manager & Quest Apartment Hotels Specialist - Nationwide

Quest Apartment Hotels Specialist - Nationwide

Broker West VIC

Broker North East VIC

0413 444 782 jim@resortbrokers.com.au

0427 218 353 liz@resortbrokers.com.au

0403 730 071 damon@resortbrokers.com.au

0409 399 932 damien@resortbrokers.com.au

I S S U E N O . 9 2 | RESORTBROKERS.COM.AU

MIKE OLIVER Broker Tasmania 0410 062 177 mike@resortbrokers.com.au

KELLI CROUCH Broker South Australia 0410 441 750 kelli@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

I S S U E N O. 9 2

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

| RESORTBROKERS.COM.AU

I S S U E N O . 9 2 | RESORTBROKERS.COM.AU