June 2015 informer by Resort Brokers

INFORMER Super-Charged

On the road to retirement

- 2015 5 8

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No. 79 | June 2015

Australiaâ&#x20AC;&#x2122;s No.1 tourism & business

inside...

MINOR - HOTEL GROUP FEATURE

MIKE O'CONNORS COLUMN

MANY FACES: JULIEANNE ALROE

KEEPING A WATCH ON MOTEL COSTS

DISRUPTORS TO M.R. FEATURE: SUPER-CHARGED

REGIONAL OVERVIEW - MANDURAH

EXCLUSIVE LISTINGS

RELIEF MANAGERS

SOLD PROPERTIES

AGENT PROFILE - ANDREW RENDALL

INDUSTRY SPECIALISTS

MEET OUR TEAM

APPETITE FOR

Investment IAN CROOKS MANAGING DIRECTOR

ARE YOU CONFIDENT YOU’RE SET UP FOR THE FUTURE, FINANCIALLY SPEAKING? HOW MUCH WILL YOU HAVE IN YOUR RETIREMENT KITTY? MORE IMPORTANTLY, HOW MUCH INCOME WILL YOUR NEST EGG EARN FOR YOU? WILL IT BE ENOUGH? OUR STORY GIVES YOU THE LOW-DOWN ON LOW TAX, OFFERS TOP TIPS FOR TOPPING UP, AND REVEALS THE ‘EIGHTH WONDER OF THE WORLD’! (SEE PAGE 32) What a difference a year makes! After last year’s belt-tightening Federal Budget, business and consumer confidence fell. But the government’s much more positive 2015 approach already seems to be paying dividends. Confidence jumped to its highest level for some time after the RBA’s interest rate cut and release of the budget measures. Small business tax cuts and the immediate $20,000 write-off on new assets were well-received. It’s a stimulus package, plain and simple - an adrenaline hit for the economy. And the word from my accountant friends is that it’s working. Now we just need to keep the momentum going.

All the speculation around the budget did focus attention on issues surrounding pensions, superannuation and retirement planning. I recently heard an economist say he’d love to see a TV show called ‘Master Economist’, or ‘My Super Rules’. He was bemoaning the fact so few of us bother to take more than a cursory interest in our financial futures. Even people not that interested in cooking seem to be fascinated by prime-time shows about meal-making. He reckons it’d be great if we got half as excited about financial planning. Everyone hailed the relatively small tax bonuses in the budget. Yet many don’t take full advantage of incredibly generous tax breaks already available through superannuation. This issue’s cover story might be a wake-up call for many. Of course, economic considerations are always top of mind on the business front. One relatively new cost pressure for accommodation operators relates to the growing influence of online travel agents (OTAs). One of our stories in this edition looks at the impact. For example, when doing figures for a new 170-room hotel recently, I had to increase forecast operating costs by 7%, just to allow for the fact over 70% of bookings will come via OTAs. On a positive economic note for tourism, there is currently a big appetite for quality

Australian accommodation assets. Recent big-ticket hotel sales have including the Sheraton Mirage ($160m) and Marriott ($85m) resorts on the Gold Coast, Sydney Hilton ($442m), and Sofitel Sydney Wentworth ($224m). That was just in May! Resort Brokers has just sold the Soul Surfers Paradise management rights to Mantra Group. Our campaign stirred up enormous interest and several competitive bids. While the sale price remains confidential, it certainly set a new Australian management rights record, which would make it the biggest management rights sale in the world. A major international player now on the acquisition path is Minor Hotel Group. We profile them in this issue, in anticipation of their increasing presence in the Australian market. All this market activity is a great sign of industry expansion. Also in this issue, you’ll meet the impressive woman at the controls of the burgeoning Brisbane Airport. Julieanne Alroe set her sights on a career in aviation and has soared. Plus, there’s plenty more great reading and food for thought from our expert contributors and industry experts. Enjoy.

GOT ANY COMMENTS? GET IN TOUCH: CARLACOOK@RESORTBROKERS.COM.AU OR PO BOX 5004, WEST END QLD 4101 resortbrokers.com.au

Exclusive LH

Iconic Tasmanian resort hotel leasehold returning 39% on investment An opportunity to secure the leasehold interest of a 4 star purpose built hotel, constructed in 2006. Tidal Waters Resort St Helens, surrounded by three hectares of scenic lagoons and gardens, boasts the definitive Tasmanian East Coast waterfront setting. Conveniently located in the seaside town of St Helens on the East Coast of Tasmania, two and a half hours north-east of Hobart and one and a half hours from Launceston, Tidal Waters is a true resort/ corporate facility. With 60 motel suites, a magnificent entrance foyer and reception and facilities including a conference, wedding and function centre, meeting rooms, two restaurants, bar, guest lounges, tour desk/shop, outdoor heated pool, guest laundry, outdoor deck and substantial on-site parking. The business is fully staffed with limited day to day vendor involvement. The business has an excellent trading history and will improve with a fresh management style. St. Helens has developed as a major Tasmanian holiday destination for Tasmanians and tourists seeking a seaside holiday adventure or fishing pursuits.

Many tourists use St. Helens as their base when visiting the many tourist attractions on the east coast of Tasmania including the Freycinet Peninsular, Wineglass Bay and the Bay of Fire. •E ast Coast seaside tourism and holiday mecca overlooking St. Georges Bay •S ubstantial resort facility constructed in 2006 •R eturning 39% on Investment • L ong lease. Market rent •C onsistent incomes from accommodation, conferences, functions, food and beverage • Easy access to Hobart, Launceston and mainland ferry service

Nett: $515,278

Price: $1,320,00 (plus stock) resortbrokers.com.au/motels-for-sale/LH003565

Jim Chapman Broker Mobile. +61 413 444 782 Email. jimchapman@resortbrokers.com.au Melbourne Office. 03 9347 3100 4

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#simple #simple #simple

Connect to the worldâ&#x20AC;&#x2122;s leading travel channels Connect to the worldâ&#x20AC;&#x2122;s leading travel channels Connect to the worldâ&#x20AC;&#x2122;s leading travel channels

Call 07 5574 4990 or email sales@hirum.com.au to order yours today!

Exclusive FH

Highly sought after freehold caravan park only one in popular tourist town Resort Brokers Australia are excited to offer the freehold going concern of Cooma Snowy Mountains Tourist Park, located on the outskirts of town. It is a fully serviced site zoned for mixed use development under the LEP with an area of 4.178 ha (just over 10 acres)on three separate titles. Situated in the heart of the Monaro region and at the gateway to the states alpine area, Cooma Snowy Mountains Tourist Park is a perfect base to explore the many attractions the Snowy Mountains has to offer year round. What used to be a seasonal area with high tourist population during the ski season has now become a popular year round destination, with a range of recreational activities conducted through the summer months. These have been developed over recent years to help strengthen the economic and tourist patterns on a year round basis.

There is also a camp kitchen and tennis court. This park offers an excellent opportunity to secure a large regional caravan park to take to the next level and lends itself to Manufactured Home Permanent Living (STCA) The opportunities are endless for the new operators to take this park to the next level. • Large site with ample park development potential or ability to sell off undeveloped land • Multiple titles for easy sub-division • Fully serviced site on boundary of town • Currently run under management • Enormous upside potential

The park has approval for 92 sites and includes a two storey shop/ office /first floor flat, a detached three bedroom manager’s residence, two brick amenity blocks, developed van sites, basic camping sites and numerous configurations of cabin accommodation.

Nett: $306,686

Price: $1,850,000 resortbrokers.com.au/caravan-parks-for-sale/FH003768

Russell Rogers Broker Mobile. +61 416 166 909 Email. russellrogers@resortbrokers.com.au Sydney Office. 02 9904 8224 6

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Exclusive MR

Successful waterfront management rights on stunning Magnetic Island One Bright Point is an extremely successful management rights business located on the southern end of stunning Magnetic Island - a stone’s throw off the coast of Townsville. There are 124 apartments allowing for a variety of holiday and corporate pursuits, whilst taking in breathtaking views.

The current owner has decided to sell. This opportunity represents an 18% return on investment including the unit - great security and cash flow for an operator. The market is generated from residents, holiday makers, corporate and weekenders. Wow! An opportunity not to be missed.

Approximately 2,500 people live on Magnetic Island and in the holiday periods, the island can experience a growth of up to 10,000. Townsville is across the bay and has a population of approximately 190,000 people expected to increase to around 315,000 by 2036.

• Large three bedroom apartment which would suit a family or couple • Seaside Island location – work & lifestyle living • Opportunity to increase letting pool – obtain outside agent apartments • Great cash flow business • Future opportunity for conferences as it is currently an untapped market

The property benefits from international branding from Grand Mercure. An impressive reception offers a professional touch to the presentation of the property. A function/conference room allows for the current operator to cater for smaller business groups. The complex has large open areas, in-ground resort swimming pools, gym areas and stunning oceans views. The residence is adjacent to the reception area with a large open office space and three bedrooms with outdoor living areas.

Nett: $675,000

Price: $3,450,000 resortbrokers.com.au/management-rights-for-sale/MR003743

Shane Mullins

Des Fagg

Broker

Mobile. +61 447 185 001

Mobile. +61 427 849 119

Email. shanemullins@resortbrokers.com.au

Email. desfagg@resortbrokers.com.au

Head Office. 07 3878 3999

Head Office. 07 3878 3999 resortbrokers.com.au

EDITORIAL

Major PLANS IN THIS SERIES OF ARTICLES, WE PROFILE LEADING SHORTTERM ACCOMMODATION OPERATORS – THEIR ORIGINS, GROWTH, MARKET POSITION, AND FUTURE PLANS.

AS RECENTLY AS FIVE YEARS AGO, MINOR HOTEL GROUP WASN’T A NAME LIKELY TO COME UP IN ANY DISCUSSION OF AUSTRALIA’S ACCOMMODATION LANDSCAPE. NOW, MINOR IS A SIGNIFICANT PLAYER IN THE AUSTRALIAN MARKET, AND THEY HAVE MAJOR PLANS TO EXPAND THEIR PROFILE AND PRESENCE. Minor Hotel Group (MHG) is the hotels arm of listed Thai company Minor International PCL (MINT), a global business focused on hospitality and lifestyle products and services. MHG is an owner, operator and investor with a hotel and resort portfolio of over 130 properties comprising more than 17,000 keys in 22 countries across Asia Pacific, the Middle East, Europe, South America, Africa and the Indian Ocean. What began in 1978 with one small beachfront resort in Pattaya, followed by a single pizza restaurant in 1980, has mushroomed into one of Asia’s largest restaurant companies (1,700+ outlets under various brands), one of Thailand’s biggest distributors of lifestyle and fashion brands, and a hotel industry powerhouse. Minor’s accommodation brands include its uber-luxurious Anantara and upscale AVANI brands, both Thai-born, Per AQUUM, Elewana, Tivoli and Oaks. MHG also owns two Marriotts, three Four Seasons, a St. Regis and a Radisson Blu. It was the Oaks acquisition that gave them their Australian launch pad. While the company was already active here, having bought a 50% stake in our largest café group The Coffee Club in 2008, it wasn’t until 2011 that Minor entered the accommodation arena. And it did so with a major play. Minor bought the financially strapped Oaks Hotels and Resorts, then with 35 apartment properties across five states, paying a reported $160 million. It was their first foray into the Pacific and, at the time, doubled Minor’s international hotel interests. The company has since invested strongly in expanding Oaks as one of Australia’s largest self-contained accommodation providers, 8

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Anantara - Bangkok

Oaks - On William

Anantara - Bangkok

Anantara - Maldives

now with a portfolio of 51 properties across Queensland, New South Wales, Victoria, South Australia and Western Australia, as well as in New Zealand, Thailand and the United Arab Emirates. Driving MHG’s rapid international expansion is CEO Dillip Rajakarier (also COO Minor International), who oversaw the acquisition of Oaks and is now tasked with growing the group’s global portfolio to 150 hotels by 2020. That will involve significantly building Minor’s upmarket home grown brands, Anantara and AVANI, along with strategic acquisitions in a number of countries. Australia is set to figure prominently in that development plan, and the wheels are already in motion. In its biggest Australian move since buying Oaks, Minor recently won the rights to develop two sites in the $5 billion Perth City Link project. Plans for a twin-tower development in the prime CBD regeneration

Anantara - Maldives

DILLIP RAJAKARIER - CEO

Oaks - Broome

Avani - Pemba

project mark the debut in Australia of the AVANI Hotel and AVANI Residences brands with an investment worth more than $110 million. Announcing the news, Minor said a 250-room four to five star hotel and 15-level serviced apartments building would “introduce the AVANI brand hallmarks of essential comforts such as design for life living spaces, good honest food and all the details that matter for a fuss-free seamless stay.” Our first AVANI Hotel is due for completion by the end of 2017. “We are very excited to announce this new hotel and residential development in the centre of Perth, which represents, in parallel, a significant investment for the group, the introduction of the AVANI brands to Australia, as well as a new destination for Minor Hotel Group with Australia,” Mr Rajakarier said on winning the competitive Perth bid. “Minor Hotel Group is already well established in the country with

the Oaks brand and we have been actively exploring opportunities to bring some of our other brands to the Australasia region.” It was a move Mr Rajakarier had foreshadowed back in 2013 when he told The Australian newspaper that, despite a decline in commodity prices, Minor was eyeing expansion in mining centres, including in the resource-rich states of Queensland and Western Australia. True to his word, MHG went on to open the 144-room, 4.5-star Oaks Grand Gladstone, a wholly-owned hotel, in February 2014. Speaking to HM at the opening, Mr Rajakarier again flagged aggressive expansion in Australia. Since then, four new Oaks properties have opened in Melbourne, Brisbane and two in Mackay. MHG’s hotel business incorporates four operational models: owned hotels, joint venture hotels, management hotels (all of which are managed under Minor’s own brands), and management of serviced suites (the Oaks management rights model). MINT also operates more than 55 spas in leading hotels in 15 countries. “We have an opportunistic acquisition strategy … unlike some other big players, we’ll consider anything that complements our existing portfolios,” Mr Rajakarier said. Aside from the Perth announcement, major international growth steps made already this year include a strategic move into Europe and South America with the acquisition of a 1,600key hotel portfolio in Brazil and Portugal and, through Elewana, taking a majority stake in four Kenyan properties. The Perth development announcement in April has again raised awareness in tourism industry circles around Australia of Minor’s acquisitive intentions. Mr Rajakarier confirmed Minor was actively bidding for several Australian sites. “We are still looking for an Anantara to come to Australia … we are looking at Brisbane, Melbourne, the Gold Coast,” he said. The most upmarket and experiential brand in the Minor stable, Anantara is a Sanskrit word meaning ‘without end’. The ‘Anantara experience’ seeks to bring guests closer to the rich cultural traditions, historic heritage and natural beauty of each location. The concept has been introduced at breathtaking destinations in Cambodia, China, Indonesia, Maldives, Mozambique, Qatar, Thailand, UAE, Vietnam and Zambia. So, we will watch with interest to see which Australian location ultimately befits the Anantara experience of “laid-back luxury, intuitive service and a sense of discovery.” In the meantime, parent company Minor International continues to expand its food group here. Its growing portfolio of The Coffee Club and Ribs & Rumps restaurants was augmented last year when it took a 70% stake in Melbourne’s VGC Food Group, which owns Veneziano Coffee Roasters, The Groove Train and Coffee Hit. END resortbrokers.com.au

Exclusive MR

Business and lifestyle merge in the heart of Port Macquarie! Resort Brokers proudly present the beautiful Mantra Quayside Apartments. Centrally located on the edge of the Hastings River, within walking distance of the CBD. Seldom does such a high netting and modern business and living opportunity hit the market, not to mention the ease of caretaking and state of the art facilities to go with it. In addition to the current business prospect, you will be set to benefit from the neighbouring proposed development plans, as well as the imminent beautification of Port Macquarie’s central business district. The Port Macquarie region is perfectly located halfway between Sydney and Brisbane and is one of the most popular tourist destinations on the NSW coast. A place of natural beauty the Hastings area is renowned for its wonderful beaches, scenic hinterland and beautiful waterways. It also hosts a variety of annual events and festivals, providing fully occupied accommodation houses regularly.

• 41 x luxury 4 star premium apartments - configured to suit both the corporate traveller and holiday maker • High net profit – great return on a quality business • Idyllically located - stunning water views and an abundance of cafes, restaurants and boutique stores at your door • Contemporary facilities, including rooftop pool and BBQ area with a spectacular sea outlook and a large fully equipped gymnasium • Maximum terms for care taking and letting agreements are a condition of sale • Reputable and successful Mantra branding in place as a marketing service agreement not encumbered to new owners

The current operators have firm future plans and have left the brief to SELL!

Nett: $350,000

Price: $2,095,000 resortbrokers.com.au/management-rights-for-sale/MR003759

James Carrick Broker Mobile. +61 400 664 065 Email. jamescarrick@resortbrokers.com.au Sydney Office. 02 9904 8224 10

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Exclusive OTP

STAGE 2 - IVY TERRACE

STAGE 1 - EDEN LANE

STAGE 3 - LEXINGTON

STAGE 4 - AKIRA

Funky new lane way development in Wooloongabba Resort Brokers Australia are delighted to offer exclusively to the market the hottest new permanent management rights to hit South East Queensland - Eden Lane, Ivy Terrace, Lexington and Akira in Wooloongabba.

All three body corporates have their own managers office and storage areas (on exclusive use), ideal if you wanted to sell them off separately. There are no set office hours in the agreements allowing greater work flexibility.

Eden Lane & Ivy Terraces together, consist of 205 plus apartments. The residential agent and developer anticipates a high percentage of investors given the price point, high rental returns and fantastic urban location, combined with one of the lowest vacancy rates of any suburb in Brisbane.

• Brand new 25 year agreements • Extensive existing surrounding amenities including Coles Supermarket, 24 hour gym and Nandos • Boutique retail offering within the complex, boasting some of the best cafes and restaurants in Brisbane • Four stages so there are no more than 50 units coming on at one time

The projected net income of $644,847 is based on 90% investors and 10% owner occupiers based on the style of product, location and channels in which it has been sold. The business consists of three body corporates over four stages, so there is not an excess of product coming online at once. Eden Lane (stage 1) & Ivy Terrace (stage 2) are under one body corporate with a stunning swimming pool, gym and communal grassed area/ gardens. Lexington (stage 3) and Akira (stage 4) are under separate body corporates.

Nett: $644,847

Price: $3,030,780 resortbrokers.com.au/management-rights-for-sale/MR003741

Tim Crooks Broker Mobile. +61 422 208 450 Email. timcrooks@resortbrokers.com.au Head Office. 07 3878 3999 resortbrokers.com.au

EDITORIAL

HAVING A SUPER TIME AS THE RETIREMENT

Mirage Shimmers

BY MIKE O'CONNOR There was a time when my gaze was instantly drawn to any headline containing the words "sex" or "naked". Now its "super." If the headline manages to feature "naked" as well as "super," that’s a bonus but it’s "super" that has become the focus of my existence. There are a number of stages in a person’s "super" life. The first is when you think it’s only for old people and as you are never going to get old, you won’t need it. The next occurs when you realise that in spite of your best efforts to the contrary, the intervention of the medical profession will ensure you do get old. You tell them that you haven’t got any super and can’t afford to get old but they insist on treating your life threatening conditions and prolonging your existence. At this point you realize you have a problem and start salary sacrificing into a super fund. Suddenly, you are in your late fifties and find yourself going on-line and checking your super balance twice a day. Every time the share market hiccups, you get palpitations and have to go and lie down. As retirement nears, you think that you have managed to dodge a financial bullet and managed, only just, to have accumulated 12

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enough for what economists like to describe as a "comfortable" retirement. The moment you think this, interest rates start heading towards the floor while politicians start talking about changing the rules. That "comfortable" retirement becomes a mirage shimmering in the distance. You can see it but the closer you get to it, the further away it becomes. You turn on the six o’clock news and an economist is telling you that the money sitting in your super fund is not enough to fund a comfortable retirement. Then a politician appears and tells you that because you have sweated blood for the past 15 years building a super balance, you are now classed as a rich person and your super earnings should be taxed. You find this confusing because the economist has just finished telling you that the money in your super isn’t enough to fund that elusive "comfortable" retirement. How can you be rich? Why, you wonder, when you have tried to be self sufficient are you now being portrayed as an enemy of society who must be punished for having saved money on which you have already paid tax? You have that lump sum in your super,

the one you’ve watched go up and down with your blood pressure for the past 15 years and are about to grasp it with both hands when another politician appears on the TV screen. "We’re going to have to change the rules," he says. Why? Because, perhaps, there’s a chance that if you get your clammy hands on that money, you’ll blow it all on $10,000 a night hookers and first class airline tickets. Then, when it’s all gone, you’ll go on the pension and become a burden on society. The thought of doing this has never entered your mind but suddenly, it doesn’t seem like such a bad idea. "We’re going to give you a pension from your super and you can live off that" says the politician, who when he retires under one of the most generous parliamentary superannuation schemes in the world, will have to struggle by on $200,000 a year. You wonder if he’ll manage to have a "comfortable" retirement and guess that this is highly likely. My wife and I have the retirement discussion several times a week. "When we will retire?" I ask. "Another couple of years," she replies. "Then we’ll have enough for a comfortable retirement." END

Exclusive LH

The best of both worlds, two businesses in one! Leasehold offering The historic Club Motel & Globe Serviced Apartments are situated in the city centre of Wagga Wagga and close to the interstate railway station. There are many restaurants, hotels, galleries, museums, theatres and retail shops nearby. The motel has been operated under management, so it would benefit from owner operators with a hands on approach to operations. In addition to the motel are the Globe Serviced Apartments, the newest and most unique boutique accommodation in the heart of Wagga Wagga. The apartments feature fresh, modern interiors and contemporary furnishings for the discerning traveller, as well as full kitchen facilities and a private balcony or courtyard. Each apartment offers comfort, privacy and security.

• 30 x motel suites plus 4 x 4 star serviced apartments • The motel is a turnkey, fully refurbished, 30 suites, 150 metres away from the Main Street • Wagga Wagga is the largest regional city in NSW • The Globe Apartments are 4 x two bedroom apartment blocks, formally the Globe Hotel • The quality and design is second to none and enjoys high occupancy • Bed and breakfast only as there is a very well established Thai restaurant leased on the site • Brand new lease to be actioned on settlement • Neat as a pin. Worthy of your immediate inspection!

The vendor is offering a new 30 year lease with market rent to the successful purchaser.

Nett: $303,857

Price: $1,000,000 resortbrokers.com.au/motels-for-sale/LH003720

Andrew Rendall Broker Mobile. +61 412 635 344 Email. andrewrendall@resortbrokers.com.au Sydney Office. 02 9904 8224 resortbrokers.com.au

Brand new Quest Opportunities Quest Chermside on Playfield

As with all Quest properties, all five 'Greenfield' sites will be finished to a 4.5* standard, ensuring the quality of product expected by Quest customers. All apartments will have fully fitted kitchens, bathrooms, laundry facilities (except with some studios), separate living and dining areas (except with studios), internet access, Foxtel, DVD, stereo and quality furniture and fittings.

Brisbane - Quest Chermside on Playfield 38 – 40 Playfield Street, Chermside, Qld

• Total of 48 apartments, 78 keys • 36 X 1 bedroom, 30 X 1 bedroom, 12 X 2 bedroom apartments • 100M from Westfield Chermside • Initial 15 year lease with further 2 X 5 year options. • 6 storey building with one passenger lift • Ground floor reception facilities including office space • Conference facility and external breakout area • Guest laundry facility, staff kitchen, gym, lobby, 56 car spaces.

Price: $1,560,000 (+ $180,000 EBI) + GST Expected opening date September 2015

For Enquiry contact Alex Cook 0467 600 610

Perth - Quest West Perth 54 Kings Park Road, WA

Capital City Corporate Accommodation Businesses 4.5 Star Serviced Apartment Leaseholds Resort Brokers are excited to offer to the market five ‘Greenfield’ properties, the latest franchise offerings from Quest Serviced Apartments, Australia’s largest and fastest growing serviced apartment operator. All five properties are fantastic opportunities to not only acquire the leasehold interest to a brand new accommodation property in a prime city location, but also to become associated with the Quest Brand. With more than 150 properties nationwide and growing at a rate of roughly 10 new properties per year, Quest have focused on providing quality accommodation in locations where it’s corporate customer need to be. Quest will provide extensive training and support in all areas important to the successful operation of a short-term accommodation business. Franchisees have autonomy over the day-to-day operation of their businesses and also benefit hugely from the Quest National Account Team, whose responsibility is to tender directly to the top 500 companies in Australia, with the aim of securing and nurturing new business and long-term relationships. 14

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• Total of 55 apartments, 72 keys • 67 studios, 1 X 1 bedroom and 4 disabled studio apartments • 750M from Princess Margaret Hospital for Children • Initial 14 year lease with further 2 X 7 year options. • 10 level building with two passenger lifts • Ground floor reception with office space and meeting room • Conference facility with adjacent kitchen • Guest laundry facility, gym

Price: $1,440,000 (+ $170,000 EBI) + GST Expected opening date December 2015

For Enquiry contact Jim Chapman 0413 444 782

Perth - Quest Mounts Bay Road 130B Mounts Bay Road, Perth WA

• Total of 65 apartments, 71 keys • 63 studios, 8 X 1 bedroom apartments (inc 4 disabled). • 750M from Perth Convention and Exhibition Centre • Initial 15 year lease with further 3 X 5 year options • 7 storey building with two passenger lifts • Ground floor reception facilities including office space • Guest laundry facility, staff kitchen, gym, lobby, terrace

Price: $1,420,000 (+$170,000 EBI) + GST Expected opening date February 2016

For Enquiry contact Jim Chapman 0413 444 782

For more information visit: http://www.questapartments.com.au/F

Quest Mounts Bay Road

Perth - Quest East Perth 176 Adelaide Terrace, WA

• Total Of 98 Apartments, 130 Keys • 64 studios, 50 X 1 bedroom, 16 X 2 bedroom apartments • 850m From Royal Perth Hospital • Initial 15 Year Lease With Further 3 X 15 Year Options. • 18 Level High-Rise Building With Two Passenger Lifts • Ground Floor Heritage Church Providing Unique Lobby • Conference Facility With Connected Kitchen And Store Room • Guest Laundry Facility, Gym, BBQ Roof Terrace, Car Parking.

Price: $2,600,000 (+ $285,000 EBI) + GST Expected opening date March 2016

For Enquiry contact Jim Chapman 0413 444 782

Sydney - Quest Bella Vista 24 Norbrik Drive, Bella Vista, NSW

• Total of 91 apartments, 147 keys • 56 studios, 56 X 1 bedroom, 27 X 1 bedroom, 8 X 3 bedrooms apartments • 100M from Norwest Private Hospital • Initial 14 year lease with further 14 year option • 7 storey building with two passenger lifts • Conference facility with connected kitchen • Ground floor reception facilities with two office spaces • Guest laundry facility, business lounge, staff kitchen, gym, lobby

Price: $2,940,000 (+ $320,00 EBI) + GST Expected completion date May 2016

For Enquiry contact Jim Chapman 0413 444 782

Your invited to Quest Information Seminars Want to join Australia’s fastest growing serviced apartment group? Want to be your own boss? Want to be an active serviced apartments operator? Or a passive investor in a great business?

Whatever you are looking for, our new buyer seminars will point you in the right direction. In conjunction with the Holmans Accountants, Mike Phipps Finance and Resort Brokers Australia, these informative events will demystify the serviced apartment model and help you become a part of the rapidly growing Quest Franchise family.

Brisbane Seminar 24th June 2015 - 6.30pm

Quest Breakfast Creek - 15 Amy Street, Albion, QLD 4010 (opposite the famous Breakfast Creek Hotel)

Sydney Seminar 23rd July 2015 - 6.00pm

Quest at Sydney Olympic Park - 6 Edwin Flack Avenue, Sydney Olympic Park, NSW 2127

In conjunction with:

Franchising/franchising-information-seminars.aspx | 1300 665 966

Faster. Better. More.

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EDITORIAL

THE MANY FACES OF THE TOURISM INDUSTRY

Julieanne

Alroe

THE SKY’S NO LIMIT FOR THIS QUIET ACHIEVER

JULIEANNE ALROE IS CEO AND MANAGING DIRECTOR OF BRISBANE AIRPORT CORPORATION (BAC). SHE IS THE STEADY HAND AT THE CONTROLS OF NOT ONLY BRISBANE AIRPORT (BNE), BUT ALSO ITS BURGEONING BUSINESS COMMUNITY. ALREADY BIGGER THAN SOME TOWNS AND SUBURBS, BNE IS ON THE CUSP OF PERHAPS IT’S MOST EXCITING GROWTH PHASE YET.

BY CATIE LANGDON The first thing you notice about Julieanne Alroe is her quiet, unassuming manner. There is a calm confidence, no sign of the hubris you might expect of someone in such an influential senior position. She presides over the largest airport in Australia in terms of land size (2,700 ha), the nation’s second busiest capital city airport, and its third largest by passenger numbers. In 2014, more than 22 million passengers used BNE on more than 210,000 aircraft movements, earning aeronautical revenues exceeding $210 million and driving total BAC Holdings Limited revenue in excess of $560 million. That also makes it one of Queensland’s biggest local enterprises, a fact she highlights not for reasons of self-importance, but because of the airport’s vital role in contributing to the community and economy of both city and state. “Airports, to me, are so fundamental to Australia’s way of life and economic prosperity,” she says. “The old ‘tyranny of distance’ is a genuine reality for us. Without aviation, we are a long way from anywhere by boat and, even within our own country, by road or rail.” Perhaps that’s what drew Alroe, as a young University of Queensland economics graduate, to a career in aviation. “I suppose, when you’re 20, aviation sounds glamorous,” she laughs, “although I was never interested in the actual flying part. I wanted to be in management. It’s that combination of interesting work and worthwhile work.” She started in Canberra, with the Commonwealth Department of Aviation. At the time, it ran all of Australia’s airports and owned both Qantas and our then domestic carrier TAA. After four years, she moved to Sydney Airport, and her career path was sealed. “From the day I started at Sydney Airport, I’ve just loved it,” she says. “It is interesting and varied work. I can honestly say I’ve never been bored … stressed, even a bit frightened at times … but never bored. Change is constant and it’s quite invigorating really to have that level of dynamic movement about what you are doing.” At Sydney, Alroe progressed relishing the diversity and opportunity as she moved from security to passenger services, business planning and communications, aviation services, to asset management and planning, rising to become general manager of infrastructure planning and services. In July 2009, she moved back to Brisbane to take the helm at BAC. She had grown up in Hendra, a northside suburb bordering the airport, watching planes come and go from her front yard, probably never imagining she might one day run it. Now she is one of only a handful 16

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of women in the world to run a privatised airport. Alroe oversees BAC’s four primary business units: aeronautical, retail, property and car parking. While she was building her career in aviation, aviation itself was evolving. Where airports were once focused entirely on air transport, they are now diverse and complex business hubs. BNE has two major terminals operating 24-7, servicing 26 airlines flying to 67 destinations. But it is also home to 420 businesses employing around 21,000 people in everything from freight, warehousing, transport and communications to research, property and infrastructure development, education and training, recreation, tourism, leisure and retail. That’s a lot of industries to be across. “When I started out, things like restaurants and duty free were almost incidental,” Alroe says, recalling meals that resembled those served in an army mess. “Because I’ve been through the transitions, I’ve grown with it. “Growth was quite organic initially but, with privatisation, we were able to bring more professional property developers, retailers and parking operators in and we have really started to push the envelope in terms of how we can extend those things.” Accommodation is now one of the most vital components of an airport precinct. Brisbane Airport’s first and only hotel, the Novotel, opened not long after Alroe arrived. Beneath a roofline designed to echo the form of an aeroplane wing, it offers 157 rooms, conference rooms, roof terrace, restaurant, bar, pool, gym and sauna. Soon it will be joined by fellow Accor

brands in a new dual hotel development to add a five-star Pullman of 125 rooms, a 3.5-star Ibis with 225 rooms, and a stateof-the-art conference centre for up to 500 delegates. Work on the $148 million project is about to start, for completion by September 2016. “These new hotels will be right across the road from the domestic terminal,” Alroe said. “We have also identified another site at the international terminal, but we’ll wait a couple of years before bringing it online.” Airport expansion is a major focus for this understated but clearly tenacious businesswoman. The recent approval of BAC’s Master Plan will see $3.8 billion invested in airport infrastructure over the next decade, allowing Brisbane Airport to cater to an expected doubling of passenger numbers to around 48 million by 2034. It covers the current $45 million international terminal redevelopment, expansion of the domestic terminal, a rolling program of apron expansion, and major technology and security upgrades. But, by far the largest project, and most critical to BNE’s growth, is the new $1.35 billion parallel runway due for completion in 2020. It is a massive undertaking and one being done with great care... care to maintain environmental integrity, and care to inform and engage with the local community at every stage. The airport’s environmental record and community relationships are very important to Alroe. “We work very hard to be honest and transparent about what we are doing, and also to have strong credentials and integrity about how we do things,” she

says. Referring to a recent Moreton Bay dredging project to provide the millions of cubic metres of sand needed to build up the runway site, Alroe paid tribute to her environmental, project and community relations teams. “If we had not been responsible, we could have done harm,” she said. “Because we had very, very strong environmental management around it, we actually finished well ahead of schedule and under budget. Because we were very diligent, we didn’t have delays. People let you get on.” Once the runway is built, the same care will be taken to commission it. “To bring that runway into service without alienating people who might be under a flight path for the first time, even though we have a big buffer zone, will be another big challenge.” But it’s a challenge Alroe looks forward to, because that new runway means a major boost to capacity. “Brisbane will be able to attract more international flights. The Sydney and Melbourne expansions are a bit behind us, which will give us an opportunity for a couple of years. We intend to go after that.” Alroe is enthusiastic about the outlook for Queensland. After a lull in tourism product development and refurbishment, she welcomes the revived tourism investment – the planned Howard Smith Wharves and integrated resort and casino in Brisbane, refurbishment of Jupiters Casino on the Gold Coast, and arrival of high-end resorts like One and Only Hayman Island and Qualia at Hamilton Island. “Our big opportunity is on the international front. As Queensland improves its tourism product, more and

more people will come here. Around 2020, when all this new investment comes on line, including our new runway, it will be a very good news story for Queensland.” Alroe takes her role in the tourism industry and broader business community very seriously. She holds board positions with Tourism and Events Queensland (TEQ), Australia TradeCoast, Urban Futures Brisbane, and Queensland Theatre Company, to name only a few. “TEQ is fundamental, a core relationship. I don’t really see that as extra work, rather an extension of what we are doing at BAC,” she says. “Part of my job is to be out there selling the airport to the business and political communities. These activities allow me to have those relationships and keep engaged.” The Queensland Theatre Company involvement, she admits, is a personal passion. And, if there’s time for relaxation, she finds joy in reading and listening to classical and baroque music. Alroe also enjoys travel, which is just as well for someone in her position. When Informer met her, she had just returned from a trip to Turkey, visiting Gallipoli for the Anzac Centenary in honour of her grandfather who had served there. Julieanne Alroe’s record of achievement is impressive, to say the least. Asked about her recent triumph in handling one of the greatest logistical and security challenges for any airport – hosting the world’s most powerful leaders and their delegations in Brisbane for the G20 – she was typically selfeffacing. “It went well. We were pleased. We actually enjoyed it in the end, but that only came because the team had done the hard years for almost 18 months beforehand. We’ve shown Brisbane is co-operative, we’re friendly, and we’re smart. We get things done. A reputation of competence is a very good thing to have.” Pressed for her G20 highlights, Alroe says it was “special” to meet German Chancellor Angela Merkel, someone she greatly admires. But the most pleasure came from watching her team handle the near simultaneous arrival of the Germans, Chinese and Russians. “It was just magic watching the way they got those aircraft in and out and towed away,” she beamed. “You could have set it to music, it was so beautiful!” But there’s little time to reflect on past glories. “It doesn’t matter what you did yesterday, today you have to do it all over again,” she says, referring to the constant need to focus on safety, security and the passenger experience. Alroe’s clear focus is on the future. “I think the really big challenge is to get more international passengers to Brisbane, to Queensland. Now we are getting the capacity and the facilities, our big job for the next decade is to grow those international passenger numbers.” END resortbrokers.com.au

Exclusive MR

Architecturally designed Gold Coast holiday complex This resort is an immaculately presented, architecturally designed holiday complex located directly on the stunning Broadwater in Biggera Waters, Gold Coast. The Broadwater is ideal for those looking to escape the hustle and bustle of more ‘touristy’ location such as Surfers Paradise, while still being in easy reach of all the tourist attractions the Gold Coast has to offer. The property has proven to be a very popular complex in this area. Occupancy currently runs at circa 65% and has been consistently high over the past decade. It recently won a Certificate of Excellence from Trip Advisor. Indeed, a quick look at this site will show many very positive comments from holiday makers.

• Architecturally designed complex directly overlooking the stunning Broadwater • 40 units complex, 30 in on-site letting pool (20 holiday and 10 permanent) • Complex just repainted – presents as near new • Holiday units lovingly maintained – most upgraded and present to a very high standard • Well presented two bedroom, two bathroom manager’s unit with large wrap around patio • Very supportive and pro-active body corporate committee • East to manage caretaking workload

The new owners will benefit from the fact that the complex has just undergone a complete repaint. It looked great before and now it looks brand new. An inspection of the property will impress internally as well as externally. The rooms have been lovingly maintained to a high standard and immaculately presented. All have Broadwater views to varying degrees.

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Alex Cook

David Jiang Hui 江晖

Broker

Nett: $230,000

Price: $1,545,000

Mobile. +61 467 600 610

Mobile. +61 481 500 278

Email. alexcook@resortbrokers.com.au

Email. davidjianghui@resortbrokers.com.au

Head Office. 07 3878 3999

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Short term off the plan management rights in

style + momentum

Short Term off the plan management rights in Victoria’s 2nd largest city

R E D N U T C A R T N O C

This soon to be refurbished heritage building, first constructed in 1926, has retained its original Georgian Revival exterior whilst serving as an anticipated four-and-a-half-star complex of 37 boutique serviced apartments and a manager’s residence. Located in Geelong a city of some 250,000 residents, The Devlin Apartments are close to the CBD and the recently redeveloped Simonds Stadium. With a capacity of 35,500 patrons the facility is the home base of the Geelong Aussie rules football club. As the only 4·5 star facility in Geelong (anticipated), it’s proximity to business, leisure,retail facilities and its accessibility to key tourism regions, means that The Devlin is well placed to capture a share of the corporate, leisure and tourist market. The Devlin will be converted into 28 (37 keys) boutique apartments encompassing three distinct architectural and designed styles; New York loft, Contemporary and Industrial Chic. Each apartment style is represented by individually selected living and dining pieces, complemented by lavish soft furnishings and artwork, enhanced by distinctive lighting solutions. Every detail has been taken care of from high quality appliances and bedding to multimedia solutions to private outdoor lounge areas. The manager’s apartment is situated at the rear of the reception/foyer. This one bedroom residence has been designed in the ‘Contemporary’ style. It features a lounge, kitchen and powder room (as well as a second toilet). Significant stamp duty concession available. • The only 4·5 star rated establishment (anticipated) in this growing region of 300,000 people • Caretaking agreement (ten years with 4 x 10 year options) • All apartments in the letting pool • Anticipated completion date Nov 2015 resortbrokers.com.au/management-rights-for-sale /OTPoo3579

Jim Chapman - Broker Mobile: +61 413 444 782 Email: jimchapman@resortbrokers.com.au Melbourne Office : 03 9347 3100

Nett: $350,886 Price: $1,490,000 resortbrokers.com.au

KEEPING WATCH ON MOTEL

Operating Costs DOING BUSINESS IN TODAY’S DIGITAL WORLD COMES AT A COST. THE DOMINATION OF ONLINE BOOKING AGENCIES HAS ADDED NEW COSTS FOR MOTEL OPERATORS, SO CARE MUST BE TAKEN TO ENSURE PROFITS ARE NOT ERODED. BY IAN CROOKS - RESORT BROKERS AUSTRALIA The formulas for establishing and valuing motel leases have stood the test of time. Since they were researched and formulated in the 1980s by pioneering Resort Brokers Australia managing director Ian Crooks, the assumptions on which they were based have remained consistently valid. Yes, operating costs have risen over time. But the cost items have remained fairly constant, and profit ratios have been able to be maintained. Now, however, not only have the goal posts shifted, we’ve entered a whole new playing field. The creeping reliance of accommodation operators on online travel agents (OTAs) is arguably the most significant change the industry has ever faced. The cost of ensuring your motel is sold through multiple OTA websites adds a new expense to the P&L. At the same time, the more traditional marketing strategies still need to be maintained. The challenge for motel operators is to protect their margins in today’s highly competitive online market. There’s no doubt it is imperative for accommodation providers to adopt an online booking system that manages inventory, sells their rooms through the OTAs, and automates booking confirmation and payment. Reports suggest large hotel chains receive up to 20% of their

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bookings through OTAs, while smaller operators often rely on them for more than half. The recent takeover of Wotif by Expedia (for $703 million!) highlighted the digital reality for operators. Between them, the two global powerhouses, Expedia (Hotels.com, Trivago, Wotif ) and Priceline (Booking.com, Agoda), now control about 85% of the online booking market in Australia. In the wake of the takeover, both Wotif and Agoda raised the commissions they charge operators from 12% to 15%, squeezing margins for small operators who are unable to pass on the cost increase to consumers. This added pressure comes at a time when some of the traditional costs of operation have also been increasing. The price of insurance has risen significantly in recent years, along with energy bills. While electricity prices in some Australian states seem to have stabilised, they are certainly still rising in Queensland and the Northern Territory – locations where the airconditioning expected by guests comes at an astronomical cost. There is no getting away from these new realities. Motel operators now need to keep abreast of systems, strategies and software that help cut reservation costs and boost online revenue. At the same time, motel landlords need to be aware of the impact of these increased operating costs when setting and reviewing rents. If their lessees’ profit margins are eroding, and rent increases are imposed, property maintenance can be the first to suffer – to the detriment of the business and, consequently their investment. END

Exclusive LH

West Coast Tasmanian leasehold with a strong trading history The Silver Hills Motel is an iconic west coast motel in Queenstown Tasmania. It features 57 motel suites in three accommodation wings, a substantial restaurant and onsite parking for cars and coaches. Ideally situated towards the west coast of Tasmania providing easy access to world heritage listed wilderness areas and the west coast tourist town Strahan and Cradle Mountain. Queenstown is experiencing the beginnings of a resurgence of activity in 2 of the local mines. The historic Mount Lyell mine, after turning down 2 offers to sell, have announced that they will shortly commence development through to their next high grade copper and gold ore deposit adding a conservative estimate of an additional 20 years to the mine's life. The Indian parent company Vedanta have given approval for new mining methods to be employed in the recovery of ore. The return to production is expected to provide employment opportunities of 200 positions, which will be a massive boost for the local economy. Further to this, the local Henty Gold Mine, owned by Unity Mining, has announced recently the farm-in agreement that will see it join with PYBAR mining and re-commence diamond drilling on the Henty fields.

At one point Henty was due to go into care and maintenance later this year, but a return to drilling is a very positive sign that production at this mine will continue for years to come, and see it re-employ numerous of people that were recently made redundant. • Largest accommodation facility in Queenstown • Possibility of expansion to mining in the near future •E xcellent tourist trade accessing the Queenstown/Strahan railway, the Gordon river and wilderness walks • Solid trading history • Market rent • Close to iconic tourist destinations of Strahan and Cradle Mountain

Nett: $140,636

Price: $495,000 plus sav resortbrokers.com.au/motels-for-sale/LH003670

Jim Chapman Broker Mobile. +61 413 444 782 Email. jimchapman@resortbrokers.com.au Melbourne Office. 03 9347 3100 22

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EDITORIAL

UNIT OWNERS AND GUESTS NOT IN YOUR RENTAL POOL BY COL MYERS - SMALL MYERS HUGHES I frequently receive calls from clients wanting to know what obligations they have as onsite letting agents to provide ‘ancillary’ letting services to owners or their guests of units not in the letting pool. The simple answer is that they have no obligations to provide any letting services at all to these people. You must firstly understand your agreements with the Body Corporate. The Caretaking Agreement is a contract between the on-site Manager and the Body Corporate for the caretaker to provide cleaning and maintenance service to the common property. This agreement rarely places any obligation on the Manager to do anything within an owner’s lot. In fact, any obligation on the Manager to do so would most likely be invalid. The Letting Agreement is simply a contract between the Body Corporate and the Manager whereby the Manager is given the exclusivity to provide letting services at the complex. Most agreements are worded on the basis that the Manager ‘may’ provide these services. Every now and then you come across agreements that state the Manager ‘must’ provide the services. If unit owners want to place their unit in the Manager’s rental pool, they sign an Appointment to Let (sometimes called a ‘Management Agreement’) with the Manager. This agreement sets out the services which will be provided and the commission/costs for provision of those services. No owner can be obliged to let their unit

with the on-site Manager (unless the Manager has entered into a leaseback arrangement with the owner). Consequently, every owner has a choice. If an owner chooses not to use the on-site Manager for the letting of their unit, the Manager has no obligation to provide any ‘ancillary letting services’ to these owners or their guests. I often hear of situations where guests turn up at the Manager’s office looking to collect room keys for units which are not in the Manager’s rental pool. Put simply, it is not your job to provide keys and nor should you have access to these units. However, one area which does cross over to your caretaking duties is where guests in apartments (including apartments which are not rented by the Manager) have parties or cause disturbance to occupiers. In most Caretaking Agreements, it is the duty of the Manager to report on breaches of the strata scheme by-laws and do whatever they can ensure that the by-laws are not breached. From time to time, Managers are required to ask guests to tone down the noise or to call Police to stop loud and unruly behaviour. This obligation remains irrespective of whether the unit is in your rental pool or not. The best tip I can give you is to apply your common sense as to when you draw the line on what (if any) ‘ancillary services’ you provide to a non-letting pool owner or guest. END resortbrokers.com.au

Exclusive LH

Bali Beckons - boutique villa resort On offer is a luxury seven villa resort with full infrastructure including managers apartment, restaurant and bar, massage area, reception and back of house.

The land coverage is 2500m2 and has direct road access The villas can be subdivided for individual ownership or held in one-line.

Nestled in the beach side suburb of Sanur sits Aleesha Villas. The property was built by an Australian to the highest international standards. It is in close proximity to the beach and all the restaurants and bars.

The owner will consider a trade of property in Australia or a part trade of another asset or trade dollars.

Price: $2,450,000

There is an existing business in place that provides a solid holding income. The land title is 41 year leasehold and has been paid up. It is well suited for foreign ownership.

Ian Crooks

Steve Dawson

Broker

Prime Resort Services

Mobile. +61 411 171 648

Mobile. +62 813 376 89000

Email. iancrooks@resortbrokers.com.au

Email. steve@prsbali.com

Head Office. 07 3878 3999 24

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Exclusive MR

Your little piece of Greece on the Sunshine Coast - holiday management rights complex Myconos Holiday Apartments are located in Cotton Tree on Queensland's Sunshine Coast, a popular suburb with a beachside walking track that spans to Mooloolaba.

The breakdown of the letting pool is 2 x two bedroom units and 6 x one bedroom units. The one bedroom apartments do not have laundries and as such there are guest laundries on levels three to five.

The Sunshine Coast Airport is 15 minutes north and the Brisbane Airport is one hour south. The area is minutes for a wonderful variety of bistros, cafes, restaurants, pubs and clubs. Nearby Maroochydore is the main CBD and shopping centre of the Sunshine Coast.

The body corporate pays for security to lock the pool area at night and complete two nightly rounds. There is lift access from the undercover secure car park to all levels and the complex features a heated pool, barbeque area and common lounge pool area.

Maroochydore’s Sunshine Plaza is within easy walking distance and has a Myer, cinemas and an enormous number of retailers with both quality and diversity. The Maroochydore Surf Beach is renowned for surfing and surf lifesaving events.

This offering would suit either a couple or a single operator as it has minimal grounds and common areas.

The complex features a range of themed one and two bedroom apartments; all air-conditioned, with luxurious king or queen size beds, stylish fully equipped kitchens with quality appliances and large balconies with north-east aspect.

• After a run of nine years the current owners plan to retire. • Three bedroom residence • No set office hours in agreements

Nett: $109,000

Price: $990,000 resortbrokers.com.au/management-rights-for-sale/MR003769

Glenn Millar

Tyler Millar

Broker

Mobile. +61 412 277 804

Mobile. +61 411 271 761

Email. glennmillar@resortbrokers.com.au

Email. tylermillar@resortbrokers.com.au

Head Office. 07 3878 3999

Head Office. 07 3878 3999 resortbrokers.com.au

Exclusive LH

Absolute beach front luxury hotel – leasehold opportunity Sarayi is located north of Cairns, in the tourism hot spot of Palm Cove. It has prime esplanade frontage. The site has dual street access and is ideally located within the heart of the tourist strip.

The entire strip of resorts is predominantly strata-titled, making Sarayi a unique freehold opportunity. There is a current DA in planning stages to expand the number of units to 64.

The leasehold offering of Sarayi Palm Cove - 3 storey beachfront hotel providing a mixture of hotel accommodation. The resort comprises 26 guest rooms, a busy reception/tour desk, and an incredible rooftop terrace & swimming pool which takes in the stunning ocean views.

This is the opportunity in our region that astute purchasers should be looking at!

The opportunity is extended to an operator who can see the future benefits of this vast region. The region is full of optimism with real capital projects planned. The most exciting is the Palm Cove Safe Boat Harbour project, this includes a lagoon and parklands, which would see a $30 million capital investment from local business and federal funding. The opportunity is extended to purchase the freehold supported by associated commercial retail tenancies, enhancing the operation of the hotel and precinct.

• 18 modern and spacious hotel rooms and 8 one bedroom apartments • Magnificent views of the Coral Sea • Large grandeur hotel foyer and reception area • Rooftop terrace - Highly sought after wedding and function venue • Tow successful operative retail tenancies

Price on application resortbrokers.com.au/motels-for-sale/LH003789

Shane Mullins Broker Mobile. +61 447 185 001 Email. shanemullins@resortbrokers.com.au Head Office. 07 3878 3999 26

resortbrokers.com.au

Exclusive LH

Exceptional 4 star motel located only 10mins from the Orange airport Only 7 years old, the Millthorpe Motel is a fabulous 20 room purpose built property in the heart of the historic Millthorpe village that caters to tourist, mining and corporate clientele in the heart of the NSW resource rich region. Situated only 10 minutes from Orange airport and 15 minutes to the heart of Orange, this premium property is well located. With no restaurant, the property is a breeze to run and features a variety of deluxe rooms and luxury style apartments, and caters for corporate individuals, couples, families and groups. The property also includes the Millthorpe Motel Guest Lounge, which is well utilised for private functions, meetings and conferences. As the only Motel in town, the Millthorpe Motel is the local accommodation hub for the town and an excellent place for an overnight stay or a week‐long visit. The property is set to benefit from the Orange airport development which is nearing completion.

Millthorpe is located in Central NSW in the heart of a dynamic food and cool climate wine region. Just 3.5 hours from Sydney and Canberra, the village of Millthorpe boasts award winning restaurants, arts and antiques all enhancing its charm, sophistication and eclectic style. • Highly sought after property – immaculate condition • Only 7 years old • Premium 20 room motel • 15 minutes to the City of Orange • No restaurant, ease to run

Nett: $147,148

Price: $595,000 resortbrokers.com.au/motels-for-sale/LH003751

Shane Wynhoven Broker Mobile. +61 424 174 592 Email. shanewyhoven@resortbrokers.com.au Sydney Office. 02 9904 8224 resortbrokers.com.au

Australia in the year to March 2015 of just 2,300 – the smallest net loss since 1992. The recent decline has been dramatic, down from a net loss of 35,300 in the year to March 2013. So, what does all this NZ economic prosperity mean for Australia’s tourism and accommodation property industries, both of which have historically relied heavily on the New Zealand market? Well, the news is all good. Travelling Kiwis are cashed up and on the move. Trips by New Zealand residents in the year to March 2015 hit a record high (up 5%) and half of all those trips – 1.1 million – were to Australia. Actually, it could be a toss up this winter

NZ-AUS RIVALRY TAKES TO THE ECONOMIC ARENA MOST OF US LOVE A BIT OF TRANS-TASMAN RIVALRY, AT LEAST WHEN IT COMES TO CRICKET OR FOOTBALL. BUT NOW WE MIGHT HAVE TO GET USED TO NEW ZEALANDERS GOING ON ABOUT HOW MUCH BETTER THEIR ECONOMY IS. THUMPING US AT RUGBY IS ONE THING, BUT TROUNCING OUR ECONOMIC PERFORMANCE? BY CATIE LANDON Despite a softer approach in the 2015 Budget, Australia still faces another year of political wrangling to tackle ‘debt and deficit’. Meanwhile, the Kiwi economy has been elevated to “rock star” status. HSBC economist Paul Bloxham, who first called New Zealand a rock star economy, says the NZ dollar, like its economy, is going to be strong for some time. And plenty of other commentators agree. The NZ dollar has been knocking on the 28

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door of the magic 1:1 exchange rate barrier all year. Apparently, the last time it nudged past the AUD was in October 1973, and it only stayed there for a few hours. Our current situation is a big change from Australia’s traditional position of transTasman economic domination. We survived the GFC with our two-decade long record of economic growth unbroken. New Zealand, on the other hand, suffered an 18-month recession followed by a tragic earthquake that flattened its second largest city. So, why have the tables turned? For one thing, New Zealand’s dairy industry is going from strength to strength whereas our farming sector has been hit hard by drought and is struggling with high wages. And, while our mining boom has wound down and commodity prices slumped, New Zealand is in the midst of a construction and jobs boom. Some commentators point to the positive actions of New Zealand’s national government, headed by John Key, including welfare reforms, part-privatisations and tax rearrangements. Our government has been comparatively reform-shy. Last year, New Zealand’s economic growth rate was 3.3%, significantly higher than Australia’s at 2.7%. Actually, New Zealand’s economy outperformed every Organisation for Economic Cooperation and Development (OECD) economy. That has also translated into New Zealand having a lower unemployment rate than in Australia. One impact has been a dramatic slowing in the number of New Zealanders migrating to Australia. During the GFC, reports suggested migration to Australia soared 40%. Now, Statistics NZ tells us, departures of New Zealand citizens to Australia have more than halved in the last two years, falling from 46,600 in the year to March 2013, to 22,600 in the year to March 2015. In fact, it reports a net loss of people to

which trans-Tasman air route is the busier. Traditionally, the stronger winter demand comes from Australians heading to New Zealand for the snow. But, with the strong NZ dollar, the balance may shift. Expectations are that large numbers of Kiwis, bolstered by their improved spending power, will be heading this way to enjoy Australia’s warmer winter destinations. New Zealand has always been our strongest international tourism market, so their prosperity is good news for our accommodation operators. Resort Brokers Australia managing director, Ian Crooks, believes his homeland’s current prosperity will also be a boon for accommodation property owners in the market to sell. Crooks, himself a Kiwi expat, remembers the New Zealand dollar only bought him 50 Australian cents when he moved here in 1985 chasing better business opportunities.

“Although the number of Kiwis migrating to Australia for economic reasons may have slowed, I don’t see any reduction in demand from New Zealand buyers for Australian accommodation property and businesses,” he said. “The appeal of Australian investments is still strong, and now they’ll be coming because, with their better buying power, our properties represent much better value. “All the things Kiwis have always loved about Australia are still here – the warmth, the beaches, our terrific lifestyle. Despite New Zealand’s current economic buoyancy, Australia does still have better living

standards in a lot of respects.” Mr Crooks said New Zealand buyers have long provided a very strong market for Australian accommodation businesses, particularly management rights in coastal regions, and that lifestyle is a major drawcard. “Now, more than ever, they can afford to come,” he said. “Enquiry from across the Tasman is very strong.” The last word on the new economic rivalry between the Aussies and the Kiwis should go to Mikayla Novak, a senior researcher at the Institute of Public Affairs. In a recent article for Fairfax Media, she made the following wry observation: “If Australia uses the threat of a resurgent Kiwi economy to reform itself, it could be the greatest contribution New Zealand has ever made to Australian life, aside from Crowded House, Russell Crowe, Phar Lap, and the Pavlova.” END

MANTRA WINS CONTEST FOR

‘SUPER’ SOUL

MANTRA GROUP, IN ONE OF THE MOST HOTLY-CONTESTED ACQUISITION OPPORTUNITIES IN AUSTRALIA FOR SOME TIME, SECURED THE MANAGEMENT RIGHTS TO THE LANDMARK 77-LEVEL SOUL SURFERS PARADISE TOWER. SELLING AGENT, RESORT BROKERS AUSTRALIA, SAYS IT PUTS THE RESORT IN A CATEGORY DESCRIBED AS THE ‘SUPER GROUP’ OF MANAGEMENT RIGHTS. Mantra, under its luxury Peppers brand, emerged as the successful buyer of Soul Surfers Paradise management rights and associated real estate after a six-week Expressions of Interest campaign run by Resort Brokers Australia. Resort Brokers agents Glenn Millar and Alex Cook handled the sale on behalf of receivers and managers at PwC Australia.

EDITORIAL

“As anticipated, the campaign drew very strong interest, attracting enquiries from more than 20 parties, including major Australian and international hotel and MLR operators and consortiums,” Mr Millar said. “Mantra Group was ultimately the successful bidder in a fiercely contested campaign.” While the sale price hasn’t been disclosed, media reports have speculated a sum in excess of $20 million. (RBA will neither confirm nor deny this.) If correct, it would far eclipse the previous MLR sale record of $15.5m set in 2010 for Turtle Beach, Gold Coast. Alex Cook said the sale underlined the strength of the Gold Coast market and positioned Soul in a category that could be termed a “super group” of management rights operations. “It shows management rights, which have generally not been targeted, are now a strong asset class for hotel operators, and there is clearly unmet demand.” Mantra was already managing the tower as agents for the receivers and managers since November 2013. CEO Bob East said his team was delighted with the acquisition. “Importantly, our guests will continue to enjoy exceptional five-star Peppers service as we consolidate Soul Surfers Paradise as a pre-eminent luxury resort complex in Australia.” For PwC, the sale was an important milestone in the realisation of the assets of the Soul development project. PwC’s Michael Fung said the receivers and managers were pleased with the level of interest and price negotiated. “The strength of interest in this unique opportunity was reflected in the high calibre of participants in the sale process and ultimate sale price achieved,” he said. Beachfront Soul Surfers Paradise, on the corner of Cavill Avenue and The Esplanade, offers a world-class array of facilities, including multiple pool areas, spa, sauna and steam rooms, gymnasium, tropical gardens and water features, as well as Seaduction, an acclaimed restaurant with a separate wine-tasting room, private dining room and bar. END resortbrokers.com.au

Exclusive MR

Opportunity knocks! Great business with huge room for growth! The current operators have been operating since 2008 and have shown a net return of $323,458 for the year ending December 2014. Located on one of the countries best looking beaches, the possibilities for growth of this business are endless. The managers residence is a double brick five bedroom, three bathroom residence with theatre room, huge lounge room, separate dining room, large kitchen and laundry with double garage. The residence is located off a separate driveway to the high side of the resort, and has recently been refurbished with new carpets and paint throughout. A hotel licence has been obtained which will open the resort to cater for weddings, conferences and private functions. There was no access to this market previously due to the lack of liquor licence. Bookings are now coming in strong for future functions which will set the income to grow strongly in the near future. The motivated vendors are ready to go, and there is some real scope to increase the bottom line of this business with the right operator in place. All decent offers will be closely considered.

• Stunning beachfront village location - Preston Beach, WA • Offered at an incredible 2.5 times multiplier on accommodation income • Fully licensed hotel/café plus a conference centre included in price • All apartments have modern furnishings and appliances • Quality four star resort built in 2008 • All units in the letting pool • Long agreements • Room to significantly increase net income Listed in conjunction with Accommodation West Pty Ltd as Accommodation West.

Nett: $323,458

Price: $1,697,370 resortbrokers.com.au/management-rights-for-sale/MR003729

Steve Campbell Broker Mobile. +61 407 220 668 Email. stevecampbell@resortbrokers.com.au Head Office. 07 3878 3999 30

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

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

www.hillhouse.com.au

Many thanks to Queensland Tourism for providing the image of Brisbane

EDITORIAL

SuperCharged

ON THE ROAD TO RETIREMENT

WHEN WE ASKED FINANCIAL ADVISER DOMINIQUE SCHUH FOR THE NUMBER ONE REASON WHY SUPERANNUATION SHOULD BE OUR TOP INVESTMENT PRIORITY, SHE DIDN’T HESITATE. SIMPLE, “IT’S A TAX HAVEN, AND YOU DON’T NEED TO GO OFFSHORE.” FORGET THE BAHAMAS. JUST FUEL UP YOUR OWN SUPER-CHARGED SAVINGS VEHICLE AND HIT THE ROAD TO RETIREMENT. BY CATIE LANDON If superannuation is such a generous and beneficial investment prospect, why do so few people seem to take an interest? Sure, it’s something a lot of us have, but it’s not exactly a conversation starter. The truth is, superannuation and the rules surrounding it are complex, often easier to ignore or take for granted. But those in the know say we do that at our peril. Put bluntly, if you don’t maximise your super when you can, you’ll miss out … big time. So, before we go any further, let me ask you two simple questions:

1. WOULD YOU LIKE A CHUNK OF YOUR INCOME – UP TO $30,000 OF $35,000 – TO BE TAXED AT A RATE OF JUST 15%? 2. WHEN YOU RETIRE, WOULD YOU LIKE TO PAY 0% TAX – THAT’S ZERO TAX – ON YOUR EARNINGS? Do I hear a resounding ‘yes’ and ‘yes’? Then read on.

HOW MUCH IS ENOUGH?

Recently, superannuation has hit the headlines. It started with Reserve Bank governor Glenn Stevens warning record low interest rates were making it much tougher for retirees to earn an adequate income from low-risk investments like term deposits. They’d need to consider much riskier options to maintain income expectations, he said. 32

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Then came the shock news that a million dollars isn’t enough anymore to retire in comfort. Industry expert Jeremy Cooper wrote an opinion piece for The Australian Financial Review saying a $1 million nest egg, in the current environment, would only generate an income of $1,297 a fortnight – the same as the government pension. Really? Next thing AFR Weekend is suggesting couples, unless they want to drop their living standards, will actually need $2 million put away – that’s if they still want to “travel offshore once a year, eat out with friends, sip on flat whites at the local coffee shop most days, and spoil the grand children from time to time.” Is that too much to hope for? On top of all this, we are also reminded we’re living longer, which means the retirement nest egg has to last longer. A 61-year-old man (average age for retirement in Australia) apparently now gains nearly six weeks life expectancy for every year he lives. It’s like bracket creep. We save for retirement and, by the time we get there, we need more.

HOW YOU WANT TO LIVE

Of course, all this commentary needs to be critically assessed. To some extent, it could be described as sensationalist – at least the $2 million proposition. After all, as Dominique Schuh* of wealth advisers Schuh Group reminds us, these warnings are generalisations. One size doesn’t fit all,

and terms like “comfortable retirement” are relative. “If you’re used to living modestly and aren’t planning to change a lifetime of habits when you retire, a million dollars will be more than enough,” she says. “By the same token, if you’re used to a more luxurious lifestyle, you will need much more than a million to produce an income to maintain it. Whatever the figure, it has to be sufficient for you.” And we shouldn’t really be focused so much on the lump sum. What matters most is how much income your savings can generate over the years you expect to live. The point is, regardless of your expectations for retirement living, you need to plan for it. So, if the recent reports do ring alarm bells, Dominique says that’s a good thing. People need to be jolted into action. About one thing, there is absolute agreement across the entire financial services industry. Superannuation is the way to go. And here’s why.

IT’S A WONDER

Firstly, super is turbo-charged by the power of compounding. One of the smartest people who ever lived, Albert Einstein, is credited with saying this: “Compound interest is the eighth wonder of the world. He who understands it, earns it … he who doesn’t … pays it.” Put simply, the longer you have money saved, the more interest it will collect, earning more interest on that interest, year after year. Even if you were to double your

deposits at a later date, you may never catch up to someone who started saving early. (Illustration 1) “With super, you harness the power of compounding. Better yet, you do it in a very favourable tax environment,” Dominique explains. The available tax concessions make superannuation a ‘no brainer’. And, to the relief of many, the recent 2015 Budget upheld the Federal Government’s pledge to make “no unexpected or detrimental changes” to the superannuation system. The majority of working Australians have super, thanks to the Superannuation Guarantee system introduced in 1992, which requires employers to make compulsory contributions to super on behalf of employees. Currently they do so at the rate of 9.5%, a level planned to rise in increments from 2021 to 12% by July 2025. Often it’s done through an industry super fund, such as HOSTPLUS, which was established in 1987 by the Australian Hotels Association (AHA) and United Voice union as the industry fund for the hospitality, tourism, recreation and sport industries. Of course, employees are encouraged to nominate their fund of choice.

TAX CONCESSIONS

People who are self-employed need to make their own superannuation arrangements, by investing in one of three categories of super funds: an industry fund, a retail fund run by a financial institution, or a Self Managed Super

Fund (SMSF). Assistance with the latter two options is often provided by a financial planner. SMSFs provide you with maximum control over your investments, but they also require careful administration, recordkeeping and reporting by the fund trustee (which cannot be your financial adviser). Whatever vehicle you choose, the same rules apply. Pre-tax (‘concessional’) contributions made to your super fund, up to a capped level, including those by you and your employer, are taxed at the rate of 15% (unless you earn greater than $300,000 p.a.). So it pays to make maximum pre-tax contributions (called ‘salary sacrificing’) because the money going into your retirement kitty is taxed at only 15% instead of your marginal tax rate. If you received that money and invested it elsewhere, it would be taxed at your marginal rate, which could be up to 45% if you earn above $180,000 p.a. Currently, if you’re aged under 50, you can contribute up to $30,000 in pre-tax earnings, all of which will be taxed at only 15%. For those aged 50 and over, the 15% concessional rate applies to contributions up to $35,000.

WORTH THE SACRIFICE

But even if you can’t afford to put that much away, the magic of compound interest and the tax benefits, will still work for you. Starting early and putting small amounts away regularly can make a big difference down the track. Based on the current system, a 25-year-old on a salary of $50,000 with a $5,000 super balance would have a balance of $356,206 at age 65 in today’s dollars, relying solely on compulsory employer contributions (assuming minimal fees). If that same 25-year-old were to salary sacrifice just $20 extra a week, their retirement balance would grow to $418,542. That’s more than $62,000 extra for an outlay of less than $42,000 in pre-tax dollars. Lets face it. The more you have to live on in your ‘freedom years’, the better they will be. If you rely on employer contributions alone, or put only the equivalent away yourself, you will most certainly be reliant to some extent on a Centrelink pension. CONTINUED ON NEXT PAGE... resortbrokers.com.au

PLANNING IMPERATIVE

Tighter means testing arrangements for the Age Pension introduced in Budget 2015 do signal a policy shift towards a more sustainable pension system. It serves to underline the fact we need to plan for our own retirement, not rely on the government for support. The Association of Superannuation Funds of Australia (ASFA) recommends a retired couple currently need an income of $33,766 per year to live a ‘modest’ lifestyle, and $58,364 to fund a ‘comfortable’ standard of living in retirement. Looking at it another way, they suggest you will need retirement earnings equating to 67% (two thirds) of your pre-retirement income in order to maintain the same standard of living. But that rule of thumb only works if you are a relatively high earner. It has to be said, when Jeremy Cooper suggested a $1 million nest egg today would only buy an income equivalent to the Age Pension, he was basing that on earning a very conservative 2.3% 10-year government bond rate. Online tools, such as ASIC’s MoneySmart calculator use a default setting based on a 7.3% expected long-term return rate before taxes and fees. Even in the current low interest rate environment, many commentators say an assumption of long-term returns in the 6-8% range is still valid. That’s because we tend to diversify our investments across a spectrum of risk, and not put everything into defensive assets like currently low-yielding term deposits. Dominique Schuh says she expects, over the next 30 years, we are likely to see a longterm average for defensive assets such as cash and term deposits edge steadily closer to 4%. Even more reason to take control of your finances now, to plan for and prepare for the future.

ADVICE FOR THE AGES

We asked financial adviser Dominque Schuh of Schuh Group for her top superannuation tips for people at various stages in their life.

IN YOUR 20S

• Harness the magic of compound interest. Start early and salary sacrifice. The longer you have money saved, the more interest it will collect. • Stay with one preferred super fund when you change jobs. Don’t pay fees (or unnecessary multiple insurance

COMPOUND INTEREST CALCULATOR FREDSʼS 20 YEAR STRATEGY

RESULTS $4OK

REGULAR DEPOSIT

$1,000

DEPOSIT FREQUENCY MONTHLY

$100

SAVINGS

INITIAL DEPOSIT

COMPOUND FREQUENCY MONTHLY

$20K

NUMBER OF YEARS (MAX 50) 20 YEARS

$OK

INTEREST RATE (MAX 20%)

INITIAL DEPOSIT $1,000 REGULAR DEPOSIT $24,000 TOTAL INTEREST $18,816

5.0%

TOTAL SAVINGS $43,816

FRED HAS A STARTING DEPOSIT OF $1000. HE ADDS TO IT, MAKING REGULAR DEPOSITS OF $100 PER MONTH FOR 20 YEARS, AT AN INTEREST RATE OF 5%. AT THE END OF THAT TIME HE HAS $43,816. FRED HAS CONTRIBUTED A TOTAL OF $25,000, AND EARNED $18,816 IN INTEREST. COMPOUND INTEREST CALCULATOR JOEʼS 10 YEAR STRATEGY INITIAL DEPOSIT $1,000

DEPOSIT FREQUENCY MONTHLY

RESULTS $30K

REGULAR DEPOSIT $200

COMPOUND FREQUENCY MONTHLY

NUMBER OF YEARS (MAX 50) 10 YEARS

SAVINGS

CONTINUED FROM PREVIOUS PAGE... “We are regularly seeing couples coming to us with lump sums on retirement of between $300,000 and $400,000,” Dominique said. Even if $400,000 were to earn an average 7% return (an increasingly optimistic assumption), which can be drawn down tax free after age 65, that still only equates to $28,000 a year or about $540 per week.

$2OK

$10K

$OK

INTEREST RATE (MAX 20%) 5.0%

INITIAL DEPOSIT $1,000 REGULAR DEPOSIT $24,000 TOTAL INTEREST $7,703

TOTAL SAVINGS $32,703

JOE HAS SEEN HIS FRIEND SAVING FOR THE PAST 10 YEARS, AND DECIDES HE CAN CATCH UP BY PUTTING AWAY TWICE AS MUCH. LIKE FRED, HE BEGINS WITH A $1000 DEPOSIT. HE DOUBLES FRED’S SAVING RATE, DEPOSITING $200 PER MONTH FOR THE NEXT 10 YEARS. AT THE END OF THE PERIOD, HE TOO HAS CONTRIBUTED A TOTAL OF $25,000. BUT HIS INTEREST EARNINGS ARE JUST $7,703, GIVING HIM TOTAL SAVINGS OF ONLY $32,703 FOR THE SAME OUTLAY. premiums) on several small funds. • Because you have time on your side, you can afford to be quite aggressive in your investment choices, so consider higher growth assets like shares and property.

IN YOUR 40S

• You still have time on your side – a good 20 years to build your nest egg. Even though it can be a difficult time financially, with a mortgage and children, you can still gain major benefits by increasing your compounding power. • Set a savings target, no matter how small, even $100 a month, and put it into super. • Diversify. Spread your risk between growth and income assets.

IN YOUR 60S

• This is the best time – when super gets exciting. Convert all your superannuation to an account-based pension. Now anything it earns – all your income – is tax free. • Investment planning and management shouldn’t stop. Your nest egg has to last for the rest of your life. Consider the

amount you want to draw. You might need to take on more risk, draw less, or keep working to support you for the duration. • Consider whether you are happy to draw on some of your super’s capital base and not rely solely on the income it generates. Not everyone can leave something for the kids. • Ideally, keep at least five years of defensive assets (eg. cash) available so you don’t need to draw on growth assets (eg. shares) at times when they are under-performing. For more information and handy online calculators, go to: https://www. moneysmart.gov.au/tools-and-resources/ calculators-and-apps#super END

Schuh Group, based in Gympie, Queensland, established by Director Cos Schuh more than 30 years ago, is a diverse practice offering a range of services including financial planning and superannuation advice, accounting, business valuations and planning, tax strategies, and property services. resortbrokers.com.au

Exclusive LH

Boutique motel 30 year lease – 30% return! On offer is the leasehold business of a beautiful boutique 14 room motel in the heart of Marysville, Victoria. Only 90 minutes from Melbourne, this stunning 4 star property was fully renovated in 2014 with the latest in interior design. Nothing has been missed with new furniture and fittings throughout. On entry to the motel you find reception adjoining a fantastic piano lounge bar, which is popular with both visitors and locals alike. With a large modern two bedroom residence, this motel is perfect for singles, couples or young families. The area is in a fantastic growth phase with a lot of money continuing to be invested into

the development of the town. The motel enjoys a year round occupancy of 55-60%, with travellers enjoying a variety of activities from the Lake Mountain snow resort to wineries and golf. • Fantastic experienced freehold owners and comfortable rent • Opportunity to introduce food and beverage outlets

Nett: $170,000

Price: $575,000 resortbrokers.com.au/motels-for-sale/LH003646

Liz Galea Broker Mobile. +61 417 334 298

Melbourne Office. 03 9347 3100

Email. lizgalea@resortbrokers.com.au

Golf and beach on an island connected by a bridge to the mainland

Located on a South East Queensland Island Paradise One of Queensland’s most popular holiday destinations, Bribie Island, is located 70 km and around 45 minutes drive north of Brisbane CBD. Bribie Island is perfect for a holiday or weekend get-away. Fairways Golf and Beach Retreat is conveniently located adjacent to the highly regarded Bribie Island Golf Club which has a large restaurant and two air-conditioned function rooms with capacity for 130 people. These facilities are often used for wedding receptions and a range of functions. This means an on going source of tenants for Fairways Golf and Beach Retreat.

This management rights is easily managed. The owner employs one office assistant and cleaning staff, otherwise handling all duties himself. There are no lawns to mow in this complex. • Consistent increase in net over the last few years • Flexibility in adapting the letting pool between holiday and permanent

Nett: $138,010

Price: $941,000 resortbrokers.com.au/management-rights-for-sale/MR003614

Neville Littleton Broker Mobile. +61 407 727 194 Email. nevillelittleton@resortbrokers.com.au 35

resortbrokers.com.au

Head Office. 07 3878 3999

Exclusive FH

Great investment cabin motel business 7 years young shows over 11% ROI after management Resort Brokers Australia present the opportunity to purchase the freehold interest of a well established accommodation motel cabin park in the town limits of Kingaroy. It consists of 32 self contained cabins, a four bedroom lettable home (in the park) as well as a three bedroom manager's quarters with a home and office. The property is just 1.5 kilometres from the Kingaroy township with easy access to a great variety of shops, cafes and restaurants. With a shire population of 13,500, Kingaroy is situated on the intersection of the Bunya and D’Aguilar Highways, approximately 210 kilometres north west of Brisbane and 100 kilometres west of Gympie. The town is known as the peanut capital of Australia and is the largest centre in the Burnett region. Since opening, steady growth has been a strong factor in the success of the park with continuing repeat business. Maintaining value for money has proven to be successful for the current owners, leaving the new owner room to move on pricing.

The park is well presented and beautifully maintained. There is not a penny to be spent which is a credit to the current managers and the owners. • Just seven years young • All bathrooms recently renovated • Great presentation • Over 11% ROI after paying management • 32 x cabins, one lettable four bedroom house and one three bedroom manager's home • Steady trade variety of clients • Has been run under management since opening

Nett: $455,673

Price: $3,150,000 resortbrokers.com.au/caravan-parks-for-sale/FH003677

Lindsay Cooper Broker Mobile. +61 418 711 047 Email. lindsaycooper@resortbrokers.com.au Head Office. 07 3878 3999 36

resortbrokers.com.au

Exclusive LH

A strong cash flow business with plenty of growth potential on the beautiful Gold Coast This is the ideal size motel for a couple looking for a strong business with plenty of growth potential, while also enjoying a beach lifestyle. The easy working layout of the motel (with almost no ground maintenance) means one person can easily manage the day to day operation, while the other could hold an outside job. The 15 rooms comprise of a mixture of family (sleeping up to five) and queen rooms (sleeping between two, three and four persons).

• Grow turnover and net profit with internet marketing possibilities • Not a cent to spend - excellent presentation • Perfect highway beachside location - 200 metres to patrolled beach, and opposite shopping centre • 20 year lease term from settlement date • Swimming pool, heated spa, undercover car parking plus lock-up storage

With all the motel rooms facing north, they enjoy a lovely sunny aspect offering ideal temperatures throughout the day. An energetic couple will thrive while taking this already successful motel operation to the next level by updating and expanding internet and website marketing. T his property has a spacious two bedroom air conditioned manager's residence with separate office meaning you get a fantastic business and home in one.

Nett: $111,101

Price: $410,000 o.n.o resortbrokers.com.au/motels-for-sale/LH003756

Ian Dore Broker Mobile. +61 412 752 238 Email. iandore@resortbrokers.com.au Head Office. 07 3878 3999 resortbrokers.com.au

EDITORIAL

PLANNING TO BEAT THE

Taxman

HOW TIME FLIES, LESS THAN TWO MONTHS TO GO TO THE END OF ANOTHER FINANCIAL YEAR. TO MOST PEOPLE CHRISTMAS COMES IN DECEMBER EACH YEAR, BUT GET YOUR TAX PLANNING RIGHT, AND YOUR CHRISTMAS CAN COME EARLY.

BY TONY ROSSITER - HOLMANS ACCOUNTANTS Each year tens of thousands of Australian small business operators pay more tax than they need to and management rights operators are no different. There are always legal and cost effective measures that can be put in place prior to the end of the financial year that can save you significant amounts of money. Importantly, to be effective, most tax planning measures must be in place before midnight on 30 June each year so time is fast running out. Taking the time to meet with your accountant before 30 June just makes smart financial sense. Your accountant should review your current business structure to ensure it is the most appropriate for you to access all possible tax effective opportunities. They should be able to also provide you with a strong indication of what your tax obligations will be for the current year a full 12 months before it is due. A proactive accountant will also go to the next level providing you with a customized menu of options for legally minimizing your tax liability. The good news is that there is still time to sort things out, and with this checklist you can feel confident that you are on top of your tax:

GET ON TOP OF YOUR RECORDS

If you’ve been organized this year then you deserve to give yourself a big pat on the back! However, taxpayers who have fallen behind on any record keeping, are advised to take any necessary steps to get up to date, including seeking external assistance. Record keeping is critical and it is imperative to stay on top of your responsibilities.

SEEK ADVICE ABOUT LEGISLATION CHANGES These changes may be from the last financial year, and, therefore, require you to take certain steps in the next few weeks. There may also be additional changes that will be announced in the upcoming May Budget. It is important to be aware of any 38

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impending changes as they may influence your tax strategy and decisions as June 30 approaches.

REFINANCING YOUR MORTGAGE

Refinancing your mortgage usually incurs a couple of one-off costs and fees. Investors who are planning on refinancing their mortgage may care to consider doing so before June 30 in order to claim these costs as a deduction in the 2014-15 financial year.

PRE-PAY INTEREST

Property investors who have sufficient funds to pre-pay interest on a loan can do so and claim the deduction in the current financial year. It is also possible to pre-pay (and claim a deduction for) your upcoming property insurance premiums.

BRING FORWARD MAINTENANCE EXPENDITURE If there are maintenance tasks that you know will need to be completed on an investment property, then you may wish to complete them before June 30 in order to minimize your tax bill in the current financial year.

STAY ON TOP OF YOUR PAPERWORK

Make sure that you are aware of the depreciations on any fittings or repairs, as well as any other costs you have incurred, for example, strata fees, management fees or rental losses. There are also a number of small business tax breaks that it pays to be aware of as the end of financial year approaches.

SIMPLIFIED DEPRECIATION

Small businesses can immediately write off the value of business assets that were less than $1000. The depreciation on assets valued at over $1000 can be calculated as a single pool that depreciates at 15% in the first year and 30% every year after that.

However, there are some assets that are excluded from the simplified depreciation rules. Businesses that are using the simplified depreciation should seek advice on any assets that may require a different method of calculating depreciation.

CGT CONCESSIONS

There are four CGT tax concessions available to small businesses that can be extremely effective in minimizing, or even eliminating CGT liability. These concessions are: • The retirement exemption: Available to small business owners over the age of 55, or when the capital gain is contributed to a superannuation account; • The 15 year exemption: Available to retiring small business owners who have held the asset for over 15 years; • The 50% active asset reduction: Where an asset is considered to be ‘active’ the CGT liability may be reduced by 50% (the requirements here are complex and it is advisable to seek professional advice); • The CGT rollover: If the business asset is disposed of and the business plans to purchase a similar replacement asset, then the CGT bill may be deferred for at least two years. Ultimately, successful business operators appoint specialists in the industry from the outset and are guided by their sound advice along the way. The Accommodation Industry has a long established history of delivering strong returns to operators at a relatively low level of business risk particularly where the right advice has been followed along the way. Make sure you maximise those returns by ensuring you aren’t paying any more tax than is necessary. 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 outline above. END

of the management rights agreements. Some allow different lots to be nominated from time to time (sometimes not by the manager). Whatever the position, it remains critical that if you are looking to be able to use the lot associated with the management rights business independently of the management rights business itself that any special usage rights associated with it are cleared up. There is no point separating the lot from the business and leaving the special rights associated with the lot in place. That could lead to the position where the later owner or occupier of that lot could notionally compete with the owners of the management rights business (be that you or a later purchaser). That is a very real legal due diligence issue. Changing the by-laws will require a special resolution at general meeting.

THE LOT ITSELF

Some lots may be capable of being split into two separate lots – being an office lot and a residential lot. There is a bit in this legally in terms of dealing with the local authority and the body corporate about the subdivision. One of the issues is apportioning the coming up with new lot entitlements for your two ‘new’ lots. There are also practical considerations. If your office is the third bedroom or garage of your townhouse, there isn't much chance of getting it onto a separate title. If you are in a tower (or low rise) with a distinct office component/area, it is usually more achievable. This is an idea in the sense that if you manage to split your lot into residential and business real estate, you can retain special rights with the business part and look to be able to do something else entirely with the residential part.

HOW DO YOU SEPARATE YOUR LOT FROM YOUR MANAGEMENT RIGHTS BUSINESS? BY FRANK HIGGINSON - HYNES LEGAL

LET’S START WITH THE LEGALITIES

Every management rights business is different. There are no hard and fast rules, but in general terms, these are the legal issues.

BY LAWS

The by-laws usually provide some form of protection through special usage rights being given to the owner or occupier of the manager’s lot. These by-laws can all be framed differently. Some define a specific lot by reference to the lot number. Some define a lot ‘associated’ with the holder

THE MANAGEMENT RIGHTS AGREEMENTS

This is a bit clearer. You need to look at what obligations the management rights agreements include about owning a lot and residing onsite. Remember – the Property Occupations Act does not require you to reside onsite anymore as a condition of your RLA, but that does not mean that the obligations in the management rights agreements to reside onsite have changed. The end game here should be seeking the maximum flexibility you can provide without alienating the body corporate in the process. Any changes to your management rights agreements will require an ordinary resolution at general meeting. If the changes do not relate to the term of the agreements, they will not require a secret ballot.

NOW TO THE COMMERCIALITIES

It is all well and good to go down a legal path, but there is literally no point even CONTINUED ON NEXT PAGE... resortbrokers.com.au

EDITORIAL

Extending the terms of management and letting agreements is something dear to the hearts of most resident managers. The way in which agreements can be extended has been the subject of legislative changes and interpretation by the Body Corporate Commissioner’s Office for many years. A decision some years ago of the Queensland Civil and Administrative Tribunal (QCAT) in Lill v Ryan placed previously understood and accepted practices into doubt. The issue does come up again from time to time and when it came across my desk recently I thought it might be opportune to revisit an article I wrote about at the time of that decision. The decision appeared to make it much easier for resident managers to extend the term of their agreements. However I caution them doing so as almost all lawyers working the area of management rights regard the decision to be flawed and likely to not be followed in the future. It is also likely that there will be further legislative change to overturn the decision. First some background. Both the Standard and the Accommodation Regulation Modules of the Body Corporate and Community Management Act deal with the entering into and variation of 40

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GET THAT TOP UP

Right!

BY JOHN MAHONEY - MAHONEY LAWYERS

agreements in the same way. The relevant points are as follows:• Entering into agreements requires an ordinary resolution at general meeting, without proxies and by secret ballot; • The agreement must state when the term begins and ends and the term of any option period/s; • The term after allowing for any options must be no longer than the relevant term limit (10 years for Standard Module and 25 years for Accommodation Module); • At the end of the term, the agreement ends;

• An agreement can be amended (by ordinary resolution at general meeting, without proxies and by secret ballot with the statutory explanatory note being circulated with the agenda) to include a further option/s; • An option so added can not be more than 5 years; and • An option can only be added once each financial year of the Body Corporate. The clear effect, and the even more clear intended effect, of the legislation was regarded by most lawyers to be that:• Once an agreement was entered into, it

came to an end at the end of its term unless before then it was amended to add a further option/s; and • The only way that the term could be extended was to add a further option/s. However the QCAT decision referred to found otherwise. In the particular complex in the QCAT decision the agreements provided for a 10 year term from 1 December 2004 to 30 November 2014 with a 10 year option from 1 December 2014 to 30 November 2024. At a general meeting the Body Corporate passed a motion varying the agreements by extending the initial terms by 5 years to 30 November 2019. It is not clear from the decision what was to happen to the existing 10 year option. There was no secret ballot and no statutory explanatory note. Although the Body Corporate Commissioner’s Office found that the variation was contrary to the legislation and of no effect, QCAT found that the variation was effective to extend the term to 30 November 2019. Unfortunately the parties to the appeal to QCAT appear not to have been legally represented and I believe that had they been, the outcome may well have been different. In considering the appeal, QCAT limited itself to 2 issues. Firstly, was the motion one to add a further option? Understandably it decided that it was not. And secondly did the motion result in a new agreement? Again, quite understandably, it decided that it did not. So the absence of a secret ballot and the statutory explanatory note did not invalidate the motion. The Tribunal found that although apparently against the spirit of the legislation, there is nothing in the legislation that requires an amendment to the term of an agreement to be by way of secret ballot. Whilst that is true, the Tribunal seems to have overlooked the specific provisions of the legislation that state that at the end of the term, the agreement ends. In my view, one supported by other specialist lawyers to whom I have spoken, the legislation makes no provision for, and indeed precludes, the amendment of the term of an agreement in this way. On that basis the decision is very hard to reconcile. I would therefore caution any resident managers against the temptation to follow this decision and take the easy way out when seeking to extend the term of their agreements. We, most other specialist law firms, banks and financiers will not accept that extensions in this manner are effective. I encourage managers to opt for the undoubted method of extending agreements by way of adding options of up to 5 years. END

CONTINUED FROM PREVIOUS PAGE... spending a cent if you don’t understand the likely outcome. The old adage of not asking a question you don’t already know the answer to applies very much to the propositions in this newsletter.

YOUR COMMITTEE

If your committee is hell bent on you living onsite, you need to make sure you promote the concept of ‘decoupling’ very delicately. There is a communications process here you need to manage. Simply getting the legal documents done and lobbing them by email to the body corporate manager on the last day of the body corporate’s financial year for AGM purposes without talking to your committee first is probably not the way to go.

YOUR BANK

You need to engage with your financier (or your chosen finance broker) early in the process. From a bank’s perspective, the obligation to own a lot or reside onsite probably will not matter that much. When your financier will become more interested is if you do get it all passed and then want to sell your lot or your business as a separate stand alone sale. Bank’s lending policies all differ. How much they lend and what they secure it over all depend on their credit policies (which are usually driven by where they have had bad experiences in the past). Banks love residential real estate as security. If you (or a subsequent buyer) don’t have that to offer, the bank’s lending ratio might be a bit less than for the standard management rights structure (unit and business). If you are successful in decoupling, what the bank requires you to repay on settlement of one asset or the other will depend on their policy on standalone real estate or management rights businesses. It is worth at least having a basic understanding of what that might mean if you are looking to sell the unit or business separately.

VOTING RIGHTS

Not owning a lot means you won’t have the rights to vote at general meetings or submit motions for the AGM. In a sense you become what we are when we act for bodies corporate, which is a third party contractor, (although your connection with the scheme is obviously far tighter).

ALL AT ONCE?

If you have a longer term time frame, it may be better to take this on in bite size pieces over consecutive annual general meetings (i.e. changing the obligation for ownership of lot first then residing onsite second). Having said that, if you think the mood is such that it will all get through first time around, then there is no need to hold back. As always, we can help with both the legalities and the strategies. END resortbrokers.com.au

Exclusive LH

Fully renovated inner city boutique hotel in the bustling Cairns CBD The Abbott Hotel is being restored to once again become Cairns Premier Boutique Hotel. The opportunity is presented to the market as a leasehold sale (with an opportunity to purchase the freehold). The hotel site is located in the heart of the Cairns CBD and has just under gone an extensive renovation/facelift, restoring this spectacular structure to beyond its former glory.

Cairns' is back in business with a number of exciting projects under construction or set for development across the next year. Less than 100 metres from the front doors of The Abbott, CQ University is expanding its presence in Cairns with a full-sized, multi-story CBD campus, to be operational in 2015. This is just one local initiative that will help drive business through the front doors. Enquire now!

The hotel is designed over two levels with a street level entrance to reception. Access to the upper levels is through the hotel foyer serviced by lift or stairs. There will be three flagship Hotel Executive Suites on offer, creating an experience unknown to Cairns. The remaining 30 rooms will be superior king suites (27 rooms) and family suites (three rooms).

• Prime CBD position • Fully renovated to exceptional standard • Modern four plus star hotel • A piece of Cairns city history • One of a kind offering

Located on the ground floor adjacent to the reception will be a fully restored licensed restaurant. The search is on to find an operator with an Award Winning/Hatted background in Australia. The current owners will spare no expense to find an experienced operator. The restaurant will be renovated to complement the hotel.

Nett: $345,000

Price: $1,795,000 resortbrokers.com.au/hotels-for-sale/LH003669

Shane Mullins Broker Mobile. +61 447 185 001 Email. shanemullins@resortbrokers.com.au Head Office. 07 3878 3999 42

resortbrokers.com.au

Exclusive LH

First time offered - 30 year Coolangatta Beach leasehold This is a truly integrated tourist motel business as it includes a wellestablished, high profile, specialised tour coach operation in addition to a strong market from families seeking an affordable beach holiday. Occupancy last year was 79.5% represented by 35% traditional family motel business, and 65% tour coach business. The resort adjoins a beautiful park and offers a wide variety of refurbished room styles as well as the fully licensed Reef restaurant and bar, library and swimming pool, all within a few minutes stroll to Coolangatta’s retail shopping, restaurants, bars, and the famous patrolled Greenmount and Rainbow Bay surf beaches.

Bombora offers premium tour packages that take in the incredible natural wonders of Australia. Included in the sale are two attractive coaches; one 54 seat touring coach and one 24 seat mini coach. • Opportunity to grow business immediately through identified untapped markets • Strong and existing growing cash flow, including secure repeat customers • Baby boomer market is highly lucrative and growing rapidly. • Only baby boomer specific tour operator offering accommodation on the Gold Coast

The occupancy level has grown considerably, primarily due to increased advertising and direct marketing. There is still huge potential to increase the present occupancy even further through internet and website marketing. For example, over the past four years there has been no upgrading of the company’s website, or attention directed to adding new OTAs.

Nett: $321,438

Price: $1,150,000 neg resortbrokers.com.au/motels-for-sale/LH003766

Ian Dore Broker Mobile. +61 412 752 238 Email. iandore@resortbrokers.com.au Head Office. 07 3878 3999 resortbrokers.com.au

Exclusive LH

Near new freehold investment motel with experienced lessees with a strong covenant This is your opportunity to buy a near new motel offering 9% nett return. This, combined with borrowing costs in the mid 4%, means the margins are excellent for the cash on cash return.

The building has been professionally built over two levels out of maintenance free materials meaning that it will still look modern 20 years from now.

Built only three years ago, this motel is frequented by government employees and representatives of large national companies. It is located in a thriving area where there will always be ongoing business. The property has been trading strongly since opening.

• 28 rooms and one apartment • AAA high 3.5 star • 40 seat restaurant and cocktail bar • Rendered concrete, tilt slab and long run iron roof • Parking for heavy vehicles • Strong corporate trade • 9% yield • Experienced lessees in place • Tenant pays all outgoings

The motel was built and is owned by well known property developers. They are now selling on the freehold land and buildings as they are dissolving the property owner partnership. Given the strength of the business three of the partners will continue to own and operate the motel. The property is run by very experienced managers who will be staying on, assuring continued success. From an investor perspective this is about as solid as it gets!! This offering will generate strong interest as investment motels are in strong demand and short supply.

Rent: $280,000

Price: $3,100,000 resortbrokers.com.au/motels-for-sale/INV003772

Ian Crooks

Trudy Crooks

Broker

Mobile. +61 411 171 648

Mobile. +61 477 882 210

Email. iancrooks@resortbrokers.com.au

Email. trudycrooks@resortbrokers.com.au

Head Office. 07 3878 3999

resortbrokers.com.au

Exclusive MR

Loads of potential here - these two complexes are the ideal family business! With the opportunity to purchase two units this business would suit an extended family. The workload could be shared or better still, alternated month by month to provide the ultimate lifestyle!

The location is brilliant, being very close to the highly rated Taigum State School, the Taigum Shopping Centre and the new Coles and ALDI, all of which are within walking distance (10 minutes).

Take a look at this potential. Substantial guaranteed annual salary of $178,934 with CPI adjustments. Add the letting income and the net income jumps to $248,844. Also there is another $19,760 you could earn if you take up the option to purchase the second managers unit and rent it out, taking the income to $268,604.

• Excellent secure body corporate remuneration of $178,934 per annum with CPI adjustments • An excellent high rental location.   • An easily managed by two work load • Option to purchase Parkwood Gardens Two manager’s unit (which is rented) • Potential to increase the net income; someone with a keen business eye could probably earn another $20,000 plus as there is no maintenance in the P&L

Currently, there isn’t any income from repairs & maintenance or lawn mowing for tenants and owners so there is potential for a new management rights owner to pick up another $15,000 or more from these sources. There is also potential to increase the letting pool as there are 18 externally managed units. Additionally, a neighbouring complex has no onsite management or caretaker. The caretaking workload is very manageable; there is no hedge trimming required at Parkwood Gardens Two and minimal trimming in the 280 Handford Rd complex.

Nett: $248,844

Price: $1,819,000 resortbrokers.com.au/management-rights-for-sale/MR003657

Neville Littleton Broker Mobile. +61 407 727 194 Email. nevillelittleton@resortbrokers.com.au Head Office. 07 3878 3999 resortbrokers.com.au

EDITORIAL

Disruptors

& WHAT THEY MEAN FOR MANAGEMENT RIGHTS

A COUPLE OF YEARS AGO, SOMEONE PUT ME ONTO THIS LITTLE-KNOWN APP CALLED NETFLIX. WITHIN ABOUT 15 MINUTES OF HAVING MY TV CONNECTED TO NETFLIX, I PICKED UP THE PHONE, CALLED FOXTEL, AND CANCELLED MY SUBSCRIPTION ON THE SPOT… THE $9.95 A MONTH ACCOUNT THAT I’D OPENED ON NETFLIX OFFERED THOUSANDS OF HOURS OF ON-DEMAND, COMMERCIAL-FREE ENTERTAINMENT, AND HAD INSTANTLY REMOVED THE NEED FOR MY $100 A MONTH, AD-RIDDEN, RERUN-FILLED FOXTEL ACCOUNT, FOREVER. I’VE NEVER LOOKED BACK.

BY NICK BUICK - THE ONSITE MANAGER The current social/information space we're living in has been dubbed “The Sharing Economy” and it is producing a myriad of these disruptors at a truly incredible rate. From Airtasker taking on traditional franchisers, to Coursera turning education upside down. These disruptors often peg their success by operating on the fringes of what is legal. It was illegal to access Netflix in Australia at that time I joined it because they didn't have distribution rights in this country, but even so, it was estimated that Netflix users numbered over 100,000 back-dooring their way onto the service via offshore VPNs. Chris Dixon, A New York trader, refers to disruptors as regulatory Hacks. “Startups don’t have the resources to change regulations through lobbying. Instead, they need to start with regulatory hacks: “back door” experiments that demonstrate the benefits of their ideas. With luck, regulators are forced to follow.” Uber is a great example of this for the taxi industry. Despite being currently illegal, Uber is flourishing in Queensland and the Queensland Government have issued $250,000 worth of fines to Uber drivers… but for a company valued at forty billion dollars, it’s a joke to think fines will stop them. The ABC’s 730 program obtained emails from Department of Transport and Main Roads that highlights how effectively these disruptors can utilize regulatory hacks to gain a foot hold and eventually change the legislation to suit them. Main Roads worker Graham Faine writes in an email to his colleagues "Do we get a sense from the 'word on the street' that the action we are currently undertaking is having an effect?" Nick Marsden replies "No, It appears the Uber business is still expanding." It becomes obvious even to these government workers, that start ups such as Uber will ultimately drive regulation, not the other way around. "How long is [The Department of Transport and Main Roads] prepared to continue to throw resources at this activity?," asks Lance Maxwell. It seems clear to everyone that eventually, Uber will win out, the legislation will be modified and the Taxi industry will need to either innovate, or die. In my opinion, this is the key to living with disruptors. As a software developer, even my own industry has been heavily affected by the advent of oDesk, where guys who write code like me are a dimea-dozen. In order to continue to run a successful business in the age of disruptors, I could no longer afford to just be good, I had to be innovative… So I used my programming knowledge to build a web based real estate agency, TheOnsiteManager, which is, itself, a disruptor of traditional real estate offices. My agency is an example of a disruptor that benefitted onsite managers by allowing tiny little individual restricted letting agents to compete with the might of heavily resourced franchise agency 46

resortbrokers.com.au

offices. But accommodation managers are also a traditional business model and their industry is not immune to disruptors any more than the software industry or the taxi industry – and that brings us to AirBnB. If you haven’t checked AirBnB out yet, as an onsite manager, you probably should – this is your disruptor… and as I looked at oDesk for the first time and gasped at my own fate, onsite managers should check out AirBnB. It’s a snazzily designed app that allows any-old-joe with a spare room to market it as a hotel. You can find everything on there from spare rooms and treehouses to luxury 5th avenue apartments and mansions in the South of France. The rates are low and the quality is varied but in many cases exceptional. The website is valued at over thirteen billion dollars and generated over two hundred and fifty million dollars last year alone. It has over a million listings and Fast Company have speculated that “AirBnB would usurp Intercontinental and Hilton Worldwide as the world’s largest hotel chain – without owning a single hotel” and like Uber taking on the Taxi industry, AirBnB has the potential to operate on the outskirts

of regulations and become a huge issue for those of us working in the ‘traditional’ accommodation industry. Carol Giuseppi is Tourism Accommodation Australia’s NSW director and acting CEO. She says that Airbnb providers are often not licensed, don’t meet safety guidelines, don’t pay taxes and aren’t run as legal businesses. She adds ‘Hotel developments take place under a lot of regulation; why should properties come into the market who want to make a profit without the responsibility?’ She may have a point, but how much power do traditional industry bodies and government regulators have to stop disruptors like AirBnB? If Uber is any indicator, they have very little power indeed. In fact, in 2013 Melbourne City Council lost an appeal to prevent apartments being let to short stay occupants. Just last week Communications minister Malcolm Turnbull, was praising AirBnB at a technology conference in Sydney as an example of technological innovation: “Airbnb has added more than 10,000 rooms to Sydney's holiday rental market, without a single brick being laid and planning permit being approved," he said. "In seven

years, Airbnb has added more than one million rooms globally compared to the century-old Hilton chain's 700,000 hotel rooms." "The key to our future prosperity is to be faster, leaner, more productive, more innovative and more collaborative," he said. "And above all, to be more agile." I think he’s right. Resisting disruptors is a futile game as we’ve seen with the taxi industry and Uber. Ignoring disruptors is also frought with peril. Disruptors need to be carefully watched by their competitors and innovation needs to be embraced in order to compete. GoCatch is a great app that lets you flag down licensed cab drivers in your area and a good, safe, legal, and insured, alternative to Uber, Presto is a new App that Foxtel have released to complete with Netflix for on-demand entertainment. When oDesk replaced the need for local software developers, innovation was how I coded my way out from under it. I think innovation is going to be what Queensland hospitality owners will need to embrace to compete with AirBnB, Stayz and the other disruptors of the sharing economy. It will be interesting times ahead, but when you consider the Management Rights industry was invented on the Gold Coast as a solution to conventional hotel chains, innovation is something Queenslanders have always done well and I’m confident they’ll continue to do so in the future. END

NEW KID ON THE

BLOCK RESORT BROKERS AUSTRALIA CONTINUES TO EXPAND TO MEET GROWING DEMAND AND DELIVER EXCEPTIONAL STANDARDS OF SERVICE ACROSS KEY MARKET AREAS.

BRENDON PHILLIPS CADET BROKER - GOLD COAST It takes plenty of dedication and discipline to reach the elite level in any sport. So when Resort Brokers Australia recruited a current National and World surf life saving champion to our ranks, we knew we were onto a winner. Brendon Phillips has joined Resort Broker’s Gold Coast team as a Cadet Broker, working alongside Senior Broker Alex Cook. As a committed Surf Life Saving Australia patrolling member and competitor, the talented 23-year-old will no doubt be a passionate advocate for the Gold Coast lifestyle. Brendon, a graduate of Emmanuel College, Carrara, competes for the North Burleigh SLSC inflatable rescue boat team, a powerful outfit that currently holds the Queensland, Australian and World Titles. He was also a gold medalist at the 2014 Australian Surf Life Saving Championships in the Single Rescue and Taplin Relay events. The opportunity to train with Resort Brokers represents a new career path for Brendon who has previously studied mechatronics engineering at Griffith University, and worked in the auto electrical field, both in the workshop and in product development and marketing. We love Brendon’s energy and enthusiasm, and see a very bright future for him as an integral member of our team. After work, when he isn’t training, volunteering and fundraising, he pursues his other ‘fastpaced’ interests, boating, motorsport and classic cars and motorbikes. END resortbrokers.com.au

Exclusive LH

Award winning resort style motel in busy Rockhampton An outstanding 30 unit motel leasehold with main road position in stable Rockhampton. It boasts a modern residence and small 18 seat in house licensed restaurant with beautiful outlook over the in ground pool, and a large area for outdoor dining and barbecues or just a spot for family relaxation. The conference centre is situated opposite the reception which makes for ease of service. It is stocked with necessary equipment and can cater for up to 80 delegates. The property is fully renovated including building and rooms. New signage to the highway makes for a grand presence for travellers.

The motel is opposite the university and enjoys business from there as well as the usual corporate, mining and tourism. • Presently run under management • Property fully renovated, interior and exterior • All ground floor units with covered parking

Nett: $256,480

Price: $860,000 resortbrokers.com.au/motels-for-sale/LH002854

Len Booth Broker Mobile. +61 438 139 422

Head Office. 07 3878 3999

Email. lenbooth@resortbrokers.com.au

Exclusive LH

An amazing outback opportunity - large western motel lease Ready for a lifestyle change? It has always been known that heading west produces more profit, so why not grab this opportunity and run to Longreach. This motel and restaurant already have staff in place and unbelievable forward bookings for coaches (easy to accommodate) and a Qld Rail contract in place. Naturally the farming industry, education and government departments make up a large part of the business as well. • 56 ground floor units with undercover parking • Own commercial laundry as well as guest facility • Fully licenced restaurant and bar

• Spacious three bedroom owners residence • 22 years on lease • Set on 2.5 acres and the newest motel in town • Close to Stockmans Hall of Fame, Qantas Outback Museum etc • 3 star and presently run under management with

Turnover: $1,653,224

Price: $1,250,000 resortbrokers.com.au/motels-for-sale/LH003121/

Len Booth Broker Mobile. +61 438 139 422 Email. lenbooth@resortbrokers.com.au 48

resortbrokers.com.au

Head Office. 07 3878 3999

Established business in huge provincial centre Country Comfort Ballarat provides serious motel operators with the opportunity to purchase a successful, established business in the bustling city of Ballarat. The motel consists of 25 3.5 star rated suites, a large restaurant popular with guests and walk-ins alike and two separate function areas. Located in the Bakery Hill precinct, Country Comfort Ballarat is ideally located in close proximity to many tourist attractions including the world renowned Sovereign Hill. It is also only a short walk to the CBD which boasts all the services and attractions of a major provincial centre.

• Restaurant with excellent commercial kitchen • Two separate function areas • Wi-Fi and Foxtel to all rooms • Spacious manager’s residence • On-site parking for all units

Nett: $375, 345

Price: $1,375,000 resortbrokers.com.au/motels-for-sale/LH003734

Gerard Hurry Broker Mobile. +61 417 250 211

Melbourne Office. 03 9347 3100

Email. gerardhurry@resortbrokers.com.au

Exclusive MR

An oasis right in the heart of Burleigh - 50/50 mix This 10 year young complex offers 1, 2, 3 bedroom and penthouse resort accommodation. Take a stroll through Burleighs’ National Park and headland or enjoy the diverse range of restaurants, cafes and shops all at your doorstep. The managers residence is large and modern and has the office attached for added convenience. With two well sized bedrooms and two bathrooms, large lounge and dining, and ocean views, we believe the residence completes this package perfectly. Currently netting $188,000, the complex consists of 61 units. There are 19 units in the onsite letting pool; 10 permanent and 9 holiday. This property shouts potential!

• No. 1 in Burleigh - Certificate of Excellence – Trip Advisor • Mix of permanent (10) and holiday (9) letting • Potential to grow the business • A private, stunning oasis • Accommodation module • Good body corporate salary

Nett: $188,000

Price: $ 1,525,000 resortbrokers.com.au/management-rights-for-sale/MR003675

Jenny Sorenson Broker Mobile. +61 475 089 468

Head Office. 07 3878 3999

Email. jennysorenson@resortbrokers.com.au resortbrokers.com.au

Exclusive FHGC

Rare, highly profitable Gold Coast freehold motel Bombora Resort includes a high profile specialised tour coach operation. Last year the overall business operated at 79.5% occupancy which was represented by approximately 35% traditional motel business and 65% driven by package motel and combined tour coach business. This occupancy level has grown considerably since 2011 when the annual average was 52% due primarily to increased media and direct marketing. However, there is still huge potential to increase the present occupancy even further through internet and website marketing. For example, over the past four years there has been no upgrading of the company’s website, or attention directed to adding new OTA's.

beach front properties, plus providing for a tariff increase) • Invest in two new websites - one for straight motel accommodation and one for tour packages • Work on and develop social media platforms This property has strong and existing growing cash flow, including repeat customers. The baby boomer market is lucrative and growing rapidly and this is the only baby boomer specific tour operator offering accommodation on the Gold Coast This centrally located property has it all and will not be on the market for long! Arrange an inspection today.

Included in the sale are two attractive coaches; a 54 seat touring coach and the other a 24 seat mini coach. Upside Opportunities •U pgrade all rooms to the level of the display suite, being AAA rated 3.5 star. (This would bring guests that might otherwise stay in the

Nett: $571,438

Price: $4,150,000 resortbrokers.com.au/motels-for-sale/FH003756

Ian Dore Broker Mobile. +61 412 752 238 Email. iandore@resortbrokers.com.au Head Office. 07 3878 3999 50

resortbrokers.com.au

Exclusive MR

Permanent letting complex located in Teneriffe The MLR Business and Manager’s Unit at Ellington on Teneriffe, located in the inner city Brisbane suburb of Teneriffe is being offered for sale.

The office/reception is on the same title as unit 154 and is situated on the ground floor at the front of the complex with a pathway leading up to the road for easy access.

• 189* units in the complex. • 23* units currently being managed by the MLR business. • The current office hours are: 9:00am-12:30 pm Monday - Friday. • The combined body corporate manager’s fee is approximately $265,500* per annum plus GST, subject to increases as set out in the management and letting rights agreements with each body corporate.

• Inspections can be arranged by appointment only • A detailed information memorandum is available on request

Manager’s Unit: Lot 154 on SP141581 Unit 154 comprises three bedrooms and two bathrooms and a large outdoor balcony area. The manager’s unit also comes with two car parks (tandem) and storage areas.

Expressions of interest closes 26th June 2015

*approximately

resortbrokers.com.au/management-rights-for-sale/MR003777

Glenn Millar

Alex Cook

Broker

Mobile. +61 412 277 804

Mobile. +61 467 600 610

Email. glennmillar@resortbrokers.com.au

Email. alexcook@resortbrokers.com.au

Head Office. 07 3878 3999

Head Office. 07 3878 3999 resortbrokers.com.au

Exclusive LH

Leasehold motel offering - 34% return & newly refurbished rooms On offer is the leasehold business of a 24 room self-rated 3.5 star resort motel and 2 residences in Merrijig, Victoria. The property is situated only 15 minutes from the popular snow fields of Mt Buller. The rooms have been refurbished in 2015 with new furniture and fittings, beds, TV’s, carpets and flooring.

• Two residences including one 2 bedroom unit which could be used in inventory • Onsite licensed bar and restaurant, pool, tennis court, convenience store and sports hire shop • Ample parking for all vehicles including coaches

Nett: $177,773

There is no capital to invest in the near future, all the work has been done for you. This fantastic location attracts visitors all year round. The motel enjoys business from the tourist market, groups and trade working locally on projects.

Price: $525,000 resortbrokers.com.au/motels-for-sale/LH003714

Liz Galea Broker Mobile. +61 417 334 298

Melbourne Office. 03 9347 3100

Email. lizgalea@resortbrokers.com.au

Exclusive LH

Melbourne fringe property with long lease This is a fantastic opportunity to secure a corporate motel located in Warragul, a booming fringe city of Melbourne. Given the strength in the local economy and its proximity to Melbourne, this one is not to be missed. In fact the population of Warragul is predicted to more than double by 2036, making this a very solid future investment. The property is run under management with opportunity to improve under owner operators. It has very reasonable rent being only 20% of income.

• 19 rooms • Long lease with 27 years remaining • Corporate motel with high occupancy • 60 minutes drive from Melbourne CBD

Nett: $228,110

Price: $850,000 resortbrokers.com.au/motels-for-sale/LH003775

Stuart Charles Broker Mobile. +61 458 588 472 Email. stuartcharles@resortbrokers.com.au 52

resortbrokers.com.au

Melbourne Office. 03 9347 3100

Exclusive LH

Fantastic location + Excellent return = Winner!!! The leasehold interest of the Sandhurst Motor Inn offers purchasers an opportunity to purchase an easily operated motel in a premium location. Located in Bendigo, one of Victoria’s largest provincial cities, this motel would be a perfect entry into the market for first timers or anyone in the market for a solid motel operation.

• Healthy 33.8% return • Excellent rent • On-site parking for all units • High profile main road location, 5 minutes from CBD • In-ground pool and barbecue area

Nett: $182,646

Comprising 18 x 3.5 star ground floor suites, in ground pool, guest laundry and a three bedroom residence, those who inspect will not be disappointed.

Price: $540,000 resortbrokers.com.au/motels-for-sale/LH003663

Gerard Hurry Broker Mobile. +61 417 250 211

Melbourne Office. 03 9347 3100

Email. gerardhurry@resortbrokers.com.au

Best position in town if you are looking for a sea change Great presentation, with a turnover to match, and a very attractive location, adds to a great starter business. The motel is located in a prime location; first motel on the left hand side coming into Mackay, attracting the highest chance of walk-ins. Major refurbishment has been completed. With 14 motel units, 8 selfcontained units and no restaurant, the property can be easily managed by an enthusiastic couple. The in ground pool area is beautifully landscaped and also accommodates a BBQ area. The property holds its own in the accommodation industry in Mackay and has achieved top 4 ranking in Trip advisor and also top 3 occupancy rates in Mackay.

• Enjoy continued growth, occupancy, revenue and room rate • Great corporate based return • Positioned in prime location first motel coming into town • Good lease tenure 28 years remaining • Spacious residence

Nett: $321,000

Price: $990,000 resortbrokers.com.au/motels-for-sale/LH003351

Des Fagg Broker Mobile. +61 427 849 119

Head Office. 07 3878 3999

Email. desfagg@resortbrokers.com.au resortbrokers.com.au

EDITORIAL

REGIONAL SNAPSHOT: MANDURAH, W.A. WE SHINE A SPOTLIGHT ON KEY REGIONS TO REVEAL WHAT IS DRIVING TOURISM AND ACCOMMODATION INDUSTRY GROWTH MEETING PLACE

Mandurah is one of the most vibrant regional cities in Western Australia, and has been a popular water holiday destination since the early 1900s. In fact, the name Mandurah is derived from the Aboriginal word, ‘mandjar’ meaning ‘meeting place’. Voted twice as Western Australia’s Top Tourism Town, Mandurah welcomes people from throughout Australia and around the globe to enjoy its relaxed coastal lifestyle. The city covers an area of 173.5sq km along beautiful coastline about 72km south of Perth – just an hour by car or train from WA’s capital. The city prides itself on offering a mix of inner city and semi-rural living between the Indian Ocean, the expansive waterways of the Peel-Harvey Estuary, and the lower reaches of the Serpentine River. Mandurah and the wider Peel region have experienced continuing rapid growth in the last 30 years. Once a small fishing village that boomed during holiday periods, the city now has a thriving population of more than 80,000, a number that is forecast to exceed 123,000 by 2026.

THRIVING DESTINATION

As the gateway to Western Australia’s South West Region, Mandurah is now one of the state’s top tourist destinations, offering spectacular waterways and first-class holiday accommodation. According to Tourism WA (Mandurah Overnight Visitor Fact Sheet), the average annual number of visitors to Mandurah from 2011 to 2013 was 338,800, 85% of which were intrastate visitors, with 9% from interstate, and 7% international. Total visitor nights averaged 1,321,000 p.a. The majority of domestic visitors to 54

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Mandurah came for holiday or leisure (52%) while 36% were visiting friends and relatives and 9% were on business. Mandurah and Peel Tourism Organisation Inc (MAPTO) says more recent statistics show rising visitation. Tourism Research Australia’s latest National Visitor Survey data shows, in the 12 months to the end of September 2014, the Peel region recorded 492,000 domestic overnight visitors. At the same time, international visitor numbers for the year reached a record 30,300. A key domestic market is short-drive overnight visitors from Perth. The intrastate market has traditionally been the major source of visitors, and will continue to be a key focus. However, longer term destination development also aims to attract a greater percentage of interstate and international leisure visitors, with particular focus on business tourism and events.

ATTRACTING OPPORTUNITY

The Peel region is home to unique treasures of nature – the largest thrombolite reef in the Southern Hemisphere at Lake Clifton, an estuary twice the size of Sydney Harbour, sensational beaches, and beautiful state forests and national parks. The blue-green waters of the estuary are crisscrossed by pleasure boats and jet skis. Visitors swim, paddle kayaks in the sheltered bay, and cruise the waters on dolphin-watching tours. Tourism is a major generator of business opportunities and a vital contributor to the local economy. In 2013-14, tourism and hospitality sales in the City of Mandurah totaled more than $340 million. Visitors flock to the region’s wineries, antique shops and galleries. While retaining its relaxed, holiday atmosphere, the city has flourished with a growing number of restaurants and retail attractions. Mandurah also hosts a multitude of annual and special events, such as Crab Fest in mid-March, the Stretch Arts and Community Festival in May, and the Mandurah Boat Show in mid-October. The Mandurah Ocean Marina Precinct is alive with the buzz of boardwalk cafes, restaurants, bars and shops. It is also home to the stunning Mandurah Performing Arts Centre that boasts sweeping views over the city and showcases an impressive array of visual and performing arts. Driven largely by interstate and intrastate visitors, in the YE September 2014, there were 8.1 million overnight visitors to Western Australia who spent $6.7 million and stayed 62.2 million nights. The critical role tourism will play in supporting WA’s economy in the wake of the State’s resources slowdown has been widely recognized. Tourism WA received its biggest budget ever for the current financial year, and the latest State Budget has allocated an additional $21 million to support events over four years, and $11 million for regional tourism marketing. Mandurah, as part of the ‘Experience Perth’ tourism promotion region, is a city set to go from strength to strength as a destination of choice. END

SEMINARS: QUEST TO FIND FRANCHISEES ACCELERATED GROWTH BY QUEST SERVICED APARTMENTS MEANS A SURGE IN OPPORTUNITIES FOR PEOPLE INTERESTED IN JOINING ONE OF AUSTRALIA’S MOST SUCCESSFUL ACCOMMODATION OPERATORS. A NATIONAL SERIES OF QUEST FRANCHISE SEMINARS IS ATTRACTING KEEN INTEREST. The proven Quest franchise model presents an attractive prospect for anyone interested in owning their own business. So, news that Quest is fast-tracking growth to expand its network from 150 to more than 250 properties by the end of the decade, has been widely welcomed. To facilitate that growth Quest is hosting franchise seminars, bringing together a panel of tourism and accommodation industry experts, including Resort Brokers Australia, Holmans Accounting and Taxation, and Mike Phipps Finance, to assist prospective franchisees. The first seminar, held in Perth in April, attracted plenty of interest with 38 people attending to learn more about the franchise industry and the Quest model. The next seminars are scheduled for Brisbane on 24th June and Sydney 23rd July. Quest CEO, Zed Sanjana, says a background in accommodation or hospitality is not essential for new franchisees. “What is essential is a passion for customer service and robust leadership skills. We are looking for people who will immerse themselves in the local communities and build strong relationships with guests and stakeholders.” Resort Brokers’ consultant Jim Chapman, a long-time specialist in Quest properties, said extensive training and support is provided to franchisees by the group and favourable lending ratios are available from financiers because of the strength of the brand and quality of its systems. “Quest marketing and corporate structures give franchisees in new buildings the backing of a proven track record, underpinning confidence and ensuring their new business is destined for success.” Quest is the largest and fastest growing serviced apartments operator in Australasia. This is a big growth year for the group with 12 new properties opening in Australia and three in New Zealand. In addition to new properties, there are also a number of franchise opportunities available with established Quest businesses in regional and metropolitan locations. END

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EDITORIAL

THE MOTEL LEASE THE TERM BY DAVID BURROUGH HILLHOUSE BURROUGH McKEOWN The length of a Tenant's tenure and security will be derived from the Lease, which is extremely important in creating the maximum value in a motel business. Generally, a motel lease generally runs for thirty years unless further extended. The term is usually broken down into an initial term of 10 years, with four options for a further five years each. In most commercial leases you will find that, to exercise an option, the Tenant must give notice to the Landlord within a certain period of time. If the option period is not exercised within the time frame and in the

manner specified in the lease then the Tenant will lose their right to exercise the option. In a motel, where the value of the motel business is linked to the length of a Tenant's tenure, this type of clause can be risky. If a motel Tenant has this type of option clause in their lease they need to be diligent in diarising the dates by which the option needs to be exercised and exercising the option strictly in accordance with the terms of the lease. In our plain English lease we include automatic options. This clause requires the Landlord to grant a further lease of the motel to the Tenant for each of the option periods, provided that the Tenant has observed and performed all of the terms of the lease. Our clause requires the Tenant to give written notice to the Landlord within a certain time period if the Tenant does not wish to be granted a further lease. This means that the options are automatic and the Tenant does not need to give notice to the Landlord to exercise the option period. The Tenant only needs to give notice where the Tenant does not want to exercise the option. When the option is exercised the further lease will be on the same terms as is in existence, except that the number of option periods will be reduced by one. The rent will generally be reviewed in the same manner it is every other year. In some cases the rent may be reviewed to market. We will discuss rent

BEST WESTERN Drouin Motor Inn Drouin, VIC

BEST WESTERN PLUS Launceston Launceston, TAS

Three hotel types. One brand. Experience the difference. info@bestwesternaustralia.com.au AUSTRALIA | NEW ZEALAND | FIJI

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review clauses in more detail in our next article. Tenants often ask when is the best time to negotiate the extension of the term of the Lease. The best advice is to undertake these negotiations to purchase further years from the Landlord sooner rather than later. A Lease which has five (5) years left to run is obviously of far less value than one with twenty (20) years left. Before negotiating with the Landlord in relation to extension of the Lease, Tenants would be well advised to discuss the price per year of extension with an Accountant experienced in the Motel industry. The term of the Lease is extremely important to both the value of the Tenant's business and the value of the Freehold owner's investment. It is therefore important for Landlords and Tenants to be aware of the provisions of the Lease relating to the exercise of any options.

NEW SOUTH WALES SWIMMING POOL UPDATE In the March edition we advised of change requirements relating to swimming pools in New South Wales sale contracts. The task of registration of swimming pools in New South Wales has proved too large for the new contracts system to commence this year. The Government has delayed the introduction of the new scheme. We will keep you updated.

BEST WESTERN PREMIER Terrace Hotel Perth, WA

NEW EXCLUSIVE LISTINGS BRIEF DESCRIPTION

PROPERTY TYPE

LOCATION

NO. UNITS

PROPERTY TYPE

NETT

PRICE

4.5 Star Award Winning B&B - No 1 on TripAdvisor

North Tamborine

Mixed

$294,951

$3,500,000

Boutique Hotel in heart of Brisbane. $579k nett & no real estate

Wooloongabba

Mixed

$579,378

$2,995,000

Motel business for under $100,000

Emerald

Short Term

$52,648

$99,500

Investment Freehold Motel Under $1.5m

INV

Mission Beach

Short Term

$1,450,000

Boutique Motel 30 Year Lease - 30% Return!

Marysville

Short Term

$170,000

$575,000

Boutique 4 Star Motel Freehold - No Money to Spend!

Marysville

Short Term

$270,000

$1,940,000

31 room Freehold Going Concern for under $1M

West Wyalong

Short Term

$231,328

$990,000

Caravan Park - Land, Buildings and Business for a Great Price

Goodiwindi

Short Term

$140,897

$880,000

Why Not Test The Waters?

Trinity Beach

Mixed

$106,000

$825,000

Business Only Management Rights in South Brisbane - Net $231,156 OTP

South Brisbane

Permanent

$231,156

$993,970

Easy to Run MR Perfect for Single or Working Couple

Fortitude Valley

Mixed

$152,766

$1,265,600

Freehold Motel Port Douglas

Port Douglas

Short Term

$1,795,000

Mooloolaba Magic - Modern Contemporary Property

Mooloolaba

Short Term

$347,000

$2,280,481

Once in a Lifetime Opportunity - 33% Return

Maroochydore

Permanent

$240,071

$730,000

Loads of Potential Here!

Taigum

126

Mixed

$284,844

$1,819,000

Beautifully Presented Motel in Premier Provincial City

Bendigo

Short Term

$159,287

$580,000

Position, Position, Position - 4.5 Star Yamba Beach Resort

Yamba

Mixed

$448,168

$2,950,000

Brand New Hotel - Cairns CBD

Cairns

Short Term

$345,000

$1,795,000

West Coast Tasmania Motel Leasehold

Queenstown

Short Term

$140,636

$495,000

Best Return in Brisbane (39% ROI) - This Will Be Sold!

Annerley

Permanent

$164,000

$420,000

No Requirement to Buy a Unit or to Live Onsite

Clontarf

Mixed

$106,284

$535,000

Ripper Freehold! 32 Self-contained Cabin Motel

Kingaroy

Short Term

$455,673

$3,150,000

Short Term Conversion Backed by Strong Permanent Income

South Brisbane

117

Mixed

$466,856

$3,300,000

First Time Offer - Highly Profitable Award Winning 4 Star Lease

Ballina

Short Term

$341,554

$1,195,000

Holiday Building - Conservative Unit & Business Valuation

Broadbeach

Mixed

$238,000

$1,599,000

Manning Valley's Finest 4 Star B&B Offering

Wingham

Short Term

$251,363

$749,000

The Melbourne Residences - The Jewel of South Brisbane's Crown

OTP

South Brisbane

178

Mixed

$897,924

$4,130,450

Live, Work and Surf from this Premium Beach Side Location!

Coolangatta

Short Term

$103,783

$1,000,000

Centrally Located Spring Hill Serviced Apartments!

Spring Hill

Mixed

$334,367

$2,170,000

The Options Are Endless With This Management Rights Business!

OTP

Cannon Hill

Mixed

$45,180

$180,000

Excellent Freehold Passive Inv Less Than 2 Hrs From Sydney

INV

Lithgow

Short Term

$1,125,000

Lucrative Leasehold Less Than 2 Hrs From Sydney at $375,000

Lithgow

Short Term

$114,330

$375,000

Leasehold Motel in a Fantastic Location - Live By The Beach!

Caloundra

Short Term

$110,000

$390,000

Superb Holiday Management Rights - $550k Net

Labrador

Mixed

$549,870

$3,350,000

Great Opportunity to Purchase Prior to Snow Season!

Merrijig

Short Term

$177,773

$525,000

New 30 Year Lease Motel & Serviced Apartments

Wagga Wagga

Short Term

$303,857

$1,000,000

Over 51% ROI & Short Lease - Get In, Make Your $ and Get Out

Stanthorpe

Short Term

$240,000

$460,000

Unique Mix of Traditional Beach Shacks and Townhouses!

Preston Beach

Short Term

$232,000

$1,830,000

Lifestyle, Location and Easy to Operate!

Balgal Beach

Short Term

$68,961

$1,250,000

Great Management Rights - South Side

Mt Gravatt East

Mixed

$72,000

$735,000

Architecturally Designed Holiday Complex on Stunning Broadwater

Biggera Waters

Mixed

$230,020

$1,545,100

Beginners Special @ 50% + ROI - On Golden Mile Tweed Heads

Tweed Heads

Short Term

$136,080

$265,000

Ocean Views From Every Room

Coolum Beach

Mixed

$105,000

$770,000

Brisbane's Best Inner City Brisbane B&B!

Paddington

Short Term

$1,400,000

Business Only in Sherwood - Construction Finished Next Month!

OTP

Sherwood

Mixed

$93,321

$373,284

Central Victoria International Branded Serviced Apartment Lease

Bendigo

Short Term

$500,000

Near New Serviced Apartment Leasehold Business

Bendigo

Short Term

$167,005

$700,000

Well Maintained Complex in Breezy Bayside

Ormiston

Permanent

$122,153

$928,000

Perfect Beach Lifestyle Business for a Couple!

Mermaid Beach

Short Term

$111,101

$410,000

resortbrokers.com.au

RELIEF MANAGERS

PLEASE NOTE: THIS IS SIMPLY A DIRECTORY SERVICE THAT WE PROVIDE TO ASSIST YOU, SHOULD YOU CHOOSE TO GO ON HOLIDAY OR TAKE A BREAK. WE RECOMMEND YOU INTERVIEW AND QUALIFY ALL MANAGERS YOURSELF BEFORE HIRING.

Barry & Lesley Roberts

Tony Payne

Belinda & David Gustafson

Motel Manager Nationwide

Motel Manager South East VIC

All Property Managers NSW & QLD

+61 40428 422 456

+61 429 998 044

+61 403 219 562

les.baz@bigpond.com

tonypayne2@bigpond.com

gustafsondavid@hotmail.com

Steve Reynolds

Llew & Trisha Pointon

Christopher Hillman

Management Rights Manager Brisbane and Gold Coast

Motel Manager Nationwide

Management Rights, Motels & Resort Managers Capital Cities, Australia Wide

+61 413 614 936

+61 400 035 359

+61 488 550 005

reynolds.steve50@gmail.com

llewp@tpg.com.au

christopher.hillman@bigpond.com

Garth & Trish Carey

Chris & Carmel Moloney

Maryanne & Geoff Cheeseman

Resort & Motel Manager QLD & NSW

Motel Managers Nationwide & New Zealand

All Property Types Nationwide

+61 421 359 059

+61 400 483 291

+61 410 662 963

garth@careynominees.com.au

ccmoloney-315@hotmail.com

cheezmg@bigpond.com

Grant & Kerry O'Sullivan

Nanette Mortimore

Peter & Janine Templeton

All Property Types QLD & NSW

Management Rights Manager Brisbane Area

Motels, Backpackers & Caravan Parks Managers Australia Wide

+61 404 473 100

+61 419 707 773

+61 408 178 130

grant2466@bigpond.com

nanette.mortimore@gmail.com

tempy7@bigpond.com

Peter & Pam Kotevski

Sharyn & Phillip Stallman

Paul & Jane Hansen

Motels, Caravan Parks & Resort Managers Australia Wide

Motel Managers Nationwide

Caravan Parks & Villa Managers QLD, NSW & VIC

+61 408 187 222

+61 428 931 589

+61 438 877 932

twopees26@yahoo.com.au

pjstal@bigpond.com

happycamperparkmanagement@gmail.com

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SOLD PROPERTIES

RESORT BROKERS AUSTRALIA HAS SOLD AND SETTLED 94 PROPERTIES SINCE THE 6TH JANUARY 2015. WE HAVE A FURTHER 75 PROPERTIES UNDER CONTRACT.

PASSIVE INVESTMENT TOWNSVILLE, QLD

MANAGEMENT RIGHTS MERMAID BEACH, QLD

LEASEHOLD MOTEL PORT MACQUARIE, NSW

MANAGEMENT RIGHTS WEST END, QLD

MANAGEMENT RIGHTS JINADALEE, QLD

SERVICED APARTMENTS LEASE MAITLAND, NSW

FREEHOLD GOING CONCERN KALARU, NSW

LEASEHOLD MOTEL BALLINA, NSW

MANAGEMENT RIGHTS MOOROOBOOL, QLD

FREEHOLD GOING CONCERN GRIFFITH, NSW

MANAGEMENT RIGHTS PORT DOUGLAS, QLD

MANAGEMENT RIGHTS SUNNYBANK, QLD

FREEHOLD GOING CONCERN NORTH HAVEN, NSW

SERVICED APARTMENTS LEASE LIVERPOOL, NSW

MANAGEMENT RIGHTS TARRAGINDI, NSW

MANAGEMENT RIGHTS SURFERS PARADISE, QLD

MANAGEMENT RIGHTS REDCLIFFE, QLD

SERVICED APARTMENTS LEASE CAMPBELLTOWN, VIC

LEASEHOLD MOTEL HIGHWAY PARKES, NSW

MANAGEMENT RIGHTS BROADWATER, QLD

LEASEHOLD MOTEL MAGNETIC ISLAND, QLD

MANAGEMENT RIGHTS LABRADOR, QLD

MANAGEMENT RIGHTS BRISBANE CITY, QLD

LEASEHOLD MOTEL MORUYA, NSW

MANAGEMENT RIGHTS ASHMORE, QLD

FREEHOLD GOING CONCERN KEMPSEY, NSW

MANAGEMENT RIGHTS CALAMVALE, QLD

MANAGEMENT RIGHTS PORT DOUGLAS, QLD

LEASEHOLD MOTEL MUSWELLBROOK, NSW

FREEHOLD GOING CONCERN ST HELENS, TAS

MANAGEMENT RIGHTS MOUNTAIN CREEK, QLD

MANAGEMENT RIGHTS BRIDGEMAN DOWNS, QLD

LEASEHOLD MOTEL APOLLO BAY, VIC

LEASEHOLD MOTEL ANNERLEY, QLD

MANAGEMENT RIGHTS SURFERS PARADISE, QLD

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AGENT PROFILE

ANDREW RENDALL CENTRAL WEST NSW

OUR AGENTS PRIDE THEMSELVES ON THEIR LOCAL KNOWLEDGE. THEY EACH LOOK AFTER A GEOGRAPHICAL PATCH, AND GROW TO KNOW IT INTIMATELY. WE FEEL THIS ADDS GREATLY TO THE CONFIDENCE WITH WHICH A PROPERTY CAN BE SOLD. IN THIS FEATURE WE WILL GET SOME THOUGHTS ON THEIR LOCAL AREA AND WILL ALSO LEARN A BIT ABOUT THEIR PERSONALITIES. WHAT IS YOUR BACKGROUND?

I was educated in Bathurst at the Scots School where I completed my HSC. After a year exploring the country I started a University Degree in Agricultural Science at Orange Agriculture College, soon to be University of New England. After completing my degree, I started with BHP Gold, trekking around NSW, geographical testing and exploring on behalf of numerous companies. Our exploration team discovered Gold in both Cadia (West of Orange) and Lake Cowell (South of Forbes). Two years later it was time to venture home to start my business career. A family friend asked for some help managing his stockfeed and produce business in Bathurst. This was an opportune time as my contract with BHP Gold had come to an end and I was looking to new horizons. At 23 years of age I began working in the business and six weeks later I was the owner! I managed a wholesale and retail produce business called Bedwells that had a 100+ year history in Bathurst and employed six full time staff. Seven years later with a lot of life experiences under my belt, I started a company producing pet food for the lucrative Japanese market. This took me to Japan many times to develop new relationships and expand my new business. It was a great time to be part of a new venture, and its complexities were invaluable to my career 60

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development. During this time, as if I wasn't busy enough, I also bought into a hotel in Bathurst as a silent partner. Now with three business interests, I decided to sell the original stockfeed company to concentrate more on my new business. As this was underway, my business partner was tragically killed in an accident and all of a sudden I was a publican. Great times! During this period my wife Shannon and I raised three boys. The hotel became an integral part of life employing 35 staff and providing a popular spot for the people of Bathurst to eat, meet and be entertained. During these hotel days, and still to this day, I am proud to hold a position on the AHA (Australian Hotels Association) board both in NSW and nationally, meeting and getting to know some very interesting people associated with the hotel industry around Australia. In 2014 Shannon and I sold our hotel and moved towards a new life without the constant battles the hotel industry endures.

HOW LONG HAVE YOU WORKED AT RESORT BROKERS AUSTRALIA?

I started with RBA in October 2014

TELL US ABOUT YOUR MY AREA

My area is as far north as Gilgandra, as far

south as Hay in the Riverina, as far West as Broken Hill and as far East as Yass.

TELL US ABOUT AN ISSUE WITH A SALE THAT YOU HAVE OVERCOME AND WHAT YOU LEARNT FROM THAT?

Iâ&#x20AC;&#x2122;d like to be able to fill pages with sales experiences, but after six months I have got a few away and am working towards a few more before the end of the financial year. Each are having their own challenges and they all seem individual.

WHAT DO YOU LOVE MOST ABOUT YOUR JOB?

The job is all about the people. I enjoy seeing them buy a business with the same enthusiasm I have had in my career and then seeing them sell and enjoy the fruits of their labour.

WHAT ANNOYS YOU?

Unrealistic prices people put on their property, generally due to other brokers chasing listings and not sales.

WHAT DO YOU DO IN YOUR SPARE TIME?

My spare time is taken up with running a 350 acre farm, growing Hereford Cattle and soon to be re-established as a Stud. Fortunately my three boys (13, 11, 8) do the work when I am on the road. On weekends we are chasing them around the country side with their various sporting commitments.

INDUSTRY SPECIALISTS est 1969

On site relief management for

owners of Management Rights Steve Reynolds 0413 614 936 LREA

Giving you experienced reliable professionalism

Laundry Machinery for Every Situation www.richardjay.com.au

in holiday relief to Management Rights owners

1300 RICHARD (742 427)

Expert management rights lawyers The team at Hynes Legal can assist you with all of your management rights needs. We are different, not in what we do, but in how we do it - fixed fees, returned phone calls, accessible lawyers, no billing surprises and more. Try Hynes Legal.

Would you like to receive the best management rights information in the industry? Visit www.hyneslegal.com.au/subscribe e: managementrights@hyneslegal.com.au t: (07) 3193 0500

Specialising in Hotels & Motels

Service Stations

Management Rights

Residential Development

Caravan Parks

Industrial

Child Care Centres

Commercial & Retail

Mike Phipps 0448 813 090 Paul Grant 0448 417 754 mike@mikephippsfinance.com.au paul@mikephippsfinance.com.au 4/31 Mary Street, Noosaville, Qld

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

The Management Rights Lawyers

Buying or selling Hotels Caravan Parks, Motels, Management Rights?

Servicing resident unit managers throughout Queensland and New South Wales

www.mahoneys.com.au 07 3007 3777 info@mahoneys.com.au Brisbane office L15, 167 Eagle Street Brisbane Qld 4000

Gold Coast office 235 Varsity Parade Varsity Lakes Qld 4230

Call (07) 3220 1144 or email@hillhouse.com.au

www.hillhouse.com.au

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

Services | Taxation Accounting | Benchmarking

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

(07) 3421 3421

Email: cpa@mcadamsiemon.com.au www.mcadamsiemon.com.au

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

    

Associate Director

Buying & Selling Developer Setups Dispute Resolution Body Corporate Advice GST, Stamp Duty & Tax Col Myers 0417 620 516 www.smh.net.au

Owen Barbeler (07) 3620 7900

Owen Barbeler

‘ALL PROFESSIONAL FEES QUOTED UP FRONT’

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

LOOKING TO REACH THE ACCOMMODATION AND TOURISM INDUSTRY? WHY NOT ADVERTISE HERE. YOU WILL SEE A RANGE OF INDUSTRY SPECIALISTS ARE ADVERTISING IN OUR WIDELY READ INFORMER. CIRCULATION - 9,500 - MAILED HARD COPIES AND 15,650 - SENT DIGITALLY IF YOU WOULD LIKE A COMPANY ADVERT ON THIS PAGE PLEASE CONTACT: CARLA COOK: 0467 600 611 OR EMAIL US CARLACOOK@RESORTBROKERS.COM.AU Qualifications

Owen has worked in the valuation industry since 2002 and specialises in going concern valuations. Owen has experience across many types of accommodation properties including hotels, motels, resorts, student accommodation, management rights and affordable housing.

> Bachelor of Business Management (Real Estate and Development), University of Queensland > Associate of the Australian Property Institute (AAPI) > Certified Practising Valuer

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MEET OUR TEAM

Ian Crooks

Trudy Crooks

Tim Crooks

Managing Director Nationwide

Sales Manager Nationwide

Off The Plan Specialist Nationwide

+61 411 171 648

+61 477 882 210

+61 422 208 450

iancrooks@resortbrokers.com.au

trudycrooks@resortbrokers.com.au

timcrooks@resortbrokers.com.au

Alex Cook

Brendon Phillips

Ian Dore

Broker North Gold Coast, Surfers Paradise & Main Beach

Cadet Broker North Gold Coast

Broker North NSW & Gold Coast

+61 467 600 610

+61 466 346 373

+61 412 752 238

alexcook@resortbrokers.com.au

brendonphillps@resortbrokers.com.au

iandore@resortbrokers.com.au

Glenn Millar

Tyler Millar

Len Booth

Broker Sunshine Coast

Broker Central Queensland

+61 412 277 804

+61 411 271 761

+61 438 139 422

glennmillar@resortbrokers.com.au

tylermillar@resortbrokers.com.au

lenbooth@resortbrokers.com.au

Shane Wynhoven

Russell Rogers

James Carrick

Broker Greater Sydney, Central Tablelands & Hunter NSW

Broker South Coast, NSW

Broker Mid North & North West NSW

+61 424 174 592

+61 416 166 909

+61 400 664 065

shanewynhoven@resortbrokers.com.au

russellrogers@resortbrokers.com.au

jamescarrick@resortbrokers.com.au

Liz Galea

Stuart Charles

Ray Ironside

Broker North East Victoria

Broker West Victoria

Broker Tasmania

+61 417 334 298

+61 458 588 472

+61 418 130 364

lizgalea@resortbrokers.com.au

stuartcharles@resortbrokers.com.au

rayironside@resortbrokers.com.au

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David Jiang

Steve Campbell

Neville Littleton

Broker and Chinese Liaison Nationwide

Broker Brisbane CBD & Surrounds

Broker North Brisbane

+61 481 500 278

+61 407 220 668

+61 407 727 194

davidjianghui@resortbrokers.com.au

stevecampbell@resortbrokers.com.au

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+61 419 675 429

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+61 408 704 778

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+61 412 635 344

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