June 2017 Informer by Resort Brokers

June 2017

ISSUE NO 86

AUSTRALIAâ&#x20AC;&#x2122;S NUMBER 1 | TOURISM & BUSINESS

INFORMER

PLANES, TRAINS & POWER PROJECTS A new wave of infrastructure investment is set to drive growth opportunities with major spin-offs for the accommodation sector

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WHAT’S INSIDE...

04 WE SAY, THEY SAY

A regular forum for the exchange of views, news & ideas

10 GROWTH ENGINES We follow the infrastructure trail to find exciting new business prospects

MHE SECTOR

KOKODA PROFILE Meet an apartment developer driven to build beautiful living landmarks

Could this be the biggest growth market of the next decade?

45 TERMINATING AGREEMENTS

CHRIS BANSON From caravan park upbringing to an accommodation portfolio 30-strong and growing

FIGHT FOR YOUR EXTENSION

Theoretically possible, but is it reasonable?

47 CLAWING BACK OTA COMMISSIONS

Take your ‘top-up’ case directly to the unit owners

A new strategy for operators to join forces and drive direct bookings

Regular Features

“Sit back, relax and enjoy the June edition of Resort Brokers’ Informer.”

ON THE MARKET

MARKET ACTION

AGENT PROFILE

Trudy Crooks discusses interesting developments in the accommodation market

Significant sales and listings grabbing the headlines

Get to know one of our Gold Coast brokers Paul Mueller

SOLD PROPERTIES

RELIEF MANAGERS

MEET OUR TEAM

See some of the properties Resort Brokers Australia has sold recently

Taking a holiday? Need a manager? Find them here

Resort Brokers Australia’s national directory

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Preface

WELCOME TO ‘WE SAY, THEY SAY’ – A REGULAR FORUM FOR THE EXCHANGE OF VIEWS, NEWS & IDEAS.

WE SAY

INLAND awakening

Ian Crooks MANAGING DIRECTOR

Infrastructure is firmly

on the agenda nationwide, for both the Federal and State Governments. And, if you follow world trends, it’s not just Australia that has woken up to the appeal of infrastructure. Investment interest, both private and public, is building around the world. To put it simply, we have infrastructure needs – those physical assets we rely on to live, like roads, bridges, electricity grids and transport networks. These needs just have to be met if economies are going to grow and prosper. With infrastructure investment come jobs and business opportunities. To get an idea of how whole regions can be uplifted, you need only look at the Darling Downs, the livestock and agriculture district around Toowoomba in SE Queensland. This is where go-getting local construction family, Wagners, built the $200m Brisbane West Wellcamp Airport. This new airport has already put The Downs on track to be one of Australia’s top fresh food export hubs to Asia. Cattleman Pat Gleeson recently told The Australian it had given him the ability to get fresh

resortbrokers.com.au | INFORMER JUNE 2017

chilled beef onto Chinese shelves in under three days. His Oakey meatworks is now doubling production and lifting staff numbers from 730 to 1300 – a massive boost for a country community. The implications for trade with food safety-obsessed China are huge. John Wagner reckons it’s not unrealistic to expect two jumbos a day to be flying out of his airport within five years, taking fresh produce to Asia and bringing Chinese tourists here. Imagine! No wonder local vegetable growing brothers Troy and Bradley Qualischefski are excited. Much of their broccoli crop already goes to Singapore where it sells for about $10 a kilogram. Now they’re working on deals in Hong Kong and mainland China. I reckon you’d have to be onto a pretty good thing if you’re selling

broccoli into Asia! There are dozens of stories like this. What I’m getting at is that, where major transport infrastructure improves access to a region, that region will get a big boost. In this edition of Informer, our cover story explores what infrastructure development is about to do for lots of regional centres, particularly those along the new Inland Rail line. Where business opportunities flourish, so too will the accommodation sector. My advice… watch where infrastructure investment is being directed, and look for opportunities to ride on its back. The inland should expect some very positive flow-on effects. Areas outside our capital cities often provide the launch pad for business success. So you’ll find plenty relating to that theme in this issue.

THEY SAY “Australia’s population is set to grow by about 400,000 people each year for the next several decades, reaching nearly 40 million by 2055. This is the equivalent of building a new city the size of Sydney every decade…. This means we have to think now about what kind of infrastructure the Australian community needs in the decades to come, not just the next one to two years. The Australian private sector has a shared responsibility to build confidence in the future of Australia to secure the ongoing economic and social prosperity of the nation. This means embracing bold thinking, guided by a long-term vision, and taking a strong leadership position to turn ideas into reality.” DR KEN HENRY AC, FORMER TREASURY SECRETARY, NOW NAB CHAIRMAN

1893

THE YEAR INLAND RAIL FROM MELBOURNE TO QUEENSLAND WAS FIRST PROPOSED.

MILLION

For example, we shine a light on the mushrooming caravan park and manufactured housing estate (MHE) sector, which is attracting a great deal of investment attention. Because MHEs need large areas of land, the ideal locations are usually on the outskirts of cities and close to major regional towns. I hope you’ll read the profile on Chris Banson, a terrific young entrepreneur from regional Victoria. We’ve helped Chris with a number of his property deals. Now based in Melbourne, he built his 30-strong accommodation property portfolio on the back of a Bairnsdale caravan park upbringing, and bought his first holiday unit complex at Lakes Entrance. I’m sure holiday complex managers everywhere will welcome an idea to help you claw back some of your profits lost to the powerful online

travel agents (OTAs). GoRez, which is now launching, is a strategy designed to drive direct bookings for you, so you can rely less on the OTAs and sidestep those hefty OTA commissions. Also in this issue is the story of a former rag trade director who took his love of architecture to ‘new heights’, building a company that is now a very respected developer of top quality apartment buildings. We also have news about some significant recent property sales, and the usual stack of helpful advice and insights from our specialist industry contributors. As another financial year is about to tick over, I’m not keen on making any forecasts or pronouncements. But I will say I am encouraged by recent observations from Treasury secretary John Fraser. He told the Senate economics committee he believed the Australian economy was on the cusp of a ‘bloom’ of growth, powered by rising business investment. His rationale is that, when companies run out of spare capacity, they start investing and employing. Fraser reckons this phase in the business cycle is now beginning. Cheers to that! END

NUMBER OF PASSENGERS WESTERN SYDNEY AIRPORT (ST.1) COULD HANDLE PER YEAR.

16,000

THE NUMBER OF INLAND RAIL JOBS GENERATED OVER THE NEXT EIGHT YEARS.

LETTER TO THE EDITOR WE’D LOVE TO HEAR FROM YOU: CARLACOOK@ RESORTBROKERS.COM.AU

INFORMER JUNE 2017 |

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› Management Rights REF: MR004772

Superb Brisbane Bayside Managements Rights

104

Units

Letting Pool Year Tenure

Resort Broker’s Australia is proud to present to the market a superb opportunity in the desirable Bayside area of Brisbane. This gem consists of the management rights to Manly Views 2 and Tingalpa Green, two townhouse complexes separated by a 2 minute drive, as well as a rent roll of three units in the complex next door. In total, there are 104 units across three locations, providing a strong business for a new, incoming manager.

›› Wonderful established Bayside management rights business

The business will provide not only a solid income but also a great lifestyle for a prospective buyer. The operator has minimal duties across both townhouse complexes and there are no set office hours.

›› Long 23 year agreements giving you great security

Wakerley and the surrounding suburbs have been on the rise for quite some time. The proximity to local amenities allow for easy day-to-day living, ticking all the boxes tenants and residents require. In summary this is a business that is well serviced, peaceful and clean, as well as being located in an area of high rental demand with low vacancy.

Bed

Bath

›› Opportunity for further growth ›› Two offices available to manager ›› Well maintained and spacious living accommodation ›› Superb 3 bedroom managers residence ›› Strong remuneration income over $130,000 ›› Strong position in the desirable Brisbane market

Financials Nett Profit: $292,339 Price: $2,095,000

Exclusive

Brent Staker Broker

M. +61 410 344 344 E. brentstaker@resortbrokers.com.au 6

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Wakerley

North Lakes

PRIVATE HOSPITAL SITE

FOR SALE IS THE PRIME NORTH LAKES PRIVATE HOSPITAL SITE IN THE DESIGNATED HEALTH PRECINCT OF ONE OF QUEENSLAND’S LARGEST AND MOST RAPIDLY EXPANDING SUBURBS. NORTH LAKES, A ‘MAJOR REGIONAL ACTIVITY CENTRE (MRAC) WITHIN MORETON BAY LOCAL GOVERNMENT AREA (LGA), IS SITUATED IN THE BURGEONING GROWTH CORRIDOR BETWEEN BRISBANE AND THE SUNSHINE COAST. This outstanding 9,945 square metre parcel, with frontage to Memorial Drive, McLennan Court and Gregor Street West, is offered complete with Moreton Bay Regional Council approval for a 200-bed hospital with emergency department (MCU – Preliminary Approval for Hospital and Car Park, effective to Nov 2018). Furthermore, infrastructure changes valued at approximately $1 million have already been paid on the site.

Investment Highlights: Prime hospital site with an established designated health precinct in one of Queensland’s largest and most rapidly expanding suburbs. Almost one hectare of land with existing approval for a 10-storey, 200-bed hospital with emergency department and a multi-storey car park.

This exceptional site sits within an emerging and already flourishing health precinct where extensive facilities are established, including:

Existing precinct health facilities include a Queensland Government Health Hub, day hospital, cancer care facility, and various

• A Queensland Government Health Hub.

medical, specialist and allied health services.

• A day hospital and various medical, specialist and allied health services.

Immediately adjacent is a six-storey specialist

• A six-storey specialist centre has been completed next door.

facility (under construction, due to open in 2018).

centre (open now) and a 146-bed aged care

• A 146-bed Opal Aged Care facility is being developed immediately adjacent.

Only Designated Health Opportunity Area within

The size of the site, approved use and demonstrated demand for health services also points to excellent potential to increase the size of the planned hospital facility.

Catchment has a rapidly growing population,

Trudy Crooks NATIONAL SALES MANAGER

M. +61 477 882 210 E. trudycrooks@resortbrokers.com.au

Moreton Bay LGA.

including an increasingly high proportion of people aged 65+, increasing demand for health services.

$7.725M

+ GST

Sale Price

INFORMER JUNE 2017 |

FOR SALE BY PRIVATE TREATY resortbrokers.com.au

› Freehold REF: FH004799

Incredible Blue Mountains Eco-Lodge - Freehold for Sale

Cabins

Lodges

Bed

Bath

This exquisite Blue Mountains eco-tourism facility is set on the edge of the Blue Mountains National Park, giving incomparable access to everything this natural wonderland has to offer.

›› 2 hours to Sydney CBD

In a secluded location on a large 7 hectares, this property offers 10 cabins, 3 lodges, a large conference centre for up to 80 people and much more. Cabins are connected by elevated timber boardwalks as to not disturb the natural vegetation below. Located about 4.5km from the Blackheath town centre, this property is well positioned with retail, restaurants, schools and retail all nearby, while also being completely secluded, set amongst the trees. The property also features a comfortable 3 bedroom, 2 bathroom residence, with adjacent granny flat studio and onsite restaurant. Evans Lookout and Cliff Top walking track are less than 1km away, providing unbeatable views over the National Park. This is an incredibly rare opportunity to purchase a facility of this type with many options to pursue such as health retreat, wellness centre, convention centre, corporate breaks as well as the eco retreat (subject to council approval).

›› Certified by Ecotourism Australia ›› Surrounded by national parks and native wildlife ›› 3 bedroom manager’s residence with separate studio ›› Restaurant and commercial kitchen ›› 80 pax conference centre

Financials Nett Profit: On application Expressions of interest CIRCA $4M

Exclusive

Shane Wynhoven Broker

M. +61 424 174 592 E. shanewynhoven@resortbrokers.com.au 8

resortbrokers.com.au | INFORMER JUNE 2017

Blue Mountains

› Special Project REF: FH004741

An Exciting Development Opportunity With Unparalleled Scenery And Location Whitsunday Rainforest Retreat presents a substantial holding of freehold coastal land and buildings with breathtaking Coral Sea and island views. A gated parcel covering approximately 4.0ha (10 acres), is offered for sale in one line as a freehold going concern. An established and thriving tourist accommodation operation with high occupancy and strong cashflow, it also has tremendous scope for growth, including approval for a 5-star boutique spa resort. The main residence was established as one of Airlie Beach’s most prestigious properties; a private and palatial hillside estate with panoramic ocean and island views. Outstanding features include a private helipad for direct guest airport transfers, a gourmet commercial-style kitchen, a heated Roman spa-style swimming pool and a deluxe honeymoon suite with private spa and massive ocean view deck. Expansion of Whitsundays Rainforest Retreat is on-going. The first stage of four fully operational villas/lodges each with 4 ensuite bedrooms, full kitchen, open-plan lounge/dining and outdoor deck areas has been completed. The opportunity exists to purchase the remaining sites earmarked for the construction of 8 similar lodges.

76 Units (Currently 20 units with scope for a further 56)

›› High netting, high occupancy tourist accommodation business in one of Australia’s most sought after east coast destinations ›› 4.7ha of elevated, north facing Whitsunday Coast freehold, commanding panoramic Coral Sea and Whitsunday Island views ›› Gateway to the world-famous Great Barrier Reef and Whitsunday Islands ›› Plans and re-zoning approval for 8 additional villas (total 32 rooms) plus boutique 4.5 – 5 star spa resort (up to 12 additional dual- key units), taking total room potential to 76 ›› Established international and domestic markets

Financials Nett Profit: $431,905 Price: $5,500,000

Exclusive

Des Fagg Broker

M. +61 427 849 119 E. desfagg@resortbrokers.com.au

Airlie Beach INFORMER JUNE 2017 |

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Editorial

GROWTH … infrastructure puts us on the right track No matter where you look around Australia, spending on infrastructure – particularly when it vastly improves access – has always led to significant economic benefits and commercial growth. For those savvy enough to follow the infrastructure trail, the track leads to opportunity. Nation-building’ may have

become a somewhat hackneyed term, thanks to its overuse in political rhetoric. But nation-building is exactly what we are looking at – a period of colossal investment in large-scale projects that have the capacity to stimulate economic productivity in both the short and long term. Major new infrastructure projects, headlined by funding of the long-awaited Inland Rail, put many regional centres on track for renewed prosperity. This is investment that has a multiplier effect, generating lasting economic, social and environmental benefits. The commitments, both at Federal and State levels, are numerous. Chief among them are the 1700km so-called ‘Steel Mississippi’ Inland Rail from Melbourne to Brisbane, the giant power-grid battery project dubbed Snowy Hydro 2.0, and clearing the final hurdle for the new Western Sydney Airport at Badgerys Creek. COMING LIKE A FREIGHT TRAIN The Courier Mail’s Michael Madigan offered this droll analogy: “It’s a bit like our own infrastructure version of the ‘Yowie’ – plenty have seen visions of it, but no-one has been able to capture this magnificent, mythical 1700km rail corridor holding

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the key to untold economic riches.” (20 August, 2016) But finally, almost 125 years after a consortium of Victorian businessmen first proposed an inland rail link from Melbourne to Queensland, the ‘Yowie’ has stepped out of the mist. “Treasurer Scott Morrison made the Inland Rail – the biggest rail project since the link across the Nullabor 100 years ago – a Budget centrepiece,” Madigan was able to report on the May announcement. “In one of the biggest investments ever seen in regional Australia, the Government will fund the Melbourne to Brisbane Inland Rail project with $8.4 billion,” Morrison beamed. Construction is committed to start this year on the project, which will deliver 16,000 jobs at its peak, boosting the economies of Brisbane, Melbourne and scores of regional centres along its route. It’s 163 years since the first railway opened in Australia. Wherever the railways went, towns prospered and new development was fostered. This, according to federal Transport and Infrastructure Minister Darren Chester will again “drive the nation’s prosperity through regional development and strategic transport investment.”

ENGINE

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Editorial

“There is something seriously wrong with government and politics in Australia when it takes 21 years to get an infrastructure project up. Indeed, it is quite disgraceful that infrastructure has had such a low priority.”

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SLOW TO GET ON BOARD It was Everald Compton, now 85, who first outlined the modern-day Inland Rail plan in 1996 to newly elected Prime Minister John Howard. As chairman for 18 years of Australian Transport and Energy Corridor Ltd (ATEC), he was a self-confessed “scourge” to politicians over more than two decades as he relentlessly pursued the dream. After all these years of political dilly-dallying, he is as frustrated as he is sanguine. “There is something seriously wrong with government and politics in Australia when it takes 21 years to get an infrastructure project up. Indeed, it is quite disgraceful that infrastructure has had such a low priority.” But he says credit is due to Malcolm Turnbull’s government for committing an amount that is “the largest for a nation-building project since Snowy Mountains Hydro 70 years ago.” Inland Rail’s double-stacked, 1800-metre-long trains will carry freight, which would require 110 B-double trucks, between Melbourne and Brisbane in less than 24 hours.

Compton rattles off the myriad benefits: greater speed in freight movement at less cost, massive savings on road repairs by reducing truck numbers, emissions reductions, new value-adding rural industries starting up, and growth of inland cities. Commodity market and labour market growth, increased economic activity and business expansion will add up to a forecast $16 billion increase in GDP attributable directly to Inland Rail. SPINE OF OPPORTUNITY The route takes it through Seymour, Albury, Wagga Wagga, Junee, Parkes, Narromine, Narrabri, Moree, Yelarbon, Inglewood, Toowoomba and many other stops in between. What it means for these centres is underlined by the excitement being felt in Parkes, 365km west of Sydney. Now they’re looking forward to more than just the annual arrival of the Elvis Express, which famously delivers hundreds of Presley impersonators for the town’s annual Elvis Festival. Parkes will be at the intersection point of two transcontinental railways, the hub of a dedicated freight network transforming the way goods are moved between Melbourne and Brisbane, and between the east coast, Adelaide and Perth. Mayor Ken Keith says everybody along the route will be able to link into what he calls “the spine of opportunity.” Major investment opportunities are already available for businesses looking to capitalise on the region’s strategic potential for logistics, manufacturing and distribution facilities. But that’s just the tip of the potential economic growth iceberg. Agricultural and pastoral business will benefit and expand, better able to transport their goods for domestic distribution and export. Mining enterprises will similarly benefit. The seeds of new settlements may even be planted. ACCOMMODATION BOOM Resort Brokers Australia managing director, Ian Crooks, well remembers what happened in the wake of the 2004 opening of the north-south transcontinental rail from Adelaide to Darwin, carrying The Ghan as well as

goods trains. The original narrow gauge railway served, and indeed often created the towns at stations along the way. The new standard gauge track added stations at Tennant Creek and Katherine. “The impact was fantastic for the accommodation and hospitality industries – an absolute boom for operators in regional Northern Territory and South Australia,” Crooks recalled. “The same can be expected all along the Inland Rail route.” An economic study of the Katherine region by the NT government proved his point. The number of business in the region grew from 657 in the 2003-2007 period to 919 by 2007-2011. Accommodation and food services business numbers rose from 27 to 59. “Construction crews generally come from outside the local area, so small country motels will find themselves heavily booked throughout the building phase,” he said. “And this won’t be a flash in the pan either. Projects like this bring sustained prosperity and opportunities for accommodation expansion and new development. “Also think about what it will mean for so many beautiful towns on the major road routes, to take massive semi-trailers off their roads, making them so much more visitor friendly. Drive tourism will benefit from better, safer roads, allowing regional towns to build their tourism markets.” FAST TRAIN FANS Another major rail infrastructure project long debated and still on the drawing board is the proposed High Speed Rail (HSR) between Sydney and Melbourne. It has received heightened attention lately, championed by crusading Turnbull government MP John Alexander, who sees it as a way to decentralise Australia’s urban population and open up more affordable housing. He says, for example, such a link would enable people to live in Goulburn and commute to Sydney in under half an hour. So, how it might impact the visitor economy? A 2014 report by Deloitte looked at the benefits HSR would bring to the Hume region in north-east Victoria (around Seymour, Shepparton, Wangaratta, Wondonga and Benalla). It forecast HSR would increase INFORMER JUNE 2017 |

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tourism numbers to the region by 4%. Applied to current tourism volumes, that represents an additional 265,620 domestic visitors each year with corresponding additional expenditure of $54 million. So you can see why the accommodation industry might want to get behind transport infrastructure projects. GAME-CHANGER One private company you don’t need to convince of the value of infrastructure investment is Wagners, the family business that bankrolled and built its own airport to the tune of $200 million, establishing Brisbane West Wellcamp Airport near Toowoomba. It was the first full-scale civil airport to come on line since Melbourne’s Tullamarine in 1970. Director John Wagner describes Inland Rail as a “game-changer” that will deliver benefits for the next 100 years. He’s put his money where his mouth is, offering to invest $60 million on road, rail and air facilities if the line runs past Wellcamp. If it does, it could turn the international airport with a weekly air link to China into a major export hub. In the meantime, Wagner and his brothers have also put their hands up to build and run the new Western Sydney Airport. That might not be a bad idea, considering Badgerys Creek has been touted as a possible second Sydney airport location since 1969. Despite plenty of knockers, Wagners decided to build their Wellcamp airport in April 2012, gaining approval in 2013, and opening it in just 19 months and 11 days later. These days, sceptics who once wouldn’t give them the time of day, are knocking on Wagners’ door. WE’RE ALL CHEERING So, if Australian governments have finally woken up to the wisdom of infrastructure investment, we can all be thankful. In the words of Everald Compton on Malcolm Turnbull’s massive pledge for Inland Rail: “Cynics say he has done it only to save his political hide, but whatever his reasons, I am cheering.” So too is the accommodation sector. Speaking on behalf of the industry, the Accommodation 14

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Association of Australia applauded infrastructure commitments including the new Western Sydney Airport and desperately needed upgrades to the Bruce Highway, one of the single-most important transport corridors for tourism in Australia. “Investment in new infrastructure and upgrading existing infrastructure directly translates to more visitors staying in accommodation businesses, particularly in regional areas, as well as instilling confidence in our sector to invest and build new properties,” said AAoA Chief Executive Officer, Richard Munro. And the re-focus on infrastructure hasn’t been limited to the federal government. The Tourism & Transport Forum, Australia’s peak tourism and transport advocacy group, welcomed initiatives contained in Victoria’s recent 2017-18 Budget. These included major funding injections into the National Gallery of Victoria, Parks Victoria, metropolitan public transport and, for regional Victoria, significant road works and a $435 million upgrade to the Gippsland Line, as part of a Regional Rail Revival Program. THE TIME IS NOW But none of us can afford to sit on our hands if we want to reap the rewards of all this investment. Regional development leaders have already described the Inland Rail commitment as a “call to action” for business in NSW’s Central West. Regional Development Australia’s Central West Chair, Alan McCormack, admits that regional businesses had been taking a ‘wait and see’ approach to Inland Rail, deferring any real strategic thinking around how to leverage opportunities that would arise. They should wait no more. Early construction works will begin this year and, based on the 10-year delivery schedule developed in 2015, the first Inland Rail train is expected to operate in 2024-25. Infrastructure Minister Darren Chester told The Australian the budget objective was to advance the construction to the point where a future government could not shelve the project. For anyone wanting to exploit business opportunities headed their way, the time to get on board is now, before the train leaves the station. END

$16B AMOUNT BY WHICH INLAND RAIL WILL INCREASE GDP.

76.6%

AVERAGE OCCUPANCY CAPITAL CITIES 2016

Random

FACTS

In 1917, a person wanting to travel from Perth to Brisbane on an east-west crossing of the continent had to change trains six times.

DEPARTMENT OF INFRASTRUCTURE AND REGIONAL DEVELOPMENT

Editorial

by COL MYERS

FIGHT FOR your extension I have had a number of

managers come to me very concerned that their committee will not support an extension of their caretaking and letting agreements. They have the distinct impression that, if the committee does not support the “topup”, any extension will not happen. Obviously, a top-up which is supported by the committee will invariably be passed at a General Meeting of the Owners Corporation/ Body Corporate. A top-up that is not supported by the committee is going to

be much more difficult to pass. However, don’t despair! As an owner of a lot, you have a right to place a motion on the agenda of an AGM to top-up your caretaking and letting agreements. Provided you lodge the motion within the required timeframe, the motion must be placed on the agenda and the final decision rests with the owners. All you need is an ordinary resolution (a majority decision) in your favour. If the committee are not supportive of your extension request, they will no doubt

INFORMER JUNE 2017 |

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lobby against you. Consequently, you must fight for the extension and do your own lobbying. I am always reminded of the battle that David and Honi Ranieri had at Riviera Apartments in Sydney. They had a committee who would not support their extension and they spent a long time trying to convince this committee otherwise. In the end, they resolved to move past the committee and go direct to the owners. They soon learned that the committee are irrelevant when it comes to the extension. The Ranieris’ argument was that onsite managers had a longterm view and the committee a short-term view and, in some cases, personal agendas. Their argument to owners was that the continuity of experience that the management rights system provides was the best system available for the building (when compared to hired caretakers or committee-run management). They used a combination of social media

(including Facebook and Twitter), email newsletters and organised information nights to communicate their message to owners. A key element of the Ranieris’ approach was that, at all times, they remained respectable to the committee and praised their volunteer status, but explained that committees can change every year and no-one has more experience and knowledge of the complex than the onsite management team. This approach took the “personal” out of the debate. Overall, they did seven information nights with PowerPoint presentations and achieved an overwhelming “yes” vote at the AGM. How the Ranieris achieved their top-up at Riviera Apartments is easy to replicate as long as you are prepared to roll your sleeves up and fight for your extension. In my view, the Ranieris’ approach is an example of what every manager should adopt when they encounter a difficult committee who will not support their top-up. END

THEY SAY “We need to stop thinking about infrastructure as an economic stimulant and start thinking about it as a strategy. Economic stimulants produce bridges to nowhere. Strategic investment in infrastructure produces a foundation for long-term growth.” ROGER MCNAMEE, US BUSINESSMAN, VENTURE CAPITALIST AND MUSICIAN

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

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

› Leasehold REF: LH004761

Coastal Leasehold – Top of the Hill, Top of the Town!

Units

Year Tenure

Bed

Bath

Resort Brokers have been appointed exclusive agents to present a neat, mid-size leasehold property in sought after Coffs Harbour.

›› Neat as a pin – everything in its place!

Situated on the top of the hill of the bustling CBD, it consists of 17 generous motel suites with three configurations. Current operators offer only a continental breakfast and with the luxury of nearby restaurants there is no need to cater for an evening meal. This allows upside for a hot cooked breakfast, should you choose.

›› 17 well configured generous motel spaces

The business is currently underpinned by repeat corporate clientele, along with multiple ongoing annual sporting fixtures which are all but guaranteed to Coffs Harbour for years to come. You will find the property established for ease of operation with spaces for all you need to create the perfect coastal lifestyle business.

›› 30% return on investment ›› Huge regional coastal corporate hotspot ›› Progressive income trend ›› Centrally located at the top of the town ›› A business underpinned by repeat corporates and numerous annual sporting events ›› Generous living area with three bedroom residence

Financials Nett Profit: $159,066 Price: $520,000

Exclusive

James Carrick Broker

M. +61 400 664 065 E. jamescarrick@resortbrokers.com.au

Coffs Harbour INFORMER JUNE 2017 |

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Queensland Coastal Duo

o n o f f e r a r e t w o s t u n n i n g p r o p e r t i e s lo c at e d o n Q u e e n s l a n d ’ s G r e at S a n dy S t r a i t s R e g i o n . – T o b e o f f e r e d i n o n e l i n e o r s e pa r at e ly i f r e q u i r e d – All With Ocean Views Rainbow Sea is a small boutique 4.5 star resort featuring 3 bedroom, 2 bathroom apartments, some with rooftop terraces. All overlook the stunning coloured sands of Rainbow Beach. Rainbow Beach was nominated this year as the highest tourism growth town in QLD and the ninth highest in Australia. Business is trending well with at least 2 months this year up 100% on last year and with most months being above last year.

Absolute Beachfront ›› Rainbow Sea manager's residence is a stunning 3 bedroom apartment with panoramic ocean views ›› Fraser Island Beach Houses', managers beach house features three bedrooms with two bathrooms opening out on to a large veranda.. Also included is a two bedroom care takers residence. ›› Both businesses have long accommodation module agreements

›› The managers could remain in place or purchaser could choose Fraser Island Beach Houses are located on Fraser Island. Fraser to move on site and run the complex themselves. Island’s World Heritage listing ranks it with Australia’s Uluru, ›› Massive opportunity for further growth (currently only listed Kakadu and the Great Barrier Reef. Fraser Island is a precious part on one external website) of Australia’s natural and cultural heritage and is protected for ›› Minimal competition all to appreciate and enjoy. Fraser island is a place of exceptional ›› Priced to sell beauty, with long uninterrupted white beaches flanked by strikingly coloured sand cliffs, and over 100 freshwater lakes, some tea-coloured and others clear and blue, all ringed by white sandy beaches. Ancient rainforests grow in sand along the banks of fastflowing, crystal-clear creeks. The resort is conveniently situated on the east side of Fraser Island, making access to all areas of the island incredibly easy. Within a hop and a skip, you will find yourself on the world famous stretch of 75 Mile Beach, a gazetted highway providing easy access to some of the east coast’s iconic attractions.

Fraser Island Beach Houses Nett Income: $209,639 | Price $1,362,772 (Including Residence)

Glenn Millar

Tyler Millar

M. +61 412 277 804 E. glennmillar@resortbrokers.com.au

M. +61 411 271 761 E. tylermillar@resortbrokers.com.au

Broker

Rainbow Sea Resort Nett Income: $147,883 | Price: $1,202,802 (Including Residence)

resortbrokers.com.au | INFORMER JUNE 2017

Broker

› Leasehold REF: LH004684

The Motel Of Your Dreams Is Now Available For Sale

Units

Year Tenure

Bed

Bath

This property is situated in a prominent position whether coming from the north, south or west. It is only 9 years old and boasts a clean, modern appearance drawing the traveller to its doors. For the first part of its life it has only had one lessee and is now being offered for sale again with a brand new 30 year lease.

›› 29 units in prime position

This is a property you will be proud to own. As it is located in a large regional city, it attracts a wide variety of visitors including tourists, corporate and government workers. Naturally, a new operator always introduces new energy and fresh ideas which will benefit the motel. Rocky Resort is located in Rockhampton, which is often referred to as the beef capital of Australia. The region offers a great mix of urban, rural and coastal lifestyles while also being close to major centres such as Brisbane; which is 641kms south or a short plane ride away. Situated on the Fitzroy River, it is a tourist crossroad to offshore islands; The Great Barrier Reef to the east, tropical holidays to the north and gem fields to the west. Whichever way you look at it, Rockhampton is a fast growing region which is working to become the most livable community in the world! This could be your new beginning.

›› Luxury two bedroom residence with 2 ensuites ›› Undercover parking for all rooms ›› Licensed restaurant with bar and ability to cater for meetings and banquets ›› 4.5 star rating and deserves every point ›› New 30 year lease agreements for new operators ›› Presently run under management ›› All staff in place for easy takeover

Financials Nett Profit: $343,290 Price: $1,072,000

Exclusive

Len Booth Broker

M. +61 438 139 422 E. lenbooth@resortbrokers.com.au

Rockhampton INFORMER JUNE 2017 |

resortbrokers.com.au

› Management Rights REF: MR004679

Townhouse Complex Northern 75 Gold Coast With Large Nett Profit Units The stunning townhouse complex of Gold Coast Outlook III is located directly between the Gold Coast and Brisbane, only 30 mins to Brisbane and 20 min to all the theme parks that the Gold Coast has to offer. This really is the jewel in the crown of the northern Gold Coast. The manager's residence is a stand alone 4 bedroom home with attached office on title. Both the house and office have separate entrances for total privacy. There is no requirements to live onsite, giving the option to rent it out for an extra $23,400 income. With no office hours required, the managers have set up a regular maintenance program for easy operation of the day-to-day running. Gold Coast Outlook is a 75 townhouse complex all with 3 bedrooms and 2 bathrooms, set on 2.97 hectares. Only 8 years old, there are currently 65 in the letting pool (with one outside agent), all 100% tenanted with a large nett of $233,442. This complex attracts the semi-professional as well as office workers commuting to Brisbane and the Gold Coast area. Quiet by day and peaceful by night, this is what best describes everything that is Gold Coast Outlook.

Letting Pool Year Tenure

Bed

Bath

›› Nett Profit of $233,442 (inc income for rental of residence) ›› Office on title ›› Manager’s residence is a standalone 4 bedroom, 3 bathroom home ›› No set office hours ›› 65 in letting pool ›› 22 years remaining on agreements ›› Ability to rent out manager’s residence for an extra $23,400 (included in nett profit) ›› 8 year old complex

Financials Nett Profit: $233,442 Price: $1,599,000

Exclusive

Paul Mueller Broker

M. +61 439 255 507 E. paulmueller@resortbrokers.com.au 20

resortbrokers.com.au | INFORMER JUNE 2017

Eagleby

› Freehold Going Concern REF: FH004797

Vikas Ski Lodge, is an established group travel venue that currently specialises in school, college and sports club bookings that are locked in year after year and offer guaranteed income in the ski season.

›› First time on the market in 3 decades

The property offers 47 guest rooms over 2 buildings. The operation incorporates in-house ski and clothing hire, ski accessories shop, tailored tours and facilitated access to the ski fields. There is a commercial kitchen and restaurant that caters for up to 250 diners, a fully licensed bar, and a spacious communal lounge area with open fireplaces and fully equipped games room. This charming lodge has been under the same family ownership for almost 30 years, and is now on the market for the first time in 3 decades of successful trade. This is a not to be missed chance to secure a well established and traditional European-style ski lodge right in the heart of Jindabyne. The alpine national parks now attract travellers and wilderness lovers well beyond the ski season. Vikas Lodge offers a perfect opportunity to expand into this year round leisure market whilst capitalising on existing trade.

Units

R e s i d e n c e

Popular Alpine Lodge In the Heart of NSW Snow Country

Bed

Bath

›› In the centre of Jindabyne township with breathtaking lake views ›› Enormous potential to grow and rebrand ›› 47 guest rooms with 170 beds over 2 buildings ›› Restaurant with commercial kitchen and cool room catering for 250 ›› 30 minutes from ski fields ›› In house ski shop and ski hire business ›› Self contained diesel plant and boiler systems ›› Profit is from 4 months trade (June long weekend to October long weekend)

Financials Nett Profit: $468,392 (4 months trade) Price Range: $4,500,000 – $4,900,000

Exclusive

Russell Rogers Broker

M. +61 416 166 909 E. russellrogers@resortbrokers.com.au

Jindabyne INFORMER JUNE 2017 |

resortbrokers.com.au

› Freehold Going Concern REF: FH004708

A Rare Find – A Freehold Motel Just 2 Hours Brisbane

On offer is the freehold interest of this 20 room motel that presents very well and is in a great spot. All units are ground level with under cover parking. All 20 motel bathrooms have been totally refurbished from the pipe work to the tiles, floors and vanities.

›› Opportunity for further growth

As the accommodation businesses in this area of the Burnett fluctuate with the shut downs from the power station, we have taken a view of the turnover and net profit. Over a five year period this levels out the business to a sustainable level moving forward. Located at the junction of two major highways, the New England and the D’Aguilar, the motel is in a great spot for the passing travellers and tradies that frequent the area on the periods during shut downs (which vary in length and frequency from year to year). This is a great business for a couple to run. It is situated only two hours from Brisbane, two hours from the coast and less than an hour from Toowoomba; and really is a lovely place to work and stay.

Units

›› Experienced staff to assist with transmission ›› Fully refurbished bathrooms ›› Commercial kitchen and liquor license ›› Easily run by a couple ›› Centrally located to major areas, towns and cities ›› Located at the junction of two major highways; the New England and the D’Aguilar

Financials Nett Profit: $197,404 (5 year average) Price: $1,350,000

Exclusive

Lindsay Cooper Broker

M. +61 418 711 047 E. lindsaycooper@resortbrokers.com.au 22

resortbrokers.com.au | INFORMER JUNE 2017

Yarraman

› Management Rights REF: MRB004784

Business Only Management Rights – 4km To Brisbane Cbd

Units

Year Tenure

Bed

Bath

Car

This exceptional off the plan business only opportunity is ideally suited for a mid-scale operator seeking a flexible arrangement to either reside on-site or simply work out of the exclusive use manager’s office.

›› Well progressed and strong ongoing apartment sales

The Pavilions is set to be an iconic new development situated in the heart of Annerley, only 4km from Brisbane’s city centre. Currently under construction, this project is set amidst a leafy enclave of this established suburb, offering a vibrant village lifestyle and complete convenience.

›› Highly desirable and established area close to amenities and transport

The attractive location is enticing for city workers, local professionals and small families looking for a spacious and serene home coupled with the freedom and low maintenance lifestyle provided by apartment living. This stunning collection of residences comprises 66 apartments of one and two bedroom designs, split over three stunning lowrise buildings surrounded by lush landscaping and mature native trees.

›› Construction is due to be completed by Nov 2017 ›› Current undersupply of brand new apartments and strong rental demand in the area

›› Convenient to universities, schools, hospitals, parks and public transport ›› Walking distance to supermarkets, local shops, restaurants and cafes ›› Exclusive use of the manager’s office located on the first floor plus multiple storage areas

Financials Nett Profit: $177,547 Unit Price: $529,000 Business Price: $798,961

Exclusive

Nathan Eades

Tim Crooks

M. +61 448 339 920 E. nathaneades@resortbrokers.com.au

M. +61 422 208 450 E. timcrooks@resortbrokers.com.au

Broker

National Off the Plan Specialist

INFORMER JUNE 2017 |

Annerley resortbrokers.com.au

Editorial

â&#x2020;&#x2018; Urban edge, Chester & Ella, Newstead

resortbrokers.com.au | INFORMER JUNE 2017

↑ Making a grand entrance to Brisbane, Chester & Ella

KOKODA - holding the line on quality

‘Passionate’ is a word prone to overuse, often applied to even trivial beliefs. When you speak to the people at Kokoda Property though, you soon understand they really are … intensely and fervently inspired by fine architecture, superior craftsmanship, and the challenge to uplift the residential landscape. Developer Kokoda Property has been active in the Melbourne market for 20 years, with a focus on high quality projects in blue-chip locations. In recent years, they’ve successfully taken their design-driven approach north to Brisbane. And now, they have even more ambitious expansion plans on the drawing board. The force behind Kokoda, originator of its quality-conscious culture, is former rag trade executive Mark Stevens. The one-time director and COO of Jeans West founded his development business in 1997, while he was still enmeshed in the corporate world. “I had an epiphany, actually, in the mid-nineties,” he explains. “I read a

book, 'Rich Dad Poor Dad' by Robert Kiyosaki. I realised I could either keep doing the same thing, restructuring and fixing other people’s companies, or I could do my own thing.” The book famously contended that, rather than learning to work for money, we should learn to have money work for us. For the qualified accountant, it proved a turning point. But there was more to Stevens than bean-counting and balance sheets. “I grew up in a family of tradespeople,” he says. “Even though I’m professionally trained as an accountant, I love architecture. I’m a creative person, which might sound a bit odd for someone in finance. But I just loved architecture, particularly INFORMER JUNE 2017 |

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Editorial

classicism.” So, compelled by this love, and a desire to create beautiful living landmarks, Stevens began developing luxury homes while still maintaining his corporate ‘day job’. Initially, he built lavish residences in some of Melbourne’s most elite suburbs – Toorak, South Yarra, Hawthorn, Yarrawonga. Those elegant and timeless designs stand as the company’s proud legacy. But these days, the buildings bearing Kokoda’s quality hallmark are substantially larger. The step from individual houses to multi-unit development was not necessarily planned. “Actually, the choice was made for me,” he admits. By this time, Stevens had transitioned full time to focus on his development pursuits. “When the GFC came, I was building

“We wouldn’t build anything we wouldn’t live in ourselves.” luxury homes which we would sell on completion. The banks suddenly said I’d have to double my equity. So I knew I needed to change the model, essentially moving the risk to the front end. “On the tail of the work I’d done in terms of quality (selling houses of such distinction they’d bring up to $10 million), I moved into higher volume. We simply needed to create the market euphoria at the beginning by selling the vision, rather than at the end with the completed product,” he explained. The move was patently successful. Currently, the company now named Kokoda has multi-storey apartment projects worth more than $700 million under development, delivering new dwellings at a rate of around 650 apartments per year. Stevens’ operation has completed more than 100 developments. Learnings in luxury residences were first applied to small upscale apartment developments such as Mathoura in Toorak, Lex at South Yarra, and Manningtree, Hawthorn. 26

resortbrokers.com.au | INFORMER JUNE 2017

Soon came multi-level apartment projects, starting with Q1 and Q2 at Blackburn, with 50 and 48 apartments respectively. Then, up a notch again: Infinity at Oakleigh with 92 apartments and three retail premises, Leo at Camberwell (90 units) and 8 Montrose Street, Hawthorne East (111), each with four retail units. “Our philosophy remains unchanged,” Stevens says. “Every Kokoda Property residence represents an unfaltering commitment to quality, meticulous attention to detail, and luxury inclusions as standard.” They have a saying: Kokoda creates homes that are ‘not just liveable, but lovable.’ “We practice what we preach,” he says. “We wouldn’t build anything we wouldn’t live in ourselves. “Our ultimate satisfaction comes from creating homes that residents will adore, inside and out. We seek out the best locations, so that the lifestyle afforded by the surroundings lives up to the level of luxury our homes provide.” Through astute site acquisitions, innovative project design, keen project management, and smart sales and marketing, Kokoda has grown to be a sizeable, highly respected developer. The approach has always been to pre-sell apartments before embarking on construction. And sell they have. Kokoda has achieved sell-out, on average, within 12 weeks. The most recent development to conclude in Melbourne has been Evergreen at leafy Ivanhoe, a 7-storey collection of stylish apartments sheathed in a façade of slender, vertical timbers. It was fully pre-sold within just 10 weeks. Also nearing sellout in the Victorian capital, and now under construction, are the 88-apartment Trentwood at Glen Iris, and Casa Del Mar, a 68-lot foray into the luxury townhouse market at Mordialloc. With the business model proving so successful in Melbourne, Kokoda sought to expand elsewhere. “I’m a big believer that new territory provides new lessons,” Stevens says of his decision to enter the Brisbane market. “It also makes good business sense to spread your capital across various markets, diversifying your risk.” The key, of course, was always to find the premium locations so fundamental to Kokoda’s philosophy.

In Brisbane, that was Newstead, because of its high level of lifestyle amenity, with restaurants, cafes, entertainment, premium retail, and proximity to the city. There they are building Chester & Ella, elegant twin towers with some 1,500sq m of exclusive resident amenity, including rooftop pool, spa, outdoor cinema, kitchen, barbecue areas and golf putting greens. There will also be a private dining facility, courtyard terrace, health and wellness centre, gymnasium and round-theclock hotel-style concierge. Chester (stage one) was named the top-performing project in Brisbane’s apartment market in the December quarter last year, recording 70 unconditional sales for the period. The next best performing project managed only 24. Stevens puts that down to a more discerning market that is turning its attention to the high quality, luxury product for which Kokoda is known. “There is always demand for good quality and good locations,” he said. “There’s a reason we have been continuing to sell in Brisbane when others aren’t. It is our quality, our point of difference. It is simply about identifying the gaps in the market and delivering the value proposition. It will work, even if the market is oversupplied.” Demand for Kokoda’s apartments saw Ella (stage two) launch ahead of schedule with a single purchaser buying apartments worth $14 million in one transaction. Stevens has also cemented his commitment to the Brisbane market by acquiring a $12.5 million river-view site in Milton and a $9.5 million DA-approved riverfront site at St Lucia. Beyond that, Kokoda is looking for opportunities in Sydney, where it is opening an office at Surry Hills. And a recent trip to America saw plans laid for a Kokoda foray stateside in Los Angeles, San Francisco or New York. “It’s more exciting than daunting,” he says. “There’ll be a new culture, of course, and new practices. But, once you’ve set up a new office and operation in another state, it’s not that different to do it in another country. The fundamentals are still the same – where there is a desire and a need, we’ll bring the edge we have.” In fact, Mark Stevens doesn’t see

any barriers to growth. Asked where Kokoda would be in 10 years, he said, based on the numbers they’re achieving now, he could expect them to have properties worth between $5 billion and $10 billion under development. “It’s not about lining my pockets. Those are just numbers. It’s about how you can deploy capital. Really, what I see is that we’ll be working on more jobs, in more cities. We’re more likely to have many small offices of five to 10 people each than one giant office with hundreds of people.” The Kokoda name, a brand worn with immense pride by Stevens and his team, is one he adopted some way along his property development journey. Yes, it is borrowed from the infamous Kokoda Trail through PNG’s Owen Stanley Range. “I remember standing in a newsagency with a guy in Brisbane – we’d gone there for some sort of conference. I was still COO at Jeans West and I was probably building 10 houses at the same time, working 16 hours a day. “I commented to him what a hard slog it was getting things off the ground. I used the war analogy – the constant battle. So the name does relate to the track. It signifies the challenge you face to start from scratch to build something worthwhile and successful, the constant grind to make your way forward.” Never one to take the symbolism lightly, Stevens walked the track for the first time in 2005. Last year, he did it again with his 17-year-old daughter, and this year he will trek again with his sons, aged 11 and 12, and his partner. Many in his team have also made the pilgrimage, though it’s not viewed as some sort of company ‘right of passage’. “We do encourage staff to do it, and many have, but for all sorts of reasons. Some because of the spirit it creates, the mental toughness it requires, or because they appreciate the history, or have a personal connection to the war.” Whatever the reason, it is a challenge they are proud to tackle, to signal their belief in Kokoda values – both relating to the brave war effort and to the brand they stand behind. END

↑ Crafted exterior, Evergreen, Ivanhoe, Melbourne

↓ Sculptural spiral staircase, Chester & Ella, Newstead

INFORMER JUNE 2017 |

resortbrokers.com.au

2017 TAX PLANNING

it’s time!

by TONY ROSSITER Nothing hurts a business owner more than having to pay hard earned profits to the tax man… What’s worse is that most small business owners pay even more tax than is required. Here are 5 tips to help you prepare for the 30 June deadline and legitimately bring the tax bill down. 28

resortbrokers.com.au | INFORMER JUNE 2017

1. BE PREPARED AND ORGANISED

It may be the boring tip but it might just save you the most money out of all! You can only claim deductions if you know about the expense and poor record that costs Australian businesses thousands of dollars each year. The new cloud based accounting software helps with this process by feeding your bank statements and credit cards directly into your business file. However, think about any other ‘out of pocket’ costs paid from your personal bank account or on the personal credit

Editorial

time or the information is wrong, then you risk late lodgement interest. Also, if the ATO comes back and has to correct your tax assessment, you will need to repay any shortfall in tax owing as well as interest and penalties. Get it right the first time so you don’t need to be dealing with any follow up questions from the ATO! 2. GET ADVICE WELL BEFORE 30 JUNE Tax planning is key to legitimate minimisation of your tax bill. In many circumstances you need to have made decisions or have taken steps before the end of the financial year. If you are thinking about tax in July and August then you may have missed the boat for some of the strategies. We also recommend that you don’t leave it to the last week of June! You may get some great advice but if you don’t have time to take the necessary steps before the 30 June deadline then you may miss out. 3. UNDERSTAND THE TAX CONCESSIONS Believe it or not, the tax laws aren’t all written to take money away from business! Many of the rules and regulations are actually there to give tax breaks to small business owners and you have every right to take advantage of them. The big ones for 2017 include:

card. These costs may be deductible if they have a connection with your business, so you don’t want to miss them. Some particular areas to look at include: i. Business purchase costs such as travel, advisor fees, courses and your own research. These costs are usually paid before you setup the business bank account. Send a list of all costs to your accountant as they may give you an immediate tax deduction or a deduction spread over the first years of your business. ii. Fuel, office supplies and small one-off items purchased with cash or on the personal card

iii. Home office usage and equipment – If you use part of your home as an office you will need to keep a log of the time, space and items which are used for business. Every deduction helps bring down the tax bill. Remember that your accountant is best placed to make a call on whether the expense is deductible. There is no harm in providing all expenses to your accountant so that they can identify any costs which are legitimately deductible. Poor records can also cost you money… If you can’t get the information to your accountant in

i. $20,000 immediate write-off for business asset purchases – The government has given you until 30 June 2017 to take advantage of the $20,000 immediate write-off for business assets. Are you looking to replace any furniture, office equipment, machinery, tools or vehicles in the near future? If so, then the time to do it is before 30 June. ii. Superannuation - Depending on age, business owners may be able to contribute up to $35,000 in super and get a deduction for the contribution. Next year you may be capped at $30,000 so if you are planning on building your super and lowering the tax bill then you might put some surplus cash into super. There are many rules around super so it’s best to check with your advisor before making a contribution. Remember that the money needs to go in before 30 June. One day late and you miss out! INFORMER JUNE 2017 |

resortbrokers.com.au

Editorial

iii. Prepaid interest – You can bring forward next year’s interest deduction by paying a lump sum of interest before 30 June. Just like super you will need to make sure you have the cash available to do this and you will need to talk to your bank about the process for prepaying interest. Always remember that tax deductions are great but you don’t want to waste money on purchases for the sake of the tax outcome. Spend money on your business if it is going to help maintain or grow your profits and the tax break is a bonus! 4. SET A LONGER TERM PLAN It is never too early to plan for the eventual sale or your business. There are small business capital gains tax concessions available to reduce or even eliminate the tax you will pay on the eventual sale of your business. In most cases the business is your most

resortbrokers.com.au | INFORMER JUNE 2017

valuable asset so careful planning will ensure that you minimise your tax bill in 2017 as well as later income years. You need to make sure that your advisor understands your longer term goals. Smart advisors will look 4 or 5 years ahead to work out how best to minimise your tax bill over the longer period. Good tax planning is also about understanding the cash you will need now and in the future so that the savings you make this year are not unwound in the next years. 5. BEWARE OF BAD ADVICE At this time of year you will hear a lot about tax in sales campaigns. You wouldn’t ask your tax advisor to tell you about the performance of a vehicle so be wary when your car dealership gives advice on tax! The devil is often in the detail and you should check with your advisor before making any significant purchases or investments.

Also there may be investment schemes out there which are promoted to provide tax advantages. If tax is the driver for any investment then you can be sure that the ATO will be hot on the trail of the promoter and the investors. The ATO can amend your returns and charge heavy interest and penalties if you have entered into an arrangement to get a tax deduction. Good luck with tax planning and we hope that 2018 is profitable for you and your business. END The information, opinions or conclusions provided above are generic in nature and do not express individual advice or recommendations. You should always consult a suitably qualified professional before taking any course of action outlined above. Holmans welcome any queries you may have in relation to the above matters.

› Leasehold REF: LH004690

New Quest Apartment Hotel Leasehold – Completion Due May 2018

Units

Year Tenure

This is a unique opportunity to secure the leasehold/franchise interest to Quest Springfield, a brand-new 4.5 star, purpose built apartment hotel centrally located within Australia’s largest master-planned community.

›› Total of 57 apartments, opening to 82 keys

Constructed and finished to an exacting standard, the 7-level property will comprise of a flexible mix of studio, one bedroom and two bedroom apartments. Facilities include conference centre, gym, reception facilities, two offices, lobby, breakout area, guest laundry and staff room / kitchen.

›› High growth area – total project investment of $85BN in Springfield

Guest activity is anticipated from a number of sources including the new private medical suites within the same development, Mater Hospital (500m) and University of Southern Queensland (1km), as well as the significant development scheduled for the area in coming years. This an opportunity not only to secure lengthy tenure over a topclass hotel, but also to become a part of Quest Apartment Hotels and to benefit from its business format system developed over many years in the corporate accommodation sector.

›› Lengthy tenure - 25 year lease (15 + 5 + 5) ›› High quality, stylish, 7-storey building serviced by two passenger lifts

›› One of fastest growing populations in Australia – 32,000 to 138,000 by 2030 ›› Extensive training and ongoing support provided by Quest

Financials Price: $1,640,000 + $195,000 EBI

Exclusive

Alex Cook Broker

M. +61 467 600 610 E. alexcook@resortbrokers.com.au

Springfield INFORMER JUNE 2017 |

resortbrokers.com.au

Two Leasehold Opportunities in Perth Quest Innaloo

Quest Midland

Due For Completion November, 2017

Due For Completion May, 2018

Quest Innaloo will open for business in November 2017 and offers a unique opportunity to become associated with Australasia’s most successful apartment hotel franchise system. The business consists of 80 keyed serviced apartments comprising 40 studio (inc. 5 special access studio apartments) and 40 one bedroom. Of interest to any potential purchaser is the Innaloo shopping centre expansion project ($450M) and the Stirling Cross development ($240M), incorporating the Quest Innaloo development.

Quest Midland is currently being constructed and is due for completion in March 2018. The business will consist of 102 keyed serviced apartments comprising 47 studio and 55 one bedroom (inc. 7 special access one bedroom apartments). Tenure is secured under a 30 year lease. Of interest to any potential purchaser will be the proposed Midland urban renewal project incorporating a 370 bed hospital, proposed tertiary education facilities and substantial residential/ commercial developments.

›› Opportunity to benefit from future growth

›› Member of Australasia’s largest apartment hotel franchise group - Quest Apartment Hotels

›› Member of Australasia’s largest apartment hotel franchise group - Quest Quest Apartment Hotels

›› 40 dual keyed apartments providing a total of 80 separate apartments

›› 55 apartments, some dual keyed, providing a total of 102 separate apartments

›› Extra facilities including conference room, gymnasium and business lounge

›› Extra facilities including conference room, gymnasium and external swimming pool

›› Ideally positioned just 12 kms from Perth CBD and close to public transport

›› Ideally positioned just 18 kms from Perth CBD, close to public transport and 9 kms from Perth Airport

›› Currently under construction and due for completion in November, 2017

›› Currently under construction and due for completion in May, 2018

›› 25 year leasehold tenure, rent free period of 90 days and rent held for the first two years

›› Substantial franchisor support systems

Financials

Price: $1,600,000 + $185K (EBI) + GST

Price: $2,040,000 + 245K (EBI) + GST

Jim Chapman

Victorian State Manager

M. +61 413 444 782 E. jimchapman@resortbrokers.com.au 32

resortbrokers.com.au | INFORMER JUNE 2017

Perth

› Management Rights REF: OTP004767

Rare OTP Townhouse Complex in Strong Letting Catchment

Units

Letting Pool Year Tenure

Treetops represents an outstanding opportunity to secure the management rights to a suburban townhouse complex of 46 units, currently under construction and due for completion August 2017. The townhouses are fully pre-sold with an extremely strong investor profile, establishing this as an ideal management rights given the strong local rental market.

›› Fully pre-sold with completion due in August

Situated in a beautiful leafy spot in Everton Hills, these high quality townhouses are sure to catch the eye of potential tenants from local major employment nodes including Northwest Private Hospital, Enoggera Army Barracks and Prince Charles Hospital. This rental market is unlike the crowded inner-city markets that are experiencing an oversupply of rental accommodation, helping the investors and manager alike. In addition, the successful purchaser will also have the opportunity to purchase the adjoining OTP complex which will bolster the income substantially and create a large scale opportunity which is staged to ease letting stress.

2.5

Bed

Bath

›› Management rights for adjoining OTP also available, combined net income $282,623 p.a. ›› Strong potential letting pool with high proportion of investors ›› Projections prepared by industry specialist accountants ›› Developer extremely supportive of manager, a huge advantage during delivery ›› No requirement for the manager to reside on-site

Financials Nett Profit: $145,345 Price: $1,112,311

Exclusive

Gareth Closter Broker

M. +61 423 182 766 E. garethcloster@resortbrokers.com.au

Everton Hills INFORMER JUNE 2017 |

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Editorial

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

Chris Banson: BORN TO THE BUSINESS

There could be worse starts to a career in accommodation ... growing up as the son of caravan park owner-operators, and taking a ‘gap year’ that turned into three spent roaming Australia, working in hotels and resorts. Somehow, it seems Saltwater Properties’ Chris Banson was born to this business. 34

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Niramaya Villas & Spa, Port Douglas ↑

When Informer caught up with Banson, he’d just landed in Port Douglas to look over his company’s latest acquisition, Niramaya Villas and Spa, one of his most opulent yet. This boutique sanctuary of exclusive villas, set in 15 hectares of tropical North Queensland gardens, brings the total number of rooms under Banson’s control to more than 2000. That’s some portfolio for a young man not yet 40. Especially when he spent four years finding out his first career choice of financial planning wasn’t going to work out. “I realised it wasn’t for me,” he recalls. “So my girlfriend, as she was at the time, and I set off travelling in a $2,000 caravan. We ended up being away for three years.” For their adventure to have been undertaken in a caravan is unexpected – a mode of transport probably considered distinctly ‘uncool’ in the early noughties. But then, you must remember, Banson had lived in a caravan park since the age of five. How else would he travel? Though born in Melbourne, he moved 280km east to Bairnsdale in East Gippsland when his parents bought a caravan park. So it was in country Victoria that Banson did all his schooling, immersed in the caravan park environment and lifestyle. It was with this background that he and his future wife, Esther, set off on their expedition, heading first to Alice Springs and then over to Broome. “We fell in love with Broome, and worked there for about six months,” he recalled. “In the end, over those three years, we ended up going around Australia twice.” They picked grapes in Margaret River, worked as a porter and receptionist in the Whitsundays and did a ski season at Mt Hotham. The seeds were being sewn. Fast-forward 15 years, and this couple would actually own resorts in Broome and Mt Hotham. Some credit has to go to Banson’s father, who not only gave him his early grounding in the industry, but was the instigator of his first business move. “During our travels, Dad suggested we go into business together,” he said. “We bought the management rights off-the-plan to The Esplanade Resort and Spa at Lakes Entrance, with 134 INFORMER JUNE 2017 |

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Editorial

apartments, a restaurant and day spa. It would be 18 months until it was completed, so Esther and I kept travelling in the meantime. “Then we came back to Lakes Entrance (just 40km from his childhood home of Bairnsdale) in 2005, moved in to open The Esplanade and ran it for the first five years. After five years, we really needed to get off-site. We even lived on a boat at Lakes Entrance for six

we got bigger. We bought a small management rights, also off-the-plan, at Port Fairy on the Great Ocean Road and another at Narooma in New South Wales.” These properties, The Victoria Apartments, Port Fairy and Horizon Apartments Narooma, launched a decade of expansion and remain in their portfolio today. Buying a second Lakes Entrance Property, Bellevue on the Lakes, allowed the couple to establish a more formal head office base for their growing operation. The Bansons’ next acquisition has a special place in their hearts. Buying The Pearle of Cable Beach marked a return to their beloved Broome in 2009. They’ve since added a second, Kimberley Sands Resort & Spa. And, while their business was expanding, so too their family. A first daughter was born in 2008, and a

“It was time to either get out or get bigger,” Banson explains. “So we got bigger.” months.” In hindsight, this was probably the tipping point that triggered the birth of Saltwater Properties, and a remarkable growth trajectory. “It was time to either get out or get bigger,” Banson explains. “So 36

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second in 2010. Chances are, travelling this vast continent will be in this generation’s blood too. “During all this time, we continued to own a caravan, and every year we’d drive to Broome for a couple of months in the winter, until the children went to school.” The start of their children’s schooling marked another milestone in the Saltwater Properties story. “We’d been looking to get into the Melbourne market. We moved there in 2013, so the kids could start school, and looked for the right opportunity.” It came when the management rights to the 100-unit District Apartments on Claremont Street, South Yarra, were offered. They bought off-the-plan in 2015, and later moved in. It not only saw Saltwater Properties diversify into the CBD market (until then, the portfolio was dominated by holiday properties), but it allowed Banson to finally establish a proper head office from which to administer a national collection that now numbers 30 accommodation and related tourism and leisure businesses.

District Apartment Hotel, South Yarra ↑

The portfolio is nothing if not diverse, stretching across every state and territory except Tasmania and the ACT. No doubt these are earmarked for inclusion when suitable properties come along. The company has city and coastal apartments, hotels and motels, resorts and retreats on a golf course, in the wilderness, on the ski fields and by the water, day spas, luxury villas and pubs. There are even houseboats, bus tours and a gym. Banson says, if there is one unifying characteristic, it is simply that they are “not exactly mainstream” – a bit out of the ordinary. “We don’t really mind, so long as the opportunity is right,” he says. “To give you an idea, we recently bought the extremely upscale Berkeley River Lodge on WA’s Kimberley Coast, where we charge $1,600 per night. At the same time, we picked up an old pub, the Continental Hotel at Cowes on Phillip Island, where the tariff is $89 a night.” Diversity is seen too in the range of operational models – management rights, leaseholds, freehold and rent rolls. He nominates management rights as his preferred model, though. “The risk is shared with investor unit owners, whereas in leaseholds you carry all the risk, something I learned the hard way at our Darwin motel when the downturn came.” He clearly favours opportunities to establish properties from scratch, having bought numerous management rights off-theplan. Some he has picked up in receivership, and rebuilt to profitability. And if considering established properties, he looks for ‘upside’, clear potential to improve the business and add value. As an owner not involved in the day-to-day running of each establishment, Banson seeks properties of a size that can support the employment of onsite management – generally those with a minimum of 50 keys. Saltwater Properties now has more than 600 staff nationwide. It is unusual, to say the least, that such a large-scale accommodation operation would be in the hands of just one private individual, albeit with the support of family, partners and passive inventors. The key, Banson says, is “to have

a good manager in each property.” By “good”, he not only means adept at the operational role, but able to command the respect of their staff. “I have to be able to delegate and trust my key management. If that person doesn’t work, the operation falls down. The most important quality is leadership, the ability to lead by example and gain the respect of staff.” We suggest that theory must also apply in reverse. Banson clearly commands the respect of this team in all their far-flung corners of Australia. He humbly agrees, but stresses that Saltwater Properties is also very much a family business. “Esther’s parents have been involved from day one at Lakes Entrance,” he said. “They have run the Mary River Wilderness Retreat in the Northern Territory for five years. Her brothers also work at Mary River, one running the houseboat business.” Also credited is one of his sisters, who opened and manages their Geelong property, Vue Apartments and Day Spa, along with plenty of extended family. And of course, there are the people who started this private hotel dynasty – Banson’s father, who continues to be involved on the acquisitions side, and his mother, who has worked at many of their properties over the years. Still, it is no mean feat to have come so far in such a relatively short space of time. Banson does admit there were times when work-life balance seemed a distant dream. “For a while there, I was very stretched. I’d be flying somewhere more than once a week. With two young children, working 24/7 is not ideal. “But that was before we really established a proper head office. Now, the South Yarra head office has grown from two to eight, in six years,” he said. “It’s allowed me to get my life back. I don’t work weekends anymore.” So, will Saltwater Properties continue to grow? Absolutely, Banson says. “I still enjoy this business very much. I just have to be strict with myself not to grow too big too quickly. I guess I’ll be more selective with my acquisitions,” he laughs. END INFORMER JUNE 2017 |

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Editorial

The

MOTEL LEASE Repairs and Maintenance cont.

by DAVID BURROUGH

The clauses relating to repairs and maintenance are often disputed, both when negotiating a lease and during the term of the lease. It is essential that the clauses be as clear as possible so that both parties understand their obligations. As mentioned in our last article, the most difficult part of the repairs and maintenance clause is determining who owns what in the motel and who is responsible for the replacement of an item if it comes to the end of its life. The general rule should be that the each party replaces their own property. However, it is all maintained by the tenant. It is not possible to attach a full inventory of items owned by the landlord and the tenant to the motel lease, however it is helpful to list in the lease the types of items that each party owns and will therefore be 38

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responsible for replacing when an item comes to the end of its life. This gives the parties a guide to understanding their obligations. The list of items owned and therefore to be replaced by the landlord and tenant respectively will depend on the particular circumstances. Accordingly, this is an important aspect of the negotiations prior to settling the terms of the lease. The types of items that should be discussed are: • drains; • guttering; • underground pipes; • tiles (either wall, floor or ceiling) where retiling is involved as distinct from replacing sundry broken and cracked tiles; • built in vanity units; • built in cupboards, desks, port

racks and cabinets; • hot water cylinders; • air conditioning ducting; • individual air conditioning units; • toilet cisterns and pedestals; • s hower systems excluding shower screens. •m oveable items (chairs & tables); • carpets; • curtains and blinds; • office equipment; • light fittings. By discussing the above items when settling the terms of the lease and by formulating a list to be inserted into the lease of the types of items that each party owns and is responsible for replacing, the parties (and any assignees) should be able to more clearly understand their maintenance and replacement obligations under the lease.

Hillhouse Burrough McKeown INFORMER JUNE 2017 |

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Outback Wilderness Resort

Located midway between Darwin and world famous Kakadu National Park, this amazing wilderness retreat sits on the banks of the Mary River. Only a few years old, it features a wide variety of accommodation from budget to deluxe, set around a large central facility consisting of restaurant, bar and an alfresco area overlooking one of the two swimming pools. With 10 full-time staff, the eco-tourism resort is easy to operate. Also included are self-hire fibreglass boats and a large vessel (seats 10) for crocodile viewing. The property shows a 40% return after rent and operating costs, well above the market average. Most of the revenue is derived in just 8 months of the year. Trading figures have been on an upward trajectory for the last 5 years.

Cabins

Year Tenure

Bed

Bath

› Leasehold

REF: LH004765

›› 10 deluxe, 5 family and 11 bush bungalows, 3 Safari ‘glamping’ tents, 40 powered caravan sites, unlimited unpowered and general camping sites ›› Air-conditioned, ensuite bungalows, licensed restaurant, 2 pools, meeting & functions facilities, bush walks and river cruises.

Financials Nett Profit: $210,000 Price: $525,000

Exclusive

Ian Crooks

MANAGING DIRECTOR

M. +61 411 171 648 E. iancrooks@resortbrokers.com.au

Northern Territory

managementrights@hyneslegal.com.au 07 3193 0500

MANAGEMENT RIGHTS EXPERTS We know what we are doing when it comes to all • We are very much a ‘plain English’ firm You won’t get verbose advices from us things management rights and are a refreshing experience to most law firms. As simple examples: including a lot of legal words that prove we have a law degree. We communicate very • We are accessible - We have direct lines. We much on a layperson’s level. Having acted don’t hide behind secretaries or receptionists for hundreds of clients new to the industry and we don’t filter phone calls. over the years we know what you need to know • We can assist you wherever you’re located and present that in an easy to read manner. Don’t let the fact we don’t have an office in your Lawyers find it very easy to recite the law - What • location dissuade you. Advances in technology many lawyers cannot do is then apply that to and internet have reduced the need for a your individual circumstances. We do that. If the physical presence. We have had transactions law says you can do something, but we think where Sydney based clients purchased a you should not (for whatever reason) we will tell management rights business in Cairns, and the you. There is no point being legally correct but closest they came to meeting us was when the commercially wrong. plane flew over us on the way north. • We return phone calls and emails - Simple - yes we know. But it is surprising how many lawyers don’t return phone calls. It frustrates us when we have them on the other side of a matter, and we aren’t even paying for their time!

Hynes Legal are the management rights experts. Don’t put your management rights investment at risk through inexperienced or ineffective legal advice.

Our expertise extends to: JJ Breach notices JJ Changing your management rights agreements JJ Defamation JJ Dispute resolution JJ Licencing advice JJ Partnership agreements JJ Off the plan management rights businesses JJ Purchase of managements rights JJ NRAS JJ Sale of management rights Our team provides advice to dozens of buyers and JJ Workplace relations, health & safety sellers of management rights businesses at any given time along with counsel to those already in the Hynes Legal are panel lawyers for the peak industry industry. We handle all aspects of a management body; Australian Resident Accommodation Managers Association (ARAMA). rights transaction.

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Editorial

MHE SECTOR ON THE RISE

Markets are propelled by all sorts of factors. Broadly though, it is a combination of economic and social influences that affects demand for certain types of property. Right now, those forces are driving what I am convinced will be one of the biggest growth markets of the next decade â&#x20AC;&#x201C; MHEs.

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by TRUDY CROOKS

ON THE

NATIONAL SALES MANAGER

MARKET

Whether a long-time accommodation owner, a recent investor, or simply an interested bystander, everyone is always keen to know what the market is doing. It’s the question I’m most frequently asked, as I crisscross the country supporting our growing national team of brokers.

Manufactured housing estates (MHEs), as a concept, is still in its evolutionary phase in Australia. But I have no doubt it is firmly on the rise. Two major issues for our country

“MHEs will be one of the biggest accommodation growth markets of the coming decade.” – housing affordability and an aging baby-boomer population bubble – are principal catalysts. Both received attention and plenty of airplay in the May Federal Budget. And both are directly related to the emerging MHE sector. According to a recent report (Healthcare and Retirement Living Research & Forecast Report 2016, Colliers International), the number of Australians aged 65 years and above

will more than double from 3.6 million to 8.5 million between 2015 and 2055. Along with that, the demand for affordable housing options and alternatives to traditional retirement villages will also grow. Some forecasts say retirement-led demand for MHE dwellings could surge to 50,000 extra units in the next decade. At the same time, housing affordability is an increasing concern for the broader community, particularly for hopeful first homebuyers trying to get a foothold on the property ladder. Budget initiatives targeted at these dual concerns included: - releasing additional Commonwealth land for housing development, - encouraging seniors to downsize through superannuation concessions (ability to add non-concessional $300,000 into super from the sale of their home), and - lifting the capital gains discount by 60% for investments in affordable housing, providing an incentive for the development industry to invest in this area. All of these will help further drive the already growing MHE sector. There are currently around 200 MHEs in Australia with an estimated asset value of $2.6 billion. They account for only a tiny proportion of the total caravan park and mixed-use parks sector, numbering approximately 2,500 parks. CORPORATE GROUPS ARE ON THE ACQUISITION TRAIL Historically the domain of private / family operators and local councils, the caravan park sector is now a target for corporate groups with aggressive acquisition plans. In the early 2000s, Perth-based listed Aspen Group and the private Adelaide-based Discovery Holiday Parks began buying out mum-anddad operators. Primarily focused on the holiday market, they elevated the caravan park offering to more up-market tourist resorts, with deluxe cabins, ensuite sites and a raft of leisure and entertainment facilities. In the retirement space, major players include Lifestyle Communities, Ingenia Communities Group, and Gateway Lifestyle Group. They pursue acquisition of existing INFORMER JUNE 2017 |

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Editorial

caravan parks and mixed-use parks because appropriate zoning is already in place. But, as the sector grows, they are also now chasing greenfield sites for MHE development. Retirees are the primary target market for operators. Acting in their favour is the fact that MHEs fall under regulations different from retirement villages, operating in the same regulatory environment as the caravan park industry out of which they grew. Residents of MHEs – or ‘land lease communities’, as they should be more properly called – own their own factory-made homes. They pay a ground rent to the estate operator, which can make them eligible for Commonwealth rent assistance (unavailable to retirement village residents because they don’t ‘rent’). If a manufactured house owner chooses to leave the community, they can generally just sell their home to an incoming purchaser, who then takes on the land rental. Retirement villages, on the other hand, have diverse and often complex contractual models involving loan/ licence or loan/lease agreements, ‘incoming contributions’, service and maintenance charges, and exit fees (also known as a deferred management fee). LARGE, FAST-GROWING TARGET MARKETS MHEs are increasingly popular not only because they are cheaper and more simple, but because they provide high levels of resort-style amenities, ranging from swimming pools and tennis courts to RV parking, gyms, hair salons, cafes and clubrooms. Lifestyle is a major driver for the sector. Another key point is that affordable housing and lifestyle needs are not limited to retirees. Earlier this year, the Queensland AntiDiscrimination Commissioner decided that the shortage of affordable housing means the option offered by MHEs should not be restricted purely to older Australians. While many MHEs do market themselves as ‘over-50s’ communities, few actually have legal permission to do so. And I can certainly see potential for growth of MHEs as affordable permanent housing solutions for a younger demographic. 44

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The perception of MHEs as a low socio-economic option is changing as the new estates become more lifestyle focused, with higher quality factorybuilt homes that resemble bricks and mortar houses. HIGH-YIELDING, CAPITAL LIGHT INVESTMENTS For investors and operators, there is plenty to make MHEs very attractive. Once sites are leased, they offer stable, ongoing income streams, frequently underpinned by government rental assistance. Development is low-risk and capital light, with attractive returns and CPI-indexed cash rents. Sites, often in prime coastal locations and on the outskirts of metropolitan centres, represent land banks with cashflow. Little wonder, as the market evolves and matures, MHEs are an asset class increasingly being sought by funds and investment syndicates. The market is strong. Recently, for example, Resort Brokers has sold the Tween Waters Holiday Park at Merimbula to Aspen Group and Jacaranda Tourist Park at North Haven to Gateway Lifestyle, deals with a combined total approaching $15 million. We’ve also been working with a large NSW regional council, which owns a greenfield site where a major operator is keen to develop a park. That council, recognising the demand, is currently going through the process of land rezoning and reclassification to permit park use. And other councils are keen to pursue similar options for suitable underutilised land. We see huge opportunity for the owners of existing caravan and holiday parks, as well as for anyone owning suitable land near an urban or coastal centre (zoned residential with permitted or potential permissible use for a caravan park or MHE). For greenfield land, gaining development approval can typically cost between $100,000 and $200,000. A parcel of eight to 10 hectares can accommodate around 170-200 manufactured home sites. With approvals in place, that land could be sold for $25,000 - $40,000 per site, or up to $8 million. Definitely a market worth exploring! END

by Frank Higginson

IS IT POSSIBLE TO

TERMINATE management rights agreement?

In theory, the answer is yes.

But we don’t live in a theoretical world. We live in a real one where there are lots of moving parts. In practice, it is very difficult to terminate a management rights agreement and the judicial system is filled (in a relative sense) with failed attempts of bodies corporate to do so. We wrote about the first decision involving The Reserve. This was where the body corporate had attempted to terminate the management rights agreements

because the directors of the management company were changed without the body corporate’s approval. This was a black and white breach of the management rights agreements that included a deemed assignment provision. The body corporate lost in that first decision and appealed. Appeals can only be based on questions of law – not fact. What was determined as fact in the previous litigation cannot be revisited. What can be reviewed is any matters of law.

Anyway, the appeal has now been heard. We haven’t written about ‘reasonableness’ for a while, but this whole dispute hinges on that magic word again. THE BODY CORPORATE LOST AGAIN. All bodies corporate regulated by the Body Corporate and Community Management Act 1997 in Queensland have a statutory obligation to act INFORMER JUNE 2017 |

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reasonably. This is imposed by section 94. In the matter which was being appealed, QCAT had held that the body corporate did not act reasonably when it decided to terminate the management agreements. Even though the breach by changing directors without approval was obvious, it was technical, it had been rectified and the body corporate had suffered no loss. The question of law the body corporate was appealing on was that while a body corporate has an obligation to act reasonably with respect to its ‘functions’ (as referred to in section 94), that obligation did not apply to its powers under section 95 (such as the ability to enter into contracts like management rights agreements). If a body corporate’s powers were not fettered by the obligation to act reasonably, then its decision to terminate could not be overturned as being unreasonable. The appeal tribunal called that distinction artificial. It held that a body corporate’s powers must be exercised reasonably and on that basis the previous decision which said that the decision to terminate was unreasonable was correct. There were some interesting passages from the decision. The first relates to any decision to terminate management rights agreements:‘It might be said, for example, that a decision to terminate a contract on a technicality, where the caretaking duties were being carried out appropriately, which resulted in an erosion of the body corporate assets through litigation, might not be a reasonable decision.’ The ‘erosion of body corporate assets through litigation’ is a polite way to refer to spending on legal fees. One of our best read (and favourite) articles covered this very point way back in 2011. Another interesting passage related to who it is that actually has to act reasonably:‘The decision of the lot owners at the meeting which considers the (termination) resolution is not subject to the requirement of reasonableness but the body corporate decision to initiate the termination, to issue 46

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notices, and to place the resolution before the lot owners is.’ This puts the onus squarely back on committees to act reasonably. Two other points of note we took from the decision are:• any decision made by a body corporate can be sound at law (such as exercising a right to terminate for an admitted breach) but be unreasonable. Just because a decision may be legally correct does not make it reasonable. We think it must follow that a decision which is not sound at law (i.e. in breach of the Act) is almost always going to be unreasonable. • a body corporate has an obligation to act reasonably that is not imposed on other strata parties. A third party can act unreasonably (which may or may not be a breach of their contract with the body corporate) but that does not allow the body corporate to act unreasonably in return. That’s a lot of law that has come from a simple administrative decision to change directors. SO WHAT ARE OUR TAKE AWAYS? For resident managers it is to read your agreements. One of our most erudite management rights clients (yes that’s you Ollie) had one simple mantra. 'Read your agreement, then read your agreement, then do it one more time. Then put it away for a week and repeat until you know it backwards and forwards'. The consequences that have flowed at the Reserve from changing directors without checking the agreements first are enormous. For bodies corporate it is also simple. If you are going to try to terminate management rights agreements it needs to be for something relatively large. Seek termination for a technical breach at your peril. You can revisit our previous articles on what acting reasonably means (for the Queensland Court of Appeal decision in that deck dispute) and for the High Court decision on that same matter. As always, we welcome feedback and comments. END

Editorial

Gorez.com.au

Collective movement to

CLAW BACK

OTA Share

THERE ISN’T AN ACCOMMODATION OPERATOR ANYWHERE NOT ANNOYED BY PROFITS HEMORRHAGING TO ONLINE BOOKING AGENTS (OTAS) VIA COMMISSIONS. NOW, SOME ENTERPRISING INDUSTRY MEMBERS HAVE DONE MORE THAN JUST COMPLAIN. THEY’VE DEVISED A WAY FOR OPERATORS TO FLEX THEIR COLLECTIVE MUSCLE AND DRIVE DIRECT BOOKINGS

“Soul destroying” is how

Sunshine Coast management rights identity Eric Sealey describes the amount OTAs gouge from the bottom lines of motel and resort operators. “Property managers work tirelessly for long hours in an attempt to minimise overheads, while OTAs gouge commissions from their profits 24 hours a day. “We acknowledge the benefits of OTAs, but it’s widely felt they’ve overstepped the mark, dictating to and dominating properties rather than working with them,” Sealey said. “Commissions paid to third party websites cost Australian businesses tens of millions of dollars annually, despite the fact that online website owners have not contributed one cent to the purchase price or upkeep of any hotel, motel, resort or apartment.” And remember, OTA commissions don’t only reduce annual profit, they reduce the value of the

accommodation business. Because the business value is a factor of net profit, the loss of income to OTAs is compounded when the business is sold. (Refer table) Attracting direct bookings is the obvious solution, cutting the OTAs out of the supply chain. But how could small accommodation groups, much less individual operators, possibly compete with the marketing might of the international OTA duopoly (Priceline/Booking.com and Expedia) and convince guests to book direct? So motivated was Sealey and a band of fellow operators to find a way to tackle the problem, they met repeatedly to explore strategies that could not only help operators but also – and this is the crucial point – attract and motivate guests to bypass the OTAs. In the end, only Sealey, his wife Tanya, and former corporate high-flyer turned successful resort operator,

Gary Rice (the only person ever to have headed up all three of Australia’s commercial TV networks, Informer, July 2016 ), persevered to find a solution. “After lots of late night meetings and lots of pieces of butcher’s paper, GoRez was born,” Sealey said. “Its purpose is to unite the industry and provide a real alternative to OTAs for the benefit of guests and operators alike.” GoRez is a commission-free website that allows independent and chain operators to band together to reinstate direct bookings as their primary source of reservations. “It is an independent, Australianbased company passionate about restoring balance in the accommodation industry by giving operators the essential tools and resources to claw back direct bookings from third party online travel agencies,” Sealey explained. “GoRez is a multi-faceted direct INFORMER JUNE 2017 |

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Editorial

booking platform that includes a no-commission booking website offering real-time vacancies and tariffs, an Australia-wide guest loyalty programme for independent hoteliers, a direct booking resource bank that operators can readily access, education, and more.” Major hotel groups have been able to combat the OTAs by introducing loyalty programmes that encourage guests to stay in their properties, wherever they travel. But independent operators, with only one or a small number of properties, were limited in the loyalty rewards they could offer. “Individual operators collectively represent a huge proportion of the accommodation market. But they generally operate in isolation, with no means to unify and co-ordinate. GoRez changes that.” Here’s how it works. Accommodation providers list their properties on the GoRez website. They pay an annual subscription fee determined by the number of units they have. As a guide, a ‘foundation’ property with 20 units joining during GoRez’s pre-launch phase will pay just $1,000 per annum. That’s it – a set rate once a year, no commissions. Guests search gorez.com.au for accommodation at the destination of their choice and, thanks to each property’s channel manager, they can see real-time availability and prices with just a couple of clicks. Guests then connect directly to

their chosen GoRez member hotel via website link, email or phone, to book directly with the property. And, regardless of which property they select and if they’ve stayed there before, if it’s a GoRez member, they are treated as a return guest, gaining all the loyalty privileges and benefits each property offers. GoRez properties also have exclusive access to a growing bank of direct booking support tools, loyalty resources, ideas, e-messages, merchandising aids, and initiatives they can use to grow their direct booking clientele. Sealey says guests will use GoRez because it combines the convenience of online booking with the incentives provided by operators for booking direct. Guests win both ways. And operators make it work by harnessing their collective marketing strength. “For example, at my Sunshine Coast property, which is only relatively new, I have a database of around 10,000 past guests. It’s not unusual for longer established properties and chains to have many times that number,” he said. “Do the maths. If just 200 properties with an average customer database of 20,000 join forces, that’s a combined database pool of four million. That’s just the tip of the iceberg. “Spreading the word via social media will be enormously powerful. Think Uber, and how direct ride booking took off. GoRez will allow accommodation owner-operators to drive their own business via direct booking and guests will be rewarded

for participating. “Together, we become an army that can fight the OTAs. The OTAs try to divide and conquer. We can unite and, with our collective strength, beat them at their own game.” There is a host of other features that show GoRez is an initiative designed by accommodation operators for accommodation operators. For example, it allows you to select which guest searches will showcase your property and how. And GoRez search results are delivered randomly. Unlike OTA arrangements, properties are not ranked according to payment of extra fees or arbitrary compliance criteria. GoRez invites hotels, motels, resorts, B&Bs, backpackers and similar short-stay and holiday businesses to participate. It won’t accept listings for individual apartments or units. The initial industry launch is underway, starting with presentations held recently on the Sunshine Coast and spreading far and wide during coming months. “We’ll launch to the public when we have a sufficient mass of foundation properties,” Sealey said. “Those joining during this pre-launch phase will not pay any subscription fees until GoRez goes public, and then they’ll enjoy a foundation member discount.” The GoRez website, tablet and mobile-friendly (including mobile app), is the first step in a detailed and strategic direct booking plan. To learn more visit www.gorez.com.au. END

ALARMING COST OF OTA COMMISSIONS Case Study 1

Management Rights 30 apartments in letting pool $230 per night 65% occupancy 50% of bookings via OTAs 15% OTA commission

Total OTA commissions payable p.a.

$122,777

Lost manager’s income p.a. (12% commission + 3% merchant fees)

$18,416

Lost value on sale of business (@ 5x multiplier)

$92,080

TOTAL LOSS OVER 5 YEARS – OPERATION + SALE

$184,160

resortbrokers.com.au | INFORMER JUNE 2017

Case Study 2

Leasehold Motels 20 units $160 per night 60% occupancy 50% of bookings via OTAs 15% OTA commission Total OTA commissions payable p.a.

$52,560

Lost to manager’s income p.a. $52,560 Lost value on sale of business (@ 3.5x multiplier)

$183,960

TOTAL LOSS OVER 5 YEARS – OPERATION + SALE

$446,760

DISCLAIMER. The figures quoted in these examples have been supplied by Gorez.com.au and are hypothetical in nature. For an actual assessment of the impact of OTA commissions on your business, we recommend you consult a specialist accountant.

THEY SAY

“You and I come by road or rail, but economists travel on infrastructure.” MARGARET THATCHER

www.gorez.com.au

Join the GoRez Direct Booking movement Take control of your bookings Direct booking website with realtime vacancies Direct Booking Seminars, Loyalty System & Resource Centre Ideal for hotels, motels, caravan parks, management rights, B&Bs, resorts & backpackers Designed by Australian hoteliers Simple to use More money in your pocket!

No Commissions 100% Direct Bookings Join Now Become a Foundation Property and reap the rewards

Find Out More at … w. www.gorez.com.au | e. info@gorez.com.au

WEST END’S NEWEST OFF THE PLAN MANAGEMENT RIGHTS! This Off The Plan business-only management rights opportunity is situated in the vibrant and culturally rich region of West End only 1.8km to Brisbane CBD. An exclusive use manager’s office is provided and there is no requirement to reside on-site. However, you can opt to purchase a unit, enjoying the passive investment or living onsite with the eclectic lifestyle that West End has to offer. The development is due for completion at the end of 2017. This benchmark residential development, by renowned developer Turrisi Properties comprises 94 apartments of one, two and three bedroom design, along with rooftop terrace and communal facilities. The architectural design reflects the true historic, cultural and urban characteristics of this unique precinct. Situated in highly desirable Jane Street, attracting both owner occupiers and investors alike, it offers superb accessibility to transport, shopping, entertainment and recreational facilities. This area has seen consistent strong returns and capital gain for long-term investors and has endless appeal for tenants seeking a village lifestyle with city convenience assuring you of low vacancy rates and steady rents.

›› Business only management rights in West End’s heart ›› 25 year agreement with projected annual net profit over $300K ›› Exclusive use manager’s office, no requirement to live on-site ›› Building completion scheduled for end of 2017 ›› 94 bespoke 1, 2 and 3 bedroom apartments over eight storeys ›› Expansive rooftop terrace with swimming pool for residents ›› Excellent investment in a hugely popular area with great accessibility.

Nett Profit: $313,351

(Incl. Body Corporate remuneration of $117,500)

Price: $1,380,000 + GST

Jessica WIlkie

Tim Crooks

Broker

National Off the Plan Specialist

M. +61 401 003 023 E. jessicawilkie@resortbrokers.com.au

M. +61 422 208 450 E. timcrooks@resortbrokers.com.au

resortbrokers.com.au | INFORMER JUNE 2017

› Leasehold Title REF: FH004804

Victorian Alpine Icon “Own the Mountain” On offer is the opportunity to secure the multi faceted business and property of Arlberg Hotel, Mount Buller. The blend of accommodation and food and beverage (with 24 hour liquor licence) provides ultimate flexibility to an incoming purchaser. This is your opportunity to take this true Mt Buller icon into the next chapter of its life. The Arlberg boasts a sports bar benefitting from direct access off Bourke Street and a large rooftop deck area perfect for taking advantage of the breathtaking views of the Mt Buller ski fields. The purchaser will also secure the letting management for 25 privately owned apartments. Mount Buller is located 3 hours from Melbourne or approximately 248 kilometres by road, providing the most accessible ski resort mountain in Australia. The mountain is also accessible from the border towns of Albury Wodonga located some 215 kilometres north of the mountain. Mount Buller owns 46% market share of the visitation to Victorian Alpine Resorts, 20% ahead of its nearest competitor.

Arlberg Hotel ›› Situated on 3087m2 of Mt Buller – the largest snow field lift network in Victoria with the largest visitation of any ski field in the state ›› Subject to a Government Lease of 75 years from 1969 with automatic renewal rights ›› Leasehold title for 36 motel units, substantial food and beverage areas and back of house facilities ›› Opportunity to secure the rental management of 25 individually owned apartments ›› Substantially renovated in recent years ›› Multiple income streams from accommodation, food and beverage and apartment rental management

Financials Nett Profit: $750,448 Turnover: $2,686,182 Price: $5,500,000

Exclusive

Damien Loorham

Jim Chapman

M. +61 409 399 932 E. damienloorham@resortbrokers.com.au

M. +61 413 444 782 E. jimchapman@resortbrokers.com.au

Broker

Victorian State Manager

INFORMER JUNE 2017 |

Mount Buller

resortbrokers.com.au

› Freehold REF: FH004806

A True North Queensland Asset

The Seaview Motel Cooktown is an incredible opportunity for an astute purchaser. This 40 room motel allows for a range of room options, catering particularly to the corporate client with top-up of domestic and international.

›› Opportunity for an owner occupier

The only motel in town providing vast views of the coastline and the historic Endeavor River. The motel has been owned by the same family for over two decades and provides an immediate opportunity. The owners have injected substantial capital towards renovations to the property to maintain a high standard. Operating in recent years under management and staff, it is heavily supported by government/corporate clients servicing the various communities in the surrounding district. The support networks are from Cairns and include tradespeople and contractors. Cooktown is approximately 325km from Cairns and is one of the gateways to Cape York and various remote communities. Economic drivers include agriculture, government (remote communities), fishing and road based tourism. Every year, thousands of trekkers make their way through the Daintree and Bloomfield Track, Lake Field National Park onto Cape York.

Units

›› Well established motel for many decades ›› Consistent trading patterns for a number of years ›› Opportunity to purchase a lease or investment freehold ›› 40 rooms with no restaurant ›› Best position in town for accommodation

Financials Nett Profit: $550,000 Price: $4,195,000

Exclusive

Shane Mullins Broker

M. +61 447 185 001 E. shanemullins@resortbrokers.com.au 52

resortbrokers.com.au | INFORMER JUNE 2017

North Queensland

Do you need to take a break

Your key personnel on leave you. m o r f n , e tio artphon I need a vaca m S r Dea dates. p u y m ithout w e n i f be d wi l l l r o w e H o pe t h ely Sincer wner o phone t r a m S

Steve Reynolds 0413 614 936

Owner/Placement Coordinator Steven Mark Reynolds

Management Rights Relief

Problem solved

We have people who can help you have worry free holidays when ever you want. From being your phone emergency contact to the Full 24/7 On Site Package of having our management couples living on site 7 days a week.

We know how to run YOUR Business YOUR Way

www.managementrightsrelief.NET Licensed Real Estate Agent 3547222

Professional managers of permanent and holiday Management Rights

INFORMER JUNE 2017 |

resortbrokers.com.au

Editorial

The

JOB INTERVIEW: ASSIGNMENT STRATEGIES EXPLAINED

You wouldnâ&#x20AC;&#x2122;t apply for a job without presenting your credentials. The same can be said for buying an accommodation business. You need to present a compelling case to convince the landlord or unit owners you are the right person to take on stewardship of their property. by Mike Phipps 54

resortbrokers.com.au | INFORMER JUNE 2017

When buying a management rights or leasehold accommodation business such as a motel there is an interesting dynamic at play that many purchasers fail to pay sufficient attention to. The fact is that outside the core group comprising the purchaser, the vendor and their associated advisors there is a third-party lurking. In the case of leases it's the landlord and in the case of management rights it's the body corporate. In both cases this third party has a vested interest in the professional capacity of the purchaser and their likely prospects of success. In both cases character, financial standing and qualifications will be important considerations. However, the key drivers of this interest are vastly different, as we shall see. Let's look at leaseholds and landlords first. The landlord is primarily interested in the capacity of the tenant to pay the rent and keep the property in a well maintained condition. If we recognise that motel freehold investments are valued on a yield as applied to sustainable and reliable rental income then it becomes clear that any risk to rent could have a negative impact on the value of the landlords asset. In many ways the landlord will be interested in the same things as the leasehold lender because both will suffer should the leasee fail. It's important for an incoming leasee, particularly an inexperienced one, to be prepared to present their case to the landlord and be transparent and honest in outlining background, financial resources and plans for the operation of the business. We recommend an incoming leasee be guided by the landlord in terms of what documentation may be required but be ready to provide CVs, personal references, a summary

of your business plan and strategies, a statement of assets and liabilities, details of how much you are borrowing and your financial obligations, details of your capacity to fund appropriate improvements and maintenance and your fall back and risk mitigation plans. This should include your insurance strategies for risks such as personal injury, key man, sickness and death cover as well as the usual business and property insurance generally required under the lease. Ultimately the landlord has the power to approve or decline the assignment of a lease albeit itâ&#x20AC;&#x2122;s difficult for an approval to be unreasonably withheld. A last tip, know what's in the lease and be ready to talk about the content with the landlord, particularly your obligations as tenant. Management rights agreement assignments share some similarities albeit for very different reasons. The body corporate committee who will ultimately interview an incoming manager and approve the assignment have a duty of care to ensure that the new resident manager has the capacity to perform the duties of the caretaker and provide professional on site property management services. I have had incoming operators talk about this in terms of feeling like a job interview and to be fair, it is. Unlike leasehold motels where the operators pay rent and maintain the physical property at their expense the reverse is true with management rights. The body corporate pays the resident manager a salary to undertake caretaking and there is in fact an employer / employee dynamic in place. The legal arrangement is that of contractor but I think it's important for the incoming resident manager to see the assignment as a job application. Of course, there's a bit more to it than that and the body corporate will often request very similar information to that outlined in our explanation of lease assignments. Again, we see no need to volunteer information but be ready to table the sort of documentation we have outlined and to promote yourself at the assignment meeting as a wonderful new resident manager who understands the industry more broadly and the business specifically. Know what's in the agreements and by laws, particularly your caretaking duties and be ready to talk in detail

about how you intend to discharge those duties. If there has been any history of dispute within the scheme understand what happened and be prepared to outline how you would manage the situation differently. If you are new to the industry surround yourself with experienced industry professional advisors and mentors and seek their support in terms of the assignment. Your industry expert lawyer should be your righthand person throughout the process and will most certainly be a source of valuable advice and support. We can also support you with a bank reference and any other financial documents you may need for the body corporate. Many people think about risk when buying a business but fail to articulate this to the body corporate or landlord. We strongly advise all new managers to review insurance and financial risk and make sure the body corporate or landlord understands that you have put strategies in place should you become ill or have some other unexpected personal or financial event that could impact your capacity to operate the business. Of course, there are certain insurance risks which you are obligated to cover under your agreements or lease and you simply must have these in place prior to settlement. Still worth telling the body corporate or landlord that you have consulted an industry expert insurer and you are receiving the right advice. Our observation is that the assignment process for management rights has moved from a pretty relaxed and somewhat informal process to a much more rigorous and robust examination of the financial standing, experience and professional capacity of the proposed new manager. Incoming managers should not assume an automatic approval and should be fully prepared to provide the body corporate with a convincing and compelling case to approve the assignment. Yep, sounds a lot like preparing for that big job interview. One last tip. After settlement grab the BC chairman or landlord and go for a walk around the property. Discuss duties, upkeep and maintenance and your vision for the business. Including key stakeholders gives them an element of ownership in terms of your plans and goes a long way to ensuring you are all on the same page. END INFORMER JUNE 2017 |

resortbrokers.com.au

Editorial

Mahoneys secure massive win for management rights industry BY JOHN MAHONEY

The decision of the Court of Appeal should be seen as a huge relief for the management rights industry. Provided the appointment deals with fees and charges properly, there is no reason to be concerned about providing a detailed breakdown how those fees and charges are arrived at.

resortbrokers.com.au | INFORMER JUNE 2017

A recent decision by the

Queensland Court of Appeal has clarified the way in which management rights operators can charge their clients for services performed pursuant to their appointment. Mahoneys ran the appeal for Peterson Management Services Pty Ltd against the Office of Fair Trading before the Queensland Court of Appeal which handed down its decision on 12 May. Whilst the decision concerned the now repealed Property Agents and Motor Dealers Act (PAMDA) the findings will apply to the current Property Occupations Act 2014 (Qld) (POA), which replaced PAMDA and which contains near identical provisions on the relevant point. THE PROCEEDINGS Petersons owns the management rights at a popular Gold Coast resort. Letting appointments with owners specified single sum amounts for certain fees or charges payable for services the manager provided. The OFT took the view that the practice (which is commonplace) did not meet the requirements of PAMDA and commenced proceedings against the manager in four respects claiming: 1. Despite the appointment specifying a fee for cleaning an apartment, the manager could only charge an owner the actual (and significantly lower) amount paid to the contractor engaged by the manager to carry out the cleaning; 2. Fees charged for the provision of Foxtel services were limited to the actual cost to the manager of the service, despite the appointment clearly stating the (higher) fee to be charged to owners; 3. Commission could only be charged on the actual net amount received by the manager from bookings placed through Wotif – not on the amount Wotif actually received; and

4. Fees charged in respect of window cleaning services without any authority in the appointment were improper. The OFT maintained in relation to cleaning and Foxtel charges that such items were really “expenses” the manager was incurring on behalf of the owners and unless any mark-up was disclosed the manager could not charge more than the actual cost. The manager argued that the charges were for overall services the manager was providing – which service involved not just incurring some expenditure (on the manager’s own behalf – not the owner’s) and substantial time, effort and resources in acquiring, organising, prioritising, supervising and generally managing the services. The manager did not contest the fourth point. Whilst the manager was successful in the original QCAT hearing, OFT successfully appealed to QCAT Appeal who found in favour of the OFT. In reading that decision it is almost as though the appeal tribunal was saying that even though PAMDA does not contain an express provision like OFT contended, it should! Mahoneys and the manager successfully appealed to the Court of Appeal. It was common ground between the parties at the appeal that the manager’s appointment stated the fees or charges payable for services performed. It was also agreed that the manager had performed the services it had been engaged to provide, and had only charged the price stated in the appointment. OFT however argued that these fees were really “expenses” which the manager was authorised to incur on behalf of the owners and required full disclosure of any profit or mark-up - as distinct from costs” which a manager may incur in performing a service, which ordinarily are of no concern to the owner.

INFORMER JUNE 2017 |

resortbrokers.com.au

Editorial

Indeed OFT argued that PAMDA required the disclosure of any expense incurred by the agent in connection with the provision of services to the lot owner. The Court of Appeal rejected that argument finding that it is only expenses which a manager is authorised to incur on behalf of an owner that requires full disclosure but where, as here, a manager provides a service and incurs expenses in doing so, disclosure is not required. The following extracts from the court are relevant: “The present case is not about the recovery of such an authorised expense. It is about a reward for service. The [Appellant’s] appointment stated, by reference to a Schedule, the fixed dollar amount it was to be remunerated for providing the relevant service. The appointment form did not authorise the applicant to incur expenses in connection with the provision of the cleaning service. The nature and expense of the labour, materials and other things the applicant obtained to provide the service was a matter for it to arrange. Unit owners were not ‘billed’ … for cleaning expenses which the agent incurred. Unit owners were not ‘charged’ … with those expenses. The agent was rewarded by a fixed dollar amount.” “The essential fact in this case is that the client received the service it contracted for at the price it was contract to pay, being the fee or charge stated in the schedule to the appointment form for the ‘clean and service’ of a unit and the monthly Foxtel services. The applicant did not seek to recover or retain more than the reward stated in the appointment form for providing those services”. In relation to Wotif, the entire amount for the booking would be received by Wotif who would then take a 10% commission from the gross

amount and pay the net amount to the manager. Under PAMDA the manager was entitled to charge commission on “the amount collected”? Was this the amount Wotif initially received or the amount Wotif emitted to the manager? The manager successfully argued that Wotif acted as the agent of the manager, who in turn acted as the agent of the owner. On that basis, the gross amount collected by Wotif was in fact collected by the manager at the same time. The Court of Appeal effectively found that there was nothing in PAMDA to indicate that the section is concerned with whether rent is collected by the manager personally or by an agent appointed by the manager. So the manager was entitled to charge and retain commission on the gross amount collected by Wotif. CONCLUSION The decision of the Court of Appeal should be seen as a huge relief for the management rights industry. Provided the appointment deals with fees and charges properly, there is no reason to be concerned about providing a detailed breakdown how those fees and charges are arrived at. This judgment also re-establishes what was currently accepted without question, that a manager (much the same as any other business) is entitled to seek to maximise its business profits by seeking to outsource work when it is profitable to do so. However managers should be careful to ensure that they properly describe their fees and charges in their letting appointments and not improperly describe any such fees or charges in the POA form 6 as “expenses”. Court of Appeal [2017] QCA 89 delivered 12 May 2017 END

THEY SAY “Railroad iron is a magician’s rod, in its power to evoke the sleeping energies of land and water.” RALPH WALDO EMERSON (1803–1882)

resortbrokers.com.au | INFORMER JUNE 2017

MARKET

action

AVANI ACQUIRES AUCKLAND’S LUXURY METRO SUITES Global hotel owner and operator, Minor Hotel Group (MHG), is set to debut its upscale AVANI brand in New Zealand after buying Auckland’s CBD Metro Suites management rights along with a parcel of units for NZ$11 million. Resort Brokers Australia Managing Direct, Ian Crooks, worked with Resort Brokers New Zealand partners Wayne Keen and Gordon McGregor for more than 14 months to finalise the landmark Metropolis tower deal. It is the most valuable managements parcel ever sold in New Zealand. “It signals an exciting expansion in the Pacific by this quality global hotel group with a significant acquisition in an iconic and exclusive Auckland building, located in the hub of the city’s food and fashion precinct,” Ian said. The soon-to-be Metropolis AVANI Residences is a 40-storey luxury tower. It will undergo major refurbishment to the required 4.5-star AVANI standard before launching in October.

ON THE MARCH IN MELBOURNE Melbourne is proving an increasingly active market for Resort Brokers, with our local brokers, led by State Manager Jim Chapman, making major inroads into the cultural capital. Stuart Charles has a terrific 39room CBD motel under contract. And Michelle Matthews’ current listings are indicative of the exciting opportunities this vibrant city offers, including: • 140 Little Collins Apartment Hotel, 40 serviced apartments with 83 years remaining on the lease, 82% occupancy and an ADR of $200.

• A boutique hotel in upmarket Toorak. • Hotel Tolarno, St Kilda. This ‘original art hotel’ was once an art gallery, café and private residence of flamboyant Melbourne artist Mirka Mora and her husband Georges. The management rights market is also gaining momentum in Victoria. Our team, working with Trudy Crooks and national off-the-plan specialist Tim Crooks, is in discussions with a number of leading developers about off-the-plan opportunities, including The Little Group, Evolve Development, CEL Australia, Gurner, Accord PG and LK Property Group.

‘GET YOUR KICKS’ ON A MINING UPTURN A NSW motel investor has staked close to $4 million on a mining-led upturn in Central Queensland, buying Emerald’s 4-star Route 66 Motor Inn business and freehold through Resort Brokers Australia’s Ian Crooks and Russell Rogers. Andre Vududala, who owns

motels in NSW and service stations in both states, has made his first accommodation foray into Queensland on the eve of an expected August construction start to Adani’s $21 billion Carmichael Mine and rail project. “The sale reflects a good 15% return on current figures and the buyer expects occupancy to increase substantially, driven by renewed investment in mining and the flowon effect that will have across all sectors,” Ian Crooks said. Route 66 Motor Inn, on 4,767sq m

just off the Capricorn Highway at the eastern entrance to town, features 59 rooms and suites, two two-bedroom apartments, a licensed cocktail bar, 60-seat restaurant with 40-seat alfresco dining area, pool, spa, and two-bedroom manager’s unit. “Resort Brokers is now seeing a distinct turnaround with a lift in sentiment and enquiry levels as coal prices have improved, the Adani project edges closer to starting, and a number of other new mining and infrastructure projects have been announced.”

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

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

For advice from one of our Management Rights experts, call: Brisbane: +61 7 3007 3777

Gold Coast: +61 7 5562 2959

INFORMER JUNE 2017 |

resortbrokers.com.au

www.mahoneys.com.au

Agent Profile

Meet

PAUL MUELLER BROKER CENTRAL GOLD COAST

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. HOW LONG HAVE YOU WORKED AT RESORT BROKERS AUSTRALIA? I joined Resort Brokers in January 2017, so I’m relatively new to the team, but I’m settling in very well. They’re a great bunch. WHAT IS YOUR BACKGROUND? I originally came from an Information Technology background. I was an old programmer from the Cobol and Fortran (computer programming languages) era. I worked for a large national retail group. Then, I went out on my own, as an IT consultant. I then began buying retail food businesses, generally distressed assets, turning them around and on-selling them. I have seen both the highs and the lows of business operations, and I understand the pressures that go along with buying and selling them. TELL US ABOUT YOUR AREA My area is defined as Gold Coast North. It stretches from Main Beach, just north of Surfers Paradise, and extends towards Brisbane, as far as Beenleigh. This area enjoys great diversity – having a terrific mix of holiday and permanent complexes, ranging from upscale, high-netting properties to smaller complexes with

resortbrokers.com.au | INFORMER JUNE 2017

more modest income streams. It gives me the advantage of working across the spectrum, understanding each and every different complex, working with a variety of personalities, and learning to adapt to each market segment. TELL US ABOUT AN ISSUE WITH A SALE THAT YOU HAVE OVERCOME AND WHAT YOU LEARNT FROM THAT? It was one of my very first sales. I’d been continuously warned about the ‘rocky road to settlement’, but this sale seemed to be running very smoothly. That was until it all came crashing down. I learned to never put any small problem to the side, but to address it very early on, and voice it before it turns into a bigger problem. WHAT HAS BEEN YOUR BIGGEST SUCCESS SINCE STARTING AT RESORT BROKERS AUSTRALIA? It would have to be securing a $2 million listing as my very first. I achieved it after some old fashioned pounding the pavement and a lot of perseverance. WHAT ANNOYS YOU? Being a Virgo, I like order. I have two girls, and they move things around in my bathroom. That is my pet hate.

In business, it’s when people say it can’t be done, or that something won’t work. WHAT DO YOU LOVE? I really love my job, just enjoying the company of the people I work with and the challenges and problem solving. I tend to work better with the demands of deadlines, and I love looking at things from different angles. This job throws both at you. I love my two beautiful girls, watching them grow up and being involved in their sport. DO YOU HAVE A NICKNAME? Ferris, because of his last name. But nowadays, it’s Pauly. WHAT TO YOU DO IN YOUR SPARE TIME? At present, my two girls are aged 14 and 16, so it is all about kids’ sport – from touch football and OZtag to netball. Every spare moment Is spent running them around, being dragged from pillar to post. I am working on gaining my pilot’s licence. So, when I get a spare moment to myself in the car, I usually try to catch up on my theory and get my ‘navs’ done. I also love to get outdoors with my family, and we are always busy with something going on.

resortbrokers.com.au | 1300 665 966

Seminar 2017

Gold Coast

Management Rights Made Easy

This informative, informal and interactive event is aimed at newcomers to the management rights industry. Our team of industry experts will be on hand to share their extensive experience, answer your queries and put you on the path to success! 5.30pm on Wednesday 19th July 2017 at Hirum, 2/8 Technology Drive, Arundel, Gold Coast An introduction from Sylvia Johnston, Senior Executive from Hirum the leading management rights software specialists in Australia. Then meet your expert panel:

Mike Phipps Finance

Pevy Lawyers

Holmans Accountants

Resort Brokers Australia

Mike Phipps is one of Australiaâ&#x20AC;&#x2122;s foremost accommodation industry finance professionals, with over 30 yearsâ&#x20AC;&#x2122; experience. Mike provides commentary on the state of the management rights industry and available finance options. You really will learn secrets the banks wonâ&#x20AC;&#x2122;t tell you.

Trent Pevy acts for more new entrants to the management rights industry than any other lawyer. Trent will highlight the importance of specialist due diligence in purchasing, as well as sharing his top five pitfalls to avoid throughout the contract process and settling your business.

Tony Rossiter has conducted income verification reports for buyers on hundreds of management right businesses across Australia. Tony will provide the inside track on dissecting a profit and loss statement, as well as how to best structure your business.

Alex Cook has sold numerous management rights throughout Queensland and has become one of the most prolific and recognised agents on the Gold Coast. Alex will provide an insight into current market trends and where the best investment opportunities can be found.

resortbrokers.com.au

Editorial

ARE REAL ESTATE PORTALS still in a 2-horse race? BY NICK BUICK

Conventional wisdom in

the real estate industry has always purported there are really only 2 property portals that matter: RealEstate.com.au and Domain.com.au. According to Roy Morgan, RealEstate. com.au enjoys 4.5M visitors per month, nationally, with 3.2M using Domain.com.au. Of that 3.2M Domain users, 2.2M use both Realestate.com.au and Domain.com.au. In terms of visitors, RealEstate.com.au is the leading portal, and Domain.com.au is in second place. But when it comes to property marketing, visitors isn't necessarily the best metric to use when ranking sites. I prefer to use the rate of enquiries, as this is ultimately what we're paying for. In the last 30 days, for instance, RealEstate.com.au has achieved 8.1 rental enquiry emails per active listing we have on their website. Conversely, Domain.com.au has achieved 1.1 enquiries per active listing. This means in terms of rental performance, in our experience, RealEstate.com.au is 8 times more effective than Domain. But what if Domain wasn't actually in 62

resortbrokers.com.au | INFORMER JUNE 2017

second place at all? We're operating on the assumption that there's only 2 property portals in Australia. In reality, there are hundreds. We list on an additional 14 portals across the nation and overseas. One portal we now list on, is Gumtree. Listing on Gumtree, is incredibly complicated in a commercial environment. Unlike every other portal, they don't accept automated data feeds of listings. What normally has to happen, is a human being has to manually type all the listing data onto Gumtree. It's incredibly time-consuming and as such Âvery few real estate agencies bother. As you would expect, Gumtree is therefore ignored by the industry, and also by data analysts such as Roy Morgan, who simply jump straight to RealEstate.com.au and Domain as the 2 portals that matter. We decided to approach the problem a little differently Âand recently wrote a rather cumbersome, but effective, peice of code that is capable of impersonating a human being, and mass-loading property

onto Gumtree. As far as I know, we're the only agency in the world who now has the capability to mass load their stock onto Gumtree. We now have most of our listings on Gumtree as well as RealEstate.com.au and Domain.com.au we're now getting data in that allows us to compare side-byside the performance of all 3 property portals and the results floored us! Gumtree is averaging 2 enquiries per listing. Its performance is twice that of Domain! While Domain may have a larger audience than Gumtree, the ratio of enquiries to listings is much lower. Based on our own experience, we have to conclude that Gumtree is actually holding a comfortable lead over Domain as the second largest source of email leads. It's not a 2 horse race at all, but a 3 horse race, and Gumtree is the second horse. What this means for the property marketing landscape is still to be seen. Gumtree are about to launch their new brand and as more legitimate real estate agents come to realise how many leads they are missing out on, it may be more frequent to see managed listings on Gumtree rather than the shonky FSBO and self-managed stock that is on there presently. We may even start to witness pollsters considering Gumtree as a serious contender in the Australian Real Estate Portal space, but our minds are already made up based on the data at hand. Gumtree is not only a legitimate source of leads, it's actually the second largest source of leads at the time of writing.

Sold Properties

Resort Brokers Australia has sold and settled 64 properties since the 6th January 2017. We have a further 112 under contract.

Serviced Apartments Alice Springs, NSW

Leasehold Motel Camperdown, NSW

Management Rights Buderim, QLD

Leasehold Motel Wellington, NSW

Management Rights Cremorne, NSW

Management Rights Port Douglas, NSW

Management Rights Alexandria Hills, QLD

Leasehold Hotel Cooktown, QLD

Leasehold Motel Coffs Harbour, NSW

Freehold Motel Emerald, QLD

Management Rights Hamilton, QLD

Freehold Caravan Park Inverell, NSW

Leasehold Motel Lismore, NSW

Leasehold Motel Merimbula, NSW

Management Rights Newstead, QLD

Management Rights Noosa Heads, QLD

Management Rights Palm Beach, QLD

Management Rights Portland, VIC

Management Rights Taringa, QLD

Management Rights Noosa Heads, QLD

Leasehold Motel Wagga Wagga, NSW

Management Rights Cowan Cowan, QLD

Management Rights Salisbury, QLD

Management Rights Redland Bay, QLD

Leasehold Motel Port Macquarie, NSW

Management Rights Nundah, QLD

Management Rights Agnes Water, QLD

Management Rights Coolangatta, QLD

Management Rights Surfers Paradise, QLD

OTP management Rights Mooloolaba, QLD

Freehold Caravan Park Warwick, QLD

Hotel Kempsey Kempsey, NSW

Leasehold Motel Mackay, QLD

Freehold Motel Carool, NSW

Leasehold Motel Point Cook, VIC

INFORMER JUNE 2017 |

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 relief managers yourself, before hiring. NB. You’ll find more managers listed on our website: resortbrokers.com.au/buy/reliefmanagers Ramon Spidla

Steve Reynolds

Barry & Lesley Roberts

MOTELS, RESORTS & CARAVAN PARKS NATIONWIDE

MANAGEMENT RIGHTS & MOTELS BRISBANE, GOLD & SUNSHINE COAST

MOTEL NATIONWIDE

M EE

M E

0413 614 936 steve.managementrightsrelief@gmail.com

M E

0428 422 456 lez.baz@bigpond.com

Llew & Trisha Pointon

Marion & Peter Keulen

Michael Stirling

RESORT & MOTELS NATIONWIDE

CARAVAN & HOLIDAY PARKS NATIONWIDE

MANAGEMENT RIGHTS, RESORTS & MOTELS QLD & NSW

M E

0400 035 359 llewp@tpg.com.au

M E

0411 865 905 marion_keulen@hotmail.com

M E

0437 455 865 stirling6298@yahoo.com

Michael & Carolyn Grealy

Mike and Teresa Thomson

Nanette Mortimore

MOTELS, HOTELS & CARAVAN PARKS QLD, NSW & VIC

MOTELS NATIONWIDE

MANAGEMENT RIGHTS BRISBANE

M E

0437 697 772 cmgrealy@optusnet.com.au

M E

0419 174 221 info@mitemgt.com.au

M E

0419 707 773 nanette.mortimore@gmail.com

Patricia Laverty

Paul & Jane Hansen

Peter & Janine Templeton

MOTELS & RESORTS QLD, NSW & VIC

CARAVAN PARK & VILLA QLD, NSW & VIC

CARAVAN PARK & MOTELS NATIONWIDE

M E

0478 611 202 patricia_laverty@hotmail.com

M E

0438 877 932 happycamperparkmanagement@gmail.com

M E

0408 178 130 tempy7@bigpond.com

Phillip & Sharyn Stallman

Rob & Lyn Keen

Rowena & Pat Magee

MOTELS NATIONWIDE

MANAGEMENT RIGHTS QLD & NSW

MOTEL & CARAVAN PARKS NSW & VIC

M E

0428 931 589 pjstal@bigpond.com

M E

0406 884 343 roblynkeen@gmail.com

M E

0437 232 227 rowenamagee@hotmail.com

Sally & Edward Shirke

Shane & Jodie Adamson

Shane & Madonna Ashman

ALL PROPERTY TYPES NATIONWIDE

CARAVAN PARK QUEENSLAND

MANAGEMENT RIGHTS NATIONWIDE

M E

0437 606 918 sshirkie@gmail.com

M E

0427 155 399 info@safejourneyaustralia.com.au

M E

0438 146 091 shaneashman@outlook.com

Vicki & Wayne Gowland

Yvonne & George Arato

Charlie & Jacky

MANAGEMENT RIGHTS & MOTELS QLD, NSW & VIC

ALL PROPERTY TYPES NATIONWIDE

CARAVAN PARKS & MOTELS QLD & NSW

M E

0434 200 110 vickigowland@hotmail.com

M E

0410 685 003 hgarato@bigpond.com

M E

07 4622 3221 jacquelineryan1@bigpond.com

Belinda & David Gustason

Carmel Moloney

Christian Carbone

ALL PROPERTY TYPES QLD & NSW

MOTEL QLD - GOLD & SUNSHINE COAST

ALL PROPERTY TYPES NATIONWIDE

M E

64 64

0402 255 078 rayann3010@hotmail.com

0403 219 562 gustafsondavid@hotmail.com

resortbrokers.com.au | INFORMER JUNE 20172017 resortbrokers.com.au | INFORMER JUNE

M E

0400 483 291 carmela1management@mail.com

M E

0432 008 988 alisonandlinley@icloud.com

Jeff Mitchell & Colleen Barnes

The Good Knights

Pauline & Robert Donald

Hotel and Motels NATIONWIDE

RESORTS, MOTEL & MANAGEMENT RIGHTS AUSTRALIA WIDE, OVERSEAS, EAST COAST BASED

MOTELS & CARAVAN PARKS QLD & NORTHERN NSW

M E

0418728493 jeff.colleen@bigpond.com.au

M E

0412 005 537 julia@brightandbold.com.au

0419 810 052 donaldhospitality@gmail.com

M E

Gary & Robyn Loakes

Jim & Carmel Ryan

John & Lesley Gibson

ALL PROPERTY TYPES NATIONWIDE

MOTELS AUSTRALIA & NEW ZEALAND

MOTELS NATIONWIDE

M E

0408 798 352 grl21@bigpond.com

M E

0437 404 079 muttley8@optusnet.com.au

0418 681 124 long.yard@bigpond.com

M E

John & Susan Conde

Kane Ansell & Robyn Hall

Kristy & Lance Butt

MOTELS QLD & NSW

MOTELS SOUTH EAST QLD & NORTHERN NSW

MOTELS SOUTH EAST QLD

M E

0438 488 738 jnsmotelrelief@internode.on.net

M E

0416 016 614 info@businessbay6.com.au

M E

0428 902 878 nqpropertygroup@gmail.com

Maria Delange

Paul & Arleene Moore

Paul Anthony Kirkpatrick

MOTEL & MANAGEMENT RIGHTS CENTRAL QLD

MOTEL MANAGERS QLD & NSW

MOTEL, RESORT & HOTEL NATIONWIDE

M E

0425 732 569 mariajdl@bigpond.com

M E

0404 855 711 pfandammoore@live.com

M E

0419 675 671 paul.kirkpatrick@gmail.com

Annie & Gary Miegel

Garry Baker

Chris Campbell

OPERATIONS MANAGERS NATIONWIDE

ALL PROPERTY TYPES NATIONWIDE

MOTELS & MANAGEMENT RIGHTS SOUTH EAST QLD & NORTHERN NSW

M E

0449 790 039 annieandgaz@hotmail.com

M E

0437 455 865 garrybaker7@hotmail.com

M E

0449 957 414 cj.campbell@gmail.com

Christopher Hillman

Colin & Laraine Fields

Elizabeth Grimm

MANAGEMENT RIGHTS, MOTELS & RESORTS QLD & NSW

ALL PROPERTY TYPES QLD & NSW

MANAGEMENT RIGHTS GOLD COAST

M E

0488 550 005 christopher.hillman@bigpond.com

M E

0402 176 933 larainefields@gmail.com

M E

0408 000 891 yellowroses4me2222@yahoo.com.au

Garth & Trish Carey

Geoff & Maryanne Cheeseman

Graeme & Deborah Wallace

RESORT & MOTEL QLD & NSW

ALL PROPERTY TYPES NATIONWIDE

MOTELS QLD & NSW

M E

0421 359 059 garth@careynominees.com.au

M E

0410 662 963 cheezmg@bigpond.com

M E

0427 512 751 graemedeb@motelmanagers.com.au

Peter Mackay

Karen & Robert Nisbet

Karla Harding

MOTELS & CARAVAN PARKS NSW

MOTEL & CARAVAN PARKS NATIONWIDE

B&B & GUESTHOUSE AUSTRALIA & NEW ZEALAND

M E

0408 000 554 mackas@gmail.com

M E

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

M E

0414 767 499 bnbangel@fastmail.net

Grant & Kerry Oâ&#x20AC;&#x2122;Sullivan

Lauren Kropp

Linley and Alison Maddick

ALL PROPERTY TYPES NATIONWIDE

ALL PROPERTY TYPES QLD & NSW

MOTELS NORTHERN NSW & SOUTHERN QLD

M E

0404 473 100 grant2466@bigpond.com

M E

0458 416 484 lauren@realstrategix.com.au

M E

0432 008 988 alisonandlinley@icloud.com

INFORMER JUNE 2017 | resortbrokers.com.au INFORMER JUNE 2017 | resortbrokers.com.au

65 65

Directory Introducing Resort Brokers Australiaâ&#x20AC;&#x2122;s national team of accommodation business and property brokers. We are the industry experts at your service in every state and territory.

Ian Crooks

Tim Crooks

Alex Cook

MANAGING DIRECTOR

SALES MANAGER

OFF THE PLAN SPECIALIST

BROKER

Nationwide

North Gold Coast & Surfers & Quest

M 0411 171 648

M 0477 882 210

M 0422 208 450

M 0467 600 610

E iancrooks@resortbrokers.com.au

E trudycrooks@resortbrokers.com.au

E timcrooks@resortbrokers.com.au

E alexcook@resortbrokers.com.au

Carla Cook

Nathan Eades

Gareth Closter

Brent Staker

MARKETING MANAGER

BROKER

Nationwide

Brisbane

South Brisbane

M 0467 600 611

M 0448 339 920

M 0423 182 766

M 0410 344 344

E carlacook@resortbrokers.com.au

E nathaneades@resortbrokers.com.au

E garethcloster@resortbrokers.com.au

E brentstaker@resortbrokers.com.au

Jessica Wilkie

Trudy Crooks

Neville Littleton

Glenn Millar

Tyler Millar

BROKER

South Brisbane

North Brisbane

Sunshine Coast

M 0401 003 023

M 0407 727 194

M 0412 277 804

M 0411 271 761

E jessicawilkie@resortbrokers.com.au

E nevillelittleton@resortbrokers.com.au

E glennmillar@resortbrokers.com.au

E tylermillar@resortbrokers.com.au

resortbrokers.com.au | INFORMER JUNE 2017

Arron Bailey

Ian Dore

Jenny Sorenson

Todd Warner

BROKER

Sunshine Coast

North Nsw & Gold Coast

South Gold Coast

M 0419 005 244

M 0412 752 238

M 0475 089 468

M 0438 170 763

E arronbailey@resortbrokers.com.au

E iandore@resortbrokers.com.au

E jennysorenson@resortbrokers.com.au

E toddwarner@resortbrokers.com.au

Paul Mueller

Des Fagg

Shane Mullins

Chenoa Threlfall

BROKER

Central Gold Coast

North Queensland

Far North Queensland

M 0439 255 507

M 0427 849 119

M 0447 185 001

M 0403 143 151

E paulmueller@resortbrokers.com.au

E desfagg@resortbrokers.com.au

E shanemullins@resortbrokers.com.au

E chenoathrelfall@resortbrokers.com.au

Lynne Booth

Len Booth

Lindsay Cooper

James Carrick

BROKER

Central Queensland

West Qld & North Nsw

Mid North & North West Nsw

M 0408 704 778

M 0438 139 422

M 0418 711 047

M 0400 664 065

E lynnebooth@resortbrokers.com.au

E lenbooth@resortbrokers.com.au

E lindsaycooper@resortbrokers.com.au

E jamescarrick@resortbrokers.com.au

Shane Wynhoven

Andrew Rendall

Russell Rogers

Jim Chapman

BROKER

VICTORIAN STATE MANAGER

Greater Sydney, Central Tablelands & Hunter

Central NSW

South Coast, Nsw

Quest Specialist - NSW, VIC, SA & TAS

M 0424 174 592

M 0412 635 344

M 0416 166 909

M 0413 444 782

E shanewynhoven@resortbrokers.com.au

E andrewrendall@resortbrokers.com.au

E russellrogers@resortbrokers.com.au

E jimchapman@resortbrokers.com.au

INFORMER JUNE 2017 |

resortbrokers.com.au

Stuart Charles

Michelle Matthews

BROKER

West Victoria

Melbourne CBD & West Victoria

M 0458 588 472

M 0400 474 861

E stuartcharles@resortbrokers.com.au

E michellematthews@resortbrokers.com.au

Damien Loorham

Kelli Crouch

BROKER

North East Victoria

South Australia

M 0409 399 932

M 0410 441 750

E damienloorham@resortbrokers.com.au

E kellicrouch@resortbrokers.com.au

Ray Ironside

Jane Fang

BROKER

Chinese Liaison Broker

Tasmania

National

M 0418 130 364

M 0402 399 613

E rayironside@resortbrokers.com.au

E janefang@resortbrokers.com.au

1300 665 966 resortbrokers.com.au

QUEENSLAND

PO Box 5004 West End, QLD 4101 (07) 3878 3999

NEW SOUTH WALES PO Box 78 Freshwater, NSW 2096 (02) 9904 8224

VICTORIA

PO Box 1100 Carlton, VIC 3053 (03) 9347 3100

SOUTH AUSTRALIA

PO Box 327 Fulham Gardens, SA 5024 (08) 83565057

1300 665 966 resortbrokers.com.au Follow us on social media

INFORMER JUNE 2017 |

resortbrokers.com.au