March 2012 informer low res(1) by Resort Brokers

INFORMER Staying power:

The growth of management rights

resortbrokers.com.au

No. 65 | March 2012

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

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Build a 30sqm motel room around these pods for only $55,000 The most expensive part of any motel room is the bathroom. PodFirst have developed a new professional way to build a 30sqm motel room around a Study bathroom#1. pod for only $55,000.

Case Single Residential: Doonella Noosa

Built in a controlled environment the pods 03 come completely finished with tiles, shower, roject Details: 3 Bedroom Dwelling with double lock-up Garage, Pool and 3 x Podfirst Pods 7,744.0 vanity and WC700m all in2 place ready to connect and Size: 115.0 1,602.0 115.0 1,965.0 150.0 1,965.0 115.0 1,602.0 and use. 2 02

885.0

Total Internal = 189m2 + 45m2 (3 x Pods)

1,080.0

Total ExternalShower = 90m2

ENTRY

IH9.21

Benefits of Using Pods 800/ 1600 high

BATHROOM Tiles

mixer Bag drop

BATHROOM Tiles

Reduction of on-site trades and theirtowel rail associated travel and downtime; Robe / Store

115.0

rose

900 high vanity

Ensuite and Study

602.0

ENTRY 800/ 1600 high towel rail

“In my 35 years of selling motels I have never come across such an outstanding idea, this will revolutionise motel construction ” 900

900 high vanity

od 3

trh

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trh

115.0

EH9.21

Shower

Kitchenroseand Powder Room mixer Bathroom & Laundry

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1,115.0

115.0 602.0

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1,202.0

IH9.21

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1,802.0

115.0

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Robe / Store

Faster Construction Time Ian Crooks The Pods are connection ready and are simply ‘plugged in’ to plumbing and electrical services. After the Pods are BROKERS AUSTRALIA RESORT

[BEDROOM]

Unit 4 / 12 [BEDROOM]

The Pods are sustainable: - All fittings and fixtures obtain high energy efficiency and water efficiency labeling standards; Desk / Bench

5,969.9

Unit 3 / 12

Bed head / clock radio / drawers, etc

skilled trades people on-site;

Bed head / clock radio / drawers, etc

installed, the rest of the dwelling is relatively simple consisting of erection of Ritek® XL Walls, pre fabricated structural elements and Ritek® Roof Panels allowing faster completion of the remainder of the dwelling with less dependency on

- Fluorescent and LED lighting implemented; - Cross ventilation is achieved through the strategic positioning of windows and doors;

Desk / Bench

Fold out bed

TV / DVD

- The pods are termite, rust and rot resistant; - The pods are reusable

TV / DVD

- Strength, structural Fridgethermal mass and durability is achieved through reinforced concrete structure providing Fridge integrity to the finished dwelling; Mini Bar Mini Bar

l Floor Plan

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The Pods provide flexibility of design and sizing and can be oriented to optimise site conditions.

office looking for the unique investment, business and lifestyle combination that tourism properties offer. But while the positive signs are there, we know business is still tough. Finance, for one, is still tightly managed. You need to have, as they say, ‘all your ducks in a row’. That’s where our longevity in the market also gives us an advantage. We’ve always surrounded ourselves with smart, proven professionals in the finance, legal and accounting fields who we know provide the best expert advice and service.

Signs clear if you’ve ridden the cycles Ian Crooks MANAGING DIRECTOR

here are distinct advantages to having been around for a while (‘though some days my knees might disagree!). The biggest advantage is experience. This is the third 12 to 13-year economic cycle I’ve been though. We’ve not only faced challenges on the downhill run, we’ve overcome them and pedalled strongly back up to enjoy the view from the top again.

COVER STORY: “The Gold Coast is proudly the birth place of management rights, now a significant and vital tourism industry sector. It began with an inspired idea by one developer in 1965. Read our first article in a series on the evolution of management rights” Thank you to the Gold Coast City Council Local Studies Library for supplying this month’s cover image Surfers Paradise beach with bathers 1960s by an unknown photographer

No other tourism brokerage has that advantage. We can see the signs on a road we’ve travelled twice before. In the accommodation sector, one sure sign comes in the wake of corporate rationalisations. The 1992-94 recovery was heavily driven by what I call the ‘redundancy market’ - displaced former executives buying themselves a job. Exactly the same thing is happening now.

Right now, we believe the management rights sector is looking up. In 1995, when Resort Brokers launched our specialist Management Rights Division, we did so in Brisbane. From there it grew to be very active on the Sunshine Coast, Gold Coast and in Far North Queensland. Now we are again gearing up for a resurgence. Already we have five management rights consultants working in Brisbane, and we’re enjoying quite a bit of success with off-the-plan deals. Developers too are seeing the positive signs. With management rights again in focus, Resort Brokers’ Informer takes a timely look at where it all began. Our interview with John Punch, probably Australia’s most experienced legal specialist in the field, begins a series that tracks this great industry’s evolution. Finally, have a look at our centre spread showcasing units and villas in Fiji. We rarely handle individual product, but this is the best value we’ve ever seen - fullyfurnished, one-bedroom waterfront units for as little as $135,000. February 1 marked 50 years since I started work! I still have as much enthusiasm as ever, if not quite the same energy. But I’m not planning to slow down any time soon. I’m actually very excited about the year ahead. We’ve not seen enquiry levels this good for seven years! Please send your feedback to: carlacook@resortbrokers.com.au or PO Box 5004, West End Q4101.

INSIDE THE GROWTH OF M.R..

BE MY GUEST

SHOULD I STAY

Resort Brokers is already receiving enquiry from people who have taken redundancy packages. And there’s since been a further round of job cuts, notably in the airline and banking industries.

FOOD RESCUE

UPGRADE & BOOST VALUE

RELIEF MANAGERS

Many people offered attractive redundancy packages take the money and go. And many of them end up in our

INDUSTRY SPECIALISTS

RESORT BROKERS DIRECTORY

RESORTBROKERS.COM.AU 3

ocated in a very strong southern NSW town. This motel has 32 spacious units & suites in 1st class condition throughout. It is well located right in the middle of the main street. It has a large spacious 3 bedroom and 2 bath manager’s residence off the reception area. Facilities include licensed restaurant & bar, guest laundry with 2 washing machines & a clothes dryer and a barbecue area. There are 2 internet stations for guest use, free WiFi in all guest rooms, off street parking and full security camera fit out. Past figures include no internet bookings as owner is only now setting up an internet booking system. This motel is in impeccable condition as the owner has continually upgraded & replaced before the need arose. Rarely do we see a property in such amazing condition with so much potential upside. Our managing director has inspected this property & believes it to be one of, if not the best, leasehold property he has seen come across in 38 Years.

Australia’s best value motel lease NEW 30 YEAR LEASE IN NSW • In the heart of the main street • The inhouse restaurant, Brandy’s, is the best in town • Massive owner’s accommodation • Ideal business for a family or 2 couples • Massive upside potential • Outstanding street appeal • 32 spacious units including 12 beautiful new 4 star suites • The whole property is in impeccable condition inside & out

Russell Rogers Mobile: 0416 166 909 Sydney office: (02)9904 8224 Email: russellrogers@resortbrokers.com.au

Inspection is highly recommended!

Nett profit: $244, 157 Turnover: $902,315 (projected) PRICE: $675,000

REF: LH001705 4 RESORTBROKERS.COM.AU

BYRON BAY

Belissimo!

Italian artisans spent 12 months creating this stunning Villa set on 1.5 acres.

STUNNING ITALIAN STYLE VILLA & RESTAURANT

• 7 luxury suites • 30 seat restaurant, expansive kitchen • Wine room with huge stock. • Office and prominent management quarters • Includes planning application for additional 6 luxury suites

Jim Chapman EXCLUSIVE AGENT Mobile: 0413 444 782 Melbourne office: (03) 9347 3100 Email: jimchapman@resortbrokers.com.au

Nett profit: $224,462 (2010/2011) Turnover: $490,680 (2010/ 2011) PRICE: $2,600,000 (Includes planning approval for an additional 6 luxury suites)

illa Gusto la dolce vita is built in the tradition of the great villas of southern Italy – built for travellers seeking a luxurious gourmet experience. Situated at the foot of Mt Buffalo with 360 degree panoramic views. Manicured gardens and opulent interiors treat the discerning gourmands to a slice of Italy in style. Villa Gusto has enjoyed exceptional media reviews, becoming the destination of choice for travellers. Awarded the prestigious Good Food Guide ‘Chef Hat’, on four occasions. Four accolades from Fodor’s Guide USA. ‘one of the World’s top establishments’. Villa Gusto is the ideal ‘lifestyle’ project, all the hard work, branding & marketing is complete.

An equity partner would be considered by the owner, as growth is inevitable. The success of Villa Gusto is its distinct design and construction: • Rendered walls of lime wash from Italy • Italian marble, 130 year old stonemasonry • Mountain views captured by abundance of glass • Built to alpine building standards • Two sewerage systems • A 2 Meg water license and town water With its own fruit & vegetable garden and hen-house it is considered by VECCI as ‘the leading sustainable hospitality property in Victoria’. RESORTBROKERS.COM.AU

unique waterfront motel and magnificent restaurant. The motel consists of 28 x 4 star units, all extensively renovated to a brand new standard as well as a licensed bistro. The motel is located on Victoria Parade overlooking the picturesque Fitzroy River. The Victoria Parade precinct boasts some of the most desirable and modern short term accommodation, as well as a selection of popular cafes and restaurants - business creates business! The motel is built over two levels with car parking directly outside the units. Each room overlooks a large pool and BBQ area which is attractively landscaped, creating a relaxing oasis-like feel. • The motel would make a wonderful passive investment • Under full management • Shows nett 30% ex. management • A brand new 30 year lease • Rental only $350,000 + gst per year

Iconic Rockhampton motel

IN THE HEARTLAND OF THE BOOMING CENTRAL QUEENSLAND GROWTH REGION • Highly recommended by all return guests • Great location • Extensively renovated with new carpet throughout • Austar in all rooms • Attractive cocktail bar • Large private 3 bedroom manager’s unit • High yield corporate clientele The restaurant has been operating for over 3 decades and has always been extremely popular with corporate company representatives as well as the local population of this booming city.

Exclusively for you!

Ian Crooks Mobile: 0411 171 648 Brisbane office: (07) 3878 3999 Email: iancrooks@resortbrokers.com.au

Nett profit: over $400,000 Turnover: $2,017,000* *12 months to 31st Oct‘11

PRICE: $1.3mil REF: LH001648

6 RESORTBROKERS.COM.AU

Arguably Cairns’ best motel opportunity FREEHOLD OFFERING 81 ROOM MOTEL Chris Rowe EXCLUSIVE AGENT Mobile: 0408 225 220 Brisbane office: (07) 3878 3999 Email: chrisrowe@resortbrokers.com.au

Nett profit: on application PRICE: $6,900,000

REF: FH001763

airns Queens Court Motel is a modern accommodation complex which presents immaculately, and is located within the central city of Cairns. The property comprises a total of 81 rooms over a variety of types. Ranging from budget rooms, superior rooms and self contained studios, the Motel caters for all market types. The main building was built circa 1998, and the second stage of apartments built 2005. The property boasts an extensive range of facilities for guests including a large swimming pool, internet café, guest laundry, and a transit lounge. There is a fully equipped commercial kitchen currently catering for breakfast only, but evening meals could easily be added. The dining room seats approximately 50.

This is a very rare opportunity to enter the highly lucrative accommodation Industry in Cairns, in a very well presented and successful business. Properties of this size are very tightly held - stake your claim early. • Large, 81 room - freehold motel in excellent condition • Great mix of room types, catering for all travellers • Well located property in the Cairns City district • Currently B & B only, but could suit opening restaurant for evening meals • Great guest facilities, swimming pool, internet, transit lounge, etc • Shuttle bus included • High occupancy and forward bookings • 3 bedroom owners residence and 1 bedroom manager’s apartment • High volume wholesale trade • Loyal client base with great repeat business

RESORTBROKERS.COM.AU

TI ON RE DU C PR IC E

his 4 star resort is located in the quiet seaside village of Lennox Head and is just 100 metres to Seven Mile Beach. This renowned surfing beach boasts the best right hand surfing break on the east coast of Australia. The resort is ideally located in the centre of Lennox village and is only minutes walk to an array of cafes, restaurants, shops, a supermarket and a hotel. The main street of Lennox Head is lined with a host of great shops and some of the finest (award winning) restaurants around. Lennox Head is a laid back seaside village in the Northern Rivers area of New South Wales. Fifteen minutes drive south of world renowned Byron Bay, only an hour from the famous Gold Coast and ten minutes north of Ballina/ Byron Airport. Perhaps one of the town’s greatest assets is Seven Mile Beach, a beautiful pristine line of white sand, along a stretch of water that is renowned internationally for great waves and good fishing. 8 RESORTBROKERS.COM.AU

Famous NSW beach location 4 STAR M.R. WITH RESORT FACILITIES

At the southern end of the beach is Lennox Headland, a magnificent backdrop to a picture postcard setting and a popular destination for hang gliders. • 1,2 & 3 bedroom self-contained, air conditioned apartments • Tour desk • IWok Asian licensed restaurant and bar open for lunch and dinner • 16m heated lap pool & spa • Resort pool • Steam room • Half court tennis • Barbecue and entertainment area a

Ian Dore EXCLUSIVE AGENT Mobile: 0412 752 238 Brisbane office: (07) 3878 399 Email: iandore@resortbrokers.com.au

Nett profit: $336,736 PRICE: $1,999,000

REF: MR001602

In the heart of Ballina 84% OCCUPANCY MOTOR INN

Ian Dore Mobile: 0412 752 238 Brisbane office: (07) 3878 3999 Email: iandore@resortbrokers.com.au

ere is the perfect motel lease operation for first-timers or a couple looking to combine lifestyle with a consistently strong income. The Richmond Motor Inn is conveniently situated in River Street, Ballina’s main thoroughfare, and is opposite the award -winning Ballina RSL Club. Families on holiday will also appreciate this motel’s central location as it is only a few minutes stroll downtown to restaurants, cafes, banks, boutiques, retail shopping and entertainment.

Nett profit: $147,577 (2010/2011) Rent: $135,910 (2010/2011) PRICE: $630,000 or near offer

Also within close proximity are great beaches, The Richmond River (famous for fishing and boating), waterslides, skate park and numerous entertainment facilities.

This is a modern motel featuring a total of 13 units; 12 queen and family units plus a spacious executive unit with spa. The property has a salt water pool and ample off-street parking. It also enjoys regular repeat clientèle. • 13 solid brick units including double, family and executive spa style • CBD location in thriving Ballina’s main street by the Richmond River • Opposite award winning Ballina RSL Club • Excellent presentation, well maintained with nothing to spend • Golden Chain with 3.5 Star AAA Rating • Three bedroom + spa manager’s air conditioned upper level unit • Salt water pool • Austar and internet • Ballina is booming with the diversion of the Pacific Highway • One hour from Gold Coast International airport

REF: LH001754 RESORTBROKERS.COM.AU

STAYING POWER: THE GROWTH OF MANAGEMENT RIGHTS

BY CATIE LANGDON - PART 1 OF A SERIES The business of management rights generates hundreds of millions of dollars in revenue annually, making it a major economic contributor to Australiaâ&#x20AC;&#x2122;s dynamic tourism sector. This thriving industry all began with one building in Surfers Paradise over 40 years ago! To explore the evolution of the management rights model - its origins, development and refinement over the past four decades â&#x20AC;&#x201C; Informer spoke with 10 RESORTBROKERS.COM.AU

John Punch, pioneering legal specialist in management rights, passionate industry advocate and partner in Gold Coast firm SP&G Lawyers. Since completion of its first high rise unit building in 1960, apartment development has continued unabated on the Gold Coast, providing the city with a vast supply of holiday accommodation. According to Punch, Gold Coast Tourism estimates there are now some 65,000 rooms under

management rights across the city. Most of this development has been financed by individual unit buyers who, while expecting solid capital growth on their investment, enjoyed owning a holiday home in the sun. A great many of them have always been absentee owners from interstate and overseas, particularly New Zealand. One of the earliest of these unit buildings was The Sands, developed by Alex

“It took Tony a full 12 months to contact all the owners and sign them up to a letting agreement,” McRobbie wrote in his book 20th Century Gold Coast People. “It wasn’t the kind of job that could be done by phone or letter, so Tony flew all over Australia and to New Guinea selling owners on the idea.” By the time the building opened on December 5, 1966, only one owner had not joined the scheme. “The agreement by which the Holmshaws managed the Sands was unique.” It was the true genesis of management rights in Australia, John Punch says. Shortly after, the Graham family, who owned the El Dorado Motel at the southern gateway to Surfers Paradise, introduced a different style of accommodation management. Through their Quality Inns group, which was to include the Iluka, Chateau, Apollo and Ten towers, the Grahams implemented a system whereby unit buyers leased their property back to the operating company for an agreed period and were paid a regular dividend. “This style of management didn’t endure, whereas the management rights system has continued,” Punch said. “Out of the necessity imposed by having so many absentee unit buyers came a management system that has developed very well to serve the needs of both holiday and resident unit owners. “This system has proven so successful that there are now very few community titled residential and resort developments in Queensland which do not have management rights in place,” he said. “And it is spreading Australia-wide.” SP&G Lawyers has, for more than 30 years, specialised in management rights law, advising stakeholders, assisting successive governments in the development of key legislation and promoting the industry’s role in tourism growth. Armstrong between The Esplanade and Orchid Avenue in Surfers Paradise. In 1965, Armstrong proposed to successful local motelier, Tony Holmshaw, that he buy what he called the “management rights” to The Sands and operate it like a motel*. The prospect of dealing with 100 separate and far flung unit owners would have seemed daunting, to say the least, in the precomputer age. But, according to Gold Coast historian Alex McRobbie, a deal was struck.

The next significant period of development in the industry began in the late 1970s when retired army colonel Dave Allen entered the scene. “Once Dave bought his first management rights and became involved, he decided to grow the industry. He brought a greater level of professionalism,” John Punch recalled. “We worked together frequently, dealing with the government on critical legislation. Dave Allen also formed the management

rights chapter of the REIQ (Real Estate Institute of Qld) and went on to become institute president. “When he started selling management rights, he became involved in training people to get their real estate licence and opened the door for management rights to expand beyond the Gold Coast, to Brisbane, the Sunshine Coast and the rest of Queensland.” In the 1970s and 80s, the growth of tourism and encouragement for property development were priorities for the Queensland Government, then led by Premier Sir Joh Bjelke Petersen. It was Sir Joh who famously pointed to the number of cranes on the Gold Coast horizon as the barometer of economic prosperity. “Also significant was the role of the finance industry,” Punch said. “Key to the growth of the management rights industry was the need for secure finance for buyers. The industry came to the attention of the National Australia Bank, specifically through then manager of the Mermaid Beach branch, Brian Thomas. “With stronger laws in place to govern and protect it, a more professional approach and access to bank funding, the industry flourished.” Punch says the Gold Coast should be proud of its achievements in pioneering and developing the management rights industry. He recalls, during the 1980s, travelling with colleagues in body corporate administration to attend a conference in Hawaii. “We wanted to see how the Americans handled their strata management, and how we compared,” he said. “Despite their condominium sector being longer established and so much larger, we soon realised how superior our arrangements were. “Their system was based on 12-month contracts for management, which required renewal every year, giving the managers no security. We understood we needed the benefit of free enterprise and security of tenure for the managers to make the system work.” In the next edition of Informer, we will look at how the management rights industry underwent a period of litigation and legislative development during the late 1980s and 1990s to emerge even stronger and primed for further expansion. Thank you to the Gold Coast City Council Local Studies Library for supplying this month’s feature article image Surfers Paradise beach 1967 by unknown photographer * 20th Century Gold Coast People, Alexander McRobbie, 2000 RESORTBROKERS.COM.AU 11

his thriving leasehold motel business in the CBD of Casino, directly opposite the Richmond River parklands, is fully renovated and magnificently presented. The motel boasts a highly respected restaurant which has a reputation as the focal meeting point in Casino for families, travelling visitors and business reps alike. Contains 26 units comprising of 4 standard rooms, 14 superior queen rooms, 2 family rooms each (including 1 queen, 3 singles and 1 double divan fold-out bed), 3 double queen bed rooms and 3 executive studios (including queen bedroom and separate living / lounge room). The 50+ seat licensed a la carte restaurant at the River Park Motor Inn offers a friendly country atmosphere with a reputation for excellent meals. The motel is a popular venue for fully catered weddings, conferences and events.

Motel with successful restaurant FANTASTIC LOCATION IN THE HEART OF CASINO’S CBD

Casino is a bustling country town situated on the Richmond River, in New South Wales’ far north coast region. It is a major agricultural centre and beef capital of NSW, located 726 kms north of Sydney and 228 kms south of Brisbane at the junction of the Bruxner Highway and Summerland Way.

Ian Dore EXCLUSIVE AGENT Mobile: 0412 752 238 Brisbane office: (07) 3878 399 Email: iandore@resortbrokers.com.au

Facilities include: • 3 x BBQs • Bar and restaurant • Austar and Wi-Fi • The council swimming pool and gym plus Visitor Information Centre are located directly opposite the motel

Nett profit: $156,502 PRICE: $520,000

REF: LH001767 12 RESORTBROKERS.COM.AU

Thriving B&B motel in Beenleigh 85% OCCUPANCY Ian Dore EXCLUSIVE AGENT Mobile: 0412 752 238 Brisbane office: (07) 3878 399 Email: iandore@resortbrokers.com.au

Nett profit: $145,848 Turnover: $338,840 Price: $495,000 REF: LH001713

eenleigh is a thriving regional corridor adjacent to the Pacific Highway, 20 minutes south of Brisbane and 35 minutes north of the Gold Coast. The suburb has undergone massive growth over the past decade due to its proximity to huge employment opportunities and affordable housing. Beenleigh adjoins the expanding industrial estates of Yatala which houses many national brand manufacturers and service industries providing long term and contract employment opportunities. This motel is continuously booked out Monday to Friday with trade and business people working in the local area.

New residential subdivision growth over the past decade has contributed to the area’s success by providing much of the new affordable housing requirement in support of the expanding Brisbane market. The consistently high occupancy of the motel is the prime security feature underpinning the future of this business. There are no signs of occupancy waning in the future. This is the perfect motel for first timers as all the systems are in place and repeat business is assured. Brisbane motel leases seldom become available and as this opportunity is only 20 minutes out of the city • 20 year Lease • Rent only $95.541 CPI indexed • Consistently high occupancy at 85% • Affordable price, with absolutely nothing to spend An inspection will not disappoint, but be quick! RESORTBROKERS.COM.AU 13

Editorial

New asbestos management laws & their impact on your business BY DAVID BURROUGH - HILLHOUSE BURROUGH MCKEWON INTRODUCTION

CURRENT POSITION

For the past few years the State and Territory Governments have been working together to introduce nationwide uniform workplace health and safety laws. These laws will be known as the Work Health and Safety Act and Work Health and Safety Regulation in each State and Territory. One aspect of the new laws relates to the identification and management of asbestos in workplaces. While there have been similar laws in Queensland for some time, the new laws will require a large number of business owners take action to ensure they comply. Under the old laws in Queensland a person was only required to comply with certain provisions where a workplace was a building that was approved for construction before 1 January 1990. Under the new laws, this has been changed to buildings constructed before 1 January 2004.

While the States and Territories have agreed on the details of the new laws, they are all at different stages in implementing them. In addition, each State and Territory has different transitional periods. During the transitional period most parts of the new laws commence but some parts do not need to be complied for a certain time, or may be complied with in a different way. QUEENSLAND The new laws commenced in Queensland on 1 January 2012. However, a person does not need to keep an asbestos register or prepare an asbestos management plan until 1 July 2013 if a register or management plan was not required to be kept under the old laws. For further details please visit the Workplace Health and Safety Queensland website at http://www.worksafe.qld.gov.au. NEW SOUTH WALES

The new laws commenced in New South As all hotels, motels and caravan parks are Wales on 1 January 2012. However, a considered to be workplaces it is important person who was required to keep an that all those involved are aware of their asbestos register or asbestos management obligations under the new laws. It is plan under the old laws can continue to important that this issue is addressed not use it until 1 January 2013, at which time only if you currently own or operate one of a new asbestos register and management these businesses but also as part of the plan that complies with the new laws must due diligence process if you are looking to be kept. For further details please visit the buy one. WorkCover New South Wales website at http://www.workcover.nsw.gov.au. WHO DO THE NEW LAWS AFFECT? January 1990. As such, it would likely be reasonable to assume that no asbestos is present in buildings constructed after 1 January 1990. If asbestos is identified in a workplace an asbestos register must be kept. If there is no asbestos is identified in the workplace and the workplace is a building that was constructed after 31 December 2003, an asbestos register does not need to be kept. Otherwise, an asbestos register must be kept but the register need only state that no asbestos is present. An asbestos management plan is only required to be kept if there is asbestos identified at the workplace or it is likely to be present from time to time.

14 RESORTBROKERS.COM.AU

VICTORIA The new laws have not yet commenced in Victoria. The Victorian Government wants to delay the commencement until at least 1 January 2013. No details of any transitional provision are presently available. For further details please visit the WorkSafe Victoria website at http://www.worksafe.vic.gov.au. AUSTRALIA CAPITAL TERRITORY The new laws, except for some parts including those relating to asbestos, commenced in the Australian Capital Territory on 1 January 2012. The part of the new laws relating to asbestos is still being reviewed by the ACT Government. For further details please visit the WorkSafe ACT website at http://www.worksafe.act.gov.au.

SOUTH AUSTRALIA At the time of writing the new laws are before the South Australian Parliament. The South Australian Government appears to be well prepared for the new laws and it is likely they will commence soon after they are passed. For further details please visit the SafeWork South Australia website at http://www.safework.sa.gov.au. TASMANIA The start date for the new laws in Tasmania was recently changed to 1 January 2013. However, this change must be approved by the Tasmanian Parliament and the commencement date may change again in the future. For further details please visit the WorkSafe Tasmania website at http:// www.worksafe.tas.gov.au. WESTERN AUSTRALIA The new laws have not yet commenced in Western Australia and the expected date of commencement is unknown. The Western Australian Government wants to engage in a detailed public consultation process to gauge the potential impact of the new laws. For further details please visit the WorkSafe Western Australia website at http://www.commerce.wa.gov.au/ worksafe/. NORTHERN TERRITORY The new laws commenced in the Northern Territory on 1 January 2012. However, the requirements relating to the identification of asbestos, keeping of an asbestos register and keeping of an asbestos management plan do not apply until 1 July 2013 for workplaces that existed before 1 January 2012. However, new workplaces (such as where a building is constructed on or after 1 January 2012) will need to comply immediately. For further details please visit the WorkSafe Northern Territory website at http://www.worksafe.nt.gov.au. CONCLUSION For further information or advice on how the asbestos provisions of the new workplace health and safety laws affect you, please contact David Burrough or Peter Spranklin.

Are you buying or selling Caravan Parks, Motels, Management Rights or Hotels?

MOTELS

CARAVAN PARKS

MANAGEMENT RIGHTS

David Burrough is the most respected legal advisor for those about to buy or sell an accommodation business Before you go ahead & talk with David and his team learn everything you need to know: • What really is and isn’t included • The language the experts use • How to minimise risk • What your agent, banker & accountant need to know • Critical differences between new & established businesses

Call: (07) 3220 1144 Fax: (07) 3220 3434 Email: email@hillhouse.com.au www.hillhouse.com.au

n offer is the management rights and freehold real estate of Stewarts Bay Lodge and the leasehold interests of Taylors Restaurant and conference centre. Located at Port Arthur in the south of Tasmania, the states most visited tourist attraction. The management agreement has 25 years and all 40 units in the complex are in the managers letting pool. The freehold components include a three bedroom manager’s residence, assistant manager’s residence and separate building incorporating a potential retail area, office and commercial laundry. The management rights business is showing a net return for 2011 in excess of $359,555 and growing. This stunning investment is showing returns in excess of 29% on total purchase, which is exceptional in a management rights anywhere. This is a rare opportunity due to two unique points.

16 RESORTBROKERS.COM.AU

29% return on investment TASMANIAN MANAGEMENT RIGHTS

Firstly, this is one of only a few management rights that is available in Tasmania. Secondly, this is a rare offering with a unique lifestyle choice situated on the edge of a National Park with Australia’s number one historic site. • 40 Units in letting pool (100% of units ) • Body corporate remuneration is $62,400 adjusted by CPI or min 5% • Terms of agreement is 25 years at 2006 • Home to the highly regarded ‘Taylors’ restaurant • Two conference rooms (1) can accommodate 50 classroom, 70 theatre or 24 boardroom style. (2) is a beautiful private dining room with a capacity of 40

Glenn Millar EXCLUSIVE AGENT Mobile: 0412 277 804 Brisbane office: (07) 3878 399 Email: glennmillar@resortbrokers.com.au Jim Chapman EXCLUSIVE AGENT Mobile: 0413 444 782 Melbourne office: (03) 9347 3100 Email: jimchapman@resortbrokers.com.au

Nett profit: $359,555 Business price: $740,000 (2.05 multiplier) Real Estate Price $500,000 PRICE: $1,240,000 REF: MR001755

New 30 year lease in the Blue Mountains OVER 31% RETURN Shane Wynhoven EXCLUSIVE AGENT Mobile: 0424174592 Sydney office: (02) 9904 8224 Email: shanewynhoven@resortbrokers.com.au

Nett profit: $316,051 Turnover: $803,391 PRICE: $995,000

REF: LH001714

brand new 30 year lease in a superb Blue Mountains’ motel. This property has enjoyed excellent growth over the last 5 years. The owners have invested their time and money to transform this property into an award winning motel. In close proximity to Katoomba’s Three Sisters lookout and the renowned Scenic World, this motel is perfectly located for the bustling tourist trade. This property is a great performer in a fabulous location. Much of the hard work has already been done and there is a genuine opportunity for new tenants to make some great returns.

The motel is currently netting over $316,000 p.a. - that’s over $6000 per week. • 20 units and 3 bedroom cottage • Easy to run breakfast cafe – option to provide dinners • Brand new 30 year lease • Fabulous condition throughout • Greater than 31% return • Great performer at 80% occupancy • 3.5 star AAA rating • Located 90 minutes from Sydney in the majestic Blue Mountains • Excellent returns for a motel couple • Tidy 2 bedroom residence • Fabulous location • Strong internet bookings • Motivated vendor looking to move to next project

Be quick – this one is not to be missed!!

If you are looking for a great business with a great return then look no further. RESORTBROKERS.COM.AU 17

his stunning upmarket complex is situated on Kawana Island, a Sunshine Coast residential hotspot. Based on an island with outstanding community facilities together with an unbeatable central location. The complex is conveniently located, with the university and Kawana shopping town only a five minute drive and, with the opening of Kawana Road directly linking Kawana Island to the Sunshine Motorway, Brisbane Airport is an easy one hour commute. Even closer is the beach which stretches for 12km from Point Cartwright in neighbouring Buddina to Dicky Beach. The new Kawana Town Centre, together with the Kawana Beach development as well as the region’s new public hospital will be a few short minutes drive away. It’s anticipated that over 10,000 new jobs will be created by this health precinct. This stunning iconic property is being offered as the current management wish to retire. It is one of the most prestigious gated complexes on the Sunshine Coast,

18 RESORTBROKERS.COM.AU

Stunning waterfront complex SUNSHINE COAST PERMANENT MANAGEMENT RIGHTS with private marina berths and 5 star facilities. The complex is part permanent let and part owner occupied with potential to grow the letting pool. The manager’s residence is stunning. • Total number units in complex 85 with 44 units in letting pool • Body corporate remuneration $162,295 pa annual CPI) increase adjusted by CPI or min 2% • Terms of agreement 25 years at 2005 • The manager’s villa has 4 bedrooms, one of which has been converted into the office with an ensuite. The villa has ducted air-conditioning with open plan living downstairs leading to an undercover entertainment area

Glenn Millar Mobile: 0412 277 804 Brisbane office: (07) 3878 399 Email: glennmillar@resortbrokers.com.au

Nett profit: $241,000 PRICE: $1,900.000

REF: MR001748

Australia’s best leasehold offering MAGNIFICENT RESORT IN THE TERRITORY Chris Rowe Mobile: 0408 225 220 Brisbane office: (07) 3878 3999 Email: chrisrowe@resortbrokers.com.au

EXCLUSIVE AGENT in conjunction with:

Steve Liebelt Mobile: 0412 401 507 Email: steve.liebelt@colliers.com

Nett profit: on application PRICE: $4,100,000

ollowing major refurbishment and renovation the leasehold of perhaps the Territory’s best known and most successful resort, motel and caravan park, Knotts Crossing Resort in Katherine, is offered for sale. Its comprehensive facilities include 124 rooms, 34 powered and ensuited caravan sites, 6 staff cabins, conference and function rooms and the newly renovated Savannah Restaurant featuring exceptional indoor and al fresco dining and bar facilities.

Perfectly located a few kilometres from the town centre on the road to Katherine Gorge, Knotts Crossing’s refreshing, leafy setting attracts significant return business. Very rarely does an opportunity such as this become available. A truly spectacular property. • 3 bedroom manager’s residence • Shady, well-grassed tropical gardens • Refurbished restaurant, bar and bistro • Conference facilities • 2 swimming pools • Tour desk, Hertz • Long lease in place • Expect returns of over 35% on your investment under management

As well as tourism and the travelling public, high levels of government, NGO and corporate trade ensure Knotts Crossing’s strength is broadly based and ideally placed to benefit from the continued growth of the strong Katherine region. RESORTBROKERS.COM.AU 19

Editorial

How does your Management Rights business compare to your competitors? BY TONY ROSSITER - HOLMANS ACCOUNTANTS business. Good business operators know when to get out of their own way. SIZE DOESN’T ACTUALLY MATTER

It’s a common approach to spend more time working in your business rather than on your business – but does that ultimately deliver the best results? BEGIN WITH THE END IN MIND I cannot stress enough the importance of vision and developing a written road map for your business. Part of this includes understanding your role in the business and how this will change over time. When starting out, you will be wearing many (if not all) hats in terms of establishing supplier relationships, fulfilling caretaking and maintenance duties, managing owner expectations, taking and fulfilling guest and tenant requests, answering phone calls, dealing with guest/tenant complaints and much more. How much you continue to be directly involved in many of these tasks depends heavily on your vision of what you want your business to be and how much this requires you to work on your business rather than in your business. Many Management Rights small business operators find themselves trapped in the day-to-day grind trying to be all things to all people. For those in smaller Management Rights businesses, it becomes financially challenging to employ the staff required to enable them to work on their business rather than in their business. This is where reliance on trusted specialist advisors may well be a more viable option. There is a bridge every entrepreneur must cross in order to grow a business beyond a certain point – a point where they must transition from “doing” to “managing”. It means stepping back from day-to-day operations and slipping into the role of overseer. It also means learning to delegate more significant responsibilities to your employees. But for many entrepreneurs who view their business as their baby, this is more easily said than done. Learning to delegate is an ongoing journey. Half the battle is hiring people who you feel comfortable delegating to. The other half is creating effective work processes. Once you put the right people, policies and processes in place, your business should practically run itself. It is at that point that you can safely disengage long enough to provide the vision essential to the long-term growth of your business. That being said, delegation is never abdication. Rather, it’s learning to work on your business instead of in your 20 RESORTBROKERS.COM.AU

Many small business Management Rights owners see their current business as a stepping stone to a larger Management Rights opportunity which can then be more effectively leveraged. By operating even the smallest business with the right policies and processes, business owners can still focus on the vision essential to the long-term growth of their business. By engaging the services of specialist advisors and subscribing to industry associations such as ARAMA, you will gain access to recognised industry benchmarking data designed to equip you with the tools to track the performance of your business. WHAT TO LOOK FOR Comparing the performance of your business against recognised industry benchmarks will allow you to determine, amongst other things, if: • Your tariffs/rents are competitive • Your gross profit margin on your cleaning service is appropriate • Your gross profit margin on your linen service is appropriate • Your gross profit margin on your credit card facilities is appropriate • Your caretaking remuneration is fair reward for your effort • Your fee for your management service is sufficient • Your occupancy rates are within an acceptable range Implementing the use of recognised industry benchmarks in your business allows you to drill down into specific aspects of your business, enabling you to identify and adopt “best practice” for your industry. Management Rights should be viewed as no different to any other industry – for as sure as the sun will rise tomorrow, in every industry some businesses will continue to outperform others. The reason for this is that some business owners are adopting superior methodologies to other business owners. It is with the use of recognised industry benchmarks that you can identity the areas that can be improved in your own business and implement strategies to rectify the performance of those areas. Benchmarking is a valuable and strategic business tool aimed at highlighting the relative performance of your business in terms of income, expense, productivity and efficiency compared to other businesses within the same industry. The end result should provide you with a list of opportunities to make your business more competitive and ultimately more profitable.

Further North on the Sunshine Coast, things seem to have generally improved as the year has progressed. In the early part of the year occupancies had been low and business had been slow (as evident by the 7 vacant shops in Hastings Street, Noosa). However, on the upside, most areas have registered an improved end to 2011, some reporting the best October/ November/December trading for the last 5 years. Cairns and Port Douglas are suffering much in the same fashion as the Gold Coast. However, as interest rates drop we should see a decrease in the value of the Australian dollar meaning more people will holiday at home in 2012. This should cumulate in increased tourism trade in Far North Queensland, as well as the Gold and Sunshine Coast As already mentioned, mining areas have been very popular. Rural areas in South East Qld have flourished with the growth of the gas industry. Towns such as Roma (5 hours west of Brisbane) and townships all the way back to Toowoomba run at almost 100% occupancy during the week. 3 months ago we had a significant sale in Chinchilla of a near new 44 unit motel which sold for $8.9 million.

Queensland 2011 a year of opportunity and growth IAN CROOKS - MANAGING DIRECTOR, RESORT BROKERS AUSTRALIA We often hear that 2011 was a year rather forgotten by many. What we don’t hear so often is that for many others, 2011 was a year of opportunity and growth. The contrast between those that have succeeded and those that have struggled has provided the backdrop to 2011, none more so than in the accommodation sector and particularly in Queensland. While the mining sector continues to create boom times in certain areas, Queensland’s traditional hotspots are still limping along. From 2003 to 2007 Brisbane city was reported to have the second highest occupancy rate of any major city in the world, driven largely by interstate migration. The arrival of the GFC changed this. However, 2011 appears to have been another halcyon year for Brisbane with occupancies approaching pre-GFC levels. Much of this growth can be attributed to the mining sector, expanding or creating new head offices and filling short-term corporate lets with mid-week business travellers.

Sales of management rights have also been strong in the greater Brisbane area, with Chinese buyers becoming increasingly prominent. The importance of the freedom that Chinese nationals now have to invest their money overseas cannot be underestimated. We expect this to be become an increasingly important factor in driving management rights and motel sales in the coming years. Nowhere is an influx of new buyers more needed at the moment than the Gold Coast. Only 2 – 3 years ago, the region was achieving 200+ management rights sales per annum. However, the general consensus is that 2011 sales were down 75% - 80% on this level. Although some tourism properties have maintained high occupancies throughout the GFC (a fact the press often forget to tell us), many have experienced tough times. Permanent properties continue to do well, although the reduction in job opportunities has created a highly competitive rental sector.

Gladstone is experiencing absolute boom time conditions; even with tariffs at $150 - $200 per night, it is almost impossible to find a bed within the city any night of the week. Further north Rockhampton is enjoying the best occupancies ever, largely due to the overflow from Gladstone. Further west the mining sector is driving the township of Emerald and surrounds to occupancies of between 85-90%. Middlemount and Merimbah are also running at near full capacity. The city of Mackay which has approximately 80 motels has been running at occupancy of 91-92% throughout 2011 and shows no sign of slowing down. Mackay could do with at least another 400 units in the near term but finding land at the right price is difficult. It doesn’t take a genius to work out that these soaring occupancies have created a great demand for motels, both leasehold and freehold. 2011 was one of Resort Brokers best years on record for motel sales, and we expect 2012 to be better. The only thing that holds us back is listings; we genuinely believe we can sell any motel that is correctly priced. I hope that gives you an overview of what is happening in the Sunshine State. The best of luck to everyone in 2012! RESORTBROKERS.COM.AU 21

ocated in the capital of the Wimmera, Horsham. The vendor is offering the freehold investment and/or leasehold interest in a wonderful 41 room motel. With most of the hard work done and plenty of money spent, the new owner can simply take over and focus on running the business and turning a profit. It’s time to take this great motel to the next level. With excellent facilities it is in a unique position as it can genuinely claim to cater for all travellers: corporate, leisure, buses and large groups. The restaurant and conference facilities are both under utilised Recent refurbishments include: new roof, beds, soft furnishing, flat screen TV’s and carpet. • 3.5 star motel that has been wonderfully upgraded • Consistent turnover for many years • Plenty of opportunity increase profit

A large motel with big return LEASEHOLD AND FREEHOLD AVAILABLE

• 3 bedroom manager’s residence • High profile location on Western Highway • Indoor pool & spa, restaurant conference facilities • Freehold investment and/or leasehold available

Stuart Charles EXCLUSIVE AGENT Mobile: 0458 588 472 Melbourne office: (03) 9347 3100 Email: stuartcharles@resortbrokers.com.au

LEASEHOLD 30% return New 25 year lease Adj. nett profit $215,849 Price: $720,000 FREEHOLD 10% return Rent:$170,000 plus CPI Price: $1,700,000

Leasehold Price: $720,000 Freehold Price: $1,700,000 REF: LH001761 / FH001759

22 RESORTBROKERS.COM.AU

20 room motel in the centre of town - 2 hours to coast LEASEHOLD OFFERING Lindsay Cooper EXCLUSIVE AGENT Mobile: 0418 711 047 Brisbane office: (07) 3878 3999 Email: lindsaycooper@resortbrokers.com.au

Nett profit: $168,000 Turnover: $367,000 PRICE: $480,000 REF: LH001743

n offer is the leasehold to this 20 room 3.5 star motel - the largest motel in town. Just two hours from the Sunshine Coast, 2.5 hours NW of Brisbane and very close to the resource area of the Southern Downs area of Queensland. An 18 year term is in place with a very reasonable rent ratio of 36%. The lessee’s quarters are large - in fact you could have 2, 3 or 4 bedroom accommodation as required. Separate lounge and dining area, bathroom and toilet and a huge walk in robe area or additional bedroom.

of around 3083. Situated 138 km’s from Toowoomba, the town sits on the junction of the D’Aguilar Highway and the Burnett Highway. Today the principal industries are power generation (from the Tarong Power Station) and coal mining. These two industries support the motel trade in Nanango. • Very good rent ratio of 36 % • 20 rooms - largest motel in town • No restaurant meals to rooms required • 18 years on the lease • Strong support from the power and coal industries • Centre of town location - walk to everything • Current 3.5 star AAA rating • Could be run by a couple can run with casual cleaner

The Fitzroy Motel is situated on Fitzroy Street in the centre of the town of Nanango. Nanango is the fourth oldest town in Queensland with a population RESORTBROKERS.COM.AU 23

Preparing to buy: let’s get eady BY MIKE PHIPPS - MIKE PHIPPS FINANCE

I wrote recently about the need for vendors to prepare their management rights or motel for sale. But what about prospective purchasers? Many people intending to buy a motel lease, freehold or management rights are going into the industry for the first time and really need to take the time to ensure they are ready to move forward when an opportunity presents itself. This preparation is essential in order to ensure opportunities are appropriately assessed, the purchase process runs smoothly and finance approval is forthcoming. The number one step in this process is to work out your price range. This calculation is not difficult but should be undertaken with the advice of an accommodation industry expert finance professional. In many cases I see prospective purchasers miscalculate available equity in property and/or bank gearing levels and debt servicing capacity and then start inspecting properties that are not in their price or repayment capacity range. Best to get the numbers right from the get go

24 RESORTBROKERS.COM.AU

before wasting a lot of time and in many cases a lot of money. The second step is to identify a suitable sales agent to work with in your search for the right property. I strongly recommend going with the long established firms who have agents who sell these assets for a living, not as a part time hobby. The advice and guidance of a reputable sales professional will be invaluable in your search. And here’s a tip, stick with the agent who puts in the hard yards, don’t have half a dozen people running around doing half a job. Many intending purchasers wait until they are going to contract to decide on a lawyer and accountant. I think it’s a far better idea to get in touch with industry experts in these professions very early in the piece. In many cases these professionals will be valuable sounding boards and sources of information as you assess opportunities. I know of firms who give their initial time free of charge to assist

prospective purchasers as they review listings and industry trends. Listen to your sales agent or financier and speak with the industry experts that they recommend. Too many times I see prospective purchasers using non accommodation expert advisors and the results are generally less than ideal. The other vital step in the process is to be ready to apply for finance and have that process go smoothly and effectively. Always use an accommodation industry expert lender or financial intermediary such as myself. The bank will want various documents supporting your application with the detail and scope being very much dependent on your overall financial position, the amount you are borrowing and your past business and work experience. I am a strong believer in having all the ducks in a row well before any approach is made to a prospective lender. As the old saying goes, you only get one chance to make a first impression.

Editorial

Be my guest

Grahame & Anne Crossley OWNERS OF BRIDGEPORT APARTMENTS, BRISBANE Have you often thought you would like a change of occupation and lifestyle? Something that your could run with your partner ? Yet doubted whether you were able to buy your own business because your money is all tied up in your house. Management rights have been the business of choice for many couples from a myriad of different backgrounds. You may be delighted to hear that the skills that are required to operate an accommodation business are probably well within your capabilities. To be successful in management rights you have to: Dac] h]ghd] Yf\ Z] lgd]jYfl g^ \a^^]j]fl cultures and lifestyles EYaflYaf Y `a_` klYf\Yj\ g^ cleanliness and care of the grounds and public areas :] gj_Yfar]\ Yf\ YZd] lg mk] Y computer =fbgq ogjcaf_ lg_]l`]j I spoke to Grahame and Anne Grahame of Bridgeport Apartments in Brisbane about their experience of running a very successful management rights business in the inner city. Located in Kangaroo Point, this property consists of 77 units, 1/3 occupied by owners and 2/3 permanent rentals. The property boasts a swimming pool and spa with wonderful views of the city, a tennis court and BBQ area. This is one of the most attractive and well run properties in the Brisbane inner city.

Anne and Grahame had no previous experience in the hospitality sector before buying this property. Anne worked for 30 years in education, teaching and writing resource materials for outback students. Grahame was an electrical contractor with his own business. It is obvious that he is a practical man, fit and active and that she is a people person, both gregarious and welcoming. they are both easily meet and happy to chat. I asked them what advice they would give to anyone thinking of entering the industry. Neither Anne nor Grahame had any concrete computer skills. They both had to learn the booking program REI master and MYOB. To combat these issues they recommend 2 weeks training from the previous manager during the handover and if required that you employ a casual trainer to assist you with any further difficulties. It is important to make the separation between the home and office when you live on site. It is critical that you take time off regularly so you don’t burn out. Appointing a relief manager can sometime be difficult and relatively expensive. However, it is money well spent to ensure a renewed enthusiasm for your business and a happy relationship.

TIPS WHEN BUYING MANAGEMENT RIGHTS 9doYqk mk] af\mkljq kh][aYdaklk o`]f doing legal and accounting due diligence EYc] kmj] qgm `Yn] Y log o]]c training period upon handover 9doYqk [gfkmdl Y kh][aYdakl ÇfYf[] broker as well your own bank to ensure you are getting the best deal EYc] kmj] l`] ÇfYf[aYdk g^ l`] business you are buying are prepared by an accountant is a membership based not for profit, peak industry body which represents the interests of people who are involved in the management rights industry. Another social network that offers support is regular get -togethers with other management rights owners in the area. If their complexes have no vacancy or their unit doesn’t suit they all work together to accommodate each others tenants. Grahame and Anne have made many friends amongst their owners and tenants and often host drinks whilst admiring the YeYraf_ [alq na]ok ^jge l`]aj Zmad\af_& Clearly, they have embraced their business as a lifestyle as much as a money making proposition. By K.Ink

Anne and Grahame have found great support by being members of ARAMA. The Australian Resident Accommodation Manager’s Association RESORTBROKERS.COM.AU 25

26 RESORTBROKERS.COM.AU *conditions apply

19 A$

• Rare opportunity to own one of only 20 two bedroom fully furnished villas in this 42 villa complex • Use as your holiday home and enjoy returns while you are away • Beautifully landscaped grounds • Two all-weather tennis courts • Picturesque pool & children’s play area • Alfresco restaurant and cocktail bar • A short stroll to Wailoaloa beach

Best Western Grand West Villas

resortbrokers.com.au

own of beautiful Fiji Fiji’s long sandy beaches, year round temperate climate and ever friendly locals have lured travellers from around the globe for many years. Never before has it been easier for you to own your own haven of tranquillity on this island paradise. Resort Brokers Australia is delighted to offer to the market these 1 & 2 bedroom villas & apartments. Available from as low as A$135,000 with up to 60% finance*

• Large one bed, self-contained, fully furnished apartments • The most inexpensive holiday units in Fiji today with very low body corp fees • Absolute waterfront, private & secluded • Located on the famous Coral Coast, adjacent to the new JW Marriott Resort • Nestled at the rear of the ever popular Seashells Resort, gateway to ‘Cloud Break’ • Two swimming pools, restaurant & bar

Seashell@Momi Resort

CALL US TODAY! Ian Crooks EXCLUSIVE AGENT Mobile: 0411 171 648 Email: iancrooks@resortbrokers.com.au

RESORTBROKERS.COM.AU 27

Property sits in the CBD of Mackay, one of Queensland’s major mining areas. No wonder the motel enjoys an occupancy of 93%! As well as mining, Mackay boasts being the largest sugar producing area in Australia. Two major points worth noting... definitely no flooding and the restaurant only 5% of turnover. • 33 units including family rooms • Licensed dining room with small bar and stainless steel kitchen • Recently repainted inside and out • Room refurbishment recently completed • Presently run under management • Sealed driveways and parking

Mackay CBD new riverfront motor inn 30 YEAR LEASE • Linen laundered commercially off premises • Austar and wireless internet installed • This is a rare opportunity to buy a long lease in one of Queensland’s best motel towns • Even prior to the mining boom Mackay always enjoyed a very high occupancy

Brand new 4.5 star AAA rated EXCEPTIONAL MOTEL LEASE Nett profit: $435,000 (projected after rent and expenses)

PRICE: $1,450,000 Len Booth EXCLUSIVE AGENT Mobile: 0438 139 422 Central Qld office: (07) 4155 6330 Email: lenbooth@resortbrokers.com.au REF: LH001702 28 RESORTBROKERS.COM.AU

This magnificent leasehold property is situated in Rockhampton, the beef capital of Australia and represents your chance to take advantage of the resources boom. This is the newest and best motel in Rocky. The rooms are superior to anything already there and the cafe / eatery, which is the most modern in town, is proving to be very popular with both guests and locals alike. The apartments comprise of executive studio and presidential, a definite aim to the high end

Nett profit: $510,000 (projected after rent and expenses)

PRICE: $1,700,000 Len Booth EXCLUSIVE AGENT Mobile: 0438 139 422 Central Qld office: (07) 4155 6330 Email: lenbooth@resortbrokers.com.au

of the market. Being opposite the Pilbeam Theatre and enjoying a main road position gives a further positive attraction. Of course, the option is for there for the coffee house to be sub leased out separately to the accommodation. This property would suit the most astute of buyers with just the right touch of sophistication and elegance unequalled in Central Queensland. • Superior 18 apartment property • Perfect position opposite the Fitzroy River • 1900 square metres of building over 7 floors incl.... basement • Large well equipped gymnasium • In ground swimming pool on 2nd floor

From the highly acclaimed Drew Group we present Precinct Apartments. Superbly located on Prospect Street in Fortitude Valley, Precinct Apartments is a shining gem in the Brisbane property market. Fortitude Valley is Brisbane’s highest growth suburb due to its proximity and easy access to the Central Business District, Brisbane’s popular northern suburbs and the affluent riverfront suburbs of Teneriffe, Newstead and New Farm. The choice is yours – purchase a unit and reside in this fabulous new development, or run from offsite with no requirement to purchase a unit or live on site. Move fast or you will miss this one.

First class off the plan opportunity PERMANENT COMPLEX FORTITUDE VALLEY • No requirement to live on site or own a unit • Limited caretaking • Extremely healthy body corporate remuneration of $64,625 • Brand new 25 year agreements • 47 units • Projected net profit of $140K – based on 70% in letting pool • Very strong rental demand

NO NEED TO BUY A UNIT OR LIVE ONSITE

EXCLUSIVE AGENT Steve Campbell Mobile: 0407 220 668 Email: stevecampbell@resortbrokers.com.au Tim Crooks Mobile: 0422 208 450 Email: timcrooks@resortbrokers.com.au

EXCLUSIVE AGENT Tim Crooks Mobile: 0422 208 450 Email: timcrooks@resortbrokers.com.au Steve Campbell Mobile: 0407 220 668 Email: stevecampbell@resortbrokers.com.au REF: MR001764

Rare off the plan - caretaking only Nett profit: $78,000 PRICE: $220,000

Nett profit: $140,000 (projected) PRICE: $586,000

A real opportunity presents itself here with this caretaking only management rights in the heart of the Gold Coast. Perfectly located, this business is the ideal add on to an existing complex in the area. The building has been developed by the highly acclaimed Drew Group - needless to say a fantastic complex is on the way. Caretaking duties are minimal with only a small grassed common area and a common

room to tend to. With construction due to be completed by June, move quick to secure this outstanding opportunity. • Caretaking only • No requirement to buy a unit or live on site • Off the plan with brand new 25 year agreements • Minimal caretaking duties • Conveniently located 200 meters from the Nerang train stain • Body Corporate remuneration of $78K • Remuneration increase of 2.5% or CPI which ever is greater • Snooze and you will loose on this one! RESORTBROKERS.COM.AU 29

This is the best Brisbane freehold motel opportunity in years. Fantastic 3.5 star 41 bedroom motel in Brisbane’s northern suburbs. Neat as a pin and solid as rock, she stands on the main arterial road into Brisbane from the north. Facilities include conference room, swimming pool, undercover BBQ area and more. There is no restaurant, but the manager’s residence has a commercial kitchen in which breakfasts are cooked. Going concerns in Brisbane like this are as rare as hen’s teeth. You will have to be quick for this one!

The opportunity of 2012 FREEHOLD GOING CONCERN - BRISBANE MOTEL • 41 x 3.5 star rooms • 3 bedroom manager’s residence • No restaurant • Long term management in place - first time offered to the market in 15 years • Main road frontage • Large conference room

SPACIOUS 3 BEDROOM MANAGER’S UNIT

Tim Crooks Mobile: 0422 208 450

Brisbane office: (07) 3878 3999 Email: timcrooks@resortbrokers.com.au

REF: MR001762 30 RESORTBROKERS.COM.AU

Steve Campbell Mobile: 0407 220 668 Email: stevecampbell@resortbrokers.com.au

Opportunity knocks!

Brisbane’s most desirable suburb Nett profit: $133,000 PRICE: $1,230,000

Nett profit: on request PRICE: $4,200,000

This is the classic home and income opportunity where there is very little caretaking with more of a managerial type position. An impressive woolstore conversion, this is a little piece of Brisbane’s history that’s here to stay. A mix of 1, 2 & 3 bedroom units located in the cosmopolitan area of Teneriffe. The strong rental demand in the area makes for a great business combined with a very desirable place to live.

The manager’s apartment enjoys one of the largest floor areas around, with high ceilings, air conditioning, stunning wooden floors and good storage on offer. Surrounded by a smorgasbord of restaurants, eateries, super-chic cafes and bars, in the heart one of the most happening places in Brisbane. • Fully equipped gymnasium on-site • The office is separate from the unit • Great body corporate salary considering the workload • There are 19 years remaining on the agreement • A great rapport is held with the body corporate

Two Brisbane complexes, 3 km apart, for sale as one business. Birchgrove has 29 units, Grassmere has 26 units. There is no requirement to live on site or set office hours in the agreements. You can rent the unit & use the office (a full license is required). • Birchgrove has a lovely colonial style residence with 3 bedrooms, 2 bathrooms, office, SLUG plus one car space • An impressive overall return of 13.93%. • No office hours - very easy caretaking • 21 yrs remaining on the agreements

No requirement to live on site GREAT POTENTIAL TO INCREASE THE NETT

• Birchgrove Residential Community is a secure gated complex in a quiet location • Both complexes are in high rental demand areas - 100% occupancy is the norm • This is a great buy. Call the agent for more information. Don’t delay. No requirement to live on site! GREAT POTENTIAL TO INCREASE THE NETT

Brisbane off the plan management rights MORE DEVELOPMENTS AVAILABLE SOON Neville Littleton Mobile: 0407 727 194 Brisbane office: (07) 3878 3999 Email: nevillelittleton@resortbrokers.com.au

Two in Brisbane South 1) 67 townhouses including the manager’s 3

bed, 2 bath with DLUG. • Approx completion date of Stage 1 (41 units) is March/April 2012. Stage 2 (26 units) due in June/ July 2012 • BC salary of $67,000 + letting commissions in this strong rental location • Total asking price only $1,155,000 + GST on the business

2) 31 townhouses including the manager’s 3 bed, 2 bath with DLUG

Nett: $115,000 PRICE: $825,000 Neville Littleton EXCLUSIVE AGENT Mobile: 0407 727 194 Brisbane office: (07) 3878 3999 Email: nevillelittleton@resortbrokers.com.au REF: MR001374

• Very close to completion - 50% of units sold. • BC salary of $31,000 pa • Total asking price $752,000 + GST on the business

One in Brisbane North 56 townhouses including the manager’s 3 bed, 2 bath with DLUG • Almost completed. 43 units sold to date ALL TO INVESTORS. • BC salary of $56,000 plus the rental income means a top class lifestyle • Total asking price $959,000 + GST on the business

Buy now, avoid the transfer duty and establish the business to your standards. RESORTBROKERS.COM.AU 31

Editorial

Should I stay or... should I go? BY GLENN MILLAR & ALEX COOK - RESORT BROKERS AUSTRALIA “Should I stay or should I go?” A very common question posed by management rights owners in today’s difficult climate. Although many managers are ready to move on to pastures new (whether it be retirement, a new management rights or something completely different) they know that their hopes and expectations may well be dashed by the realities of the market. What will tomorrow bring? Will the market revert back to the heady pre2008 heights? This really is the million dollar question and one that it difficult to answer with any certainty. Nonetheless, professional opinion is reasonably unanimous; the peak of the management rights market that was witnessed from 2004 until 2007 is very unlikely to be replicated anytime soon. To be clear, we’re talking years, not months, if ever. That is not to say that there may be some exceptions to this. Management rights in prime, booming, blue chip locations or perhaps those that have a genuinely unique and major distinction from others can still achieve abnormally high multipliers. However, these will form a very low proportion of the market as a whole. What about the rest? The reality of the situation is that many management rights owners considering selling today bought between 2004 and 2007 when the market was at its peak. Fuelled by an influx of corporate purchasers looking for speedy growth in trading volume and market share, values were inflated to levels that were unlikely to be sustainable in the future. As if to prove this point, some of these 32 RESORTBROKERS.COM.AU

companies have now divested or are looking to sell their non-key properties at prices well below what they paid. The same force that acted to push the market up at its peak is now helping to drag it down. What became of these corporate newcomers is no secret. MFS are now owned by Mantra Hotels and Resorts, Wentworth have left the management rights business altogether, Outrigger Hotels sold out at the top of the market and are now entering back into the market when suitable opportunities arise and Oaks Hotels and Resorts continue to power on (their most recent purchase being the 165 unit management rights to Sanctuary Broome). However, the important point to consider is how this affects the average mum and dad operators who built the management rights sector in the first place. Can they bide their time until the market improves and multipliers return to previous levels? Simply put, it depends how long you are willing to wait for. Based on the advice of valuers and financiers, many properties that sold for c. 5x multipliers at the peak of the market are unlikely to command a position like this for some years to come. Even this is a best case scenario. It is quite possible that the upward pressure on values created by the influx of corporate operators up to 2007 will never be repeated. As such, many of the values from this period might well be seen as abnormal blips on a long-term trend. Although perhaps coming across as a bit negative, the point of this article is to highlight that there is little point waiting around for pre-2008 values to return….it might never happen. If you want to sell, you need to be prepared to sell in today’s market. As discussed in a previous article, the worst thing you can possibly do is go to market at an unrealistic price, only to sit stagnant for months. As negative stigma attaches itself to properties long on the market, they can only devalue further. The best course of action is to forget about market conditions and focus on your business. After all, you cannot have any influence on one, but can have a huge amount of influence on the other. Increasing your bottom line can go a long way to filling the void between the multiplier you bought for and the one you are able to sell for. If you are thinking about selling in the next year, put together a business plan of how you might be able to increase your net profit. Look towards what you might be able to achieve at your next AGM. An extra 5 years on your agreements can only have a positive influence. Management rights businesses continue to do well and continue to sell. Although the housing market is still depressed (a traditional driver for management rights sales), recent corporate redundancies have created a fresh pool of buyers looking to purchase secure incomes. If you want to sell this year, you can. The only obstacle is mental one….you need to meet the market. And as far as we can tell, now is as good a time as any.

Enjoy the benefits of the resource boom NEW LEASE DIRECT FROM FREEHOLD OWNER Jim Chapman EXCLUSIVE AGENT Mobile: 0413 444 782 Melbourne office: (03) 9347 3100 Email: jimchapman@resortbrokers.com.au

Shane Mullins EXCLUSIVE AGENT Mobile: 0447 185 001 Brisbane office: (07) 3878 3999 Email: shanemullins@resortbrokers.com.au

Nett profit: $669,164 (projected 2011/12) Turnover: $1,830,783 (projected 2011/12) PRICE: $1,150,000 Plus SAV.

north west of the City of Adelaide. Whyalla has a resident population of approx. 23,000 people. With the impending introduction of a carbon tax the Australian Government has committed $64 million for expansion of the One Steel Whyalla export port facility.

Whyalla offers all the facilities of a vibrant growing city including primary, secondary and university education institutions, regional hospital, substantial sporting and cultural facilities, government services and retail outlets.

The motel consists of a two storey motel/ restaurant complex, comprising of 40 motel rooms, manager’s residence, reception, lounge bar, dining room and commercial kitchen. External improvements include a large area of lawn and in-ground concrete swimming pool. There is ample land to increase accommodation as the business continues to grow.

The growing tourist and corporate trade is based around mining and exporting natural resources, wind farms and tourist pursuits including outback exploring and fishing.

tratigically positioned in Whyalla, The Best Western Alexander Motel is capitalising on the significant business from recent investments in infrastructure and mining of resources.

The City of Whyalla is located on the Upper Eyre Peninsula in the Iron Triangle Region of South Australia, some 439 kilometres

• 40 x 4 star motel units including queen, king, triple, spa, executive and family suites • Licenced restaurant, cocktail bar and separate conference/ function room • New lease of 30 Years ( 10 Years plus 4x5 Year options). Market rent.

RESORTBROKERS.COM.AU 33

No.1 In hotel fitout and refurbishments 1300 500 815 admin@resortinteriors.com.au

www.resortinteriors.com.au

Motel in the heart of Qld’s booming coal region WILL NETT $1.25MIL IN 2012 Ian Crooks EXCLUSIVE AGENT Mobile: 0411 171 648 Brisbane office: (07) 3878 3999 Email: iancrooks@resortbrokers.com.au

Nett profit: $1,250,000 (projected 2011/2012)

Turnover: $2,800,000 PRICE: $3,900,000 REF: LH001771

uilt four years ago in the township of Middlemount (3 hours west of Rockhampton and Mackay), this 4 star motel consists of 48 modern furnished rooms built around a central facility building which includes reception, restaurant and bar. The 120 seat restaurant can seat approximately 60 inside and another 60 alfresco on the wrap around deck. Like the motel the restaurant runs at full capacity with no other restaurant of this standard in town. With DA approval already in place, there is room for an additional 42 rooms providing a massive upside for a prospective purchaser.

At a cost of approx $3,500 per room, for the fit out (freehold owner to build additional rooms) the purchaser will increase their profit by almost $1,000,000 per annum! The coal industry is set to boom for years to come with the owner of the main mine in Middlemount having just taken up a new 30 year lease. This motel enjoys a high level of occupancy as a result of mining in the area, with patronage from the major mining executives and mining industry reps. Rarely do we get motels that offer such a truly outstanding opportunity. The Swag Motel has an absolute monopoly on the accommodation business in Middlemount, with no other available land for motel development in the area. • Complex in excellent condition • Low maintenance, near new building • 48 x 4 star rooms • Austar • Fully air-conditioned • Profitable restaurant Be quick for this one!! RESORTBROKERS.COM.AU 35

Editorial

Food rescue - waste not, want not BY OUR DELUXE SUITE JOURNALIST AT LARGE - K.INK It goes against the grain for most people to waste food especially when we know that there are people out there that would appreciate it. Many food businesses would happily donate their excess food if there was an easy and reliable method of doing so. OzHarvest is the practical response to this situation. OzHarvest is a nondenominational charity that rescues food which would otherwise be discarded. This excess food is distributed to charities supporting those in need in Sydney, Canberra, Newcastle, Adelaide and Brisbane. Recently OzHarvest provided 2000 kgs of food to victims of the recent floods in Queensland Australia wide OzHarvest delivers 333,000 meals per month with a fleet of 15 vans. Food is generously donated by those with excess in our community such as hotels, supermarkets , takeaways, delis and function centres. By distributing this food to various charities they assist them to better and more efficiently address the underlying social problems in our society and help them redirect funding to other programs. OzHarvest turns food into a resource and saves thousands of kilograms of food from being dumped at landfills each year. On average, every kilogram of food that OzHarvest rescues will avoid 2kgs of greenhouse emissions and avoid the consumption of 143 litres of water. OzHarvest began when Ronni Kahn, the founding director decided she wanted to make a difference to society and was not prepared to be part of the waste cycle that is a natural outcome of the hospitality industry. In her career as an event organiser she had seen a lot of great food thrown away. There was no organization in Australia that could collect good surplus food on a regular and professional basis, so Ronni decided to set up a food rescue charity herself. Backed by The Macquarie Group Foundation which provided funds and Goodman+ which provided a van and office space, OzHarvest was established and collected itâ&#x20AC;&#x2122;s first meal in November 2004. I asked Ronni what obstacles she encountered setting up OzHarvest. She said that support was immediately forthcoming but they did have to lobby to have the by-laws changed regarding liability around food consumption to protect food donors and allay any concerns. The donated food is transported immediately in refrigerated vehicles to 420 organisations that distribute the food directly to those in need. OzHarvest does not store food but delivers it straight to the consumer. Their team of qualified, dedicated staff and volunteers are passionate about making a difference to the thousands of lives they touch. If you would like to assist in some way either as a volunteer or by giving a donation of food or money please access their website on www.ozharvest.com.au 36 RESORTBROKERS.COM.AU

The best motel lease in NSW NEW 30 YEAR LEASE SHOWING 30% NETT RETURN

Ian Crooks Mobile: 0411 171 648 Brisbane office: (07) 3878 3999 Email: iancrooks@resortbrokers.com.au

Tim Leahy Mobile: 0414 813 400 Sydney office: (02) 9904 8224 Nett profit: $725,000 (projected for calendar 2011 after all operating costs and rents) Turnover: $2,389,979 (2010/12)

PRICE: $2.5mil

REF: LH001637

e have listed this outstanding 63 room 4 star motel and licensed convention space. This property is built next door to a tavern (constructed at the same time) which means there is no need for a restaurant as it has two dining areas with a charge back arrangement for the motel guests. The property is located in the Hunter Valley and during the week it enjoys full occupancy by executives from the mining industry. During the weekends the Hunter Valley is popular for concerts and wine tours which drives further business.

The property is branded under the Accor franchise arrangement which ensures flexibility and patronage from those who like to stay in international branded hotels and motels. However, it has the ‘hands on’ advantage of being run by an owner operator. The motel is currently run under full management and included in the property is a large one bedroom unit built above the office reception area. • Only 4 years built, finished in October 2007 • Large in-ground pool plus conference room which doubles as breakfast room • Fully equipped conference facilities for between 150-200 pax • Very popular for weddings • Only 20 mins from the Newcastle airport • Brand new 30 year lease Available exclusively through Resort Brokers Australia. A must see!

Rarely do we get a motel such as this to take to the market! RESORTBROKERS.COM.AU 37

Bayside beauty - permanent MR

If you are looking for a small management rights in the Brisbane area, you will struggle to find anything better than this. Located in the breezy suburb of Cleveland, only 30 mins from the CBD, this is ideal for those looking to escape the rat race without losing touch with the city. Despite the healthy nett income the work required to maintain this complex is minimal (circa 10-15hrs per week total). The manager’s unit is a very well presented peaceful low-set villa with 3 bedrooms, open-plan living/dining area, SLUG, decent outside space and attached office.

13.5% RETURN FOR UNDER $650K! • 42 units (18 in pool) • 23.5 years remaining on agreements • Business being offered on a 3.4x multiplier • Body corporate salary of $53,000 ($1,260 per unit) • Fantastic tranquil location, close to all amenities • Best buy in Brisbane under $650K!

Nett profit: $85,000 PRICE: $640,000 Alex Cook EXCLUSIVE AGENT Mobile: 0467 600 611 Brisbane office: (07) 3878 3999 Email: alexcook@resortbrokers.com.au

REF: MR001739

Secure Gold Coast Permanent MR

outdoor entertaining area, double garage and large attached office.

185K NET PLUS SUPERB MANAGER’S UNIT

Including the healthy body corporate salary of c. $116,000 ($1,200 per unit) the current net income is an impressive $185,000. However, the workload is easily managed by a couple looking for plenty of time to pursue outside interests.

Nett profit: $185,000 PRICE: $1,199,000 Alex Cook EXCLUSIVE AGENT Mobile: 0467 600 611 Brisbane office: (07) 3878 3999 Email: alexcook@resortbrokers.com.au

REF: MR001485 38 RESORTBROKERS.COM.AU

Well maintained permanent complex set beside the Nerang River in a very popular letting area. Schools, shops and amenities are close by with easy access to hospital, train station and M1. The manager’s unit is an unusually large splitlevel, air-conditioned townhouse. Consists of 3 bedrooms (main with ensuite and balcony), separate bathroom, additional toilet, big open-plan kitchen/living/dining area, separate living area opening onto a lovely

• 97 units (43 in letting pool) • Huge, beautifully appointed manager’s unit – only $350,000 • Leafy, quiet, tranquil location • No office hours • Pet friendly (with BC approval) • Recent price reduction – motivated vendors

Editorial

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Upgrade and boost motel nYdm] ^gj r]jg [gkl BY IAN CROOKS - RESORT BROKERS AUSTRALIA What if we told you that your motel rooms could be beautifully refurbished, that it would result in a significant boost to your business value and that it wouldnâ&#x20AC;&#x2122;t cost you a cent? Itâ&#x20AC;&#x2122;s true. It can be done, and hereâ&#x20AC;&#x2122;s how. There really is no trick to this. It is a genuine, proven strategy for business improvement that can be implemented by any motel owner whose rooms could do with an upgrade. We have obtained from major accommodation design and fit-out specialists Resort Interiors a breakdown of how motel units can be fully refurbished for a cost of $5,000 per room. The breakdown of a typical make-over is illustrated above.

Donâ&#x20AC;&#x2122;t forget once the loan is repaid, the additional revenue goes straight to your bottom line. The result is a much improved motel commanding higher tariffs - and the project will have been entirely selffunded. Not only that, but you may well attract more business and lift your occupancy rate by virtue of offering a much improved product. There is an even more important upside relating to the value of your business. For the sake of this illustration, letâ&#x20AC;&#x2122;s assume your motel is a 20-unit complex. So, the additional $2,628 per room revenue adds up to a $52,560 per annum increase in net profit.

There are finance companies that will lend you the funds for such an upgrade by way of a business finance product known as a â&#x20AC;&#x2DC;chattel mortgageâ&#x20AC;&#x2122; The total cost, repaying principal and interest over a five-year term, would be approximately $7,000 per room.

If you were selling your motel lease, based on demonstrated figures achieved with the new tariff structure, the value of your motel business would be $175,000 higher than it was before the rooms were refurbished.

Now, by raising the standard and appeal of your accommodation facilities, you should be able to command an extra $10 to $15 per room per night. For the sake of this illustration, we will assume you are able to charge an additional $12 per night for the upgraded rooms.

Remember, the refurbishment project hasnâ&#x20AC;&#x2122;t cost you a cent. But now, your motel is worth $175,000 more!

An extra $12 per room per night, at 60 per cent occupancy (average occupancy level Australia-wide), means your motel will generate an additional $2,628 revenue per room per annum. If you were to apply all of those additional earnings directly to your chattel mortgage repayments, you would probably pay off the refurbishment in three years!

If you sell before your chattel mortgage is paid out, you are still way out in front. You simply need 12 months trading to demonstrate the increase in net profit to be able to achieve the $175,000 boost in value. Then, should you sell and pay out the refurbishment finance â&#x20AC;&#x201C; even if it is the full $100,000 loan at $5,000 per room â&#x20AC;&#x201C; you are still $75,000 better off. Think about the potential. Youâ&#x20AC;&#x2122;ll soon be looking for another motel in need of room refurbishment, so you can apply the same bottom-line boosting strategy all over again! RESORTBROKERS.COM.AU 39

ituated on the Victorian/New South Wales border, the city of Albury is just 3 hours from Melbourne and 6 Hours from Sydney. The Albury All Seasons Tourist Park provides cabin and villa accommodation and grassed caravan and camping sites for tourists, families and corporate guests. Facilities include a substantial amenities block, camp kitchen, swimming pool with shade sails, gazebo and BBQ area, dump point and internet access. Located between Sydney and Melbourne on Australia’s busiest inland transport corridor, Albury is a strategic hub for commerce, retail, transport, health and education and has a strong tradition of regional leadership. The city has achieved national and international recognition as a centre for government administration, defence, manufacturing, agricultural support services, sport, festivals and the arts.

40 RESORTBROKERS.COM.AU

A park for all seasons LEASEHOLD CARAVAN PARK ON NSW/VIC BORDER

Albury has multiple daily air services from Sydney, Canberra and Melbourne as well as daily rail and coach services, making the city extremely accessible. • A magnificently presented 4 star caravan park featuring 16 fully self-contained family cabins and villas, 21 tourist and camping sites and 4 long-term cabins • Features include modern amenities block with guest laundry and disabled facilities • Manager’s residence is a fully selfcontained 3 bedroom house with kitchen, lounge, bathroom, garage and adjoining reception/office/kiosk • Member of Family Parks Australia • Long 23 Year Lease - market rent • Currently operated by a husband and wife team with minimal employee assistance

Jim Chapman EXCLUSIVE AGENT Mobile: 0413 444 782 Melbourne office: (03) 9347 3100 Email: jimchapman@resortbrokers.com.au

Nett profit: $289,386 Turnover: $500,676 PRICE: $ 1,200,000

Central Qld waterfront MANAGEMENT RIGHTS AT POPULAR BEACH WITH INCREASE PROFIT Ian Crooks Mobile: 0411 171 648 Brisbane office: (07) 3878 3999 Email: iancrooks@resortbrokers.com.au

his building was constructed in 1986 as a hotel with 65 rooms plus restaurant on ground floor with pool and car parking to the rear. Sometime later the property went into receivership and was bought by a developer who strata titled the rooms and sold them off individually. In accordance with Queensland law the business is now designated as a management rights.

Nett profit: $639,000 Body corp salary: $76,000 PRICE: $2,500,000

As very little has been spent on upgrading over the years the clientèle that stayed at this beach resort began to look for better accommodation elsewhere. The operators of the business had to take another angle they successfully turned this property into a pensioners tour hotel.

The business has grown significantly and enjoys quite exceptional occupancy. The current owner of c. 3 years has been able to get half of the units in the letting pool upgraded by their owners to a 3.5/ 4 star standard. The business has continued to grow not only in tours but has now also enjoyed a large upsurge in corporate clientèle. The owner of 3 years has improved the business significantly during his ownership and is now looking to buy something larger. Early indications of forward bookings for the calendar year of 2012 suggest upwards of a 40% increase in the income making it one of Australia’s great buys. • 65 units (41 in letting pool) • Small in-house restaurant - very easily operated • Very attractive exterior appearance • 2 minutes to the main shopping area • Tremendous forward bookings

RESORTBROKERS.COM.AU 41

esort Brokers Australia are delighted to offer this truly special opportunity in far north Queensland. The Mossman Motel has it all. Located on the main highway on the southern access to Mossman, at the gateway of the World Heritage Daintree and Cape Tribulation regions. The motel is fully refurbished to an exceptional standard. The property has 22 stand alone villas, a large reception building (including reception, office space, large foyer/ guest lounge, bar, fully equipped guest kitchen, guest laundry, linen storage facilities, entertainment areas and pool gallery), resort pool with spa and waterfall, landscaped gardens and lawns and a purpose built shed. The 3 bedroom manager’s house is modern and well appointed with open plan living, 2 bathrooms & new kitchen in keeping with the surroundings of the motel.

A magnificent opportunity LEASEHOLD MOTEL

Each villa has been completely restored replacing all services with new (i.e. electrical, split system air-conditioning, plumbing, bathrooms and flooring), old with new panelling on the exterior (where required), new roofing and guttering. All villas have been painted and furnished with modern day appliances (all under warranty).

Shane Mullins EXCLUSIVE AGENT Mobile: 0447 185 001 Brisbane office: (07) 3878 3999

An opportunity to purchase freehold going concern or the passive investment showing a 9.5% return. ENQUIRE NOW!

Email: iancrooks@resortbrokers.com.au

• 22 stand alone villas • 3 bedroom manager’s house • Large reception building • Purpose built shed on-site for storage • Opportunity to purchase freehold

Nett profit: $158,579 (forecasted) Turnover: $461,725 PRICE: $530,000

Email: shanemullins@resortbrokers.com.au

Ian Crooks EXCLUSIVE AGENT Mobile: 0411 171 648 Brisbane office: (07) 3878 3999

REF: LH001756 42 RESORTBROKERS.COM.AU

Big4 caravan park in the top end FREEHOLD CARAVAN PARK WITH MASSIVE GROWTH OPPORTUNITIES Chris Rowe Mobile: 0408 225 220 Brisbane office: (07) 3878 3999 Email: chrisrowe@resortbrokers.com.au

he Big 4 Batchelor Caravillage is being offered for the first time in 26 years. The current owners have developed this park from scratch and in doing so have invested an enormous amount on infrastructure and facilities, the cost of which has been far more than today’s selling price. The park occupies 6.4 hectares of level land in Batchelor, gateway to Litchfield National Park. The property offers 6 new 2 bedroom villas, each costing over $200,000 to build on site. Additionally there are 4 ensuite cabins and 6 very large ensuite super sites which have their own laundry and washing machine.

Nett profit: On application PRICE: $1,750,000

There are over 65 powered sites, some with bitumen driveways and concrete annex pads. The park has unlimited unpowered camping in 2 distinct areas.

There is a swimming pool, mini-golf and a TV lounge. The amenities building, with male and female bathrooms and a large laundry, is centrally located in the park. The property has improvements listed at over $3,200,000 so there are massive depreciation opportunities here for a new buyer. The property is poised for growth. There is a local abattoir re-opening in the region this year, and the locals are hopeful that the Compass Resources mine will also open again very soon. The villas are almost new, so trading figures do not yet show the full potential that these will add to the income of the park. Batchelor Caravillage is a 4 star property and a proud member of the Big 4 chain. • Big 4 Caravan Park next to Litchfield National Park • 4 ensuite cabins • 6 x 2 bedroom villas, almost new • 6 ensuite super sites that can handle 2 caravans or large rigs, each with own laundry • Over 65 powered sites RESORTBROKERS.COM.AU 43

e have just listed what we consider to be one of Queensland’s best motel opportunities. Located in the heart of the CBD in Emerald, this beautiful motel consists of 36 rooms and suites. The rooms offer a variety of configurations from queen rooms to spa rooms plus 4 x two bedroom fully self contained apartment style rooms. This motel trades at 80% occupancy and the current average room rate is over $180 per night. Also the vendor of 7 years has long term confirmed bookings from international mining companies. The spacious 3 bedroom manager’s accommodation is beautifully presented, has its own lock up garage with internal access and an outdoor area off the lounge room for private moments. The large office reception area opens directly from the manager’s accommodation so it is easy to service. A real plus for this property is that there is no restaurant.

The best motel in the busiest central Qld town TRADES AT 80% OCCUPANCY The motel has a very well equipped commercial kitchen where breakfasts are prepared and some evening meals are also delivered to rooms. To complete this property is a fully fenced and beautifully landscaped swimming pool. • Located right in town • Easy care rooms with spacious bathrooms • Coin operated guest laundry • Austar • Brand new flat screen TVs throughout • 26 years left on the lease • Rent under $300,000 per annum

Ian Crooks EXCLUSIVE AGENT Mobile: 0411 171 648 Brisbane office: (07) 3878 3999 Email: iancrooks@resortbrokers.com.au

Nett profit: over $920,000 Turnover: $1,900,000 PRICE: $3,200,000 REF: LH001772

44 RESORTBROKERS.COM.AU

Opportunity knox

LEASEHOLD SERVICED APARTMENT BUSINESS IN MELBOURNE’S EASTERN SUBURBS Jim Chapman EXCLUSIVE AGENT Mobile: 0413 444 782 Melbourne office: (03) 9347 3100 Email: jimchapman@resortbrokers.com.au

Nett profit: $268,000 Turnover: $2,524,185 PRICE: $ 1,000,000 REF: LH001769

ocated in the eastern Melbourne suburb of Wantirna, just 30 minutes from the CBD. Quest Knox is ideally positioned close to the Eastern Freeway which provides easy access to the city and the southern and northern suburbs. The property is a convenient location for the major commercial and industrial areas within the outer eastern suburbs. The property consists of a total of 52 studio, one and two bedroom apartments, together with a reception/foyer, administration office, bar/restaurant, commercial kitchen, conference/function facilities, alfresco beer garden and on-site car parking. A substantial sporting complex is situated next to Quest Knox and property guests have access to all of the facilities.

The business is contained within a motel style complex, consisting of five separate buildings of both single and two storey design. Originally constructed in the early 1980s, it has been extended and refurbished over the years. During the current lease term various freeholder works will be completed. On average expenditure of $6000 to $8000 per apartment will be remitted by apartment owners. • 52 serviced apartments including studio suites, executive spa, one and two bedroom apartments. Each apartment is comfortably furnished and offering spacious living for short and long term stays • The complex provides on-site conference and banquet facilities alongside a licensed restaurant / bar with an alfresco beer garden • The apartments are subject to individual lease agreements, the original leases having commenced in May 2011 for a term of five years and each with four further terms of five years. Rental increase of 4% p.a. with market review each option RESORTBROKERS.COM.AU 45

he Pavilions Port Douglas is an exquisite property located on the famous Macrossan Street, in the heart of Port Douglas. The property consists of 13 residential lots and 4 commercial lots (retail shops). The 13 residential lots provide accommodation for 20 apartments and one manager’s residence. The apartments are nestled at the rear of the building over three levels, including a basement carpark. The reception is located on street level with a beautiful resort pool making up the border. The pool is the feature of the property (visible from the street) and allows guests to BBQ and sunbake at their leisure. The property presents very well with continual upgrade over the years, providing a very comfortable 4 star proposition. The current vendors have just recently secured new 20 year agreements, providing security for the next purchasers.

Your place in paradise

MANAGEMENT RIGHTS PORT DOUGLAS

The manager’s apartment is located on the front of the building on level one. The apartment has three bedrooms, 2 bathrooms (1 ensuite), large living areas and a veranda for outside entertainment.

Shane Mullins Mobile: 0447 185 001 Brisbane office: (07) 3878 3999 Email: shanemullins@resortbrokers.com.au

The Pavilions Port Douglas is the perfect property to enter the management rights industry with a real opportunity for up shot. • 20 apartments (all in the letting pool) • New accommodation agreements 20 years (December 2011) • 3 bedroom residence, 2 bathrooms • Under cover parking • 3 level walk-up • BC salary $45,000+

Nett profit: $165,000 PRICE: $1,200,000

REF: MR001735 46 RESORTBROKERS.COM.AU

Relief Managers DIRECTORY

Name: Steve & Pam McMullen Mobile: 0418 497 214 Email: sgpj.mcmullen@bigpond.com Manager type: Motel

Name: Llew & Trisha Pointon Mobile: 0400 035 359 Email: llewp@tpg.com.au Manager type: Motel

Name: Peter & Julie Johnston Mobile: 0409 218 751 Email: N/A Manager type: Hotel/MR

Name: Phillip & Sharyn Stallman Mobile: 0428 931 589 Email: pjstal@bigpond.com Manager type: Motel/MR/Caravan Parks

Name: Tony & Dawn Davies Mobile: 0412 065 348 Email: dawn.tony@hotmail.com Manager type: Hotel/Motel/Caravan

Name: Paige Renshaw Mobile: 0438 847 941 Email: paigeandrea@hotmail.com Manager type: Management Rights

Name: Sam & Linda Adermann Mobile: 0433 233 773 Email: N/A Manager type: N/A

Name: David & Belinda Gustafson Mobile: 0403 219 562 Email: dgustafsondavid@hotmail.com Manager type: N/A

Name: Sue & Hubert Rietberg Mobile: 0418 883 233 Email: sueandhugh@iinet.net.au Manager type: All properties

Name: Robyn & William Campbell Mobile: 0409 838 856 Email: rgcampbell@hotmail.com Manager type: N/A

Name: Ray & Bev Hearn Mobile: 0429 420 826 Email: management@yourpark.com.au Manager type: Caravan Park

Name: Garry & Robyn Loakes Mobile: 0408 798 352 Email: grl21@bigpond.com Manager type: All properties

Name: Paul & Wendy Greenfield Mobile: 0408 717 360 Email: info@hostsontherun.com.au Manager type: N/A

Name: Simon and Anne Frost Mobile: 0433 921 029 Email: simon@serviceplease.com.au Manager type: Motels - permanent

Name: Anastasia & Gus Johnson Mobile: 0408 021 303 Email: anastasiajohnson@bigpond.com Manager type: Resort

Name: Lyn & Wayne Foster Mobile: 0437 217 621 Email: waynefos@dodo.com.au Manager type: Motel

Name: Graeme Filippe & Deborah Wallace Mobile: 0427 512 751 Email: graemedeb@motelmanagers.com.au Manager type: Motel

Name: Michael Logan & Natasha Miller Mobile: 0402 283 651 Email: dnlmanager@live.com.au Manager type: All properties

Name: Carol & Harry Turnbull Mobile: 0428 399 733 Email: N/A Manager type: N/A

Name: Scott Walters Mobile: 0488 726 888 Email: dougie.71@hotmail.com Manager type: Management Rights QLD

Name: Paul & Arlene Moore Mobile: 0404 855 711 Email: pfandammoore@live.com Manager type: Hotel/Motel/MR

Name: Louise & Siggy Dannell Mobile: 0408 901 927 Email: lsdannell@bigpond.com Manager type: All properties

Name: Colin & Kay Taylor Mobile: 0403 579 077 Email: cppaint@westnet.com.au Manager type: Caravan Park & Motels

Name: Karla Harding Mobile: 0414 767 499 Email: karla@bnbangel.com.au Manager type: B&B & Guest Houses

Name: Bob & Judy Sheppard Mobile: 0419 784 215 Email: bj.sheppard8@bigpond.com Manager type: N/A

Name: Sylvia and Gilbert De Michiel Mobile: 0419 204 773 Email: gilbert.sylvia@anzacs.net Manager type: N/A

Name: Clive Rauchle Mobile: 0431 727 242 Email: leo_45boost@msn.com Manager type: All properties

Name: Yeolean Haase Phone Number: 07) 4157 2855 Email: ginginseedlings@bigpond.com Manager type: N/A

Name: Chris and Carmel Moloney Mobile: 0400 483 291 Email: ccmoloney-315@hotmail.com Manager type: Motel - Vic

If you would like to be included in this directory please get in contact with: Carla Cook carlacook@resortbrokers.com.au or call: 07 3878 3999

RESORTBROKERS.COM.AU 47

Recently sold “We have sold 12 Management Rights & Motels since the 15th January 2012”

MANAGEMENT RIGHTS BRISBANE , QLD

FREEHOLD MOTEL JULIA CREEK, VIC

LEASEHOLD MOTEL GYMPIE, QLD

LEASEHOLD MOTEL MIRIAM VALE, QLD

MANAGEMENT RIGHTS GOLD COAST, QLD

LEASEHOLD MOTEL MANAGEMENT RIGHTS ROCKHAMPTON, GYMPIE QLD

LEASEHOLD MOTEL ROMA, QLD

MANAGEMENT RIGHTS SUNSHINE BEACH - REPLACEMENT

LEASEHOLD MOTEL WAGGA WAGGA, QLD

MANAGEMENT RIGHTS BRISBANE, QLD

MANAGEMENT RIGHTS CABLE BEACH, QLD

48 RESORTBROKERS.COM.AU

Industry Specialists Would you like to promote your company here? You will see a range of industry specialists are advertising in our widely read Informer. Circulation 6,750 - mailed hard copies 15,200 - sent digitally

Buying or selling management rights, motels, caravan parks or hotels?

Tel: 07 3220 1144 | Fax: 07 3220 3434

We believe 50,000 people in the industry across Australia and New Zealand will read this publication (it is widely regarded that at least 4 people four people read one copy of a magazine). If you would like a company advert on this page please contact: Carla Cook: 0467 600 611 carlacook@resortbrokers.com.au

RESORTBROKERS.COM.AU 49

Our team

‘We cover the country’

Ian Crooks

MANAGING DIRECTOR NATIONWIDE

Cameron Storey SALES CONSULTANT BRISBANE WEST

Lynn Booth

SALES CONSULTANT CENTRAL QLD

Jim Chapman SALES CONSULTANT NORTH EAST, VIC

Carla Cook

MARKETING MANAGER

50 RESORTBROKERS.COM.AU

Ian Dore

MANAGER & NATIONAL NEG NTH. NSW & GOLD COAST

Glenn Millar

SALES CONSULTANT SUNSHINE COAST

Len Booth

SALES CONSULTANT CENTRAL QLD

Stuart Charles

SALES CONSULTANT WEST, VIC

Emma Krause

ACCOUNTS MANAGER

Tim Crooks

SALES CONSULTANT CBD & SOUTH BRISBANE

Lindsay Cooper

SALES CONSULTANT WEST QLD & NTH NSW

Chris Rowe

SALES CONSULTANT FAR NORTH QLD

Tony Payne

SALES CONSULTANT GIPPSLAND, VIC

Kym McLauchlan

NATIONAL TEAM MANAGER

Steve Campbell

SALES CONSULTANT BRISBANE CBD & SURROUNDS

Alex Cook

SALES CONSULTANT NORTH GOLD COAST

Russell Rogers

SALES CONSULTANT SOUTH COAST, NSW

Peter Turner

SALES CONSULTANT WESTERN AUSTRALIA

Trudy Crooks

SALES MANAGER

Neville Littleton SALES CONSULTANT BRISBANE NORTH

Shane Mullins

SALES CONSULTANT NORTH QLD

Shane Wynhoven SALES CONSULTANT SYDNEY CBD, NSW

Marissa Maslen

FINANCIAL CONTROLLER

Directory QUEENSLAND

NEW SOUTH WALES

BRISBANE - HEAD OFFICE Telephone: Facsimile: Email: sales@resortbrokers.com.au

Telephone: Facsimile: PO Box 522, Chatswood NSW 2057

07 3878 3999 07 3878 1199

02 9904 8224 02 9904 8867

NORTHERN NSW Motels/ Management Rights/ Hotels Division Ian Dore - Northern NSW 0412 752 238

2/77 Hope Street, South Brisbane Qld 4101 PO Box 5004, West End Qld 4101 Ian Crooks - Managing Director Trudy Crooks - Sales Manager

0411 171 648 0477 882 210

Management Rights Division Tim Crooks Neville Littleton Steve Campbell Cameron Storey

0422 208 450 0407 727 194 0407 220 668 0411 050 373

Motel Division Ian Crooks Steve Campbell

0411 171 648 0407 220 668

CENTRAL WEST/ SOUTH WEST/ SOUTH EAST QLD Caravan Parks / Pubs/ Motels Division Lindsay Cooper 0418 711 047 GOLD COAST Telephone: Facsimile:

07 5510 3900 07 5510 3111

Management Rights Division Ian Dore Alex Cook

0412 752 238 0467 600 610

Motel Division Ian Dore

CENTRAL/ NORTH WEST NSW Caravan Parks / Pubs/ Motels Division Lindsay Cooper

0418 711 047

SYDNEY CBD & GREATER SYDNEY & CENTRAL NSW Motels/ Backpackers/ Private Hotels Division Shane Wynhoven 0424 174 592 CENTRAL WEST NSW Motels/ Caravan Parks Division Jim McDonald

0433 143 308

SOUTH COAST, NSW Motels/ Caravan Parks Division Russell Rogers

0416 166 909

VICTORIA Telephone: Facsimile: PO Box 1100, Carlton Vic 3053

03 9347 3100 03 9347 3111

NORTH EAST VIC Motels/ Caravan Parks/ Management Rights Division Jim Chapman 0413 444 782

0412 752 238

WEST VIC Motels/ Caravan Parks Division Stuart Charles

0458 588 472

SUNSHINE COAST Management Rights Division Glenn Millar

0412 277 804

GIPPSLAND VIC Motels/ Caravan Parks Division Tony Payne

0418 329 421

CENTRAL QUEENSLAND A/h: Facsimile:

07 4155 6330 07 4155 6440

Motel Division Len Booth

0438 139 422

FAR NORTH QUEENSLAND Motels / Hotels / Caravan Parks / Management Rights Shane Mullins 0447 185 001

TASMANIA Motels/ Hotels/ Caravan Parks Division Jim Chapman

0413 444 782

WESTERN AUSTRALIA Motels/ Hotels/ Caravan Parks Division Peter Turner 0417 964 886 (in conjunction with Peter Turner of Peter Turner Real Estate)

NORTH QUEENSLAND Motels / Hotels / Caravan Parks / Management Rights Chris Rowe 0408 225 220

NORTHERN TERRITORY Motels / Hotels / Caravan Parks / Management Rights Chris Rowe 0408 225 220

RESORTBROKERS.COM.AU 51

QUEENSLAND OFFICE PO Box 5004, West End, QLD 4101 (07) 3878 3999 NEW SOUTH WALES OFFICE PO Box 522, Chatswood, NSW 2057 (02) 9904 8224 VICTORIA OFFICE PO Box 1100, Carlton, VIC 3053 (03) 9347 3100 resortbrokers.com.au

The original and still No. 1