May Informer 2012 by Resort Brokers

INFORMER Sunny outlook

We speak with new Tourism Minister Jann Stuckey about her plans to put the sunshine back into Queenslandâ&#x20AC;&#x2122;s tourism

resortbrokers.com.au

No. 66 | May 2012

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

12th Annual Australia, New Zealand 3DFL÷F Hotel Industry Conference 25th to 27th July 2012 Hilton Sydney

To discuss the opportunities, challenges and strategies for hotels, resorts and serviced apartments in the next Fast Forward phase of industry growth, key stakeholders will meet from 25 to 27 July at ANZPHIC 2012 – the region’s leading industry event.

PLUS ANZPHIC PRE EVENT

Over 400 owners, developers, operators, lenders and advisors are expected to join 30 Sponsors, Exhibitors and Supporters at ANZPHIC 2012. Delegates will hear from, share experiences and network with over 70 global, regional and local speakers and panellists comprising CEO’s and other senior executives and experts. The 2nd annual Serviced Apartments Summit will also be held on Wednesday 25 July as a pre event to ANZPHIC 2012 to assess the growth and potential of the “other 25%” of the accommodation sector, as well as its impact on the hotel sector. ANZPHIC 2012 and Serviced Apartments Summit are part of Megameet 2012 and delegates will also receive free entry to Megameet Greet!, a major industry networking reception on Wednesday 25 July.

HOSTED BY

4 Great Accommodation & Tourism Events in 3 Great Days of Sharing, Learning & Networking Sydney 25 to 27 July 2012

PLATINUM SPONSORS

FOUNDING GOLD SPONSOR

GOLD SPONSORS

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Feedback from readers after the first article in this series was terrific. Our next instalment covers a dramatic period of legal stoushes and resulting legislative reform which has proved so beneficial to everyone involved in community title schemes. The Informer is able to present these articles thanks largely to the knowledge and generosity of specialist management rights lawyer and passionate industry advocate, John Punch. John has contributed tirelessly to tourism since he first became involved in the Gold Coast business community more than 40 years ago. He’s also a thoroughly nice guy and we thank him sincerely for his insights. On the subject of management rights, compulsory reading in this edition is Alex Cook’s excellent article warning building managers about a discussion paper issued just before the demise of the former Queensland Government.

Reasons to focus on our bright future Ian Crooks MANAGING DIRECTOR

nformer readers outside the Sunshine State will have to allow us a little Queensland indulgence in this issue. How could we ignore the recent election rout in our headquarter’s state? And I bet you are all considering what ramifications this mood for change might have nationally. The most immediate impact here has been to create a tremendous sense of optimism. That is important to the whole nation, because Queensland is such a powerhouse of Australia’s tourism industry.

COVER STORY: “Queensland’s LNP vowed to put tourism and events back where they belong as key pillars of the economy. Now their ambitious promises have to be delivered. New Tourism Minister, Jann Stuckey, talks to Informer about DestinationQ, attracting investment and her target to lift visitor spending to $30 billion by 2020”

Data shows, across all accommodation types, Queensland generated more than 25% of the $8.3 billion in accommodation takings recorded nationally in the 2011 financial year. The Informer was among the first to interview the State’s new Tourism Minister, Jann Stuckey, as she was settling in to her George Street office. Eagerness to harness the know-how of experienced tourism operators is high on her agenda. Our cover story looks at the process ahead and highlights the vital need to stimulate investment in new tourism infrastructure, particularly if we are to capture emerging Asian markets. Also in this issue, we continue our look at the history of management rights.

According to John Punch, this recent “blundering in” by the previous government is “very dangerous” for the tourism industry, developers, owners of apartments, management rights owners and financiers, because it is “tinkering from a biased view.” If you have a stake in the industry, please read Alex’s warning and make your feelings known. We can only hope the new government recognises the folly of messing around with a system that has successfully stood the test of time. In so many ways, this Informer is all about the future. The forthcoming ANZPHIC 2012 Conference in Sydney in July will be a fantastic accommodation industry forum, aptly themed “Fast Forward” (more details in this edition). I wrapped up my last Informer editorial by saying: “I’m actually very excited about the year ahead. We’ve not seen enquiry levels this good for seven years!” Now, I am even more confident tourism is headed for strong renewal and growth. Please send your feedback to: carlacook@resortbrokers.com.au or PO Box 5004, West End Q4101.

INSIDE THE GROWTH OF M.R. cont.

CLOUD COMPUTING

‘APPY TRAVELS

IF YOU CARE ABOUT M.R.

SUNNY OUTLOOK

RELIEF MANAGERS

INDUSTRY SPECIALISTS

RESORT BROKERS DIRECTORY

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ocos Beach Bungalows has been rated number 1 in Broome on Trip Advisor for the last two years. It is a unique boutique style complex, located right in the Cable Beach precinct on the main tourist strip. The complex has a total of eight selfcontained, three bedroom Broome Pearling Master style bungalows situated on a 5,500 sq mtr lot. Each bungalow opens out onto a spacious timber decked veranda with alfresco dining and a daybed. The resort offers a temperature controlled pool and spa and a garden BBQ area located adjacent to the pool. The facility is surrounded by lush tropical gardens and is centrally located close to the beach, a range of restaurants, cafes, bars and attractions. The manager’s/ caretaker’s residence and reception is situated on 551 sq metre lot at the front of the property and, with tourism zoning, has great potential to be developed in the future. Broome is the gateway to the Kimberley Region, on a peninsula with Roebuck Bay on one side and the iconic Cable Beach stretching for 22kms on the other. 4 RESORTBROKERS.COM.AU

Broome, W.A. Management Rights WITH DEVELOPMENT POTENTIAL Broome experiences occupancies in excess of 85% in the peak tourism season (June to October) and between 55% and 75% in the shoulder periods.

Glenn Millar EXCLUSIVE AGENT Mobile: 0412 277 804 Brisbane office: (07) 3878 3999

• Huge potential to grow occupancy as not currently marketed on any last minute websites (i.e. Wotif ) • Grow Yield as not currently with any channel manager (i.e. resonline etc) • Further opportunity to increase income by promoting tours and car hire • Easily operated by energetic couple with a little help from casual staff during the peak season • Potential boom in Broome from future Woodside Gas Hub development 50 km north of Broome • All bungalows are locked into the letting pool

Email: glennmillar@resortbrokers.com.au

Nett profit: $150,000 PRICE: $1,230,000

Massive growth potential

LIVE OFF-SITE IN HOUSE WITH PRIVATE POOL

Alex Cook EXCLUSIVE AGENT Mobile: 0467 600 610 Brisbane office: (07) 3878 399 Email: alexcook@resortbrokers.com.au

Nett profit: $241,512 Real Estate Price: $450,000 + $315,000 Business Price: $995,000 REF: MR001811

his unique offering is located in the Northern Gold Coast suburb of Upper Coomera. Earmarked by local and state government as a satellite growth region of the city, there is considerable development currently underway or in the pipeline. The business consists of two parts. Harvard Mews is a well-maintained, modern, permanent management rights complex of 48 units (42 in the letting pool). Oxford Residential is a property management company that looks after 44 houses in the immediate vicinity (all within walking distance and almost contiguous to each other). Both businesses are run from the same office, under the same trust account, making it very easy to manage.

The managers have the luxury of living just off-site in a large, modern, well-appointed, 4 bed, 2.5 bath house with private swimming pool and large lawn. The original manager’s unit within the complex is tenanted and provides a further $17,940 income. There is written dispensation from the body corporate and council to operate in this fashion. • $241,512 net income verified to accountant for 12 months up to 29/2/12. • Lengthy agreements with 23 years to run as of May 2012 • Very strong rental location, running at nearly 100% occupancy • Live off-site in 4-bed house on 670 sqm plot with private pool, on valuation at $450,000 • Original manager’s unit is tenanted and provided an additional $345 per week • Massive potential for income growth through property management company • Large pool, gym, club house and BBQ area • Outstanding body corporate relationship. • No set office hours An inspection will not disappoint, but be quick! RESORTBROKERS.COM.AU

he leasehold interest of the Miners Lodge Motor Inn in Mackay is being offered for sale.

Motels in this region are very tightly held, so this opportunity will not last long. The motel comprises of 29 rooms over a range of budget, executive, and family style options. There is undercover parking for all guests. There is also a small licensed restaurant and bar catering mostly to inhouse guests. The current owners have worked tirelessly to upgrade this property to a very high 3.5 star AAA rating and the property presents in excellent condition. The motel occupies a predominant position on Nebo Road (Bruce Highway) and offers dual access. This motel would suit a hands-on couple, or would be an ideal investment property to be run under management. Showing occupancy of over 95% and a long 26 year lease, this motel offers new owners an exceptionally profitable and highly desirable business.

Rare offering in Mackay OUTSTANDING LEASEHOLD MOTEL

• Outstanding opportunity in Queensland’s most desirable motel city • 29 rooms with a range to cater to all markets • Newly painted, new beds, T V’s, fridges, air con, furniture, linen, etc. • High 3.5 star AAA rated • Trading at over 95% occupancy • Licensed restaurant and bar, swimming pool • Showing over 30% return on investment • Good rent ratio with 26 years left to run • Very large 4 bedroom owner’s residence

Chris Rowe EXCLUSIVE AGENT Mobile: 0408 225 220 Brisbane office: (07) 3878 3999 Email: chrisrowe@resortbrokers.com.au

Nett profit: $544,000 PRICE: $1,795,000

REF: LH001812 6 RESORTBROKERS.COM.AU

Great ocean road Management Rights opportunity NEW COMPLEX IN THE CENTRE OF APOLLO BAY Stuart Charles EXCLUSIVE AGENT Mobile: 0458 588 472 Melbourne office: (03) 9347 3100 Email: stuartcharles@resortbrokers.com.au

Nett: On application Turnover: On application

Price: $100,000

REF: MR000770

his landmark property in the heart of Apollo Bay represents a wonderful opportunity to secure a management right’s business in Victoria. Perfectly positioned directly opposite the beautiful sandy surf beach, it is simply the best accommodation property in Apollo Bay. Completed in 2009, it has been architecturally designed to a meticulous standard and enjoys beautiful ocean and mountain views.

Apollo Bay is a beautiful coastal township in South West Victoria, an easy 2 1/2 hour drive west of Melbourne. It is located between Lorne and Cape Otway on Victoria’s scenic Great Ocean Road. Apollo Bay offers swimming and surf beaches, as well as a boat harbour and a marina, home to a major fishing fleet. • 28 keys in letting pool • Very low maintenance property • Office to be provided on long term lease. • Property is due to be to be furnished with new furniture and fixtures. • Stunning location on the Great Ocean Road, only 2.5 hours from Melbourne • No requirement to purchase a unit in the complex - low entry price to attract an experienced operator - Settlement 1 June 2012 or earlier by mutual agreement

New long term caretaking and letting agreements are now in place. Despite a healthy body corporate salary, the property requires low levels of maintenance. The letting pool is made up of all but 1 unit, and a further marketing levy applied. RESORTBROKERS.COM.AU

Testing time develops strong industry framework THE GROWTH OF MANAGEMENT RIGHTS continues ...

John Punch - PARTNER SHORT PUNCH & GREATORIX

BY CATIE LANGDON - PART 2 OF A SERIES The business of management rights generates hundreds of millions of dollars in revenue annually, making it a major economic contributor to Australia’s dynamic tourism sector. This thriving industry all began with one building in Surfers Paradise over 40 years ago! After its entrepreneurial beginnings on the Gold Coast in the 1960s, management rights flourished along with Queensland’s dynamic tourism and property industries. By the late 1980s, it had taken its place as a valuable industry in its own right. Then came a period of challenge when management rights owners would find themselves defending their businesses. Some attacks, John Punch acknowledges, were well-intentioned. Others were borne of petty jealousies and power plays. Initially, the sniping related mostly to whether managers were honestly declaring holiday rentals to absentee owners. “Even though they were obliged to bank every dollar into owners’ trust accounts, suspicions of managers doing cash deals were easily fuelled,” Punch said. “But, with the introduction of Fair Trading laws and better oversight of compliance by managers as licensed real estate agents, 8

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the situation was fairly easy to correct. There were a couple of prosecutions and these had a salutary effect.” As Punch rightly explains, if managers cheat owners by not declaring letting income, they destroy their own goodwill, eroding their business value. Agents, accountants and lawyers soon convinced any errant manager that goodwill value would pay them far more than any hidden deals. But the next legal barrage was far more intense and of far greater consequence. “In the late eighties, began an extraordinary era of litigation,” Punch recalls. “In particular, one lawyer and body corporate manager embarked on what could only be described as a mission to rid property owners of management rights.” Cases were well-researched to exploit loopholes, and a series of actions were mounted in an attempt to break down the management rights industry. While building managers struggled to individually fund their defences, body corporate committees financed their cases using the pooled resources of unit owners. One defining case related to Ocean Breeze Noosa, represented by SP&G Lawyers.

“The body corporate had allowed the manager to buy, consenting to assignment of the agreements, then six months later tried to kick him out, effectively saying his management rights were void. The manager had no choice but to take them on.” SP&G prevailed in court. “We proved that, as well as what was written as law, there were equitable principles involved, and that the body corporate’s actions were inequitable,” Punch explained. “The judgement in favour of the manager ordered the body corporate to pay over $1 million compensation, costing unit owners dearly.” A raft of cases tested various aspects of the law: Was the manager’s agreement subject to the same term limitation as the body corporate manager’s? Did body corporates have the power to make letting agreements? Were agreements limited in time? Decisions came down on both sides, appeals followed and some, including the watershed Surfers Palms North case, went all the way to the High Court. “I think the whole process confused judges at the time,” Punch said. “And the tourism industry, which just wanted to get

people into buildings, was the meat in the sandwich.” It was the catalyst for management rights owners to unite for the first time, thanks largely to John Gardner who formed QRAMA (later ARAMA). It was 1991, and a fighting fund was raised to lobby the government for better laws. “Everyone saw the need – body corporate managers, banks investing in the industry, the REIQ, developers. The Queensland Government had to act, so they issued a Green Paper to study what was needed generally in strata title laws.” During a long process, all parties came to the table. Eventually the Body Corporate and Community Management Bill 1997 was presented to Parliament. Though, not without drama on the floor of the House. An independent MP moved an amendment to bring in transfer fees, giving the body corporate a cut of the consideration if management rights were sold within three years of agreements being extended or assigned. The Government needed the Independents’ votes to get the legislation through. The Bill was finally passed, after eight years of work to satisfy all interests, providing a legislative framework which accommodates the establishment, operation and management of community titles schemes. It was unique in Australia and led the way. It did more than just serve and protect management rights. It enshrined the rights and entitlements of all owners, and clarified the position of body corporates in regard to appointing contractors, committees, bankers, insurers and the like. It produced for the first time a 25-year term for management rights and brought in modules of legislation recognising different types of buildings. It gave depth to developments by allowing the layering of schemes (principal and subsidiary body corporates). These laws, so well thought out over time, set the scene for prosperous times ahead in tourism and property development. And they provided the stable platform for a new era of investment in management rights, which we will look at in our next issue.

Another successful remuneration review BY JOHN MAHONEY, PARTNER - MAHONEY LAWYERS I have in previous articles written about increasing a resident manager’s remuneration pursuant to the statutory review mechanism. Whilst we have run a number of successful actions, a recent one in which we were involved has helped to create certainty about how these reviews will be treated by the Queensland Civil and Administrative Tribunal (“QCAT”) in the future.

of Building Management and Consultancy Services. Barry’s report recommended an increase in remuneration to around $224,000, whereas the expert engaged by the Body Corporate argued that the figure should be just over $170,000.

At the hearing, both experts were extensively cross examined about their reports and methodology used to arrive at their proposed remuneration. The Tribunal member preferred Barry’s evidence and In this particular case our client manager methodology and seemed to place weight was successful in securing an increase on Barry’s past experience as a resident in the annual remuneration from around manager, the time he spent at the complex to $135,000 to around $220,000 as at the hearing date after allowing for CPI increases better understand the nature and extent of since the time the increase took effect. The the duties and his views about the standards to which the duties should be performed. Tribunal also ordered the payment of back pay and interest for the almost 2 years it Managers and Bodies Corporate can take took to conduct the statutory review. a number of lessons from the Tribunal’s decision. Firstly, in engaging an expert to The particular section of the Act sets out prepare a report, it is essential to engage the requirements for a statutory review. one who is truly independent, adopts sound Paraphrasing the relevant parts of that methodology and has a thorough knowledge section, it applies if of the relevant complex and the duties in the • a Caretaking Agreement was entered into Agreement. after March 4, 2003; Secondly, successfully pursuing such • the Agreement was put into effect while an increase requires sound legal advice the developer had control over the Body from an experienced lawyer with a good Corporate; understanding of the legislation and the • the developer no longer has control over process. Thirdly, the parties should engage the Body Corporate; and in meaningful settlement negotiations and try and reach an acceptable outcome without • the review is instigated within 3 years of the risks and expenses of a hearing. In this the Agreement commencing. case the Body Corporate no doubt regrets its rejection at mediation of a settlement offer Typically, as was the case here, it is the for an amount well below that which was manager that instigates a review. ordered by the Tribunal. In this case the expert we engaged was the well known and respected Barry Turner RESORTBROKERS.COM.AU 9

esort Brokers Australia are delighted to offer this off the plan development for the very first time. Construction is scheduled to commence on the 7th May 2012 with an expected completion date of November 2013. Eastwood Apartments is being constructed and developed by the award winning family owned and operated Pelicano Group. The complex has 87 apartments with a mix of studio, 1, 2 and 3 bedrooms. Every city in the world has its trendy urban areas such as Soho, Greenwich Village and Covent Garden. In Brisbane, Woolloongabba is the new uber cool, having recently experienced a remarkable renaissance (it scored 88.1% for living as judged by realestate.com.au). Just 3 kilometres from the CBD, it offers all the convenience of inner city living without the traffic, noise, fumes and crowds of the urban jungle. Only minutes away from the West End, Southbank Parklands, the Cultural Centre, the Valley and of course the CBD, you are

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Eastwood Apartments 5 minutes from Brisbane CBD

WITH ROOFTOP CINEMA

never far from everything Brisbane has to offer. Eastwood gives you stunning views of the city accessible not just from your own balcony but from it’s special feature, the rooftop garden & sun deck. You will never tire of the mesmerising 360 degree city views. • The rooftop garden & sun deck features an al fresco cinema screen, BBQ facilities and garden seating • The popular location creates very strong rental demand achieving fantastic rents • Projected figures are based on 80% of units being in letting pool • Body corp salary of $87,000 increased by CPI annually

Tim Crooks EXCLUSIVE AGENT Mobile: 0422 208 450 Brisbane office: (07) 3878 3999 Email: timcrooks@resortbrokers.com.au

Projected nett profit: $314,628 PRICE: $1,610,000 incl. manager’s unit

Beautifully maintained motel with strong corporate trade LEASEHOLD OFFERING Tony Payne EXCLUSIVE AGENT Mobile: 0418 329 421 Melbourne office: (03) 9347 3100 Email: tonypayne@resortbrokers.com.au

Turnover: 2010/11 - $552,408 2009/10 - $512,455 Nett profit: 2010/11 - $265,424 2009/10-$242,056 PRICE: $885,000

his charming motel is located in Bairnsdale, a fast growing regional city located within a comfortable three and a half hour drive from Melbourne. Bairnsdale’s is known as the western gateway to the vast Gippsland Lakes and the Ninety Mile Beach. Located at the junction of the Great Alpine Road and Princes Highway, it also provides easy access to the Alpine region of Omeo Dinner Plain, Mount Hotham and the Buchan Caves with their spectacular underground limestone foundations. ‘The Tanjil’ is conveniently located close to Bairnsdale Hospital, RSL Club, tennis club, restaurants, local shops and hotels.

The 20 modern units comprise a combination of standard queens and singles, family queens and bunks, executive spas, king size beds & a disabled unit. ‘The Tanjil’ has a self rated 3.5 star for standard rooms and 4 star for deluxe rooms and is a member of the Golden Chain Group Bairnsdale is a very strong corporate town, rapidly expanding, with many new housing estates. The expansion of the RAAF base in nearby Sale and the escalation in gas exploration off the coast has resulted in overflow from Sale and surrounding towns. • Beautifully maintained motel with profit growth of 11.54% over past 2 years • Strong 27 year lease remaining, 2 years, plus 5 x 5 years • Owner’s accommodation - comfortable 3 bedroom residence, bathroom & lounge • Split system air-conditioners in all deluxe rooms and recently installed in some standard rooms • Secluded, well-maintained outdoor pool and BBQ area with sun deck

REF: LH001834 RESORTBROKERS.COM.AU 11

Editorial

takes care of these issues. At the end of the day, though, with cloud accounting, your company’s financial data is being hosted somewhere else. Some small business owners are reluctant to take that step, despite the fact that cloud-based programs are typically more secure than those hosted on a company server because the backup and redundancy provided is generally more robust than that of an office-based network. If the company hosting your data goes out of business, your information could evaporate. That’s why it’s crucial to back up all your accounting data on a regular basis. Also, choose a vendor with a strong reputation and history – not a start-up without a track record. Further detail on one of the options… Xero

How Cloud computing will transform accounting for small business BY TONY ROSSITER - HOLMAN’S ACCOUNTANTS For better or for worse, cloud-computing is the technology of the future. Just ask Microsoft’s Steve Ballmer, who recently said that seventy percent of Microsoft employees are doing something at least related to cloud computing. In a year he expects that figure to be ninety percent. For small businesses, cloud computing hits a particular sweet spot. With cloud services, small businesses reap the benefits of not having to deploy physical infrastructure like file and e-mail servers, storage systems or shrink-wrapped software. Plus, the anywhere, anytime availability of these solutions, means hasslefree collaboration between business partners and employees by simply using a browser. In fact, it’s not a stretch to say that aside from a locally installed desktop operating system and browser, a lot of today’s small business technology needs can be fulfilled almost completely with cloud-based offerings. What Is Cloud Computing Exactly? It’s hard to read an article about business technology these days without running into the cloud. But ask many small business owners what cloud computing really means and the definitions are as fuzzy as cumulus. Even still, more and more small businesses are moving their accounting to the cloud. 12 RESORTBROKERS.COM.AU

Cloud computing is a relatively simple concept: applications are run from a shared data centre rather than on your own network. Small business owners simply log on, customise and use. No upgrades or technical staff are needed because the cloud provider manages it all. You’re probably already using cloud computing services. Google apps, social networking sites, on-line backup services, even redundant servers and mirrored websites are examples. Cloud-based accounting programs offer several advantages for small business owners. For one, your bookkeeper and accountant can access data as needed, from anywhere, with a secure internet connection. Also, cloud financial package pricing structures scale according to your needs and the amount of space you use, so these systems can also save you money. You won’t pay for services and features you don’t use. Fees are paid on a monthly subscription basis. Most cloud-based accounting programs such as Xero, SAASU, Quickbooks On-line and MYOB LiveAccounts fall under the software as a service category. Compared to cloud accounting programs, out-of-thebox software programs give you features you may not use. And you have to make sure your operating system and other related software are up-to-date; so a simple upgrade can end up costing you a bundle in unforeseen software updates. With cloud accounting, the hosting service

Xero is an on-line accounting system for small businesses. Based on the software as a service concept, the application is designed for those businesses who want a robust yet simple accounting system. Xero provides a dashboard where one can view all company transactions at a glance. The application also provides for a direct feed from Banks, giving instantaneous reconciliation of accounts. It also has an invoicing module for billing clients and customers. As with any other web-based application, Xero can be used anywhere at anytime via internet access. When compared with other similar on-line suites, Xero has the ability to process on-line bank feeds which means almost real time information on the accounts. With on-line transactions and payments becoming popular, one can dispense with paper cheques altogether. Cash payments and receipts can be managed on-line making such transactions easier. The expense account can also be managed from a single interface rather than using a separate application for this purpose. Overall, Xero is an on-line solution which combines many applications and presents it in one single bundle. It has accounting, contact management, expenses, payments and related modules which can be accessed through a single interface. Remember … Cloud computing is still young – new services, better security and more offerings are coming fast. Accounting in the cloud can be a great money and time saver, if you do your homework. Speak with your accountant to find out which cloud technology solutions will work for you.

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

ituated on the Hume Highway in Benalla Victoria, just two hours from Melbourne, the Benalla Leisure Park and Motel is situated on 4.209 hectares. With no competition in the town, the park incorporates cabins, serviced and en-suite tourist sites, central amenities, motel units and retirement villas. There is ample scope to extend the caravan park and retirement living villas. Currently providing excellent income and profitability from the caravan park, motel and retirement living the opportunity is available to expand with additional park sites and manufactured homes (there are 56 sites available to complement the 12 homes currently situated in the residential living area). The vendors have continued to develop and maintain the park to the highest standards. They have constructed a freestanding camp kitchen/recreation building with substantial kitchen services, benches and meeting facilities.

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Freehold leisure park in Victorian rural city CARAVAN PARK, MOTEL & RETIREMENT LIVING Other park facilities include an in-ground swimming pool, BBQ areas, male and female amenities building, guest laundry and children’s bathroom. The adjacent motel, purchased in 2009, provides 11 comfortable motel units, a two bedroom manager’s residence and in ground swimming pool. • A manufactured home estate with separate access has been developed within the total area of the park. The area currently contains 12 homes of which 10 are owner occupied • Since purchasing the property in 2005, the vendors have continued to increase income and profitability. An astute purchaser will have the opportunity to continue to develop the park and increase profits

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

Lindsay Cooper EXCLUSIVE AGENT Mobile: 0418 711 047 Brisbane office: (07) 3878 3999 Email: lindsaycooper@resortbrokers.com.au

Nett profit: $558,139 Turnover: $965,401 PRICE: $4,250,000

REF: FH001835

Blue Mountains beauty FABULOUS RETURNS IN GREAT PERFORMING MOTEL - NOT TO BE MISSED Shane Wynhoven EXCLUSIVE AGENT Mobile: 0424174592 Sydney office: (02) 9904 8224 Email: shanewynhoven@resortbrokers.com.au

Nett profit: $556,051 PRICE: $3,500,00

his uperb Blue Mountains motel, has enjoyed excellent growth over the last 6 years and has been transformed into an award winning motel and one of the areas best performers. In close proximity to Katoomba’s 3 Sisters lookout and the renowned Scenic World this motel is perfectly located for the bustling tourist clientele. This property is a great performer in a fabulous location. Much of the hard work has been done and it’s a genuine opportunity for the new owners to make some great returns. Just move in and continue to operate this easy to run motel.

The motel is currently netting over $556,000 p.a. That’s over $10,600 per week. • 20 units and 3 bedroom cottage • Easy to run breakfast cafe – option to provide dinners • Outstanding location • Fabulous condition throughout • Over 15.8% return • Great performer at 80% occupancy • 3.5 star AAA rating • Located 90 minutes from Sydney in the majestic Blue Mountains • Tidy 2 bedroom residence • Excellent returns for a motel couple This one is not to be missed!!!!

If you are looking for a great business with a great return then look no further. REF: FH001815 RESORTBROKERS.COM.AU 15

he leasehold interest of Quest Warrnambool features 41 studios, one, two and three bedroom fully self contained apartments and 4 two storey townhouses with double lock up garages. The property facilities include two conference/meeting rooms with adjoining kitchens, a solar heated in ground swimming pool, paved al fresco BBQ area and on-site car parking. Constructed in 2004 and a member of the nationally recognised Quest brand, the business has achieved substantial growth in occupancy, income and room rates. Warrnambool is 290 kms south west of Melbourne and is the fastest growing economic and population centre of the great south coast. The city is a major provider in the fields of commerce, governance, social services, health, education, culture, the arts and recreation. The freehold of the reception/office/ conference centre is offered for sale to the business purchaser for a price of $700,000.

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Leasehold South Western Victoria Corporate/Tourist City SERVICED APARTMENT & VILLA UNIT COMPLEX A commencing rental of $42,000 p.a. has been included in the business expenses. • 28 Apartments (incorporating 14 dualkeys) provide a total of 11 studio, 15 x 1 bedroom, 12 x 2 Bedroom and 3 x 3 bedroom FSC apartments. Additionally there are 4 double storey 3 bedroom townhouses with double lock-up garages • The owners accommodation is a double storey townhouse with three bedrooms, two bathrooms, kitchen, dining/lounge and double garage • Rated 4.5 star • Occupancy 2011 - 87% • Long leases, market rent

Jim Chapman EXCLUSIVE AGENT Mobile: 0413 444 782 Melbourne office: (03) 9347 3100 Email: jimchapman@resortbrokers.com.au Stuart Charles EXCLUSIVE AGENT Mobile: 0458 588 472 Melbourne office: (03) 9347 3100 Email: stuartcharles@resortbrokers.com.au

Nett profit: $363,272 Turnover: $2,207,557 PRICE: $1,450,000

REF: LH001828

W.A. canal front Quest hotel EXTREMELY HIGH OCCUPANCY

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

EXCLUSIVE AGENT in conjunction with Peter Turner Realty Peter Turner Mobile: 0417 964 886 Email: peterturner@iinet.net.au

Nett profit: $426,800 PRICE: $2,200,000

REF: MR001829

modern 73 unit complex located right on the waterfront in the popular Western Australian city of Mandurah. The management rights business is branded under the internationally recognised ‘Quest’ chain and has 58 keys in the letting pool. Quest Manduarh was built approximately 10 years ago and has run very efficiently during that time. Over last 24 months the W.A. mining boom business helped business to increase significantly. Rooms in the capital city are at a premium and because Mandurah (the State’s 2nd largest city) is only 40 minutes south by electric train, the business enjoys corporate trade Monday to Thursday nights and leisure guests at the weekend.

The property is located just 800m from the CBD and performing arts centre, 2kms from the Ocean Marina and 3kms from major shopping centres and golf courses. Mandurah has become a popular lifestyle alternative for Perth retirees. It’s connection with Perth’s CBD has been dramatically strengthened by the opening in 2007 of the Perth / Mandurah electric rail line. • New 25 year agreements to start 5/6/2012 • Spacious two bedroom, two bathroom manager’s unit with water views • Large office and reception area with internal stair well directly below the owner’s accommodation • Occupancy 78% • Body remuneration $57,000 increased by 4% annually • Unit price $500,000 inclusive of office and reception area is being offered with vendor finance on the real estate $450,000 for 5 years at 8% RESORTBROKERS.COM.AU 17

Editorial

’Appy travels Mobile phone apps and their role in the tourism industry BY K. INK - DELUXE SUITE Up until a few years ago, the array of paraphernalia crammed into your average holiday maker’s backpack could be quite awe-inspiring. Invariably, there would be several badly folded maps, some dogeared guide books, a misleading phrase book (destined to be more of a hindrance than a help), an out-of date currency converter, a note book crammed with people and places to visit, some reading material, a couple of cameras, flight and accommodation bookings and perhaps a mobile phone, to name but a few. Nowadays, all of the holiday essentials listed above can be easily accessed via one small hand-held device (or tablet, if you prefer a bigger screen). You can download the latest book by your favourite author, take great quality photos with the built-in camera or browse through any map you need via Google Maps. As such, the way in which people access information whilst travelling or on holiday is changing….and changing fast. Many of these elements are increasingly being accessed through specific purpose built applications, known as ‘apps’. Many tourism apps are quite generic and are aimed at assisting travellers in whatever far flung destination they might find themselves. The Lonely Planet has produced a series of phrase books apps, spanning 17 languages such as Spanish, Swahili, Japanese and Vietnamese. Each is armed with 600 common phrases for everyday situations. Although spelt phonetically, you can hit an audio button to hear the phrase read in the local dialect. Priced at $9.99 each, these are some of the most popular tourism apps on the market. Other popular apps include ‘XE’, the mobile versions of xe.com, the world’s most frequently accessed currency convertor web-site. Wherever the user can find an internet connection, they will have access to up-to-date currency conversion rates. ‘FlightTrack Pro’ 18 RESORTBROKERS.COM.AU

is a clever app that imports real-time data directly from airlines, allowing the organized traveller to track the progress of a flight itinerary wherever they may be. There is even an app called ‘Packing’ that aims to take the stress out of holiday preparation by providing lists of essentials to ensure you don’t leave anything important behind. Major hotel chains, including Hilton, Marriott, Holiday Inn and Mandarin Oriental, were amongst the first the get involved in producing tourism apps on a corporate level. Almost all international brands now have mobile apps, aimed primarily at maximising a user’s interaction and usage with that particular brand. These apps allow you to browse through a group’s various locations, find out information on individual hotels, check availability and book rooms. At a more advanced level, users can share stories of their stay, look up information on surrounding attractions, log-in to incentive programmes, check out the latest deals and contact front desks directly. These apps are increasingly regarded by these chains as an essential way of maintaining customer loyalty. So what are we doing in Australia to keep up with this increasing trend? Tourism Australia has an in-house digital marketing team that is embracing mobile technology to assist would be travellers in planning an amazing trip to Australia, and also to help them when they get here. To date, they have produced 2 interactive, fun and highly usable apps. Travellers using the ‘OzPlanner’ app to plan their trip can access 16 suggested Australian journeys and either navigate through the journeys to see highlights, images and suggested activities, or search a range of destinations and experiences and get suggestions for their trip. The app also uses mapping technology to give users direct access to tourism product listings like tour providers, accommodation and car hire. The ‘Nothing Like Australia’

app is similar in purpose and design, but uses 3,500 annotated photos created by Australians in every corner of the country to give users a more ‘localised’ experience. Andrew McEvoy, the managing director of Tourism Australia, stated, “Mobile platforms are a great opportunity for Tourism Australia to extend its presence beyond traditional advertising and marketing to showcase the country’s diverse tourism experiences. Users of our new iPhone app will also be able to easily keep detailed holiday plans in their phone, making travel so much easier once they are here plus they will also have access to more than 20,000 tourism products and services throughout Australia.” Tourism Australia will also use the app technology to gain new insights into mobile user behaviour to tailor its marketing to this audience. Whatever your opinion, the use of mobile apps by holiday makers and travellers is on the increase and will play an increasingly important role in the success of holiday based organisations. Although most accommodation booking sites have ‘mobile enhanced’ web-sites, these are set to become even more usable and accessible through the development of purpose built mobile apps. ‘Wotif’ have stated that there first mobile app will be released soon. As holiday makers convert to these instant and mobile mediums of booking accommodation, surely the nature of booking accommodation will also change. Rather than booking well in advance, holiday makers might simply check their favourite mobile apps when they arrive at their destination to see what the best deals are and where the best spots are. Owners of holiday accommodation will have to work even harder to keep prices competitive and provide incentives. However, for those that grasp this new technology well, there is a great opportunity to get ahead of the competition.

Editorial corporate to vote against such requests’. We all know that the reality of the situation is quite different. An extension is granted in a democratic way by unit owners who wish to secure and encourage the ongoing efforts of a good manager. Plenty of scope exists for owners to deny an extension should they not be satisfied with the services provided by the manager.

If you care about Management Rights...read this article! BY ALEX COOK - RESORT BROKERS AUSTRALIA One of the most enjoyable parts of my first year selling management rights on the Gold Coast has been meeting many of the resident managers who run our industry from the front line. A firm believer in getting out of the office and speaking to people face to face, I’ve been lucky enough to have many long chats with RUM’s about the state of our industry. Indeed, this is how I have learnt much of what I know today. Always on the look-out for an interesting topic of conversation, I’ve recently been asking managers for their thoughts on a discussion paper put forward by former MP Paul Lucas (Ex-Minister for Local Government and Special Minister for State) just before his retirement entitled ‘Management Rights in Community Titles Schemes’. Much to my surprise, very few managers had heard of it, even less knew much about the content. Let me provide a quick background to the paper. Many have heard of the Unit Owners Association of Queensland (UOAQ), an industry association who according to their website aim ‘to advance the interest of unit owners’. One of their principal areas of activity at present is the lobbying of Government for a complete review of the management rights industry. In fact, some would argue that the UOAQ has been hijacked by a minority faction who takes issue with our industry and that the lobbying has become more of a vendetta than anything else.

Although no connection to the UOAQ’s lobbying effort is divulged, we are now presented by a paper put forward by a Member of Parliament that seems to point to exactly what they are looking for, namely a total reassessment of the principles that underlie the management rights industry as we know it. More importantly, rather than providing a balanced discussion of the industry, many feel that it leans heavily towards many of the drastic reforms advocated by the UOAQ. There is insufficient space in this article to outline all of the views put forward in this paper, but for the sake of catching your attention I’ll mention a few of them. One of the most potentially damaging suggestions is that the length of current regulation modules (whether Standard or Accommodation) are unnecessarily long. It states that ‘some lot owners….feel ‘bound’ by typically long-term contracts’. In a summary of ‘stakeholder views’ at the end of paper, it states that while some believe the regulatory framework to be ‘in balance’, some believe that major change is required such as limiting management rights contracts to 3 years. I’m sure there is no need to discuss the devastating impact this would have on the management rights industry. Another ‘view’ is that the extension or topping up of contracts should be prohibited. It suggests that ‘bodies corporate grant such requests (for extensions) almost by default’ and ‘that it is extremely rare for a body

It also expresses concerns that ‘the extension of rights is often a prelude to the sale of the rights, resulting in a windfall gain for the resident manager’. The author of this paper clearly has little knowledge of the current state of the management rights market. In recent times there have been very few sales that result in a large capital gain for the resident manager. When this is the case, it can usually be attributed to an extremely hard working manager turning a poorly run complex into a thriving one. More to the point, extensions are a critical way of securing a substantial monetary investment and creating an environment where managers, owners and committees can work pro actively together without fear of their relationship coming to an end. Don’t worry; there is no need to start losing sleep just yet. At the moment this discussion paper is just that, a discussion paper. Those that have instigated it are a small minority and will undoubtedly remain so. There are many times more stakeholders who will oppose the reforms suggested in this paper - RUM’s, solicitors, accountants, agents, politicians, financiers and unit owners themselves to name a few. Nonetheless, it is important for everyone who has a vested interest in the management rights industry to read the paper, be aware of its content and respond to it. The nature of a discussion paper is to invite all ‘interested individuals and organisations to make a written submissions’. The paper and the submission it receives will be discussed by people who may influence government policy. You can count on the fact that members of the UOAQ will be making submissions, so please make sure you do too. As a parting word, I’d like to push home the fact that the management rights industry in Queensland is something we should be proud of. Rather than having to endure misguided people pulling it to pieces, we should be showing it off to the world as the optimum model for how things should be done. The discussion paper and contact details for submissions can be accessed at http:// www.fairtrading.qld.gov.au/AboutUs/ Management_rights_discussion_paper_ outcomes_of_stakholder_final.pdf RESORTBROKERS.COM.AU 19

he Aqua Resort at the gateway to the famous Margaret River wine region boasts 34 magnificent 4 bedroom 3 bathroom Grove Beach Houses. 9 have their own private heated plunge pool. On top of this there are 7 x 5 bedroom, 4 bathroom, 2 storey beach front houses with private heated plunge pools. All houses can be locked down to a 1, 2 or 3 bedroom house. There are 48 keys in all. The resort features an award winning 25 meter infinity lap pool, heated spa, sauna room, gym and full size tennis court. The Aqua Resort opened 17 months ago. Accommodation revenue in the first 12 months was $1.3 mil and is on target to reach $2.4 mil in the second year of operation. With occupancy sitting at just 25% and 48 years left to run on a 50 year term, the future growth for this business is enormous.

Australia’s finest beachfront management rights GATEWAY TO THE MARGARET RIVER WINE REGION IN OUR OPINION THIS IS ONE OF AUSTRALIA’S FINEST RESORT PROPERTIES. • Manager’s commission of 15% plus GST. • Manager’s letting fee of $124,652 per annum CPI adjusted • Caretaker’s fee $82,500 CPI adjusted • Contracts management fee $18,529 • Magnificent 3 bedroom 2 bathroom manager’s villa valued at $500,000, included in purchase • The photos do not do justice to this property- it needs to be seen to be believed

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

EXCLUSIVE AGENT in conjunction with Peter Turner Realty Peter Turner Mobile: 0417 964 886 Email: peterturner@iinet.net.au

Nett profit: $600,000 and growing PRICE: $3,050,000

REF: MR000962 20 RESORTBROKERS.COM.AU

Get with the motel strength at Queanbeyan, NSW FREEHOLD OFFERING 15MINS FROM CANBERRA Russell Rogers EXCLUSIVE AGENT Mobile: 0416 166 909 Sydney office: (02) 9904 8224 Email: russellrogers@resortbrokers.com.au

Nett profit: On application PRICE: $2,300,000.00

REF: FH001827

nly a short 15 minute drive to the centre of Canberra, Queanbeyan motels are the envy of the motel industry. Due to the present owner’s investment of time and money, this great property is trading at approx 90% occupancy. With no new motels planned for this location in the near future, imagine yourself owning a property where occupancies are unquestionably amongst the best in the country and set to remain so. This is underpinned by Queanbeyan’s fantastic location - in fact, this property is only 10 minutes drive to Parliament House.

spending approximately $150K to buy 4 new cabins - the return will increase to a massive 19% net (no DA in place). Located just a few minutes walk from the CBD of Queanbeyan where there are cafes restaurants and clubs. This motel is continuously booked out with trade, business and families visiting the Canberra and Queanbeyan attractions. • Spacious 3 bedroom residence • 19 self contained deluxe cabins • Huge corner block of 3,395 square meters • Walk to cafes & restaurants • Motivated vendors ready to retire • Easy to manage property • High turnover large profit • Recession proof in one of NSW’s best motel towns

There is room for expansion as the block is a generous 3,395 square metres. By RESORTBROKERS.COM.AU 21

wonderful opportunity to buy the lease on this almost brand new motor inn located just two hours north of Brisbane. The property has a magnificent 100 seat restaurant plus a separate room which doubles as a conference room. The restaurant also has a private dining room that opens onto a alfresco eating area around the swimming pool. The 39 units are exquisite to say the least. It is rare to find motel units of this quality, size and fit out. It is the standard you would expect from a 5 star international hotel anywhere in the world. The motel was developed in 2010 and opened in Feb 2011 as developers had identified the need for a quality property in the area. The operating family have done a brilliant job building the occupancy (66%) and making the restaurant by far the most popular in the area. The partners have now decided to make the lease available (they will retain the investment) and move onto other opportunities. 22 RESORTBROKERS.COM.AU

The best motel on the Eastern seaboard 39 UNITS, JUST 15 MONTHS OLD This will appeal to the experienced operator looking for the best motel available. It is already operating well but has huge potential to develop. The return trade speaks volumes not only about the motel rooms but also the restaurant and cocktail bar.

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

The first to see will buy! • New 30 year lease • Superbly designed and constructed • Spacious 3 bedroom owner’s accommodation • Ample parking for guests and tourist buses • Room for expansion if more units are required • WiFi and Austar

Rent: $435,000 PRICE: $1,875,000

Magnificent management rights in seaside location OCCUPANCY INCREASING MONTH ON MONTH! Ian Crooks EXCLUSIVE AGENCY Mobile: 0411 171 648 Brisbane office: (07) 3878 3999 Email: iancrooks@resortbrokers.com.au

his property enjoys a large holiday trade from the Central Queensland mining & farming fraternity. It also welcomes a strong corporate trade from Central Queensland’s mining, defence and business sectors. It also attracts considerable drive-by trade due to its attractive and stunning beach side location. Once guests have stayed at Echelon Apartments they come back time and time again. After just 30 months of operation this business offers outstanding returns of $320,000 (almost 25% ROI).

Nett profit: $320,000 PRICE: $1,900,000

Echelon offers one, two and three bedroom fully self-contained apartments and penthouses right in the heart of Yeppoon.

breathtaking views over Great Keppel Bay and Yeppoon CBD. It is built above a new retail arcade which includes the Coffee Club, Shio Kaze restaurant (both licensed), NZ Ice Cream, hairdresser, wedding and gown shop, dentist and others. It is short stroll to many other restaurants, hotels, clubs and the main street of Yeppoon. Located right in the centre of Yeppoon and directly on the beach, this proposition offers a rare opportunity to purchase a accommodation business and unit in the strong Central Queensland area of Rockhampton, Gladstone, Emerald and the Capricorn Coast. • 42 apartments - 33 in the letting pool • Body corporate salary - $53,468 • Rooftop swimming pool and entertaining area • Secure basement car parking • All apartments are fully air-conditioned • Stunning views

Echelon Apartments also boasts a rooftop recreation and swimming pool area, with RESORTBROKERS.COM.AU 23

BROOKVIEW ESTATE A major permanent complex in Gladstone the growth capital of Queensland

EXPRESSIONS OF INTEREST

THE OFFERING The offering consists of the caretaking and letting rights to the 300 lot staged residential development known as “Brookview Estate” currently being developed in the boom city of Gladstone Queensland. The first two of the five stages will be available in the third quarter of 2012 and it is estimated completion of the final stage will be within the next two years (subject to conditions). Our client, Glen Eden Land Pty Ltd is handling the sales of the land and is co-ordinating with local builders to offer house and land packages. These are expected to be predominately sold to investors based on the sales to date. The successful purchaser will be able to work with the developer to sign up new investors on completion of houses. The site will contain recreation facilities such as a pool, recreation room and gym. The managers can reside in the development should they wish to. However, there is no obligation in the agreements 24 RESORTBROKERS.COM.AU

to do so. Intending purchasers who wish to maintain a dwelling in the complex can have a choice of dwelling size and style to suit their particular needs (prices to be advised upon request). This exclusive community will support high quality homes throughout, surrounded by trees, a magnificent nature reserve, parks and walkways. There will be a variety of house & land packages available in this estate. All are 4 bedroom, 2 bathroom, 2 carparks. All these are turnkey houses with a projected 14-16 week completion time frame once the council approval has been issued. Price range of these packages will be between $520,000 to $550,000 depending on the land size (600sqm to 800sqm) and house size (200sqm to 230sqm). All houses will have a front facade render and high build finish. Even though only early works have started for both the Queensland Curtis LNG (QCLNG) and Santos’ GLNG projects, rental properties are already scarce and rents in many cases are going through the roof.

THE REGION Tourism and primary production play a big part in the region’s diversity (particularly beef cattle and timber). The city has become a favoured spot for sea changers and tourists alike. Blessed with several stunning national parks, nature trails, a vibrant fishing industry and associated marine activities, residents are spoilt for recreational choices. The City boasts a well developed infrastructure and numerous services, including a busy regional airport, with a dynamic retail and service sector providing ongoing employment opportunities Gladstone has two of the world’s largest alumina refineries, Queensland’s largest multi commodity port. With a number of major industrial giants sited locally, the Gladstone region is known for its employment opportunities and skilled workforce. The Gladstone State Development Area continues to attract large industry to the region, including the fledgling but rapidly expanding Liquefied Natural Gas (LNG) industry. However, there is great scarcity of accommodation available in the resource boom town of Gladstone. According to quarterly Real Estate Institute of Queensland figures. During the last 10 years, the estimated resident population of the Gladstone region has grown from 46,369 people to 60,316. By 2031, the region’s resident population is expected to number between 93,000 and 123,000 people. Rental demand is set to increase for many years with the huge ongoing investments planned. The initial body corporate remuneration will commence at $70,000 plus GST to maintain the recreation facilities and will increase to approx $281,000 upon completion of the final stage. It is projected that the managers letting pool will conservatively be approximately 240 houses - 80% of the total amount. Total Net Income is projected at $610,532. + body corporate remuneration of $281,000 These calculations are based on current rentals however we have been advised as demand increases with new projects so will rental prices.

With a number of mining and resource projects planned, including a $41 billion coal mining project planned from 2011 to 2020, a $75 billion energy project planned from 2011 to 2017, a $7 billion rail project planned from 2011 to 2014 and an $8 billion port project planned from 2011 to 2020, Gladstone will continue to suffer from a severe housing shortage due to the population boom of workers. A big thank you to Queensland Tourism image gallery for providing the fantastic photos of Gladstone seen in the top right corner.

FOR MORE INFORMATION CONTACT: Glenn Millar EXCLUSIVE AGENT Mobile: 0412 277 804 Brisbane office: (07) 3878 3999 Email: glennmillar@resortbrokers.com.au

A claw back/claw forward arrangement will apply. Total projected net $891.532 (approx.) Expressions of Interest are being sought for the purchase of the rights. A detailed information memorandum will be available to parties wishing to lodge an offer.

The original and still No. 1

RESORTBROKERS.COM.AU 25

his immaculate complex, located in a prime position on Noosa Hill, is equidistant from Hastings Street, Noosa Beach and Noosa Junction and has arguably some of the best views in Noosa, facing north west. Over the last 18 months the complex has undergone extensive renovations, all of which have greatly enhanced the property. The office has also been completely upgraded in the past 12 months. There is no set provision in the caretaking agreements for the manager to reside on site enabling buyers to live elsewhere if preferred. As the office is detached, the manager’s lot could be put in the letting pool to earn additional income. The stunning 2 bedroom, 2 ensuite manager’s apartment has been completely renovated 12 months and has tiled floors, a modern kitchen and views across Noosa from the large outdoor deck. The complex is affiliated with Golden Chain, the largest provider of accommodation rooms in Australia. Bali Hai is their only property in Noosa. 26 RESORTBROKERS.COM.AU

Noosa panorama

BEST OFFERING ON THE SUNSHINE COAST UNDER $1 MILLION This is one of the best, most professionally run well presented apartment complexes you will see for under $1mil and is arguably the best one on the market in this price range and above! • Austar TV, all digital channels available, free WiFi on site • Large heated (28c) salt water pool • Heated Spa – regulated to 37c • BBQ facilities • Walking distance to shops, beach, movies and restaurants. 6-8 minutes easy stroll to Hastings Street, Main Beach and Noosa Junction • Fully secured underground car park with restricted access to all apartments • Separate office

Glenn Millar Mobile: 0412 277 804 Brisbane office: (07) 3878 3999 Email: glennmillar@resortbrokers.com.au

Nett profit: $107,000 PRICE: $970,000

REF: MR001824

Rare Noosa beachfront holiday resort SUNSHINE COAST MANAGEMENT RIGHTS Glenn Millar EXCLUSIVE AGENT Mobile: 0412 277 804 Brisbane office: (07) 3878 3999 Email: glennmillar@resortbrokers.com.au

Nett profit: $454,000 PRICE: $3,090.000

REF: MR001842

arely do management rights complexes in Noosa with absolute beach front positioning become available. Indeed these properties are so tightly held that this is the first time a beach front property has come to the market in many years. This property is located in Noosa Heads on Queensland’s Sunshine Coast in a prime resort location. On your doorstep are some of the region’s (if not Australia’s) top restaurants, such as Wasabi, Ricky’s and Rock Salt. The world renowned Hastings Street and Laguna Bay are only 500m away. The resort is one of the largest in Noosa and one of only five resorts with a private beach and jetty. Over the past 18 months a massive program has been underway to refurbish 95% of the resorts apartments.

The results are stunning. There is room to significantly improve the net return hence, increasing the capital value of any incoming manager’s asset base. Forward bookings are very strong . A two bedroom manager’s residence and separate office title forms the real estate component • Refurbished to high standards in 2005 to 2011 • 66 apartments (55 of which are from the letting pool) • Agreement: 15 years • Manager’s Unit: 2 bedroom mid-level apartment with front and rear decks • Half court tennis, water sports hire • Private jetty, private sandy beach, north facing • Heated pools, spa and sauna • Austar Entertainment channels • Ibuki Health and Wellness centre (operated independently)

RESORTBROKERS.COM.AU 27

SUNNY OUTLOOK PLAN TO PUT THE SHINE BACK ON QUEENSLAND TOURISM

If a ‘change is as good as a holiday’, Queensland has embarked on the trip of a lifetime. The March vote to change the government could not have been more emphatic. Even before the new LNP team had their feet under the desks, a palpable mood of optimism had begun to reinvigorate the Sunshine State’s tourism industry.

Jann Stuckey QLD TOURISM MINISTER >>

BY CATIE LANGDON

Tourism is back at the big table, recognised by Premier Campbell Newman as one of the “four pillars” on which he will rebuild Queensland’s economy. Relishing the new senior cabinet posting is Gold Coast MP, Jann Stuckey, Minister for Tourism, Major Events, Small Business & the Commonwealth Games. Quite a mouthful, and quite a portfolio. When Informer spoke with Minister Stuckey, she had been in the job for little more than a week. Yet she sounded like an industry veteran. That’s because she’s no newcomer. As shadow tourism spokesperson since 2004, Ms Stuckey already knew her stuff. “I consulted with the industry widely for so long, and was closely involved in compiling our tourism policy. I know the industry has been doing it tough. I know expectations on the LNP are high. We will not disappoint,” she promised. To help ensure they don’t, and to address concerns about regional focus, new Cairns MP Gavin King has been appointed Assistant Minister for Tourism. 28 RESORTBROKERS.COM.AU

Central to their new approach is a crossportfolio, industry-wide “partnership” called DestinationQ. Within government, it refers to a special committee of Parliament that will require collaboration between all ministers and departments with a bearing on tourism. It’s a direction the Queensland Tourism Industry Council (QTIC) lobbied heavily to see taken. “Tourism is right behind the Premier on this,” said QTIC chief executive Daniel Gschwind. “We need tourism to be considered in planning, infrastructure, regulation reform and the environment.” DestinationQ will also see the government partner more closely with the peak bodies that drive tourism marketing and represent tourism industry members – QTIC, Tourism Queensland, Events Queensland and, importantly, regional tourism organisations. To underline their determination to bring everyone to the table, Premier Newman and Minister Stuckey wasted no time in announcing the first DestinationQ Conference would be held before the end of this financial year. “We invite every tourism operator and stakeholder to attend this conference, to help design the way we go forward,” Ms Stuckey said. “We have a 20-year strategic plan to

return Queensland’s tourism industry to number one, and a 2020 growth target to lift visitor spending to $30 billion. Industry members must come prepared to talk to us about how we can achieve that together.” Resort Brokers managing director Ian Crooks says he hopes the new air of optimism and confidence can stimulate much-needed capital investment. “When you look back to the decades of the 70s, 80s and 90s, there was massive investment in new tourist attractions, infrastructure and accommodation,” he said. “Think of the casinos, international hotels and golf courses, resorts like Hamilton and Hayman Islands, our iconic theme parks. By comparison, there has been little new development in the last 20 years.” Billionaire chairman of gaming company Crown, James Packer, also recently criticised Australia’s level of investment in large-scale tourism attractions. Describing it as “modest” at best, he says we are missing opportunities to capture the burgeoning Asian market as a result.

“On the international front, Asia is certainly the market we must target,” Crooks said. “While no-one can beat our superb climate, beaches and unique natural attractions, we also need significant new investment in the sort of high quality facilities this market wants.” Former Qantas CEO, now chairman of Tourism Australia, Geoff Dixon, has been even more blunt in his assessment, saying Australia must target Asia’s big-spenders. He has embarked on a mission to attract investment in high-end projects ranging from five-star hotels integrated with casinos to remote, luxury getaway resorts. In Queensland, as elsewhere, moves are being made to woo China’s growing well-heeled middle class market. Mining magnate Clive Palmer has hinted at a casino project for the Sunshine Coast, though he denies it will be at his Coolum Golf Resort and Spa. In its Project China strategy, Tourism Queensland states: “The potential for Chinese investment in Queensland tourism could be very valuable in developing or refreshing Queensland tourism

infrastructure (particularly hotel stock and island resorts).” Airport bosses last month attended a major Asian airline conference, seeking to court carriers flying out of Hong Kong, China, Indonesia and the Philippines, while a Gold Coast delegation headed to China in a sales pitch to sell prime development proposals. Minister Stuckey says Cairns Airport, which is aggressively pursuing the Chinese market, was the first on her doorstep to seek assistance through the LNP’s new $8 million Attracting Aviation Fund.

tourism businesses, most of them small businesses, are slashing red tape and reforming the regulatory environment, addressing skill shortages, securing major events and, critically, lowering the cost of living for everyone. “We will also open up our National Parks, creating tremendous opportunities for ecotourism, a sector which is very exciting and largely untapped.”

In Queensland, and nationally, the growth targets are ambitious. Both levels have set their sights on doubling tourist spending Establishing a specialised “tourism investment attraction unit” is another of her by 2020 – from $15 billion to $30 billion in priorities. “We have tasked the Coordinator- the Sunshine State, and from $70 billion to General with special additional responsibility $140 billion Australia-wide. to facilitate and coordinate the delivery of Telling the industry it has a bright future significant tourism projects and upgrades,” is one thing, delivering it will be quite she said. another. For Queensland’s fourth Tourism But while acknowledging the valuable Minister in five years, the pressure is on to prospects held out by increasingly mobile Chinese and Indian tourists, Ms Stuckey was make the LNP’s impressive list of promises into reality. at pains to say she also remained focused on other key international markets and, And she can only do that if all of us in the importantly, on domestic tourism. industry get directly involved. Perhaps “Some of the most important things we we’ll see you at DestinationQ. intend to do to quickly and directly help RESORTBROKERS.COM.AU 29

his property has a prime position on the main approach to Townsville, whether travelling north south or west. The Tuscany inspired exterior offers great street appeal and is unique to the area. Along with Anita’s restaurant, it is a very popular stop over and dining experience. It’s close proximity to the largest army base in North Queensland, the racecourse, university and hospital are also major considerations. Townsville is the largest tropical city in Australia, 28 million dollars has been spent on the Strand, a casino and international airport, making it one of the most exciting cities in Queensland. Another consideration is the private entrance to the residence offering the lessees a level of privacy not often found in motel. With 3 bedrooms, large lounge room, kitchen / private dining area and balcony this is a business that offers a family home as well as income.

Townsville’s best positioned motel LEASEHOLD OFFERING • 31 units including disabled, self contained, deluxe and standard type executive • Licensed restaurant and bar with separate entrance for the public (useful for functions) • Bathrooms have all been re tiled and refitted and walls plastered • Gardens and landscaping appropriate and lush • Private conference and function room • In ground swimming pool • Sealed driveways and courtyards • New 30 yr lease

Len Booth EXCLUSIVE AGENT Mobile: 0438 139 422 Brisbane office: (07) 3878 3999 Email: lenbooth@resortbrokers.com.au

Nett profit: $315,000 (2012) Turnover: $1,051,138 (projected 2012) PRICE: $1,060,000 REF: LH001845

30 RESORTBROKERS.COM.AU

18% ROI - will take trade!

DON’T MISS THIS FREEHOLD GOING CONCERN

Lindsay Cooper EXCLUSIVE AGENT Mobile: 0418 711 047 Brisbane office: (07) 3878 3999 Email: lindsaycooper@resortbrokers.com.au

his 3.5 AAA rated freehold motel offers a return on investment of 18% and the vendor will consider a house trade up to $400,000. This motel can be split as it already has a lease in place, although being run as a freehold going concern.

Nett profit: $189,000 Turnover: $300,000 PRICE: $1,050,000 REF: FH0016870

The town that the motel is situated in is arguably the wealthiest town in country NSW. For many years motels in this town have proven themselves to be very strong and secure businesses. The motel presents smartly and is well worthy of your inspection. It can either be run as a going concern or purchased with the lease to be sold and the passive investment to be retained.

The current owners have owned the motel for the past 18 years making this a proven business. Tourist attractions for the area include the Artesian Spa and the associated baths complex, as well as the Mehi River which attracts numerous visitors to the area who enjoy the town’s attractive riverside parks and reserves. • 15 AAA rated rooms • Vendor will trade a house to $400,000 conditions apply • Proven motel town strong trade over many years • 4 bedroom 2 bathroom owners accommodation • 18% - fantastic return on investment • Sell lease for approximately $310,000 with a rent of $80,000 if you were to split • Highway frontage strong rural NSW town • Many options for the astute purchaser

RESORTBROKERS.COM.AU 31

his great property is located a mere 3 minute walk to the CBD and is a very short drive to the popular Merimbula Beach. It has been designed to capture the easterly aspect and breathtaking views. You would never tire of working in such a stunning surrounds. The opportunity to purchase a leasehold in a busy costal town for just $675,000, enjoying returns in the vicinity of $200,000, makes this one of our best listings in recent times. As you enter the office of this motel you look straight into the attractive breakfast room (which doubles as a conference room) opening onto a sunny terrace. The motel has a magnificent pool and spa opening onto the restaurant bar area. All rooms have small kitchenettes and outside balcony areas. The upstairs rooms have direct access round the balcony to the pool and restaurant areas. The turnover is up this financial year with expectations of around $600,000, attributed to the thaw of the GFC.

32 RESORTBROKERS.COM.AU

Great returns & lifestyle South Coast Merimbula NSW RIGHT IN THE HEART OF THE CBD Tour bus business has always been solid in Merimbula and looks to be re-emerging after recent difficult times nationwide. The motel is continuously booked out with trade, business and families visiting Merimbula’s beaches and attractions. • Spacious 2 bedroom residence • 26 deluxe motel rooms and suites • Huge corner block of approximately 3,500 square meters • Walk to cafes & restaurants • Motivated vendors ready to retire • Easy to manage property • High turnover and large profit • Located in one of NSW busiest coastal towns

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

Nett profit: $202,866 Turnover: $551,000 PRICE: $675,000

AUCTION: On site at 2pm on 21st June 2012 FREEHOLD OPPORTUNITY IN REGIONAL CENTRE Under instructions from Receivers & Managers

esort Brokers Australia is pleased to offer for sale by auction the Ballarat Colonial Motor Inn.

The motel is situated on approximately 1.5528 hectares with a substantial frontage to the Western Highway on the approach to Ballarat from Melbourne. The property is approximately 7 kilometres from the Ballarat CBD. The motel buildings are brick with a tiled roof and present well. There is ample on-site sealed parking for the accommodation units and the restaurant conference centre. The motel includes an indoor swimming pool and tennis court.

The reception and ownerâ&#x20AC;&#x2122;s residence is a separate building adjacent to the restaurant conference centre at the front of the accommodation units. It provides an entrance foyer, reception desk, separate back office and toilet with direct rear access to the residence which consists of 3 bedrooms, 1 bathroom, lounge, kitchen, laundry, car port and private yard. As Victoriaâ&#x20AC;&#x2122;s largest inland city and a tourist destination, Ballarat is a major regional business centre. Ballarat is approximately 1 hour and 20 minutes north-west of Melbourne. The sale of the motel presents a purchaser with an opportunity to acquire a motel with strata titled lots, including 18 self-contained apartment lots.

RESORTBROKERS.COM.AU 33

s the premier motel accommodation in the heart of Lismore, the Centrepoint is conveniently located within the CBD of this major commercial city fast becoming recognised as the capital of northern NSW. This business, which has been owned and operated by one family for over twenty years, provides excellence in Lismore accommodation, services and facilities for both corporate and leisure travellers. It has convenient access to shops, clubs, entertainment, business facilities, and much more. The motel boasts a fantastic Italian & steak styled restaurant and bar with outstanding service, great atmosphere and charge back facilities. Lismore City has the region’s major services, shopping, sporting facilities and government agencies making it a drawcard for residents of surrounding areas which adds to the cosmopolitan atmosphere. Lismore’s other significant attribute is that it’s only half an hour away from the beautiful beaches of Byron Bay and Ballina.

32% ROI & New 30 yr Lease MASSIVE $100,000 PRICE REDUCTION

This well established and highly patronised motel includes the following: • 42 rooms (deluxe / executive / selfcontained / spa suites) • Licenced restaurant and bar • Function / conference room • 3.5 star AAA rating • Free Austar & wireless internet The new 30 year Lease is offered for sale as follows: • Price $1,150,000 • Net Profit $373,909 (after rent) • Rent $275,000

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

Net Profit: $373,909 PRICE: $1,150,000

REF: LH001658 34 RESORTBROKERS.COM.AU

Your own Fijian holiday home, set to double in value in 5 years* Prices start from only $135,000 with up to 60% finance available

Imagine owning your own freehold unit in one of worldâ&#x20AC;&#x2122;s most beautiful destinations, ready to accommodate you anytime you please. Sound like something for the rich and famous? Not anymore. We have been selling in the Pacific Islands for 25 years, and never have we come across an opportunity as good as this. In our opinion, there is nothing that comes close to the combined quality, location and value of these wonderful little gems. Nestled in a tranquil and private resort with absolute waterfront positioning, the units are a generous 65 sq metres and come fully furnished with TV. Each consists of a kitchen, a laundry and a large bedroom with ensuite. The ground floor units open onto a secluded patio area and the 1st floor units have their own decks, some with beautiful ocean views (so get in early). Only 5 years old themselves, the units form part of a well-established resort with immaculately maintained lawns and mature gardens. The resort has 2 swimming pools, a waterfront restaurant and bar plus a waterslide and childrenâ&#x20AC;&#x2122;s play area. The location is quite exceptional. Set in Momi Bay, next to the $200 Million JW Marriot Resort, the Ritz Carlton and international golf course development currently under construction. You can mingle with the jet-set at a fraction of the cost! Combined with plans to modernise and develop the resort, capital growth is assured.

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

With 60% finance available at 8.8% over 12 years, how can you let this chance pass by? The Original and still No. 1 *This is an estimated appreciation only & has not been verified

Absolute waterfront motel

Constructed in 2000 the Comfort Inn and Suites Nagambie Lakes consists of 26 motel units, a licensed restaurant, function facility and separate conference centre. Additional on-site facilities include substantial parking, in-ground swimming pool, floodlight tennis court and guests laundry. The office / owner’s apartment is situated at the entrance to the property. The residence has 3 bedrooms, 2 bathrooms, open plan living / dinning area and separate kitchen, laundry, bathroom and remote control double lock up garage.

LEASEHOLD OPPORTUNITY • 26 motel units and suites consisting of: - 20 motel units (12 lake view) - 5 one bedroom apartments (3 lake view) - 1 presidential suite • Choice Hotels – Comfort brand • Long 22 year lease. Market rent • Substantial investment by vendor has ensured the 4 AAA star rating • Opportunity for committed hands on operator to increase turnover and profitability

Turnover: $717,589 Nett profit: $200,868 PRICE: $700,000 plus stock at value

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

REF: LH001856

Inner city business only opportunity LUXURIOUS RIVERFRONT COMPLEX Projected nett profit: $67,189 PRICE: $245,000

Tim Crooks EXCLUSIVE AGENT Mobile: 0422 208 450 Brisbane office: (07) 3878 3999 Email: timcrooks@resortbrokers.com.au

36 RESORTBROKERS.COM.AU

This is a rare opportunity to secure a business only management rights with river views in an inner city location. Addison Quays offers an unsurpassed city lifestyle, with an ideal position in Bulimba to make the most of everything Brisbane has to offer. There are 24 apartments in the complex (a mix of 1, 2 and 3 bedrooms) with quality fittings and finishes, and European appliances.

The pool, BBQ facilities and marina will make your friends envious. Projected income is based 10 units in the letting pool, with a claw back/forward clause in the contract. Each apartment has been designed for the modern lifestyle by architects Cottee Parker. • Body corporate salary $31,316 • Brand new standard module (10 year term) • 18 marina births - offering potential extra income for management and cleaning of boats • Option to purchase 1, 2 or 3 bedroom unit that can be rented or lived in

The offering is for the freehold going concern of Lismore’s most popular motel, providing all ground level guest rooms nestled in a tropical setting. This is an easily run business with ‘fool-proof’ systems in place for operating under management. High occupancy with corporate return guests enjoying freshly refurbished studio, superior and Lismore’s best family suites all overlooking the refreshing saltwater pool and BBQ area. The first motel you come across when driving from Brisbane, situated on the edge of Lismore’s central business district.

Lismore’s most popular Motel HIGH OCCUPANCY & NETT PROFIT Lismore’s other significant attribute is that it’s only half an hour away from the beautiful beaches of Byron Bay and Ballina. Two bedroom, one bathroom open plan living and dining overlooking the tropical gardens

Nett profit: $423,789 PRICE: $2,695,000

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

• 21 units • 3.5 AAA star rated REF: LH001693

Minimum work - maximum rewards EASILY RUN BOARDING HOUSE MOMENTS FROM BRISBANE Nett profit: $245,592 PRICE: $1,950,000

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

REF: FH001832

This beautifully presented, colonial boarding house is incredibly easy to run. There are no specific office hours, so it is ideal for someone who wants their own business without the pressure of working full time. The fantastic location in central Ipswich ensures there is a constant demand from tenants. This results in an occupancy of 95%! The property is made up of 35 individual rooms, and can accommodate 48 residents at

a time. There is a large modern kitchen and three large communal living rooms. The house is positioned on 1120 sq metres of prime land and has parking for five vehicles. It is rare that we get the opportunity to sell a property of this standard. The vendor has ensured that everything is in first class condition! • Beautiful colonial house all newly refurbished throughout • Returns of a business with the workload of a passive investment • Fantastic position in Queensland’s fastest growing city RESORTBROKERS.COM.AU 37

workforce will be locally sourced, the increased demand will invariably need to be met by those with the necessary skills relocating from inter-state locations or from overseas. Local business has also suffered from losing staff to this growing sector. As such, it can be said without doubt that Gladstone has become a hotspot for job creation.

Editorial

A big thank you to Queensland Tourism image gallery for providing the fantastic photos seen here.

GLADSTONE the town on the up ... and up... and up... BY ALEX COOK - RESORT BROKERS AUSTRALIA Located 550km north of Brisbane and 100km south-east of Rockhampton, the small town of Gladstone has risen over the last few years to become one of Australia’s most talked about economic hotspots. Most would be aware that this meteoric rise can be attributed to the resource mining boom, particularly that of coal seam gas (CNG) and liquefied natural gas (LNG). Not all would be aware why Gladstone in particular has taken such a front seat, nor the potential the town has for further growth. The Port of Gladstone is undoubtedly the town’s greatest economic asset. Having been the first to pioneer bulk coal handling in Queensland in 1954, it not only developed its own facilities, but also opted to run them – a role it continues today on a vastly expanded scale. As well as the exportation of coal, the port has been historically tied to alumina production. Today, Gladstone is still home to two of the world’s largest alumina refineries. The port is the largest in Queensland and the 4th largest in Australia. In dollar value, roughly 20% of Queensland’s exports and 5% of Australia’s exports are shipped out through the Port of Gladstone annually, an astonishing figure that increases year by year. The port is seen as a major support to industrial giants operating in the area such as Rio Tinto, Cement Australia and Orica Australia. It provides essential infrastructure for the region, for Queensland and for Australia and is fundamental to the development of industry and critical to the emerging CSG to LNG industry. 38 RESORTBROKERS.COM.AU

Much of Gladstone’s recent rise to prominence can be attributed to its convenient geographical link to the Surat Basin and the discovery of numerous reserves of CSG in this area. Although CSG is able to serve the domestic market via pipe lines and power stations, it must be converted to LNG before it can be efficiently exported to the international market. Due to its port, the Gladstone region is the logical location to build the plants necessary to carry out this production process. To put the size of this industry into perspective, one company (BG Group) announced in March 2010 a deal to export LNG to the Chinese market worth $60 billion, followed 2 days later by a deal to export to the Japanese market worth $20 billion. The sums are mind boggling. These developments have led to an astounding degree of industrial investment in the area. A report by the Gladstone Economic and Industry Development Board (GEIDB) in February this year estimated that there is currently $30 billion worth of projects under construction, with a further $30 billion in the pipeline. Leo Zussino, the chairman of this board, stated that 5,000 jobs had already been created in Gladstone as a result of the new CSG and coal export industry development, that a further 2,000 jobs would be created by the end of 2012 and that the figure would reach 11,000 by next year. “Gladstone is a stand-out economic success centre on Australia’s eastern sea board during these subdued and uncertain economic times”, he said. Although it is estimated that 60% of this

One effect of an influx of new workers can be a shortage of accommodation. Nowhere has this been more evident than in Gladstone. Short term accommodation is next to impossible to find unless you have booked weeks, if not months in advance. Mining and construction companies will have bulked booked rooms for long periods, at increasingly staggering rates. Mid-week tariffs in average accommodation of $200+ per night are now common place and easily achievable. Gladstone is now challenging the Gold and Sunshine Coasts as the most expensive area for property outside Brisbane, as job opportunities replace lifestyle choices as the key driver of house price increases. The Real Estate Institute of Queensland recently released data demonstrating that regional cities benefiting from the jobs boom created by GSG and LNG development completely dominate the list of areas where median values are climbing. Among the major centres, Gladstone is the clear standout, with the median price for a threebedroom home up 6.1 per cent in the last 3 months, and 10.8 per cent over the year. Amazingly, the demand for accommodation in Gladstone is so strong that there has been a significant knock-on effect to other regional towns. “The multi-billion investment...is behind Gladstone’s strong performance, but we are also seeing this market strength radiate out to its neighbours of Mackay and Rockhampton in this quarter,” REIQ chairwoman Pamela Bennett said. The demand in Gladstone is so great that people are buying properties up to 100km away in Rockhampton and in surrounding towns such as Gracemere. Critical to Gladstone’s future growth is the development of further accommodation, both short-term and long-term. Plans for the expansion of accommodation facilities on Curtis Island and at the Wiggins Island Coal Export Terminal should ease housing tensions. However, this will really only scratch the surface. Indeed, almost $1.2 billion of the $1.5 billion committed by government and industry to social infrastructure in the Gladstone region has been committed specifically to the development of accommodation. Having digested this information, the contention on the GEIDB website that Gladstone is a ‘key investment and job creation centre for Queensland and Australia’ comes across as one of understatements of the century.

Be my guest

Editorial

Investment return basics explained BY MIKE PHIPPS MIKE PHIPPS FINANCE

Phil & Kathy Taylor HARVARD MEWS, UPPER COOMERA, GOLD COAST Like many management rights owners on the Gold Coast, Phil and Kathy Taylor originally hail from the other side of The Tasman. In fact, current estimates are that around two thirds of all owners on the Gold Coast come from New Zealand. Unlike many, however, this particular couple have been in Australia for many years now. Phil comes from a corporate background working in the food ingredients sector for a multinational food company. Kathy had worked in administration roles, including the banking sector in New Zealand and gained hands on management experience as an owner operator of several retail outlets. When Phil was offered a senior management role based in Australia, they made the decision to transfer and relocate to a sunnier climate. Whilst living in Cronulla in Sydney, Phil was very focused on the requirements of his key management role and Kathy returned to education completing an Advanced Diploma in Accounting. Phil and Kathy had first been introduced to the management rights concept quite some time ago. When visiting the Gold Coast in the late 1980’s they had a look at acquiring some investment units in Robina that were contained within some of the first management rights complexes. Recognising a good business model from the outset, the idea of purchasing a management rights business one day stayed with them for over 20 years. A few years ago, while pondering the prospect of Phil’s semi-retirement, they decided to visit the Gold Coast to look at investment opportunities in more detail.

Although they did look at other businesses, they both felt that nothing could offer what management rights could in regards to long term security, lifestyle and return on investment. After considerable research and close examination, they decided on a rather unique management rights business in Upper Coomera, close to the theme parks on the northern end of the Gold Coast. As well as managing a 48 unit townhouse complex, they also unusually own a property management company that manages a further 45 houses in the immediate locality. The unlimited potential for income and capital growth provided by this external rent roll was one of the major attractions. This arrangement also allows them to manage both businesses just off-site in a house with a private swimming pool, providing a great lifestyle with increased privacy. As they celebrate their 2nd anniversary at Harvard Mews, Phil and Kathy can rightfully state that they are at the helm of a sturdy ship. As well as straight hard work, their success can be partly attributed to their experience gained from previous employment. For a start, Kathy’s administration and accountancy skills means the office is run in an extremely efficient manner. Phil’s background has clearly given him the right attitude. “You could look at management rights as if you are just managing properties and maintaining assets,” Phil distinguishes. “However, like all businesses, it is first and foremost a people management business. If you can manage the relationships of the people you work with (tenants, owners, contractors, Body Corporate Committee) you’ll have most of the battle won”. Wise words.

If you are seeking to buy an income producing asset you will surely look at more than one at which stage I’m sure you will make comparisons. While physical presentation, state of repair and location are all important ultimately you are buying an income stream so best to have a mechanism for comparing. The cash flows and profits associated with management rights are generally sold on a multiple of net profit while motels and caravan parks are sold on a yield or return on investment. The multiple usually quoted for a management rights can easily be converted to a yield which can be useful when comparing individual opportunities. For what it’s worth I believe in calculating return on investment for management rights on the total purchase price, not just the business price. The calculation for return on investment is pretty simple: EXAMPLE 1 Unit $500,000 Management Rights $1,500,000 Total $2,000,000 Net Profit $300,000 Multiple 5 times Return on Investment (Yield) 15% EXAMPLE 2 Unit $700,000 Management Rights $1,300,000 Total $2,000,000 Net Profit $270,000 Multiple 4.8 times Return on Investment (Yield) 13.5% EXAMPLE 1 Motel lease $2,000,000 Net Profit $560,000 Multiple 3.57 times Return on Investment (Yield) 28% As we can see the relative ratio of unit to business value combined with the lower multiple for the lower net results in an overall fall in ROI to 13.5 in example 2. The same calculations for a typical large motel lease reflect the fact that there is no real estate component being purchased, just the cash flow business. Arguably motel leases may carry some additional risk and responsibility, hence the market expectation of a higher return on investment. RESORTBROKERS.COM.AU 39

Industry Leaders Check In for Serviced Apartments Summit After 30 years of sustained growth, serviced apartments have emerged as a major component of the accommodation industry. Currently representing over a quarter of total room supply in Australia, the sector has accounted for almost 70% of all new room supply over the past decade. Apart from successfully servicing the needs of travellers, the industry has been responsible for providing both a major source of employment for young and older Australians, as well as a source for investment in both individual serviced apartments and the management rights businesses that support them. In Queensland alone it is estimated that over 3,000 management rights schemes are in operation in what has become a multi billion dollar industry.

HOSTED BY

To discuss the future of the industry, serviced apartment owners, operators, developers, lenders, advisers and other stakeholders, as well as hoteliers and interested real estate professionals will meet in Sydney on 25 July 2012 at the 2nd annual Serviced Apartments Summit to hear from industry leaders and experts and to network with peers. The Summit is the only event of its type in the region. A stellar cast of industry leaders will address the 2012 Summit including: > Choe Peng Sum Chief Executive Officer Frasers Hospitality

> Bob East Chief Executive Officer Mantra Group

> Paul Constantinou Chairman Quest Serviced Apartments

> Rachel Argaman Chief Executive Officer Toga Hospitality

> Murray Boyte Chief Executive Officer Ariadne Australia

> Sid Knell Chief Executive Officer Prime Group Australia

> Ian Crooks Managing Director Resort Brokers Australia

> Roland Jegge Vice President Asia Pacific Worldhotels

> Gaurang Jhunjhnuwala General Manager Bus. Dev. & Marketing Hind Group

> Jose Ventura VP Asia Pac, Mid.East & Africa Bus. Dev. Preferred Hotel Group

> Lindsay Leeser Director Development Asia Accor

> Michael Moret-Lalli Director of Acquisitions Mantra Group

The Summit is a pre-event to the Australia, New Zealand & Pacific Hotel Industry Conference (ANZPHIC 2012) that will be held on 26 and 27 July at the Hilton Sydney. For over a decade, ANZPHIC has been the main event on the regional accommodation industry calendar, attracting over 400 CEOâ&#x20AC;&#x2122;s and other senior industry delegates, as well as 30 Sponsors, Exhibitors and Supporters. A majority of those delegates also attend the Summit. Subject to availability, two-day delegates at ANZPHIC 2012 can attend the Summit for free. Alternatively registration for the Summit alone can be made. The event was a sell-out in 2011 and a similar outcome in expected this year so early registration is advised.

PLATINUM SPONSORS

In an industry first in 2012, at the conclusion of the Summit, delegates will join delegates from ANZPHIC and two other co-located industry events taking place at the same time to enjoy Megameet Greet, a major industry networking function to be held at the Hilton Sydney. Further information on the Summit, ANZPHIC and Megameet plus a Registration Form for these events can be obtained at www.anzphic.com or by contacting John Smith, Managing Director of Horwath HTL Australia Pty Ltd on jsmith@horwathhtl.com.au or by calling 0418 447 222. 4 Great Accommodation & Tourism Events in 3 Great Days of Sharing, Learning & Networking Sydney 25 to 27 July 2012

FOUNDING GOLD SPONSOR

The motel lease – mortgages and deeds of consent BY DAVID BURROUGH - HILLHOUSE BURROUGH McKEOWN In most leasehold motel acquisitions the purchasers offer their interest in the lease to a financier as security. Our next couple of articles we will consider this security and the impact for prospective purchasers, vendors and landlords. Generally a mortgagee will require, as a condition of their finance approval, that the mortgagee the tenant and the landlord enter to an agreement (usually called a Deed of Consent or Right of Entry Agreement) to ensure all parties recognise the other’s rights. The effect of a Deed of Consent is: 1. The Landlord acknowledges that the financier is entitled to step in on the tenant’s default under either the loan; or the Lease. 2. The financier may step into the tenant’s shoes for the purposes of rectifying any default or just to run the motel generally and transferring the business to a new operator. 3. The Landlord promises not to terminate the Motel Lease in the event that financier

takes any action against the tenant. 4. To require the Landlord to give notice of any default to the financier prior to terminating the Lease. 5. To require the Landlord to notify the financier in the event that the Lease is replaced or varied in certain respects. Ideally, the financier will be placed in no higher or better position than the Tenant. The financier is given the opportunity to protect its security. It will meet costs and ensure that the Landlord is satisfied with the performance of the tenant’s obligations under the Lease. The biggest risk that faces a leasehold mortgagee is that the lease may be forfeited by the landlord due to a default of the tenant. A Deed of Consent attempts to overcome this concern and so enable financiers to continue to lend on the security of a lease. In practice there can be difficulties in having the Landlord sign the agreement. In our next article we will consider the common concerns of landlord and ways these can be addressed.

In an attempt to overcome these difficulties we have included a clause in our plain English lease which requires the landlord to consent to any mortgage of the lease provided that the tenant satisfies the landlord that the proposed mortgage or charge would not prevent the tenant from paying the rent and outgoings. Our plain English lease also requires the landlord to sign any documentation that the proposed mortgagee may reasonably require as a condition of granting the loan to the tenant, this will include a Deed of Consent. A Deed of Consent will be required by financiers in almost all circumstances where the financier does not have the security of real property. These agreements are commonplace in the motel industry. Whilst the interests of the landlord, the lessee, the freehold mortgagee and the freehold mortgagee may conflict the parties should be able to resolve most issues in the Deed of Consent.

RESORTBROKERS.COM.AU 41

Top of the hill in Spring Hill! OUTSTANDING SHORT TERM LETTING BUSINESS

Steve Campbell Mobile: 0407 220 668 Brisbane office: (07) 3878 3999 Email: iancrooks@resortbrokers.com.au

Nett profit: $575,000 Unit price: $450,000 PRICE: $1 3,550,000 REF: MR001840 42 RESORTBROKERS.COM.AU

eing sold for the first time since development, come and get yourself a piece of Brisbane accommodation history. Very conveniently located in Spring Hill, this business services corporate, government, hospital and leisure patrons. Currently run under management, you can keep the current staff and enjoy a fantastic lifestyle, or get your hands dirty and put more on the bottom line. What an opportunity to purchase a business with proven performance in a such fantastic location! The Summit Apartments complex is located on the corner of Leichhardt and Allenby Streets, upon a site area of 3,030sq.m. Summit is located within 1km of the CBD and a short walk to any service that you could possibly want. Major cultural and

arts facilities (such as GOMA and the QLD Art Gallery) are within minutes by foot. The award winning Roma Street Parklands, the Valley entertainment precinct, Queen Street Mall and China Town mall are all within easy walking distance. Facilities include a fantastic outdoor area encompassing a swimming pool and spa. A small gym area and sauna is located by the pool along with the amenities. The reception area has a large dining area that could easily be turned into a café area as the commercial kitchen is not utilised at present. • Mix of studio, 1 bedroom and 2 bedroom apartments • Reception open from 7am to 8pm daily • 2 bedroom manager’s unit with ensuite and sun room currently being used as a 3rd bedroom • 74 units in building - 47 in the letting pool • 18 years left on term • Currently performing at 80% occupancy • Tariffs from $140 - $222 / night • Opportunity to upgrade further rooms to deluxe rooms to further increase tariffs

Don’t miss this one!

RELIEF MANAGERS DIRECTORY Please note that this is a directory only. Resort Brokers Australia do not interview or qualify any of the managerâ&#x20AC;&#x2122;s below. Name: Ray and Bev Hearn Mobile: 0429 420 826 Email: management@yourpark.com.au Manager type: Caravan Park Location: South Qld / Nth NSW

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

Name: Delwyn and John Gane Mobile: 0421 987 462 Email: N/A Manager type: Motel Location: SE Qld / Central Qld

Name: Graeme Fillipe and Deborah Wallace Mobile: 0427 512 751 Email: graemedeb@motelmanagers.com.au Manager type: Motel Location: South Qld / Nth NSW

Name: Simon and Anne Frost Mobile: 0433 921 029 Email: simon@serviceplease.com.au Manager type: Motel Location: Nationwide

Name: Steve and Pam McMullen Mobile: 0418 497 214 Email: sgpj.mcmullen@bigpond.com Manager type: Motel Location: Nth / Coastal NSW

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

Name: Sue and Hubert Rietberg Mobile: 0418 883 233 Email: sueandhugh@iinet.net.au Manager type: All properties Location: Brisbane / Sunshine & Gold Coast

Name: Phillip and Sharyn Stallman Mobile: 0428 931 589 Email: pjstal@bigpond.com Manager type: Motels, MR & CP Location: Nationwide

Name: Chris and Carmel Moloney Mobile: 0400 483 291 Email: ccmoloney-315@hotmail.com Manager type: Motels Location: Nationwide & N.Z.

Name: Michael Hunter Mobile: 0439 950 900 Email: N/A Manager type: Motel Location: Qld

Name: Lyne and Wayne Foster Mobile: 0437 217 621 Email: waynefos@dodo.com.au Manager type: Motels Location: Nth / Nth East NSW

Name: Peter and Julie Johnston Mobile: 0409 218 751 Email: N/A Manager type: Motel / MR Location: Qld

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

Name: Carol and Harry Turnbull Mobile: 0428 399 733 Email: N/A Manager type: N/A Location: Nationwide

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

Name: Karla Harding Mobile: 0414 767 499 Email: bnbangel@fastmail.net Manager type: B&B / Guesthouses Location: Nationwide

Name: Louise and Siggy Dannell Mobile: 0408 901 927 Email: lsdannell@bigpond.com Manager type: All Location: East SA

Name: Gary and Robyn Loakes Mobile: 0408 798 352 Email: grl21@bigpond.com Manager type: All Location: Nationwide

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

Name: Sylvia and Gilbert De Michiel Mobile: 0419 204 773 Email: sylvia@anzacs.net Manager type: N/A Location: East Vic / Qld / NSW

Name: Anastasia and Gus Johnson Mobile: 0408 021 303 Email: anastasiajohnson@bigpond.com Manager type: Resort Location: SE / NE Qld

Name: Jan and Allen Morton Mobile: 0417 529 129 Email: N/A Manager type: N/A Location: Sunshine Coast

Name: Tony and Dawn Davies Mobile: 0412 065 348 Email: dawn.tony@hotmail.com Manager type: Hotel / Motel / CP Location: West Qld

Name: Paul and Arlene Moore Mobile: 0404 855 711 Email: pfandammoore@live.com Manager type: Hotel / Motel / CP Location: Qld & NSW

Name: David and Belinda Gustafson Mobile: 0403 219 562 Email: gustafsondavid@hotmail.com Manager type: N/A Location: NSW / Qld RESORTBROKERS.COM.AU 43

Recently sold “We have sold 25 Management Rights & Motels since the 15th January 2012”

MANAGEMENT RIGHTS BROOME, W.A.

FREEHOLD MOTEL HAY, NSW

MANAGEMENT RIGHTS ANNERLEY, QLD

LEASEHOLD MOTEL TULLAH, TAS

MANAGEMENT RIGHTS DENHAM, W.A.

LEASEHOLD MOTEL MANAGEMENT RIGHTS ROMA QLD GYMPIE

MANAGEMENT RIGHTS NOOSA, QLD

LEASEHOLD MOTEL WAGGA WAGGA, NSW

MANAGEMENT RIGHTS NUNDAH, QLD

LEASEHOLD MOTEL WARWICK, QLD

LEASEHOLD MOTEL LAKES ENTRANCE, VIC

LEASEHOLD & FREEHOLD MOTEL WOLLONGBAR, NSW

44 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 45

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

46 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 SOUTH EAST, 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

Dianne Atkinson

FINANCIAL CONTROLLER

Sarah Wilkinson

OFFICE ADMINISTRATOR

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

SOUTH EAST 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 47

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