December 2017 Informer

ISSUE NO 88

december 2017 AUSTRALIA’S NUMBER 1 | TOURISM & BUSINESS

INFORMER A TALE OF RICHES AND ROMANCE

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resortbrokers.com.au | INFORMER DECEMBER 2017

WHAT’S INSIDE

18

NRAS A BETTER WE SAY, OPTION? THEY SAY

How NRAS units drive rental demand and letting pool security

24 PETER & IRENA CUSHEN Meet the savvy business couple behind City Edge Apartments

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54

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THE BEVERLY HILLS HOTEL

AVOID A CRASH & BURN Vital clues to keeping your deal on the right path

34

Feature

ENGINEERING OUR FUTURE New construction methods shaping future accommodation development

A QUESTION OF MODULES

Tales of glamour, riches and romance behind a hotel of renown

59 TOP UP: DO IT RIGHT Taking short cuts to top up agreements can be costly

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INTRODUCING: VOX POP Meet the Kerrigans from Parkview Motor Inn in Parkes, NSW

Understanding the differences between Standard and Accommodation Modules

Regular Features 06 09

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ON THE MARKET

MARKET ACTION

Trudy Crooks discusses interesting developments in the accommodation market

Significant sales and listings grabbing the headlines

Meet Chenoa Daniel, one of our dynamic Far North Queensland brokers

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See some of the properties Resort Brokers Australia has sold recently

Taking a holiday? Need a manager? Find them here

Resort Brokers Australia’s national directory

SOLD PROPERTIES

RELIEF MANAGERS

AGENT PROFILE

MEET OUR TEAM

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Preface

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

WE SAY

TIME TO LOOK

ahead

Ian Crooks MANAGING DIRECTOR

I

t’s that time of year again, when we look back at the year that was, and begin to plan the year ahead.

I have to say, from a political perspective, it’s been a very frustrating year with months mired in the excruciating citizenship debacle.

For a government already struggling with a bare one-seat majority, it has been incredibly unsettling to say the least.

As I sit down to pen this column, still more pollies are being dragged into the net. With by-elections in the wings and arguments still raging about who did what when, a solution seems a way off. Let’s just hope they sort it out and can actually get on with the job of governing in 2018.

Away from politics, though, the news has been more positive. As you’ll read in Trudy’s ‘On the Market’ column, the strength of the tourism industry is driving plenty of exciting activity on the accommodation business and property front.

Trudy and our FNQ broker Shane Mullins recently represented us at the Northern Australia Investment Forum held in Cairns (November 19-21). We were invited by Austrade and the Queensland Government to present tourism property and business 4

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opportunities to hundreds of senior delegates from international and Australian companies.

The high level, invitation only event was hosted by Minister for Trade, Tourism and Investment, Steven Ciobo. It really underlined the importance of our strong relationship with government, and capped a very busy year for Resort Brokers Australia.

And, on that note, I’d really like to take this opportunity to thank all of the buyers and sellers who have dealt with Resort Brokers this past year. We very much appreciate your business and look forward to having the opportunity to assist you again in the year ahead and beyond.

As I mentioned, year’s end is a time for looking back and looking

ahead. So this edition of our Informer magazine does a little of both.

Our major feature looks forward, considering what might be the development and construction trends that shape accommodation supply in the years ahead.

Our hotel feature, on the other hand, has an air of nostalgia. We explore one of the world’s most glamorous hotels, the very place where Vivien Leigh met her lover Laurence Olivier and was introduced to agent Myron Selznick.

Soon after, she was cast to play Scarlett O’Hara in Gone With the Wind. Not many accommodation houses can claim that sort of starstudded pedigree.

In our regular ‘Faces of the Industry’ feature, we introduce

They Say

REGIONAL TOURISM

BY THE NUMBERS

“The Australian economy continues to shrug off the mining construction downturn. Indeed, the three-year outlook is a remarkably encouraging one.

“While the Australian economy grew by 1.8% over 2016-17, growth is expected to accelerate to 2.8% in annual average terms over the three years to 2019-20.

4.1% PER ANNUM

“As economic conditions strengthen, so will corporate travel and, to the extent that household incomes swell, so too will leisure tourism.

GROWTH IN VISITATION (OVER 5 YEARS)

3.5%

“Room rates are forecast to steadily grow over the next three years, increasing by 2.8% p.a. to reach $171 in 2019, while RevPAR will show healthy growth of 3.1% p.a. to reach $117 in 2019.”

PER ANNUM

INCREASE IN INTERNATIONAL VISITATION

DELOITTE ACCESS ECONOMICS, TOURISM AND HOTEL MARKET OUTLOOK | EDITION 2, 2017

275 MILLION

VISITOR NIGHTS SPENT IN 2016

the go-ahead accommodation operators behind the growing City Edge Apartment Hotels brand. They started with one motel leasehold.

And a new ‘Vox Pop’ section is a great forum for operators to tell us about their properties, giving an insight into their background and what they see ahead.

As always, you’ll find an incredible wealth of information from our many contributing experts and specialist brokers, covering issues relating to management rights, operations, finance, accounting and legal matters.

It’s all great advice to help you plan your successful future in the accommodation industry.

Before I sign off, I want to say a special ‘thank you’ and pay tribute to one of our most respected brokers

who is doing more than just planning his future. He is heading off to live it.

Ian Dore, who has handled motel, resort and management sales throughout SE Qld and northern NSW, is retiring after more than seven years with Resort Brokers Australia. In this time, Ian handled close to 60 sales for an impressive total value of almost $75 million.

So we are very sorry to be losing one of our most experienced, skilled and dedicated brokers. Ian always goes out of his way to help everyone, clients and colleagues alike, so he’ll be greatly missed. We wish him all the best for the future.

And now, all that’s left for me to say to all of you, dear readers, is that we hope you have a terrific peak holiday season. My family and I, and our wider Resort Brokers Australia family, wish you and yours a very happy Christmas and an outstanding 2018 ahead. END

4.6% PER ANNUM

INCREASE IN OVERNIGHT STAYS

55

MILLION MORE VISITOR NIGHTS SPENT IN 2016 THAN IN 2011

Source: Tourism Australia Tourism Investment in Regional Australia

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

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by TRUDY CROOKS NATIONAL SALES MANAGER

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

- ON THE -

MARKET

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RECORDBREAKING

run

Editorial

KEY TOURISM PERFORMANCE INDICATORS FROM FY12 TO FY17 Nights spent in hotels, motels and serviced apartments

+ 20%

120 nights

Inbound passengers on airlines

+ 36%

20.2 million

Passengers on domestic flights

+ 7.8%

59.3 million

Total tourism spend in Australia

+ 29%

$110.2 billion

Source: Tourism Research Australia

up 8%. As at June 30, Australia had welcomed 8.5 million overseas visitors for the year. They injected $40.6 billion into our economy.

ACCOMMODATION SALES LIFT

EVERYWHERE WE LOOK THE ARROWS ARE POINTING UPWARDS. TOURISM RECORDS KEEP BEING BROKEN AND NEW ONES SET AS THE INDUSTRY SOARS TO EVER-GREATER HEIGHTS. VISITOR NUMBERS, OVERNIGHT TRIPS AND EXPENDITURE ARE ALL CLIMBING, GIVING OPERATORS PLENTY TO CELEBRATE AS YOU ENTER THE BUSY 2017-18 FESTIVE TRADING SEASON.

C

asting an eye over statistics released by our friends at Tourism Australia and their research arm Tourism Research Australia, the numbers tell an exciting story. Domestic overnight trips were up 5% in FY17 to a record 93.7 million, with nights increasing 4% to 338 million.

These results, combined with strong growth in international travel for the year ended June 2017, place the total tourism spend at a record $122.9 billion. This is an overall increase of 6% or $6.9 billion on the previous year.

On the international visitor front – arrivals up 9%, total visitor spend up 7%, total inbound aviation capacity

All that economic activity naturally promotes investment and growth in the hotel, motel and serviced apartments sector. Happily, Resort Brokers Australia can also report we have seen record activity and turnover.

As I write, our running tally for the 2017 calendar year shows 173 settled sales of properties across all states and territories, with a total value nudging $290 million.

By the end of December, a further 47 sales are due to conclude, adding another $121.5 million. So we are on track to smash Resort Brokers Australia records for both volume and value – potentially 220 sales for the year valued well in excess of $410 million. Half a billion, here we come!

Of course, this is gratifying for our entire hard-working team, a tangible measure of their efforts, know-how and market expertise. But it is also affirming for all owners and operators, proof positive of the performance and value of your assets, and the demand generated thanks to our surging visitor economy.

MERGERS AND ACQUISITIONS Regardless of the accommodation category in which you operate, or the scale of your business, you can look to some massive deals in the industry as further evidence of the incredible

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Editorial

ON THE INTERNATIONAL VISITOR FRONT – ARRIVALS UP 9%, TOTAL VISITOR SPEND UP 7%, TOTAL INBOUND AVIATION CAPACITY UP 8%

investment appeal our sector has.

Operators at the big end of town are certainly on the acquisition path.

As I mentioned in our last edition, Resort Brokers Australia was recently at the centre of a history making deal, now just settled, that saw Mantra Group buy Australia’s inspired sevenproperty Art Series Hotel Group for $52.5 million. This was our largest deal for 2017 (although it is soon to be closely matched by a still-confidential single freehold hotel sale currently under offer).

But, no sooner had we announced Mantra’s Art Series acquisition than AccorHotels announced it intended to take over Mantra Group for $1.3 billion.

It followed hot on the heels of Japan-based Prince Hotels acquiring homegrown StayWell Hospitality Group with its 30-strong portfolio of 18 hotels and 12 under development across seven countries.

Consolidation in the hotel sector seems set to continue. As we discussed in the last edition of 8

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Informer, one key reason seems to be an aim to broaden the offers available on hotel group booking platforms so more travellers use their channels rather than OTAs. The goal is to boost customer loyalty and curtail leakage to the OTA sector.

Of course there can be advantages for the owners of target-brand properties too. For example, in the case of the Mantra acquisition, Accor’s superior purchasing power should deliver real savings for owners.

HOTEL FOCUS ATTRACTS LISTINGS Meanwhile, Resort Brokers Australia’s greater focus on the hotel sector through our launch of a dedicated hotels division is bearing fruit.

Arising from our industry-beating knowledge and experience in the motel and management rights categories, we are now gaining some serious hotel listing appointments, including hotel management agreements,

leaseholds and freeholds.

Among the significant listings already on our books are: ›› Cosa Hotel: an 88-room 3.5-star Christchurch NZ freehold being offered off-the-plan as a turn-key asset with vacant possession or with a franchise or management agreement in place. ›› 488 La Trobe Street, Melbourne: we are conducting the selection process for a long-term hotel management agreement to operate this exciting new purpose-built 17-storey, 161-key CBD hotel. ›› Springfield / Lions AFL Club hotel: a quality off-the-plan hotel freehold opportunity linked to the new Brisbane Lions AFL stadium and headquarters at Springfield. It’s sure to stir up plenty of interest, located at the heart of one of Australia’s fastest growing cities, and with multiple investment options on the table.

So, we can look forward to plenty of market action ahead in 2018. END

MARKET ACTION

Southeast Queensland luxury building management rights, one a prime holiday resort and the other an off-the-plan permanent residential, are among Resort Brokers’ noteable recent settled sales, while a regional NSW motel sale signals a healthy investment appetite.

MARKET REMAINS STRONG FOR PREMIUM BUILDINGS A fast-growing Brisbane-based operator has bought the management rights to a major luxury apartment project in Newstead off the plan.

The sale is a sign that demand for premium buildings remains strong, despite recent funding challenges in the sector, with rental demand for quality apartments in Brisbane tracking well above expectations.

Aurora Assets Management Group has added the management rights to HCAP Developments’ luxury 220-apartment Haven project at Newstead to its expanding portfolio in a deal negotiated by Tim Crooks and Gareth Closter of Resort Brokers Australia.

It follows a competitive national tender process that drew multiple submissions from some of the best operators in the business.

The UDIA award-winning 25-level Haven, featuring an integrated ground floor retail centre and more than 570m2 of premium rooftop recreation facilities with expansive river and city views, is being delivered by Marquee Development Partners for HCAP Developments.

Located opposite Gasworks Plaza, the building has attracted a mix of owner-occupiers and investors, with a large number of apartments selling in the $1m to $3.5m price range.

Above: Haven at Newstead offers spectacular Brisbane River and city views.

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Editorial

“Over the past 12 months, the team has worked hard to secure the best onsite building manager and property management operator,” said HCAP Developments CEO Steve Howell. “We have awarded Aurora Group the opportunity due to their passion for the premium Haven offering and their wealth of experience.”

Aurora Group now has more than 3,000 residential apartments under management in Southeast Queensland. COO Paul Daily said Haven was Aurora’s flagship residential community and one of Brisbane’s best developments.

“We are very proud to add this luxury project to our management rights portfolio. Within five weeks of advertising some of the luxury apartments for rent, we were over-subscribed, having received in excess of 1,200 enquiries in that time. There has been particularly strong demand for three-bedroom apartments with river or city views, something rare in Brisbane in premium locations.”

Aurora will be providing building and property management services plus a dedicated concierge service unique in the city.

Left: (From left) Broker Russell Rogers with Crest Motor Inn buyers, Redhill Partners CEO Guy Peterson and Singaporebased partner James Hyndes.

CREST QUEANBEYAN BUY LAUNCHES INVESTMENT STRATEGY A Singaporean-Australian partnership has launched a planned ‘accommodation investment strategy’ with the purchase of Queanbeyan’s Crest Motor Inn freehold going concern for close to $2.6 million.

Resort Brokers Australia’s NSW broker Russell Rogers sealed the deal on the sale to Redhill Partners, a business jointly owned by NSW/ACT-based Guy Peterson and Singapore-based James Hyndes.

“Redhill Partners is pleased to announce the purchase of the Crest Motor Inn, being the first purchase of our accommodation investment strategy focusing on upgrading and consolidating regional motels in Australia,” a Company Update stated. The group signaled its intention to buy another two or three motels.

“We believe the Australian motel sector offers a superior risk reward compared to other investments,” it said, citing Australia’s surging tourism market, limited 10

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"WE BELIEVE THE AUSTRALIAN MOTEL SECTOR OFFERS A SUPERIOR RISK REWARD COMPARED TO OTHER INVESTMENTS." supply of new motel stock, and relatively low institutional investment in the motel sector.

The Crest Motor Inn is a well-positioned 30-room property on a large corner block in the main street of Queanbeyan, with a spacious three-bedroom, threebathroom manager’s residence.

It is situated less than half an hour from Canberra’s many tourist attractions, at the gateway to NSW’s Southern Tablelands and snowfields.

Guy Peterson, CEO of Redhill Hospitality Management,

has direct motel experience and has substantially improved another motel’s performance within a year through refurbishment, implementation of new booking systems, and diversification of client base to include substantial corporate guests.

“We aim to use this strategy to improve the occupancy, room rates and profitability of the Crest Motor Inn,” Redhill said.

Left: Crest Motor Inn, Queanbeyan, NSW

Above: Aqua Vista Resort, Maroochydore, Queensland

AQUA VISTA RIGHTS SOLD BY DIRECT BOOKING CHAMPIONS

The management rights to high performance Sunshine Coast resort Aqua Vista have changed hands as the former owner-operators move on to step up the industry’s battle against OTA dominance.

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Editorial

Top Left: A stylish welcome to Aqua Vista Resort Maroochydore.

Top Right: Impressive Aqua Vista Resort Maroochydore facilities.

Eric and Tanya Sealey, who are now concentrating their efforts on establishing the new direct booking platform Gorez*, have sold the landmark Aqua Vista management rights through Resort Brokers’ senior broker Glenn Millar for $3 million.

Aqua Vista Resort features 14 levels of luxury accommodation rising above half an acre of stunning resort facilities, just 75 metres from the patrolled beach.

With 31 of its 64 deluxe apartments in the letting pool, the operation delivers a robust nett profit with scope to grow.

Glenn says the prime building at

Maroochydore has been snapped up by a local Sunshine Coast-based investment syndicate at a time when the city is poised for explosive growth.

“The new Maroochydore CBD will be the dynamic heart of the Sunshine Coast, and a major airport expansion, set to open up international routes, will contribute an estimated $4.1 billion to the local economy between 2020 and 2040,” he said.

The sale included a luxury threebedroom, two-bathroom manager’s apartment, while the agreements had 24 years remaining (25 years from

2016). Lavish facilities include a heated swimming/lap pool, heated spa, sauna, gym, day spa, theatre room, tour desk, barbecue area and secure undercover parking.

The Sunshine Coast ranks as one of Australia’s top tourism markets, attracting nearly nine million visitors each year. END * Gorez, first profiled in Informer Issue #86, is a commission-free website that allows independent and chain operators to band together to reinstate direct bookings as their primary source of reservations.

Management Rights Law Specialists Australia Wide Our trusted team of legal experts, led by Col Myers, draws on over 30 years experience to get you the best possible outcome.

Although our full suite of services is more comprehensive, particular expertise covers: - Buying & Selling - Structuring - Variations - Renewals - Establishments - Licences & Letting Appointments - Advice on all Body Corporate Issues - GST, Stamp Duty and Tax - Exit strategies - Dispute resolution - Legal due diligence reports

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

› Special Project - Leasehold REF: LH004985

Diverse Eco-Tourism Business in West Tasmania Resort Brokers Australia is proud to offer one of Australia's major eco-tourist complexes situated at the edge of Tasmania's Tarkine Wilderness . Corinna is a fully sustainable eco-village which has achieved EarthCheck assessed and advanced accreditation under the Eco Tourism Australia rating system.

This is a great opportunity to position yourself at the forefront of the massive eco-tourism and attractions market, which is sweeping the tourism world.

Corinna is situated on the Pieman River and with a long history dating from its original Aboriginal custodians, through the gold rush and into the mining era. The business is situated on four hectares at the edge of 450,000 hectares of wilderness.

Purchased in the early 2000s by the vendors, they have developed Corinna into a unique tourist destination offering accommodation, attractions and marvelous wilderness experiences and activities.

An outstanding opportunity to build on a solid foundation.

›› Accommodation of 3x rustic cabins and 16 newly built heritage cabins ›› Further accommodation of an 8-bed Backpackers Lodge ›› A beautiful camping area has been developed along the Pieman River ›› The 'Fatman' Barge; A vehicle ferry service across the Pieman River ›› The 'Tarkine' Hotel (tavern) and 'Tannin' Restaurant, reception and shop ›› Two (2) river cruise boats offering wonderful Pieman River cruises

Financials CONTACT BROKER FOR FURTHER DETAILS PRICE: EXPRESSIONS OF INTEREST

EXCLUSIVE

Ray Ironside BROKER

M. +61 418 130 364 E. rayironside@resortbrokers.com.au

West Coast Tasmania INFORMER DECEMBER 2017 |

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› Freehold Hotel

No m Bu inat e sh Pu d and bA HA Fina NS list W for Aw Be ard st s.

REF: FH005013

Fantastic Rural Hotel Opportunity

8

1

1

Guest Rooms

Bed

Bath

MANAGER’S RESIDENCE

MANAGER’S RESIDENCE

This property is a wonderful example of a western NSW rural hotel comprised of eight well-appointed and renovated guest rooms of various configurations.

›› Fantastic owner-operator business

This family friendly hotel shows great potential for an owner operator with some vision and capacity to cater for a community centered around this hotel. With the renovations completed, the present owners are capitalizing on the improvements. Many functions have been pre-booked, including weddings, Christmas parties, corporate functions, birthdays etc.

›› DA approved 10x site caravan park, adjacent to hotel

This hotel presents a great opportunity to enter the hotel industry in a beautiful rural lifestyle setting. Enjoy the fantastic ground-work the present owners have established, and continue the tradition as the meeting place and community base in this large part of western NSW. The hotel also caters for many seasonal workers from agriculture & grain organisations, and government departments who use the hotel as their base while working in the area.

›› Close-knit rural community of which this hotel is the focal point

›› Function/outdoor entertainment area to be completed by owner ›› Accommodation destination for western NSW travellers ›› Eight tastefully renovated hotel style rooms ›› Single bar operation

Financials NETT PROFIT: $188,391 PRICE GUIDE: $750,000

Andrew Rendall BROKER

M. +61 412 635 344 E. andrewrendall@resortbrokers.com.au 14

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Armatree, NSW

› Hotel Management Agreement

Final design subject to change

REF: MR005026

Calling For Hotel Management Agreements in Melbourne CBD

161

25

17

Rooms

Management Term (yr)

Storey Tower

COMING SOON! A brand new purpose built hotel. This impressive 17-storey tower located at 488 La Trobe St, West Melbourne will host 161 keys, with 96 hotel rooms & 65 serviced apartments.

›› 161 keys including 96 hotel rooms, 65 studio, 1 and 2 bedroom apartments

Generous planning provision has been made for F&B, meetings and functions, common areas, operational & back-of-house facilities. Operators will recognize the significance of this trophy location, situated in the heart of one of Asia-Pacific’s most important financial and cultural hubs— the Melbourne City Centre that is bordered at its west end by La Trobe Street.

The successful operator will have full engagement with the owner-developer and their design consultants, collaborating from the outset to optimise operational efficiency, performance and returns for both parties, prior to construction. Importantly, the owner is prepared to customise design aspects and undertake fit-out in accordance with your nominated brand standards.

›› Lobby / guest lounge, ground floor café, restaurant and retail & conference ›› Terrace level dining, bar and functions facility ›› 24 hour concierge and room service available ›› 25 year Hotel Management Agreement - 10 years with 3 x 5 year options ›› Completion June 2020

An outstanding opportunity for the selected operator to establish or expand your nominated brand in a striking new 4 to 4.5 star property with a high-profile location.

EXCLUSIVE

Michelle Matthews

Tim Crooks

Trudy Crooks

M. +61 400 474 861

M. +61 422 208 450

M. +61 477 882 210

E. michellematthews@resortbrokers.com.au

E. timcrooks@resortbrokers.com.au

E. trudycrooks@resortbrokers.com.au

BROKER

NATIONAL OFF THE PLAN SPECIALIST

INFORMER DECEMBER 2017 |

SALES MANAGER

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› Management Rights REF: MR005012

2

2

Bed

Bath

MANAGER’S RESIDENCE

MANAGER’S RESIDENCE

Spectacular Byron Bay Beachfront Management Rights

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THIS ONE HAS IT ALL!

›› 4-star apartment complex, across the road from Byron's main beach

'Spectacular location offering stunning ocean views', perfectly describes Bayview Beachfront Apartments. These spacious 4-star apartments in the very heart of Byron Bay are set in secure manicured grounds. All apartments have been meticulously maintained. Built over three levels above secure underground car parking, these self-contained one and two bedroom wellappointed apartments enjoy views over the gardens, the pool and Byron's main beach. Bayview Beachfront Apartments are located a short stroll away from world-class restaurants and boutiques, while close at hand are all of Byron's renowned attractions.

Byron Bay in northern New South Wales is the most easterly point of Australia, located just 45 minutes from Coolangatta (Gold Coast) International Airport, and 35 minutes north of Ballina Byron Airport. The beautiful main surf beach with its Surf Club and patrolled beach flags is directly opposite Bayview Beachfront Apartments, while 150 metres away is the famous Beach Hotel and the start of Jonson Street, Byron's shopping, restaurant, cafe and nightlife mecca.

Units

›› Minutes stroll to world-class restaurants, boutiques and attractions ›› Meticulously maintained units set in secure landscaped gardens ›› Basement car parks, heated lap pool, sun lounging deck +BBQ dining pavilion ›› 20 spacious 1 & 2 bedroom well-appointed self-contained apartments ›› Manager's unit is 2 bed, 2 bath with open plan living opening onto 114m2 garden courtyard

Financials NETT PROFIT: $445,619 PRICE: $3,595,000

EXCLUSIVE

Ian Dore BROKER

M. +61 412 752 238 E. iandore@resortbrokers.com.au 16

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Byron Bay, NSW

› Management Rights REF: MR004995

Brisbane's Largest Established Management Rights!

520

461

Apartments

Letting Pool

Central Village commands a prominent position in this inner city location and features three unique high-rise towers comprising 520 apartments and boasting a lagoon and lap pool, fitness centre and billiard room. 461 apartments in the letting pool produces an incredible $723K Body Corporate salary and a whopping $1.6m nett profit!

›› Thriving inner city location with fantastic amenities at your doorstep

This stunning complex hosts tranquil drought-resistant, low maintenance gardens and manageable rooftop lounges. There are two beautifully restored heritage buildings providing residents with an array of country-club style amenities that are fortunately under utilised. Perfectly located within close vicinity to the CBD, in a vibrant suburb with incredible appeal, this hidden gem offers a peaceful haven to the flourishing tenant market ensuring it has practically zero rental vacancy to date. You have to see it to believe it!

Business Only Management Rights don’t get any bigger than this which makes Central Village a truly rare combination of critical mass and high return on investment. This is an unprecedented opportunity to secure Brisbane's largest established Management Rights!

›› High 88% investor profile ›› 21+ years remaining on agreements assuring great security for the manager ›› Resort facilities helps attract tenants with very manageable caretaking ›› Generous office and storage areas provided to operate a business of this scale ›› Almost 0% vacancy indicating the huge tenant demand for Central Village

Financials NETT PROFIT: $1,603,780 PRICE: $10,424,570

EXCLUSIVE

Gareth Closter

Tim Crooks

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

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

BROKER

NATIONAL OFF THE PLAN SPECIALIST

INFORMER DECEMBER 2017 |

Brisbane,QLD resortbrokers.com.au

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by GARETH CLOSTER MANAGEMENT RIGHTS BROKER

COULD NRAS MANAGEMENT RIGHTS BE

a better option?

Down to

BUSINESS

THE LATEST FROM OUR TEAM ON THE GROUND

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A

ny operators unsure about taking on buildings with an NRAS component can be reassured. Having recently sold seven Brisbane management rights with NRAS units in the letting pool, Resort Brokers Australia is well placed to bust myths and misconceptions about the National Rental Affordability Scheme.

Two of the most important business benchmarks for residential

MLR operators are low vacancy rates and strong lot owner loyalty.

Yet some MLR buyers are reluctant to consider NRAS properties.

That is, until they understand their negative perceptions of the scheme and its participants are generally misplaced.

The truth is, NRAS-approved apartments drive strong rental demand and underpin the security of a letting pool (via the 10-year nature

Editorial

LETTING POOL SECURITY

of the NRAS scheme), offering a high degree of business stability and income certainty for the operator.

In a sense, the scheme provides an additional layer of security for the manager beyond the standard 30-day appointment period via Form 6 letting appointments.

VALUE SUPPORTED So, when it comes time to sell, the robust business fundamentals support the value. Experienced NRAS operators are usually enthusiastic supporters who, because of the benefits, will look for other management opportunities with an NRAS allocation.

The sales record of our Brisbane team this year has confirmed that management rights in buildings with NRAS units sell at the same

multipliers as comparable non-NRAS buildings (subject to arrangements with the accredited NRAS provider, outlined later in this article).

Our experience is also that the majority of banks will lend at the same LVR (loan to value ratio) as they would for non-NRAS management rights.

Under the NRAS arrangements, which remain in place for 10 years, investor owners receive generous Federal and State Government incentives, and tenants enjoy a minimum 20% and maximum 30% discount on market rent.

That means high demand, co-operative tenants, long-term tenancies, and low vacancy rates.

Eligible tenants want to stay put, particularly in quality buildings and those in prime locations. For the same reasons, any rare vacancies are readily and quickly filled.

NRAS tenants are typically extremely appreciative of the scheme and its benefits. Once granted NRAS eligibility, they do not wish to jeopardise their position. So they take care to abide by Body Corporate bylaws and tenancy rules to ensure they are able to remain in the apartment for the long-term.

Having experienced the benefit of discounted rent, tenants feel like they are part of an exclusive arrangement that they cannot replicate in another building, so you enjoy higher retention rates.

Units are also more likely to remain in your letting pool for longer. CPI-indexed incentives paid to investors are so attractive (currently $11,048.04 / dwelling p.a.), that owners are unlikely to sell to an owner-occupier during the 10-year NRAS period.

In fact, penalties discourage investors from opting out of the scheme early. Should they sell to another NRAS investor, it is likely the new owner will simply continue with existing arrangements and agreements.

NRAS unit owners can sell, but are unlikely to because their generous incentives apply for the 10-year period. However, if they do sell to another investor, that buyer enters into an agreement for the balance of the NRAS term, and you will likely retain management.

Retention of the letting appointment by the already NRASapproved onsite manager in this scenario is generally 100% because of perceived barriers to entry, due to the process required for an outside agent to gain NRAS approval for your specific building.

Sale to an owner-occupier is unlikely because the seller would have to pay a penalty of $300 + GST + CPI for each remaining year – further underpinning the security of your letting pool.

PROVIDER RELATIONSHIP For management rights operators, I should point out that the greatest benefits arise when you work with an NRAS provider who is supportive of your role.

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Editorial

The Union Street Apartments in the Brisbane suburb of Nundah sold in 2017 at a multiplier of 5X+, with 36 of its 48 apartments in the letting pool, 19 of which are NRAS-approved.

Especially important is that the provider has no interest in running a competing letting business. For your assurance and that of your financier, they should provide a written warranty to that effect, in the form of a Deed of Restraint.

When you have a good working relationship with the provider, they can be your greatest ally, able to influence lot owners to remain in your letting pool. They recommend to their clients (NRAS unit owners) the advantages of quality onsite management.

Because agents need to be NRAS-authorised to manage NRAS units (approved by both the State Government and the provider for each building in which they operate), a change of manager is less likely, further supporting long-term retention of agreements. Finding an outside agent willing to take on a single appointment in such a building would be difficult.

Nevertheless, for the management rights buyer, NRAS approval is usually a simple process.

Once the provider reviews your 20

resortbrokers.com.au | INFORMER DECEMBER 2017

resumé and has a copy of your Real Estate Licence, they lodge your application with the government for approval, usually a simple formality.

You don’t need extra qualifications or special software to manage an NRAS building. A good provider actually handles most of the compliance requirements. They want what you want – to put the right tenant into the property as quickly as possible, so they help you every step of the way.

As highlighted earlier, whilst compliance is a simple process, it acts as a barrier of entry to external agents, many of whom would not want to work through this red tape which does not exist on standard management agreements.

ESTABLISHED MARKET In regard to the impact of an NRAS component on your management rights’ profitability, you need to understand the benefits of NRAS from the outset. This includes gaining high demand, low vacancy, long-term letting pool security and

income certainty.

The price you pay for your business is relative to the income it earns. In the case of the NRAS units, you earn full commission on a slightly lower rent. Over time, many find this preferable to commissions earned on higher rentals but with a much higher vacancy rate.

So, back to the question of marketability. As I said, our experience shows valuers see no reason to treat buildings with an NRAS component any differently to traditional MLRs. The market is well established and accepted. Experienced operators who understand the model have demonstrated a strong appetite for these businesses.

I know if we had more buildings with an NRAS allocation in the Brisbane market, we would have ready buyers.

If you want to know more, or are interested in considering NRAS opportunities, give our Brisbane office a call. Our expertise in this specialist field is well established.

END

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myport.com.au

resortbrokers.com.au 1300 733 629

INFORMER DECEMBER 2017 |

21

› Management Rights REF: MR005018

$202,000 Body Corp Salary 78 Low-set Villa Complex

78 77 25

3

2

Villas

Bed

Bath

MANAGER’S RESIDENCE

MANAGER’S RESIDENCE

This Complex has a nett of $336,000 with a body corporate salary of $202,000, with 77 units in the letting pool. (This is a protected letting pool and can never change.)

›› No set office hours

Low-set villa complex with easily maintainable gardens and lawns, currently run by a single operator who resides on-site.

›› Great Body Corporate salary $202,000

The owner is looking to purchase a larger complex and has placed this great complex on the market, which offers two separate manager's apartments within the business, so there is great opportunity to rent out the other or live in both.

Letting Pool

Management Term (yr)

›› Two manager's residences ›› Ability to rent out manager's unit - extra income! ›› Nett Profit of $336,669 ›› Protected letting pool - secured units in pool ›› Manageable caretaking duties ›› Long agreements of 25 years in place

Located halfway between Brisbane and the Gold Coast and extremely close to all the major transport and major shopping centres within this corridor.

Great business for someone looking to upgrade to a larger complex with a significant nett income. This is an exciting opportunity that is sure to impress.

Financials NETT PROFIT: $336,669 PRICE: $2,165,000

EXCLUSIVE

Paul Mueller

Brent Staker

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

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

BROKER

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resortbrokers.com.au | INFORMER DECEMBER 2017

BROKER

South East QLD

› Freehold Hotel REF: FH004355

High ROI 23.5% Freehold Hotel just 2 hours from Brisbane

4

1

1

Rooms

Bed

Bath

MANAGER’S RESIDENCE

MANAGER’S RESIDENCE

Freehold Going Concern of a Hotel/Motel in country Queensland, less than two hours from Brisbane and approximately 40 minutes to Toowoomba, and the western international airport. This family run business, comprising of four motel units is showing an impressive 23.5% ROI - that's an outstanding return!

›› Massive return of 23.5%

Currently run by fourth generation publicans, who have this business humming in the two years of ownership, with a continuous turnover and profit on the rise. With the announcement that the world's largest solar electricity farm is going ahead, and the inland railway announced, it will only get better for this family business moving forward.

›› Largest solar farm in the southern hemisphere going ahead

This business is situated right alongside the biggest accommodation provider in town, which provides a natural stream of patrons to this Inn, for meals, beverages and poker machines.

To top this off, this business has also just opened their new function centre alongside their Pub kicking off with a function for 200 people. The turnover and nett will be through the roof this financial year with this additional asset, so get in and get your share.

›› 4 new motel rooms now open ›› New function centre now open and flying ›› Inland rail announced to go via the town

›› Turnover and profit going up substantially each year ›› Great business for a couple to run, or large enough to run under management ›› Leasehold interest of property available on request

Financials NETT PROFIT: $382,068 PRICE: $1,630,000 + SAV

Lindsay Cooper BROKER

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

Millmerran, QLD INFORMER DECEMBER 2017 |

resortbrokers.com.au

23

Editorial

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

PETER & IRENA CUSHEN

BUSINESS UPBRINGING GAVE THEM THE EDGE

Family businesses on opposite sides of the world cultivated the belief and skills Peter and Irena Cushen would need to launch and grow their expanding accommodation portfolio. The driving force behind City Edge Apartment Hotels is a husband and wife duo with an intuition for opportunity and the business acumen to seize it.

24

resortbrokers.com.au | INFORMER DECEMBER 2017

M

elbourne born and raised, Peter Cushen joined his family’s Cushen Clothing Company straight from school. The business specialised in work apparel and footwear, having the Victorian and South Australian distributorship for Yakka Pty Ltd. There he forged a successful career for more than two decades, wearing just about every hat from factory floor to warehousing and distribution, customer service to operations and marketing.

“I did a qualification in marketing at night after work, which was a pretty hard slog,” he recalled. “But I was a director by age 29, and I think that’s pretty good going.”

Meanwhile, 14,000 kilometres away in Odessa, Ukraine, the young Irena was fully expecting her destiny would lie in her family’s sizable

hospitality business, which included a bakery and restaurants.

After school, she pursued her interest in languages, graduating from the Cherkassy State University with a Bachelor Degree in Arts, majoring in philology (the study of languages).

“I studied languages, primarily the history of English, because it was my interest and passion. But I didn’t plan to pursue a career in that field, because I saw my future in the family business,” she tells. “I was exposed to the business way of life from school age, and I was always interested in the operations side.”

The sliding door moment occurred in 1999 when Peter was travelling.

The pair was introduced by friends, and a new future for each was set in motion. They married, and Peter returned with Irena to Australia

INFORMER DECEMBER 2017 |

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25

Editorial

in 2000.

So, how and why was the transition made from the clothing business to the accommodation sector?

“I saw the writing on the wall in the clothing, footwear and textiles industry,” Peter said. “Tariffs were coming down. It was time to get out.

“A mate of mine was running a motel and he suggested we consider the accommodation business. It looked like a good idea. People remarked that being in the hotel game is very different from selling overalls, but I think the same principals apply – cost control, marketing, customer service.”

For Irena, there was no question.

“My very first job was in the accommodation industry, in sales, so all my working life has been spent in the accommodation business,” she says. “I’m passionate about hospitality and I think it is the best industry to be in.”

In 2002, Peter and Irena bought a 20-room motel leasehold in the inner-Melbourne suburb of Brunswick. “We had our trainer wheels on,” they say. Before long, they were up and peddling fast, adding the nearby Treasury Motor Lodge in East Melbourne.

“About 200 metres away was City Edge East Melbourne serviced apartments,” said Irena. “We liked the City Edge name. We could see it had potential as a brand name, so we acquired that business too. At this stage, we were operating all three, all leaseholds, under different names.

“We trademarked the City Edge name, with plans to grow the brand.

Our plan was to add more properties under that brand, and see where it would take us.”

Already it has taken them a long way, with Peter as CEO and Irena as Managing Director. Expansion began in earnest in 2009, when they opened City Edge on Elizabeth as a brand new property in Melbourne’s CBD, then added another new build, City Edge North Melbourne, the following year.

Now the City Edge Apartment Hotels portfolio numbers six properties in Melbourne (Box

26

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Hill, Dandenong and another CBD location have been added) and one in Brisbane CBD. “We realised serviced apartments were the growth story of the hotel industry,” Peter said.

“People like the space, convenience and privacy you have when you have a separate living and dining area and kitchen facilities.

“Growth in this market segment is continuing— it’s an accepted part of the hotel industry, and we enjoy a niche as a boutique chain at the 4-star (self-rated) level.”

"WE TRADEMARKED THE CITY EDGE NAME, WITH PLANS TO GROW THE BRAND. OUR PLAN WAS TO ADD MORE PROPERTIES UNDER THAT BRAND, AND SEE WHERE IT WOULD TAKE US" The next step on Peter and Irena’s business growth plan was to introduce franchising, which they have been pursuing since 2014. “We believed that to franchise was the way for the future,” Irena explained.

“Having the business owner present on site is the best approach.”

Currently, the City Edge portfolio is a mix of company-owned and franchised properties, but ultimately all will be franchised. Over the coming years, the Cushens aim to grow the City Edge network to 15 properties across Australia.

“We want to be a national brand. We are heavily represented in Melbourne, and will continue to grow in Melbourne because it is our home and one of Australia’s busiest cities. But we have added Brisbane and, to be a truly national brand, we need to spread to other key

locations,” Peter said.

Irena, who handles operations across the group, explained their franchise model begins with the selection of a premium location, followed by exhaustive due diligence. “Only after a very vigorous process do we execute the agreement to lease,” she says.

The couple has positioned their brand as catering for ‘savvy travellers’ – capturing a market that is 40% FIT (free independent traveller) and 40% corporate, and cultivating a loyal customer base to the extent that 60% of guests are repeat visitors.

Peter, in particular, has a keen interest in driving City Edge’s online presence, while Irena deftly juggles her hands-on operations role with being a mother to their two daughters, aged 15 and 10.

Family life also keeps them very busy, especially as their younger daughter is an elite diver with lofty sporting ambitions. “There are a lot of very early mornings,” Peter laughs. “She’s only 10 and she has Olympic ambitions, so we have a long way to go.”

Their eldest daughter, Irena tells proudly, has already shown a keen interest in the family business. “She has actually started to work at City Edge. She would like to be a part of the company. In fact, she would like to take a leading role.”

For Peter, the business, time with family and friends, and keeping fit are priorities – commitments that mean his “pride and joy”, a gleaming Harley-Davison, spends more time in the garage than he’d like.

Given any precious ‘spare’ time, Irena finds respite in her rose garden. “I find gardening and landscaping very relaxing and enjoyable, getting back to basics, where we came from,” she says.

But with a number of new hotel locations already under consideration, and more opportunities being offered almost weekly, it is the family business that is growing.

“We have developed our own unique business model, and we both understand the need for continual re-investment of capital, intellectual as well as financial.”END

Artist's Impression

City Edge Box Hill Apartment Hotel INFORMER DECEMBER 2017 |

resortbrokers.com.au

27

› Management Rights REF: MR005015

Profitable Management Rights in Paradise!

27

21 19

2

2

Apartments

Letting Pool

Bed

Bath

MANAGER’S RESIDENCE

MANAGER’S RESIDENCE

Elysium Apartments presents as one of the newest and most modern resorts in the popular tourist hotspot Palm Cove. Strong occupancy is supported through domestic and corporate clients, with a high number of international passports, throughout the year.

›› Unique business opportunity with maximum upside

Elysium has 21 modern well-appointed apartments, comprising a mix of studio, one, two and three bedrooms options. Some of the apartments are dual-key allowing the manager to maximise letting performance throughout the year.

The business also features an external rent roll of six desirable properties in the surrounding area. This is a great opportunity for a motivated operator to own and operate a profitable business with plenty of scope.

Management Term (yr)

›› High ROI and competitive multiplier ›› 2 bedroom 2 bathroom manager's residence with huge outdoor private area ›› Location Location - 2 minute stroll to the beach ›› Modern complex thoughtfully designed ›› Two profitable businesses managed from one location ›› Easily managed as a couple or sole operator ›› No set office hours

The two bed, two bath manager's unit offers quality not always appointed to a manager’s apartment— thoughtfully designed for tranquillity and privacy to relax and unwind.

Financials

With a competitive 17% return on investment (including the unit), this is an outstanding chance to purchase a profitable business with plenty of upside in paradise!

NETT PROFIT: $212,931 PRICE: $ 1,185,000

EXCLUSIVE

Chenoa Daniel BROKER

M. +61 403 143 151 E. chenoadaniel@resortbrokers.com.au 28

resortbrokers.com.au | INFORMER DECEMBER 2017

Palm Cove, QLD

› Leasehold Motel REF: LH005016

Leasehold Apartment Hotel In Our Country Music Capital

40

This is a unique opportunity to secure the leasehold interest of a Quest Apartment Hotel Franchise in rural NSW.

›› Member of Australasia’s leading Apartment Hotel Franchise Group

With a 4-star rating, Quest Tamworth comprises 40 fully refurbished apartments giving guests the choice of one, two or three bedroom units to suit their requirements. An impressive selection of facilities extend to include a large and welcoming reception area, a separate conference facility, a sparkling outdoor pool complete with relaxed BBQ areas and ample on-site vehicle parking.

›› Secure Leasehold tenure. Market Rent

Tamworth is a beautiful, vibrant and prosperous city that is regarded as the service centre for the New England and North West Region of the State. The township provides substantial medical services, large retail centres and excellent education facilities from preschool to university level schooling. The city is regarded as the Country Music Capital when it plays host to 50,000 visitors at the annual Country Music Festival held in January each year.

›› Maximising profit with hands-on management

4-STAR RATING

Units

›› Excellent mix of corporate, leisure and family clientele ›› Constructed in 2002 and maintained to the highest standard ›› Offering 25.5% return on investment ›› Set in a vibrant NSW town known as the Country Music Capital of Australia

Financials NETT PROFIT: $471,135 TURNOVER: $2,142,907 PRICE: $1,890,000

EXCLUSIVE

Ian Crooks

Jim Chapman

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

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

MANAGING DIRECTOR

VICTORIAN STATE MANAGER

INFORMER DECEMBER 2017 |

Tamworth, NSW resortbrokers.com.au

29

› Leasehold Motel

REF: LH005014

High and Constant Returns in North West Tasmania - Leasehold Motel

25

30

Rooms

Year on Lease

We are pleased to offer the leasehold of arguably the best presented motel in the State. With well-oiled systems in place, this motel makes sense for the operator who wishes to move in and immediately make money. Situated in one of Tasmania's boom towns, the business has a brilliant reputation and the mix of guests is not limited to tourists but welcomes locals, corporates, sporting clubs and event delegates. With over $350,000 spent on renovations over the past couple of years, the property is in great condition. The vendor concentrates on accommodation but we see an opportunity for expansion into catered events. A great opportunity not to be missed.

›› ›› ›› ›› ››

3

Bed

MANAGER’S RESIDENCE

Accommodation consists of 24x 1&2 bedroom rooms Also an executive spa unit and 3 B/R house One of the best owner's residences in the State Two rooms available for functions and breakfasts Offered with a new 30 year lease at market rent

Financials NETT PROFIT: $277,553 PRICE: $844,000

Freehold Investment available- by application Leasehold to settle following the freehold sale

EXCLUSIVE

Ray Ironside BROKER

M. +61 418 130 364 E. rayironside@resortbrokers.com.au

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Devonport, TAS

Great Value Management Rights With a Low Multiplier

35

This boutique two and three-bedroom residential building is a collection of 35 apartments with 20 projected in the letting pool.

Set over nine levels, surrounded by landscaped gardens with a beautiful pool, large outdoor terrace, gym and even a residents' lounge.

›› ›› ›› ›› ››

Manager caretaking remuneration of $40,910 and projected let fees of $34,090, with a total income of $75,000, this is a very nice add-on to an existing MR business in the area.

Financials

This has it all.

20

Apartments Letting Pool

2

2

MANAGER’S RESIDENCE

MANAGER’S RESIDENCE

Bath

Bed

No set office hours Beautiful manager's unit Ability to rent out manager's unit Perfect add-on to an existing MR business Configure the office your way

› Management Rights

REF: OTP004747

NETT PROFIT: $75,000 PRICE: $699,000

EXCLUSIVE

Paul Mueller BROKER

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

Broadwater, QLD

Resort Style Freehold Motel NSW Mid North Coast

37

The Destiny Motor Inn in Nambucca Heads is a beautiful and comfortable 3½ star, 37 room resort style motel complex with glorious water features, lush tropical gardens recently overhauled & situated right by Nambucca River. Furthermore given the Destiny Motor Inn sits on an impressive 6.5 acres, future development is a genuine prospect. A thriving business underpinned by repeat coach/bus tour groups provide revenue peaks outside the tourist and corporate seasons. The current management & staff are eagerly prepared to continue. Alternatively, you may choose to owner-operate with your business model—thus providing the ability to future plan for accommodation & restaurant leasing options, with superb on-site facilities.

›› ›› ›› ›› ››

2

2

MANAGER’S RESIDENCE

MANAGER’S RESIDENCE

Bed

Rooms

Bath

Rare desirable Mid North Coast freehold opportunity 37 Rooms and apartment style rooms and suites Pending bypass to enhance this commercial opportunity Renowned à la carte restaurant seating 100 guests Recently renovated lush resort style gardens and water features

Financials NETT PROFIT: $447,392 PRICE: $4,200,000

› Freehold Motel Restaurant

REF: FH005017

EXCLUSIVE

James Carrick BROKER

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

Nambucca Heads, NSW INFORMER DECEMBER 2017 |

resortbrokers.com.au

31

› Management Rights REF: MR005003

High Netting, High Return Beachfront Management Rights

114

100

4

4

Units

Letting Pool

Bed

Bath

MANAGER’S RESIDENCE

MANAGER’S RESIDENCE

Netting around a massive $1,000,000 PA and growing!

›› Massive nett profit

An unbelievable opportunity to purchase three (3) management rights businesses in very close proximity— fully integrated and operated centrally.

›› Good Body Corporate salaries

All properties are absolute beachfront and of a high standard: one complex consists of 42 units, the second consists of 22 units and the third a very near new complex consists of 50 units, and it should be noted there is still much more growth in this new complex to be enjoyed.

›› 114 units in total and 100 in the letting pool ›› Two manager's units included: both consisting of 2 bedroom+2 bathroom ›› Very little competition ›› Large catchment area ›› Long term agreements

The existing owner/managers have done all the hard work in setting up the business structure to operate efficiently and with synergy. The adjoining retail and bar/cafe element adds to the attractiveness of the properties. All conference income goes to the managers without any property outlay.

›› Take over an easy to run fully staffed business

The purchase price includes two spacious 2 bedroom, 2 bathroom units making this an operation ideal for a family, a syndicate or a corporate buyer looking to run under management for great returns. Purchase Price of $6,125,000 including $1,125,000 of real estate.

Financials

›› Room to grow

NETT PROFIT: $1,000,000 (approx) PRICE: $6,125,000

EXCLUSIVE

Ian Crooks

Trudy Crooks

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

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

MANAGING DIRECTOR

32

resortbrokers.com.au | INFORMER DECEMBER 2017

SALES MANAGER

Yeppoon, QLD

› Leasehold Motel REF: LH004974

Leasehold opportunity for the unique Artesian Spa Motel

46

24

1

1

Motel Suites

Years on Lease

Bed

Bath

MANAGER’S RESIDENCE

MANAGER’S RESIDENCE

Move to beautiful Moree to own one of the unique motels with its own artesian spa pools.

›› Five landscaped acres with its own natural artesian hot pools

People visit Moree year-round for the therapeutic benefits of the artesian pools and their healing minerals. Tourism also brings visitors to the Gwydir Wetlands, just an hour’s drive north of Moree, a conservation area and birdwatchers' paradise.

›› 46 guest rooms including self-catering and family rooms and parking

This AAA rated 3.5 star motel is set on five beautifully landscaped acres close to the town centre, giving both the benefit of proximity and the peacefulness of being away from traffic and noise. The management residence is a spacious one bedroom apartment within the premises.

Add your own touch to the 46 motel suites and renovated bathrooms, to give this accommodation a fresh look and new appeal. Upgrade the indoor pool to give it a modern spa appeal.

The restaurant offers a diverse à la carte menu, with both tourist and local clientele, and can be booked for conferences, functions and weddings for up to 100 guests. The motel is consistently rated well on Trip Advisor for its comfort, facilities and restaurant. You are purchasing a sound ROI in this business with room to increase the offering, star rating and return.

›› AAA rating 3.5 star with opportunity to improve ›› Three pools, two filled with natural artesian water, one indoor ›› The Artesian Gardens Licensed Restaurant seats 70 in picturesque gardens ›› A la carte menu serving breakfast daily and dinner ›› Function and conference facilities packages for up to 100 guests

Financials NETT PROFIT: $422,105 PRICE GUIDE: $1,500,000

EXCLUSIVE

Russell Rogers

James Carrick

M. 0416 166 909 E. russellrogers@resortbrokers.com.au

M. +61 400 644 065 E. jamescarrick@resortbrokers.com.au

BROKER

BROKER

INFORMER DECEMBER 2017 |

Moree, NSW resortbrokers.com.au

33

Feature

ENGINEERING

our future … FINDING NEW WAYS TO BUILD ROOM SUPPLY

FINDING NEW WAYS OF DOING THINGS IS THE LIFEBLOOD OF GROWTH. AS THE ACCOMMODATION INDUSTRY FACES MAJOR ROOM SUPPLY CHALLENGES, FROM SITE CONSTRAINTS AND BALLOONING CONSTRUCTION COSTS TO SUSTAINABILITY ISSUES, THE FUTURE HINGES ON DESIGN AND ENGINEERING SOLUTIONS. 34

resortbrokers.com.au | INFORMER DECEMBER 2017

Top: Factory-built cabin modules are ideal for Ingenia Lifestyle communities. Supplied: IBSI

A

ccommodation industry milestones have historically been achieved primarily on two fronts: technological and business models. Technology has had a huge impact since the very first indoor plumbing (1829, Boston) and telephones (1894, New York) were introduced in hotel rooms.

In recent decades, technological advances have revolutionised so many hotel practices – the internet, electronic key cards, online booking, digital devices, Wifi, apps, now even automation and robots.

Over time, a number of new business models have also emerged and flourished – leases, franchising and management rights, all allowing for hotel operators to transition from asset-heavy to asset-light, leaving freehold ownership to real estate experts and investors.

CONVENTION PREVAILED But, aside from the advent of the ‘motel’ configuration in the mid-20th century, responding to growth in private motor vehicle use, accommodation design and construction has remained relatively consistent.

Sure, there’s been modernisation along the way, and new facilities added. But the development

approach, construction materials and methods have remained largely conventional. Bricks and mortar.

Concrete and steel.

Now, however, various challenges are conspiring to drive change, demanding we innovate to solve problems.

Dwindling site availability and space constraints, rising construction costs, demand for fast-paced delivery, environmental protection and sustainability, safety and quality control— all these issues have sent us back to the drawing board.

MICRO, MODIFIED & MIXED Solutions have emerged to address some of these issues.

Micro hotels, with rooms aiming for maximum comfort in minimum space, are one approach. Best suited to dense urban centres where packing in more rooms makes financial sense, they’ve also been cleverly marketed to travellers who appreciate smart design and great value.

Adaptive re-use of interesting non-hotel buildings – perhaps office or industrial – is another strategy. This is particularly appropriate if the existing building offers a strong sense of place or heritage. And there can be financial incentives such as construction cost savings and tax advantages.

Integrating accommodation into large projects combining multiple uses such as hospitality, residential, workspaces, entertainment and other functions, has also become a major trend. It also addresses financial feasibility while responding to emerging social preferences.

However, some of the most significant new accommodation development trends are those that address a whole range of issues, from quality, safety and logistics to cost and sustainability. These innovations relate primarily to construction methods and materials.

Modular is one construction system gaining favour. And a movement dubbed the ‘new age of timber’ is also seen by many as a concept that will increasingly shape hotel developments of the future.

MAKING IT MODULAR “We’ve been watching developments in motel construction in recent years, concerned about insufficient new motel supply,” said Resort Brokers managing director, Ian Crooks.

“I was impressed when Queensland’s new Chinchilla Downtown Motor Inn was completed in just six months in 2011 using prefabricated lightweight floors and walls.

INFORMER DECEMBER 2017 |

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35

Feature Feature

MODULAR IS ONE CONSTRUCTION SYSTEM GAINING FAVOUR. AND A MOVEMENT DUBBED THE ‘NEW AGE OF TIMBER’ IS ALSO SEEN BY MANY AS A CONCEPT THAT WILL INCREASINGLY SHAPE HOTEL DEVELOPMENTS OF THE FUTURE. “But what we’ve witnessed lately in terms of modular construction, seen in a range of properties from tourist parks, manufactured housing estates and student accommodation, right through to high-rise luxury hotels is really a game-changer.

“When we sold Darwin’s new 27-storey 4.5-star Elan Soho Suites (Oaks Elan Darwin) in 2015 to Minor Hotels for nearly $60 million, I was astounded to learn it had been built using modular construction.

“Now the method is being picked up more widely across the industry.”

250 ROOMS IN 15 WEEKS

Top: Charles Sturt University Port Macquarie opted for a modular solution to provide student accommodation. Supplied: IBSI

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Gold Coast-based Intelligent Building Systems International (IBSI) is currently delivering the largest modular student accommodation facility ever developed in Australia at Charles Sturt University’s (CSU’s) Port Macquarie campus.

CSU ultimately needs 570 selfcontained student rooms with ensuite bathrooms, plus common lounge areas and kitchens. The quality control, minimal site disturbance, product consistency and speed of delivery convinced them to abandon traditional building methods in favour of IBSI’s modular solution.

In early 2018, students will move into the first 250 rooms in a cluster of smart two and three-storey buildings delivered in just 15 weeks. When complete, the campus will include 13 accommodation buildings and a student hub.

IBSI design manager, Jacques De Bedout, says their modular

solution can typically reduce project development programmes by up to 30%, with obvious flow-on costsavings.

efficiency that conventional construction methods can’t match, avoiding adverse weather and allowing unit manufacture and site works to proceed concurrently, and using green, low-impact and sustainable building practices.

PREFAB PROGRESS

TLC also specialises in prefabricated bathroom modules.

In spite of being one of the smallest rooms, it is one of the most HIGH QUALITY, LOW COST labour-intensive, time-consuming and priciest element of But the advantages don’t construction, they say. end there. “Production in “For a high-rise our factory leads to more apartment or hotel efficient trade coordination development this will and work continuity. And translate to adding strict quality control results hundreds of skilled in fewer defects. Modules tradesmen on site.” are tested and approved by Entirely prefabricated and the client representative in pre-assembled bathrooms the factory prior to delivery,” are delivered, craned or he said. lifted in and connected – a “There are significant ‘plug-and-play’ solution, environmental and fully compliant with local sustainability benefits building codes. too: the controlled factory Across Australia, environment reduces waste, developers and major hotel and fewer site deliveries operators are now pursuing mean lower transportmodular solutions from related energy and various suppliers. In 2016, carbon emissions.”

80 semi-trailers made their The company has also way from Sydney to the undertaken quality factoryRules Club Wagga Wagga, built modular cabins for each carrying a fully major operator Ingenia. De completed guest room Bedout says there is exciting and bathroom. scope for widespread They were destined application of the concept. to become a new 4-star “Certain conditions Quality Hotel, which Trent are ideal for modular Fraser, Asia Pacific CEO of construction, particularly Choice Hotels, says was the where unit production needs first modular-constructed are repetitive in nature, hotel in Australia, fully where there is a requirement funded by an Australian for fast delivery, and in bank (the Commonwealth regional locations where Bank). labour may be scarce and In Perth, Mantra Group expensive,” he said. has opened two new prefab hotels, including the HOTELS LITERALLY 27-storey Peppers Kings ‘STACK UP’ Top: A fully-finished TLC Cosa Hotel module is loaded for shipping to Square, said to be the New Zealand. tallest hotel of its type in the Singapore and VietnamCentre: Artist impression of the completed Cosa Hotel. country. Tribe Hotel Group based TLC Modular has just Bottom: Cosa Hotel Christchurch module interior. has opened Tribe Hotel West shipped 48 fully-finished Photos supplied by TLC Modular Perth, where all 126 rooms modules to New Zealand for (63 fully-fitted two-room the new 88-key 3.5-star Cosa modules) were built in a Hotel in the Christchurch factory in China and shipped CBD, now for sale through Their projects include the Ariyana over for Lego-like assembly.

Resort Brokers. Though still a vacant Smart Condotel in Vietnam, planned Modular has many advantages site until very recently, amazingly the 200-room Prince Hotel in Yangon, in terms of waste reduction and 5-storey Myanmar, the completed 261-module sustainability, not least the ability hotel will be fully operational early Nash House hotel and residential to dismantle, refurbish, relocate and next year. building in London, and Perth’s South redeploy. But what about a radical TLC says their factory-built Beach Apartments, due to complete shift in thinking to the point where systems deliver assembly-line in 2018.

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Feature

the Earth actually grows our buildings?

ENVIRONMENTAL IMPERATIVES

just as the first Chicago tower (1885) sparked worldwide competition in pursuit of the ‘tallest’ crown, the race is now on to do the same in timber.

REVOLUTION UNDERWAY

That’s the mission of Canadian architect Michael Green, who says steel and concrete are materials of the last century, with high energy and greenhouse gas emission costs.

Timber, on the other hand, grown by the power of the sun, gives off oxygen and soaks up carbon dioxide.

And Green isn’t just talking about wooden houses. He’s talking highrise buildings that some have cleverly dubbed ‘plyscrapers’.

“We’ve calculated North American forests can grow enough wood every 13 minutes for a 20-storey building,” he said. A 20-storey concrete building emits 1,215 tonnes, wood sequesters 3,150 tonnes: a net difference of 4,360 tonnes.

Timber high-rise construction, Green says, is the first new way to build a skyscraper in 100 years. And,

The material that allows timber to scale these new heights CLT, crosslaminated timber, created by gluing layers of timber at right angles to each other, making it much stronger and more rigid than normal wood.

Australia’s first timber highrise, Lend Lease’s 10-storey Forte apartments in Melbourne was completed in 2013. Lend Lease has led the CLT charge, also using it to build the acclaimed International House 6-star Green Star offices in Sydney’s Barangaroo.

So far, around 20 buildings over seven levels have been built worldwide using timber, many claiming the ‘tallest’ prize along the way. In Vancouver, there are the 18-storey Brock Commons student residences and a 19-storey condo development.

The first CLT hotel in the US (also

by Lend Lease), Candlewood Suites on Redstone Arsenal (Alabama), opened in March 2016.

In Brisbane, Impact Investment Group is building the 45-metre 5 King Street office tower, touted as the tallest engineered timber building in Australia. But local developer Raw Property Studio is already planning to go even higher with a 132-key purpose-built timber hotel on a site at South Brisbane.

BRISBANE HOTEL PLAN Raw’s development specialist Shane Munday says the 15-storey tower, to be designed by local architect Shane Thompson, will showcase the beauty and benefits of CLT: strength and structural simplicity, lighter environmental footprint, quicker installation, reduced waste, better thermal and acoustic performance, fire resistance and design versatility.

It takes the famed Queenslander tradition of wooden houses to a

Top: The first CLT hotel in the US, Candlewood Suites on Redstone Arsenal, Alabama, under construction. Image: Lend Lease

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Above Left : The Cube, London’s 10-storey apartment building by Hawkins\Brown architects was constructed using primarily cross-laminated timber (CLT) Above Right : Forte apartments by Lend Lease at Melbourne’s Docklands, Australia’s first timber high-rise. Image: Lend Lease

whole new level.

Regardless of height, the principles driving innovative hotel design and engineering will continue to inspire exciting solutions for the future of the industry. Already one hotel is set to combine both modular and timber

construction concepts.

Adina Apartment Hotels is building a 220-room hotel in a purpose-built 10-storey timber tower above a sixstorey office in Melbourne’s Southbank.

It is feasible because the CLT is 30% lighter than steel and concrete. The

building will also have modular bathrooms, manufactured off-site and pre-designed to slot into place.

Once complete, it’ll take its place as one of Australia’s highest timber buildings – and a sure sign of things to come. END

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Hillhouse Burrough McKeown 40

resortbrokers.com.au | INFORMER DECEMBER 2017

Lawyers

ASSET SALES vs SHARE SALES IN THE ACCOMMODATION INDUSTRY

BY

DAVID BURROUGH

& DAVID ADOLPHE

A

sale of an accommodation business is usually conducted as an asset sale. This means that the transaction involves a sale of all of the assets (i.e. business name, plant and equipment, domain name, inventory and stock) in the business and transfer of all leases, licenses and material contracts required to carry on the business from the Vendor to the Purchaser.

Another way for a Purchaser to acquire a business is to purchase the shares in the Vendor company, and

"step into the shoes" of the Vendor.

The Purchaser will then own the business by, in effect, owning the Vendor entity. This is a share sale as distinct from an asset sale.

A share sale is not as common as an asset sale because there are significant risks for a Purchaser who will become liable for all the "skeletons in the closet" of the Vendor company in acquiring all of the shares in that entity and taking over the directorship. Such "skeletons" could range from liabilities for employee

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Editorial

entitlements to debts with the Australian Taxation Office to potential public liability claims.

For this reason the Purchaser's solicitors will normally counsel against a share sale for their clients.

However, there are steps which can be taken to limit the Purchaser's risk and enable both parties to access benefits that may arise in a share sale rather than an asset sale. It is a matter of getting the right specialist business law advice to ensure the appropriate protections are taken.

A Vendor may realise significant benefits in a share sale in extracting profits after completion of the sale.

This is because there may be different Capitals Gains Tax ("CGT") concessions and exemptions applicable to a share sale rather than an asset sale. For example the 50% CGT discount, the Active Assets Reduction and the Retirement Exemption may be different depending on whether it is the Company selling the assets or the shareholders selling the shares.

THE KEY ISSUES FOR THE PARTIES THEN IN DECIDING WHETHER TO PROCEED WITH AN ASSET OR SHARE SALE IS MAXIMISING PROFITS FOR THE VENDOR, MINIMISING COSTS FOR THE PURCHASER AND LIMITING RISK FOR BOTH PARTIES. On an asset sale there are also tax consequences and accounting costs for a Vendor shareholder in ultimately extracting profits from its Company to the shareholders in liquidation after completion.

For a Purchaser, a share sale may be significantly more advantageous in

avoiding transfer duty (stamp duty) which would otherwise apply in an asset sale.

The key issues for the parties then in deciding whether to proceed with an asset or share sale is maximising profits for the Vendor, minimising costs for the Purchaser and limiting risk for both parties.

It is important for parties in both asset and share sale to get specialist legal, financial and accounting advice on these issues so they can get the best possible result whether they are purchasing or selling the business. Particularly with respect to Purchasers of a share sale, there are certain steps which should be taken as a matter of course to set up the transaction to provide the best possible protections in limiting the risk of the "skeletons". END For any queries, please contact David Burrough or David Adolphe from Hillhouse Burrough McKeown on 07 3220 1144 or email@hillhouse. com.au.

› Leasehold Motel

REF: LH005020

Massive 35% + Return on Investment Once in a lifetime opportunity - as the current vendors have only owned this Lease for 9 months, and now serious health issues are forcing a quick sale! The 25 year Lease is offered at the extraordinary low price of $595,000, while independent accountants' projected Nett Profit for the twelve months is expected to be well in excess of $200,000, showing a whopping 35%+ return. While these owners have done a brilliant job growing the occupancy and turnover month-on-month during their short term in operation, there is still no marketing in place, limited breakfast service and no other food or beverage on offer and this is the only motel in town!! So plenty of room for growth.

17

25

3

2

Rooms

Years on Lease

MANAGER’S RESIDENCE

MANAGER’S RESIDENCE

›› ›› ›› ›› ››

Bed

Bath

35%+ Return on Investment and 25 year Lease One motel in town, with strong growing occupancy Ill health forces urgent sale - below market price Large, free standing 3 bedroom owner's residence Excellent starter opportunity in solid town

Financials NETT PROFIT: $200,000 Projected for 12 months (actual verified Nett Profit 8 months to 31/10/17 is $161,443)

PRICE: $595,000

Ian Dore BROKER

M. +61 412 752 238 E. iandore@resortbrokers.com.au 42

resortbrokers.com.au | INFORMER DECEMBER 2017

Alstonville, NSW

Sunshine Coast Coming To Market Early 2018…

MANAGEMENT RIGHTS ›› HINTERLAND LODGES

›› UPSCALE BEACHFRONT COMPLEX

This boutique complex to be constructed high in the Sunshine Coast Hinterland features 14 boutique selfcontained lodges plus a manager’s residence. There are several lodges still available for purchase:

130-unit complex that could be operated either as for long-term or short-term rentals. Located in one of the best beachfront suburbs on the Coast, with superb ocean views!

• 1 bed 1 bath

$405k

• 2 bed 1 bath

$440k

• 2 bed 2 bath

$475k

We project approximately 75 units to be available in the letting pool with a projected nett income of circa $390,000 pa.

Zoned for short term use only.

Construction to commence early 2018.

This offering will be launched in late January 2018 under an EOI campaign. ›› GREAT ADD-ON OR FOR FIRST TIME BUYER A group of management rights located in a prime location near the Sunshine Coast’s New Health precinct. This offering is a fantastic opportunity for the astute manager, with several complexes being developed within 200m of each other with no real estate to buy.

These businesses will be settled and tenanted, so the risks of buying off-the-plan will be minimised.

Nett income projected at $134,000.

Available January 2018.

Artist's impression

To register your interest or to be sent information on any of the above offerings, please email the Exclusive Agent.

Glenn Millar BROKER

M. +61 412 277 804 E. glennmillar@resortbrokers.com.au INFORMER DECEMBER 2017 |

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43

Editorial

STANDARD MODULE TO ACCOMMODATION MODULE? THAT IS THE QUESTION

by JENNY SORENSON

&

RESORT BROKERS AUSTRALIA

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FRANK HIGGINSON HYNES LEGAL

B

ody Corporate Regulation Modules were created under the BCCM Act 1997 to create some different rules by which buildings could be regulated. The BCCM Act applies to every building, but each building then can select a different Module to govern their dayto-day management.

There are five Regulation Modules at present – Standard,

Standard

Highly regulated, suitable for predominantly resident owners

Accommodation

Less regulated, suitable for predominately investment owners who let their lots

Commercial

Some regulation, suitable for business premises

Small Schemes

Little regulation, available to schemes of six lots or less

Two-lot Schemes

Little regulation, available to schemes of two lots

FRANK SAYS…

Accommodation, Commercial, Small Schemes and Two Lot. In management rights, we see Standard and Accommodation Modules in almost every deal. There are a handful of Commercial Module management rights schemes around, but not many.

The Office of the Commissioner Body Corporates outlines the description of the Modules this way:

There are very few practical differences between the Standard and Accommodation Modules from a body corporate management perspective, but there is a major difference between them with respect to the maximum length of term that a management rights agreement can have under them.

Standard Module agreements are capped at a maximum term of 10 years. Accommodation Module agreements can go for 25 years.

The Standard Module can apply to any building. The Accommodation Module can only apply to any building where the lots are ‘predominantly’ accommodation lots at the time the Module is adopted. An ‘accommodation lot’ is one that is available for rent – be that for shortterm or long-term purposes. So, the Accommodation Module is not restricted to just holiday or corporate buildings.

As you would expect, what ‘predominantly’ means has been litigated and one of the key requirements is that at least half of the lots must be rented. They don’t necessarily need to be rented through the resident manager, but they must be available for rent.

If you cross that threshold, and your building meets all of the criteria to satisfy the definition of ‘predominantly’, changing Modules requires a special resolution of your body corporate. This is a vote where at least 66% of those who choose to vote do so in favour of the change of Module.

You then need a new management rights agreement to take advantage of the new term available to you.

You cannot vary your existing management rights agreement

because that was entered into under the Standard Module.

There is a whole lot of strategy that goes into this, if you want to consider it. Do you do it all at once?

Do you try the Module change (which is relatively cost effective to do) and see how that goes before you propose a new agreement? How do you get your committee on board?

All of this needs to go into the mix, because it can be seen to be a big thing to ask your body corporate.

Getting them on board with the proposal is very important.

JENNY SAYS… There are a lot of buildings out there under the Standard Module that would qualify as Accommodation Module.

In an environment where the banks are being tougher on finance and repayments, the longer the term, the wider your potential pool of buyers.

The term of the management rights agreement will affect whether or not a buyer will be able to obtain finance acceptable to them. Most management rights buyers want an interest-only component, and this is more usually available on agreements with longer terms— which is generally considered 15 years and up.

Managers often ask me “Can we change from a Standard to an Accommodation Module?”

I see absolutely no issue with this, but some of the outrageous reasons people give not to support a change are both ill-informed and, in some cases, personal.

The key point usually is that the building needs management rights.

If it does, then the longer the term (with the right management rights agreement and duties), then the better it is for all.

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Editorial

I recently had a manager who spoke to the committee to have their Module changed. Here are some of responses from members: “It will devalue my unit.”

Really? Has there ever been a prospective buyer of a lot who has asked what type of Module it was when they purchased their unit?

Not likely!

“It means you can do whatever you like with my unit even if it’s not in the letting pool.”

Wrong. No manager can ever do this. That’s breaking and entering call the police.

“It will be harder to get rid of a bad manager.”

The process is the same as it is for a Standard Module and whether there is 18 months to run on the

management rights agreements or 25 years.

“You will get more money if you sell.”

Now this one really irks me – so what? People buy businesses and sell all the time. They’re bound to make a profit. A new agreement (or top up for that matter) has not cost the owners anything. All that has been done is continuation of caretaking services, which are going to be needed.

When you add to this that a body corporate in Queensland is prohibited by the BCCM Act from charging for these new agreements or top ups, this argument is nonsensical.

Come on people, open your eyes and your minds. Don’t base your decision on what you hear. Base it

on facts, particularly as a committee person, you have an obligation under the Act to do so, and your unit owners are relying on your “informed” guidance.

Having a longer-term agreement makes your business easier to sell and potentially more valuable.

If you are in the Standard Module and want to change Modules before selling, you need to allow around four months or so if you do it all together, or about 15 months if you want to change Module and enter into new agreements separately.

Whether you are an owner, committee member or building manager, Frank and I are happy to talk to anyone who wants to discuss it. END

AVOID A CRASH AND

burn

TIPS FOR VENDORS AND PURCHASERS

by

M I KE P HI P P S

46

resortbrokers.com.au | INFORMER DECEMBER 2017

COURTESY OF OUR FRIENDS AT THE URBAN DICTIONARY, I HAVE UNEARTHED WHAT I BELIEVE TO BE THE DEFINITIVE DESCRIPTION OF THIS MONTH’S BULLETIN TITLE: CRASH AND BURN: TO COME TO GRIEF OR FAIL SPECTACULARLY.

I

f you are an industry professional active in the management rights industry, I suspect this description may resonate with you. Our own observations and feedback from the coalface suggest that deals have never been harder to hold together, with many “surprises” along the way.

Why is it so?

Let’s have a look at the key moving parts, the accepted best practice processes, and see if we can identify some clues.

THE LISTING A basic summary of the business and real estate on offer.

It's absolutely critical that information be accurate and supported by an up-to-date, accountant-prepared Profit and Loss Statement for sale purposes. We are finding that even immaterial discrepancies between what is presented and what turns up in due diligence reports are spooking buyers. Good agents already know this and are insisting on sighting source documents such as agreements to validate what the vendor is saying.

THE BUYER Better researched than ever and also more sceptical.

In some cases, this can lead to very clear examples of a 'little knowledge' being a dangerous thing. Some will launch their own due diligence and market enquiries and ignore the accepted purchase process. This is to be discouraged. Many also listen to uninformed advice from non-industry experts and acquaintances and come to flawed conclusions. The purchase process of due diligence, financial verification, valuation and bank finance is a tried and true journey that we believe all purchasers should be prepared to follow when they decide to make an offer on a building. Our advice, leave the research and review to the experts.

THE VENDOR Trying to obtain the absolute maximum price, and that’s how it should be.

Frequently influenced by stories and rumours of record multiples that inevitably are not true or do not apply to their particular business. Often

obsessed with getting back what they paid regardless of the real value of the business today. Sorry, the buyer doesn’t care. Many need a good firm agent to tell them the facts of life and not win the listing by telling them what they want to hear. Good luck with that!

THE P&L FOR SALE PURPOSES Prepared by the vendor’s accountant and almost never a real-world reflection of the day-to-day operational outcomes of the business.

Accountants frequently disagree with content but act on vendor’s instructions. Allowances for labour costs are becoming laughable in many cases. Astute agents are making a point of highlighting reasonable labour allowances as a positive selling point when marketing on real world P&Ls. Vendors are sneaking forward income into historical P&L, with a particular trend in BC salaries and bundling outcomes. In my view, the single biggest challenge facing the sale process right now is the accuracy of P&L for sale purpose documents. When a vendor says “What should I allow for wages?”, I can’t help thinking the answer is “How about what it costs you”. Our advice, produce a reasonable and detailed P&L and achieve a higher multiple. Respect the contract condition that clearly states a verification period and don’t try to include income not earned in that period. Simple.

THE BANKS Getting ever more difficult to deal with.

Pressure on credit quality and pricing, combined with fear of regulators and staffing cuts, have resulted in a drop in experienced people trying to deliver a more complex and conservative lending outcome.

Disconnects between the people on the front line and credit departments are becoming apparent in some banks.

Debt servicing guidelines and prior experience are two areas of focus by some lenders. Interest-only terms are becoming more difficult to obtain with a clear trend toward Principal and Interest options only. There’s never been a more important time to ensure a buyer has a range of options and an experienced finance broker assisting them (shameless plug).

THE VALUER In our industry, we are not exactly spoiled for choice when it comes to valuers.

There is only a handful of firms who specialise and are on the bank panels.

To no great surprise, these firms are flat out and valuations can take longer than we might like. The situation is exacerbated by a move by most banks to an automated valuation instruction system. Like so many systems designed to streamline the process, it doesn’t, and valuation instruction delays are certainly an area we focus on with every file. For the record, I wouldn’t be a valuer for quids!

THE PROCESS Communication vital.

I think more often than not at the moment, we are dealing with finance extensions and the need to clarify information that, in some cases, should have been dealt with early in the process. I can’t put my finger on any one reason for this, but I do know that requests for finance extensions scare the hell out of vendors. We always articulate the reason for the request and we encourage lawyers acting for purchasers to detail the reason.

Invariably, the reason is not a deal-killer so it’s essential that clear and honest communication be maintained. In our view, finance clauses should be at least 35 days, with 45 days being preferred for more complex transactions. Having communicative and pro-active lawyers on both sides of a deal is invaluable.

SUMMARY Here’s a little story.

In the US presidential campaign of 1992, James Carville, an aide to candidate Bill Clinton, earned widespread acclaim (or notoriety) for his dogged insistence that everyone working for Clinton should remain focused on the plight of working people. “It’s the economy, stupid,” he said over and over until it became a mantra and part of the American political lexicon.

To paraphrase our mantra to clients: It’s the process stupid! It’s tried and true. Do your research for sure, but once we hit the road, rely on the process. It works. Of course, our clients are not stupid, I hope. END

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› Freehold Motel REF: INV004946

Motel Freehold with 7.25% Return on Investment

28

28 33

3

2

Units

Letting Pool

Bed

Bath

MANAGER’S RESIDENCE

MANAGER’S RESIDENCE

Motel 98 presents as one of Australia’s premier locations in a strong regional area with a very rare 35 year lease in place. The land has dual-street access with riverfront exposure on over 3000m2. Unimproved land value is over $1.5m and this is a land bank for future development with a solid return in place. The river precinct has undergone major redevelopment over the last two years, with beautification of the riverfront parkland and the development of new residential buildings, commercial retail and business & hotels. This position creates strong support and choice for travellers & local populations.

›› 35 year lease in place

This is one of the strongest accommodation markets in the region and is supported by a diverse number of industries including expanding health, administration, retail, hospitality, agriculture, mining, manufacturing and construction. Adani has just recently announced a major infrastructure plan for Rockhampton to support FIFO and commercial industry. The motel has two very important cost centres – accommodation and F&B. With 28 rooms (fully up-graded), desired inner city location and easy access accommodation. Enquire Now!

›› Large land-bank for future region opportunity ›› Located on over 3000m2 ›› Surrounded by large hotel, commercial networks with riverfront location ›› High exposure to recent Adani approvals ›› $28,400 paid monthly by the tenant

Financials RENT: $341,000 PRICE: $4,700,000

Shane Mullins

Len Booth

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

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

BROKER

48

Year Tenure

resortbrokers.com.au | INFORMER DECEMBER 2017

BROKER

Rockhampton,QLD

THE MOST ENVIRONMENTALLY FRIENDLY BUILDING SYSTEM ON THE MARKET

FINANCE OPTIONS AVAILABLE

NO DEPOSIT - PAID FOR BY TRADING OVER 7 YEARS EASY INSTALLATION

HIGH ACOUSTIC VALUES

TIME SAVING

ENERGY EFFICIENT

QUALITY

DURABLE

PLEASE FEEL FREE TO CONTACT GREG JAMES gj@ibsi.com.au | 0416 247 068 | 1300 242 504 | ibsi.com.au

› Freehold Motel REF: FH004998

Finally a Brisbane Freehold Motel is on the Market!

12

2

1

Rooms

Bed

Bath

MANAGER’S RESIDENCE

MANAGER’S RESIDENCE

The opportunity to purchase freehold accommodation assets in Brisbane is rare to say the least! This 12-room brick construction motel with tidy and clean rooms, solid profit figures and strong historical occupancy is being offered to the market via an exclusive campaign by Resort Brokers. The motel sits on 1601m2 of land with a huge corner block street frontage.

›› Small easy-to-run motel of 12 rooms

›› Motel is on 3 separate lots being sold in one line

The latest P&L to the end of September '17 shows a nett profit of approximately $285k. The possibilities are endless;

›› Suitable for future subdivision or land bank for development in the future

›› Run as owner operator with the security of real estate

›› No restaurant or food offering giving upside potential to owner occupier ›› 1,601m2 of land with 73.2m of street frontage

›› Currently over $285k with strong occupancy

›› Buy and run under management as it currently is managed ›› Purchase the Freehold and sell off the leasehold – estimated rent for a lessee would be $125k per year. Achievable sale price for a 30-year standard lease estimated at $500 - $550k.

Develop the site now or in the future for housing or units. The purchaser can acquire the surrounding blocks of land and houses from the same vendor if they wish under an expression of interest. Contact us today for details.

Financials NETT PROFIT: $285,461 PRICE: $2,225,000

EXCLUSIVE

Nathan Eades BROKER

M. +61 448 339 920 E. nathaneades@resortbrokers.com.au 50

resortbrokers.com.au | INFORMER DECEMBER 2017

Aspley, Brisbane

› Management Rights REF: MR004953

Permanent Complex with Secure Income at Runcorn

34 12 21

3

2.5

Townhouses

Bed

Bath

MANAGER’S RESIDENCE

MANAGER’S RESIDENCE

Stretton Passage is located at Runcorn in a popular residential area near Sunnybank and Eight Mile Plains. It is just 20 minutes drive to Brisbane CBD with easy access to M1 and Gateway Motorway to travel North or South. Stretton Passage is a 34-townhouse permanent complex in an immaculately presented gated residential community. Location is very popular for family renters with nearby child care, local schools, parks & public transport. Upon entry to the complex, you immediately feel the quiet and peaceful environment of the community.

›› Ideal opportunity for first time business owners or second income seekers

There are multiple public transport options including rail at Runcorn and Fruitgrove and an excellent bus network to the City and surrounding suburbs. In addition, Stretton Passage is a few minutes short drive to Market Square and other popular shopping facilities, restaurants and cafes in Sunnybank.

›› Spacious renovated manager's residence ideally suited to family living

The renovated manager's residence has three spacious bedrooms with built-in robes, a master bedroom with an ensuite, and is ideally suited to family living including opening out to a private courtyard. The spacious open living areas allow relaxation away from the office which is separated from the residence.

Financials

Letting Pool

Management Term (yr)

›› No set office hours with low maintenance and easy care gardens ›› Long term Agreement with 21 years remaining ›› Low risk secure income stream from body corporate salary ›› Income growth potential on maintenance/cleaning opportunities for tenants

›› Permanent family rentals and full occupancy in well maintained complex

NETT PROFIT: $74,450 UNIT: $380,000 - BUSINESS: $349,900 PRICE: $729,900

EXCLUSIVE

Jane Fang

CHINESE LIAIS0N BROKER

M. + 61 402 399 613 E. jfang@resortbrokers.com.au

Runcorn, Brisbane INFORMER DECEMBER 2017 |

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Editorial

UNDERSTANDING MAINTAINABLE

income

One of the most hotly debated and often misunderstood concepts when determining the profitability of an accommodation business is the concept of ‘maintainable income’.

by

TONY ROSSITER

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T

he concept of ‘future maintainable earnings’ is a longstanding valuation principle, and possibly the most commonly used method of valuing an accommodation business is the capitalisation of the maintainable earnings of the business.

In a management rights context, the capitalisation rate is referred to as the ‘multiple’, whereas in other accommodation businesses it is generally expressed as the return on investment percentage or ‘capitalisation rate’.

Determining the multiple or capitalisation rate is very much the domain of the valuers and agents specialising in the Industry, and is outside the scope of this article.

However, typically valuers and agents will rely on industry specialist accountants to determine the maintainable income and then apply their multiple or capitalisation rate to that income to determine the business value.

HOW IS ‘MAINTAINABLE INCOME’ DETERMINED? Unfortunately there is no standard answer to this question. In the case of management rights, we have a number of generally recognised principles.

However, the interpretation of these principles is often subjective and outcomes can vary.

One suggested definition of ‘maintainable income’ is: “An average of the past profit history of the business derived from financial statements and representing the business’s cycle, adjusted to reflect a true economic return”. Interesting, but rather unhelpful!

Really, the concept of ‘maintainable income’ is centred on ‘normalising’ the income and expenses of the business to derive a profit figure that is considered to be sustainable into the future, assuming consistent trading conditions.

The process of normalising the income and expenses requires adjustments, which are often referred

to as ‘addbacks’. These addbacks seek to correct any anomalies imbedded in the income and expenses and include items such as expenditure of a personal nature, capital items, and extraordinary or non-recurring items.

The job of the industry specialist accountant is to correctly identify and make appropriate adjustments for these addbacks. Often, an accountant engaged by a seller may make a different interpretation to that of a buyer, with each professional seeking to ensure they are looking after the best interests of their client.

Typically, communication between the parties involved can resolve most differences of opinion. However, occasionally, a one-off event occurs that requires special attention.

THE CONCEPT OF 'MAINTAINABLE INCOME' IS CENTRED ON 'NORMALISING' THE INCOME AND EXPENSES OF THE BUSINESS TO DERIVE A PROFIT FIGURE THAT IS SUSTAINABLE INTO THE FUTURE. HOW ARE LARGE ONE-OFF EVENTS TREATED? We last saw a significant oneoff event that required special consideration with the G20 Summit held in Brisbane on November 15 and 16, 2014.

Although the official event was only for two days, we saw significant activity in the accommodation sector in the weeks preceding and post the event to accommodate security staff and local and international media, etc.

Generally, the event led to significantly increased one-off activity with inflated occupancy and massively increased average rates for the month of November 2014.

Often, the cashflows from this activity were not received until December or even January 2015, so

accountants were required to carefully consider adjustments required to normalise this income.

The most common and generally recognised method of normalising this income was to look at the trading performance of the business for the same period in the previous year as a guide to what would have occurred in Brisbane in the absence of the G20.

Interestingly, in the Brisbane market, the G20 appears to have coincided with a general decline in corporate accommodation activity as a result of the slowdown in activity in the Queensland resources sector, with many properties unable to replicate their pre-G20 performance in the last two years.

The next big one-off event is undoubtedly the Commonwealth Games to be held on the Gold Coast 4–15 April, 2018. Again, the activity generated from this 11-day event will be spread over a significant period, with massive infrastructure development having occurred over an extended period in the lead-up to the event.

Speculation has begun over a possible post-Commonwealth Games hangover and how it might influence the accommodation sector.

Similarly to G20, the Commonwealth Games will require careful attention from industry accountants and valuers to ensure maintainable earnings and values are appropriately ‘normalised’.

Sellers of an accommodation business should not expect windfall gains as a result of selling their property with inflated Commonwealth Games trading profits. Equally, postCommonwealth Games buyers should be alert to the fact that they should not be paying for business value inflated by an event that will likely not occur again within their lifetime. END

NOTE: The information, opinions or conclusions provided above are generic in nature and do not express individual advice or recommendations.

You should always consult a suitably qualified professional before taking any course of action outlined above.

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

INFORMER DECEMBER 2017 |

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53

Editorial

THE

HOTEL

. . . A TALE OF GLAMOUR, RICHES AND ROMANCE

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SOME HOTELS ACHIEVE A LEVEL OF RENOWN THAT ELEVATES THEM BEYOND MERE BRICKS AND MORTAR. SO, WHEN ONE OF OUR OWN, MELBOURNE BROKER MICHELLE MATTHEWS RECENTLY STAYED AT ONE SUCH ESTABLISHMENT, WE COULDN’T RESIST SHARING HER EXPERIENCE.

T

he celebrity hotel in Los Angeles was built in 1912, before there was even a city called Beverly Hills. Hoping to ignite a land rush, developer Burton Green, President of the Rodeo Land and Water Company, bought land once owned by the Mexican government in the foothills of the Santa Monica Mountains.

He hired Margaret J. Anderson to build a sprawling hotel in Mission Revival style on 12 acres, with white stucco exterior and terracottacoloured roof tiles, and named it after Beverly Farms, his home in Massachusetts.

Investing $500,000, then a staggering sum, Green hoped to lure wealthy Easterners to retire in what were then open fields north of Los

Angeles. On the opening invitations, Anderson described the property as situated “halfway between Los Angeles and the sea.”

By 1914, Beverly Hills had attracted enough residents to incorporate as a city. Then, in 1920, Mary Pickford and Douglas Fairbanks built their county home, Pickfair, in the nearby hills.

Beverly Hills soon became one of the world’s smartest addresses.

More stars followed, including Charlie Chaplin, Gloria Swanson, Buster Keaton, Rudolph, Valentino, Tom Mix, and Will Rogers, transforming the bean fields surrounding The Beverly Hills Hotel into prime real estate.

The late 30s and the 1940s were a captivating time for The Beverly

Hills Hotel. Hernando Courtright, a vice president of Bank of America, purchased it in 1941 with friends including Loretta Young, Irene Dunne and Harry Warner.

It was Courtright who renamed El Jardin Restaurant the Polo Lounge in honour of a celebrity band of polo players who toasted victories at the restaurant after matches in the bean fields.

Toward the end of the decade, the hotel had its first major facelift, and in 1947 it opened the Crystal Room and the Lanai Restaurant (later renamed The Coterie). The exterior was first painted distinctive pink in 1948 to complement the sunset colours and the country club style of that time.

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Editorial

In 1949, architect Paul Revere Williams designed the new Crescent Wing, as well as re-imagined the Polo Lounge, Fountain Coffee Shop and lobby in their still-stylish pink-andgreen motif.

In the early 1950s, Detroit realestate magnate Ben Silberstein purchased the hotel for $5.5 million.

AFFECTIONATELY KNOWN AS THE ‘PINK PALACE’, ITS TIMELESS GLAMOUR ENDURES, REMAINING FAITHFUL TO THE ORIGINAL ARCHITECTURE AND INTERIOR DESIGN. Meanwhile, the hotel’s popularity with royalty and celebrities continued to escalate. Guests included the Duke and Duchess of Windsor, Princess Margaret and Lord Snowdon, King Albert of Belgium, the Crown Prince of Monaco, John Wayne and Henry Fonda. Elizabeth Taylor’s father had an art gallery in the hotel’s lower level, and Liz began a tradition of frequenting bungalows with six of her eight husbands.

In 1956, the hotel’s pool and cabana club were backdrops for Gregory Peck and Lauren Bacall in Designing Women. Frank Sinatra, Dean Martin and the rest of the Rat 56

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Pack engaged in prodigious drinking bouts in the Polo Lounge Towards the end of the decade, Marilyn Monroe and Yves Montand checked into bungalows 20 and 21 while filming Let’s Make Love.

In the 1970s, John Lennon and Yoko Ono hid out in a bungalow for a week. Charlie Chaplin, a frequent guest in the 1920s, returned in 1972 to accept an honorary Oscar.

Faye Dunaway stayed there after receiving her Academy Award for Network in 1977. The hotel made another film appearance in 1978 when Broadway playwright Neil Simon, a frequent guest, filmed California Suite at the property.

With Ben Silberstein’s death in 1979, ownership passed to his two daughters, Muriel Slatkin and Seema Boesky, wife of Ivan Boesky, the Wall Street arbitrageur.

The Beverly Hills Hotel went through several ownership changes in the 1980s. The Boeskys gained control in 1986 for $100 million and, later that year, the hotel was sold for $136 million to Denver oilman Marvin Davis.

In 1987, Davis sold the hotel to its present owner. On December 30, 1992, the hotel closed for a complete restoration. The project lasted two and a half years and the hotel reopened on June 3, 1995 with upgrades and custom-designed furniture and fittings.

Among many apt descriptions, “better than glossy but not glitzy”

summed it up best.

Today, The Beverly Hills Hotel, located just off Sunset Boulevard and Rodeo Drive, is better than real life; it’s a fantasy fit for a movie.

Affectionately known as the ‘Pink Palace’, its timeless glamour endures, remaining faithful to the original architecture and interior design noted for its iconic banana leaf wallpaper and crisp Regency stripes.

Accommodation at this swanky Hollywood haven is priced from US$795 per night for a one-bedroom, one bathroom ‘Superior Room’ with city views but no balcony.

From there, listed room rates climb to US$5,700 a night for a 102m2 Grand Deluxe Suite, which features one luxurious bedroom, a living room, powder room, a full marble bathroom with a separate shower and bath, and a furnished private patio.

The Beverley Hills Hotel and Bungalows also “loves and adores all living creatures, especially dogs.” So your pampered pooch is happily put up for US$35 per day, complete with doggie cookies (name handwritten on each cookie from the bakery), and monogrammed dog beds and bowls.

If you are wondering what the rate is for the ultimate Presidential Bungalow, 170m2 with every imaginable luxury and a dining area for 10 … POA. END * History supplied by The Beverly Hills Hotel, www.dochestercollection.com

MICHELLE MATTHEWS BROKER, MELBOURNE

As soon as we pulled up, I had such a rush of excitement. Now this was more my type of hotel, similar to what I had experienced on my European adventures. This was a true luxury hotel offering: restaurants, bar, retail, day spa, hair salon, sumptuous and luxurious, with a large pool and terrace that is very special. The Beverly Hills Hotel is very much about its brand. What I like best about the BH is that, aside from the amenity and the atmosphere, it is inviting as a special occasion location or for a family vacation. It even welcomes that most valued family member, your pet dog/s (dog menu provided!).

The brand itself is executed perfectly. Before long, you start to look like a BHH striped or banana leaf-clad fixture. Dogs in their BH day beds with branded BH dog collar(s), kids in their swimmers and hats, us in our PJs, all blending in. They have a concierge to check into the pool

area in peak season. To me, this is especially crucial, as your experience of this iconic hotel is all about time spent around the pool with the adjacent restaurant. As a nice touch, they offer cabanas that can be reserved. This is great, allowing you to entertain guests, ensuring you have your own private sun lounges and a welcome extra space to sit out of the sun, watch TV (if you must) and order food service. You can dine at your leisure in your own private space.

The pool itself was fantastic, and the customary dip was literally ‘music to your ears’ under water. I must admit, I love this type of outdoor holiday. I need to sit and enjoy my pool time at least a couple hours a day.

Our room, on this occasion their standard king room, was typically what I would say you see in a 5-star hotel. Nothing stood out exactly, but it certainly met every expectation.

The housekeeping service was divine.

They would roll up all your cords (phones, computers, etc., in a branded little BHH strip designed purely for the purpose) and provide a banana

leaf-embellished glasses cleaning cloth for your sunnies. Everything was carefully put to order for your return from a day of pleasure. Love that attention to detail!

Eating in was always easy to do, with their main restaurant, the famed Polo Lounge, open all day and evening. To be frank, I was skeptical of American food. But I thought the food here was heaven, full of flavor, and they offered a wonderful choice of salads.

I cannot recommend more highly that you stay at this legendary hotel.

Allow yourself to soak it up, love it, and enjoy what it is offering for you as a guest. I cannot omit to mention, it is located at the other end of Rodeo Drive. So you walk down and look at the houses in a leafy street then, five minutes (2 blocks) on and you find yourself at the heart of luxury flagship designer brand heaven!

Beverly Hills Hotel is part of the Dorchester Collection, with its worldwide reputation for grand and significant properties. So they do take their business seriously and offer a truly great hotel and brand experience.

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› Leasehold Motel REF: LH004989

Lifestyle Business on the Central Coast NSW

15

26

1

1

Apartments

Years on Lease

Bed

Bath

MANAGER’S RESIDENCE

MANAGER’S RESIDENCE

Copacabana Shores is a stunning luxury apartment complex with fifteen modern fully self-contained beachside apartments on the beautiful Central Coast of NSW in the heart of Copacabana.

›› One of NSW’s most desirable coastal locations

This 26 year lease is a fabulous opportunity to operate an exciting coastal business and enjoy the beach lifestyle.

No expense has been spared with this state-of-the-art property that includes keyless entry, CCTV, underground lock-up parking, lift access, pool, galley kitchens and so much more.

A savvy operator will thrive in this wonderful location with a choice of living onsite, or off-site, and developing this property into a great holiday complex.

Copacabana Shores is the only accommodation complex in the area, which represents an outstanding prospect to establish a strong following in one of the Central Coast’s most prestigious areas.

›› 15 luxury 4.5 star rated studio apartment style accommodation ›› Keyless complex – fully automated with coded entry ›› Option to live on or off-site ›› Private large pool area and BBQ area ›› Underground secure parking – lift to reception and upper floors ›› Footsteps to cafes, restaurants and patrolled beaches

Financials NETT PROFIT: $107,924 PRICE: $550,000

EXCLUSIVE

Shane Wynhoven BROKER

M. +61 424 174 592 E. shanewynhoven@resortbrokers.com.au 58

resortbrokers.com.au | INFORMER DECEMBER 2017

Central Coast, NSW

GET THAT

TOP UPright! by

JOHN MAHONEY

E

xtending the terms of management and letting agreements is something dear to the hearts of most resident managers. The way in which agreements can be extended has been the subject of legislative changes and interpretation by the Body Corporate Commissioner’s Office for many years.

In recent months, I have come across situations where, for the sake of saving on legal fees, managers

have engaged inexperienced lawyers who have made a complete mess of topping up their agreements.

I therefore thought it might be opportune to revisit an article on the topic I wrote some time ago.

First some background. Both the Standard and the Accommodation Regulation Modules of the Body Corporate and Community Management Act deal with the entering into and variation of agreements in the same way. The relevant points are as follows: ›› Entering into agreements requires an ordinary resolution at a general meeting, without proxies and by secret ballot; ›› The agreement must state when the term begins and ends and the term of any option period/s; ›› The term, after allowing for any options, must be no longer than the relevant term limit (10 years for Standard Module and 25 years for Accommodation Module);

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Editorial

›› At the end of the term, the agreement ends; ›› An agreement can be amended (by ordinary resolution at a general meeting, without proxies and by secret ballot with the statutory explanatory note being circulated with the agenda) to include a further option/s; ›› An option so added cannot be

WHILST TOPPING UP YOUR AGREEMENTS MIGHT SEEM SIMPLE AND MUNDANE IT IS NOT. THERE MUST BE STRICT TECHNICAL COMPLIANCE WITH THE LEGISLATION.

more than 5 years; and ›› An option can only be added once each financial year of the body corporate.

The clear effect, and the even more clear intended effect, of the legislation was regarded by most lawyers to be that: ›› Once an agreement was entered into, it came to an end at the end of its term unless, before then, it was amended to add a further option/s; and ›› The only way that the term could be extended was to add a further option/s.

There was a surprising QCAT decision some years ago which found to be a valid variation to an agreement, which merely extended the term by varying the end date of the agreement. That questionable decision involved unique circumstances and it is widely accepted by lawyers and financiers that such a variation is ineffective.

It seems that some inexperienced

lawyers have gone about attempting to top up agreements in a similar way, but where the particular circumstances are quite different to those in that QCAT decision.

The consequence has been that the purported top up has been ineffective and has had to be done again or, in one case, the only solution was to enter into new agreements – an expensive and traumatic exercise for the manager.

Whilst topping up your agreements might seem simple and mundane it is not. There must be strict technical compliance with the legislation.

I caution any resident managers against the temptation to take shortcuts or engage lawyers who do not have extensive experience in management rights. You may not find out that the top up was defective until you sell.

Spending an extra few hundred dollars may well save you many thousands of dollars and a lot of anxiety in the future. END

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

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

For advice from one of our Management Rights experts, call:

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resortbrokers.com.au | INFORMER DECEMBER 2017 Brisbane: +61 7 3007 3777 Gold Coast: +61 7 5562 2959

www.mahoneys.com.au

vox pop Hear from the people who make up the majority of our accommodation industry – grassroots owners and operators of motels and management rights across Australia.

T

ell us about your business operation and clientele.

We have a 39-room motel in Parkes. We are situated on the Newell Highway, half way between Brisbane and Melbourne. Our clientele are travellers, tradesmen and families.

Affilliations? eg referral chain, franchise group None.

What was your background before entering the industry?

Nick: I was in the commercial construction Industry.

Jo: I was a preschool teacher.

We lived in Sydney with our four children.

How did you get started in the accommodation industry and how long have you been in the sector?

We wanted a change from Sydney and, having grown up in a family in motels (Nick), we thought we would give it a go.

How long have you owned/operated your current property?

Two and a half years.

How do you market your business? What drives your bookings?

Online, word-of-mouth and repeat customers. Our location and great value price.

NICK AND JOANNE KERRIGAN PARKVIEW MOTOR INN, PARKES NSW

What do you believe are your property’s biggest selling points?

The first would have to be price. Location and providing space to park coaches, trucks and work vehicles are also very important. And we’d add 'US' – we treat each guest as if they are staying in our home. Nothing is ever a problem.

How has technology, eg. the internet, specialist software systems, online booking channels, changed the way you do business?

We couldn’t run our business without it. On-line bookings generates about 60% of our business. We use Guestpoint as our booking system, which is very user-friendly.

Do you see OTAs as a friend or foe to your business operation and profitability? Why? We see them as friends. They generate business. In regards to profitability, we make sure they understand our NET rate and they add their commission to that.

What do you think are the biggest issues and challenges facing accommodation operators right now?

We feel the biggest issue/challenges would be getting our customers to come to us direct, rather than using booking agents. That way, we aren’t paying commissions.

How do you deal with these issues?

We advertise where we can and promote our website.

We focus on building a relationship with our guests and gain repeat business from them. Offering a better rate is also a good strategy.

Where do you see yourself and your business in 5 or 10 years?

We would like to think we could put a manager in the motel and buy another motel on the coast.

Favourite thing about your business/job?

The flexibility this lifestyle gives us to be at home with our four children. It’s great working together. And we love the financial freedom that we have gained since buying the motel. END INFORMER DECEMBER 2017 |

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› Management Rights REF: MR005032

Fabulous Beachside Business with a ROI and lifestyle!!!

51 26 25

3

2

Letting Pool

Bed

Bath

MANAGER’S RESIDENCE

MANAGER’S RESIDENCE

This place has it all!! The location is A-Grade, the numbers stack up, the ROI is spot on, long term agreements in place and the complex is immaculate. This 15 year young holiday business is powering along thanks to the current manager’s working closely with a positive BC committee of investors to add value to the business. With room to grow still available for the savvy investor to continue to drive occupancy, dynamic pricing, visible marketing & internet provision. This place is a real gem in one of the coast’s best kept secrets, Kirra Beach.

›› $403,766 Net Profit @ 13% ROI

This beautifully presented medium-rise complex of 51 units has a solid letting pool of 26, with 5x lock-ups providing more upside to gain for the next operator. The rooms are of a high standard with a positive investor group of owners willing to upgrade the offering and provide memorable holidays for their guests. Thus driving such solid repeat business and wonderful reviews. Exceeding 4.5 Star ratings across most OTA’s – Booking.com, Trip Advisor etc.

›› Huge 3 Bed, 2 Bath, 2 Car luxury manager's unit

An opportunity beckons for the right people to continue to grow this cracking business whilst enjoying the lovely lifestyle it delivers at Kirra Beach.

Units

Management Term (yr)

›› 25 years on agreement as at Feb 2017 ›› Building in immaculate condition & presentation is top class ›› Solid growth over last 3 years trading ›› Beachside location with "air rights" protecting ocean views ›› Wonderful BC rapport and history ›› Lifestyle x Business x ROI = ultimate opportunity

Financials NETT PROFIT: $403,766 PRICE: $2,895,000

EXCLUSIVE

Todd Warner BROKER

M. +61 438 170 763 E. toddwarner@resortbrokers.com.au 62

resortbrokers.com.au | INFORMER DECEMBER 2017

Kirra Beach, QLD

› Freehold Motel REF: FH004806

Large Northern Freehold Motel The Seaview Cooktown is an opportunity not to be missed! The 42 rooms allow for a range of room options, catering to both the corporate client and domestic & international tourists. The vast views of the coastline and historic Endeavour River provide a real competitive edge for accommodation.

The motel has been owned by the same family for nearly three decades and provides a rare opportunity. It has been operated for the last decade under management and staff. It is supported by government/corporate clients servicing the various communities in the surrounding district. The support networks are from Cairns (330km) and this provides a consistent base of year-round occupancy.

Cooktown is one of the gateways to Cape York and various remote communities. Economic drivers include agriculture, government (remote communities), fishing and drive tourism.

Every year thousands of trekkers explore Cape York.

The location and owner-operation are the real keys to success!

42

42

1

1

Rooms

Letting Pool

Bed

Bath

MANAGER’S RESIDENCE

MANAGER’S RESIDENCE

›› Opportunity for an owner-occupier ›› Well established motel within the region ›› Consistent trading patterns ›› Opportunity to purchase the investment freehold ›› 42 rooms with no restaurant ›› Location and views are the key

Financials NETT PROFIT: $530,000 PRICE: $4,000,000

EXCLUSIVE

Shane Mullins BROKER

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

Cooktown, Nth Qld INFORMER DECEMBER 2017 |

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Editorial

BRISBANE’S BEST

management rights team

C

overing every corner of Brisbane – north, south, east and west – Resort Brokers Australia’s crack team of brokers is widely recognised as the most capable and effective sales force ever to serve the Brisbane management rights industry.

As they go from strength to strength, Gareth, Jessica, Nathan and Brent have been smashing sales records right across town.

Based in Resort Brokers’ corporate head office at West End, our Brisbane team has been hand-picked to provide the right mix of diverse skills, supporting and complementing each other’s efforts.

They are here to assist management rights buyers and sellers through the entire transaction process, working with you to astutely match buyers with the right property and connect all parties with the best industry specialists.

They will carefully appraise and value your current business, develop a tailor-made marketing campaign for its sale, and partner closely with you every step of the way to ensure your individual needs and requirements are met.

Whether you are a first time buyer or an experienced operator, Resort Brokers’ sales team will always deliver exceptional service, a seamless experience, and a great result.

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PROPERTIES SOLD IN 2017

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$86M TOTAL VALUE OF SALES IN 2017

25

SALES IN EXCESS OF $1 MILLION

Gareth Closter

Nathan Eades

BROKER

BROKER

MR: Brisbane CBD, and Inner North

MR: Brisbane West / Motels: Greater Brisbane

Gareth came to Resort Brokers incredibly well qualified for his role assisting management rights vendors and buyers in Brisbane. Not only had he had 15 years’ experience in commercial property sales with very impressive credentials, he had direct experience in the management rights industry.

Gareth’s decision to transition to specialise in the accommodation sector stemmed from a family background in management rights ownership. He has also purchased his own management rights business, demonstrating clear belief and confidence in the industry.

With ‘skin in the game’, as they say, he is uniquely placed to provide exceptional service.

Gareth has proven to be one of Resort Brokers’ most successful agents, involved in some the largest off-theplan sales, including FV, Laguna & St Tropez, and Haven.

Most recently, he has been appointed to market one of the largest fully established management rights in Queensland, netting more than $1.6 million per annum.

With 20 sales under his belt at Resort Brokers, Gareth is a well-respected industry expert specialising in the inner city suburbs including Brisbane CBD, Newstead, portside Hamilton, Teneriffe and Fortitude Valley.

Nathan is probably the busiest broker in Brisbane! He is the #1 motel broker in Greater Brisbane and one of the most respected and well-liked management rights brokers in the sector. Nathan handles motel sales throughout the city and sells management rights in the affluent western suburbs. In 2017, he was involved in 36 separate listings, and sold and settled 11 properties in 11 months, with a further 10 under contract. He moved into accommodation property sales well equipped after a long and successful career in sales and marketing in the liquor and beverage industry. Hospitality and accommodation share a natural affinity – and he certainly proved a natural.

Schooled in Brisbane’s western suburbs, where he now sells management rights and, having lived in the north, south, east and west of the city over the years, he knows the features and benefits of his clients’ localities. Nathan prides himself on honest, up-front communication. “It’s not about what you want to hear.

I’ll tell you what you need to hear to get your property sold.”

While Resort Brokers’ database is unrivalled, his progressive approach to social media marketing and ability to harness relationships further ensure he delivers: ›› the best result that can be achieved ›› the smoothest transaction possible ›› and the best service of any broker in the industry

Jessica Wilkie

Brent Staker

BROKER

BROKER

MR: South Brisbane

MR: East and North Brisbane

More than anything else, Jessica prides herself on being honest, having integrity and working hard for all of her clients. Jessica’s impressive previous experience and career achievements in sales, events, business development and management all have led her to great success with Resort Brokers.

After two rewarding years in the industry, she is now well qualified for her role assisting management rights operators, developers and buyers across Brisbane.

Having achieved an impressive 13 successful sales over the past 12 months, in both the off-the-plan and established business categories, Jessica is increasingly recognised as an expert in her field across Brisbane’s Southside. Jessica has rounded out 2017 managing four deals under offer and with a further three listings on the market. She looks forward to continuing to work hard for all her clients, from the key inner city suburbs of South Brisbane and West End extending across a wide territory as far south as Logan City.

AFL fans nationwide will know this name, but so too now a large slice of Brisbane’s management rights industry. After 13 years and 175 games of Aussie Rules at elite level, including with Perth’s West Coast Eagles and the Brisbane Lions, Brent joined another great team. Professionalism, self-discipline and tenacity: he definitely has what it takes for elite performance in accommodation sales. Brent has been performing strongly in management rights sales across his expansive area, extending all the way from bayside Redlands north to Deception Bay. His territory also covers the suburbs of Albany Creek and Carseldine, and prime eastside locations Cannon Hill, Bulimba, Woolloongabba, East Brisbane and the highly desirable Kangaroo Point precinct.

Brent has also gained quality experience dealing with developers helping with projections and setting up off-the-plan management rights businesses. He always looks forward to meeting new and existing owners, not only learning about their businesses, but getting to know them personally by taking an interest in their path to management rights and goals for the future. His time in sport taught Brent many life lessons at an early age and he is using this experience and knowledge to build his reputation as a quality broker around Brisbane.

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Agent Profile

Meet

CHENOA DANIEL BROKER – FAR NORTH QUEENSLAND

Our agents pride themselves on their local knowledge.

They each look after a geographical patch, and grow to know it intimately. We feel this adds greatly to the confidence with which a property can be sold. In this feature, we hear from our brokers about their local area and find out about what makes them tick.

HOW LONG HAVE YOU WORKED AT RESORT BROKERS AUSTRALIA? I joined the team in June 2016 and I have enjoyed working with such a diverse and encouraging company like Resort Brokers Australia. Their support is second to none and I am so grateful to RBA for providing me with this platform to do what I am passionate about.

WHAT IS YOUR BACKGROUND? I am originally from country Victoria. Unable to handle the cold weather, I moved to join my family in Cairns. I have worked in the management rights industry for the last nine years. Along with operating my family’s resort, I also took on roles of relief management and business consulting. Running a large permanent complex and now a holiday complex has shown me both ends of the spectrum, so I can honestly understand and appreciate all of my vendors’ stories when I pop in for a coffee. I still help manage my family’s holiday resort when I’m not working as a broker.

TELL US ABOUT YOUR AREA I think I am one of the luckiest brokers in Australia to work in Far North Queensland. It’s one of the most beautiful places in Australia due to its tropical landscape, with the Great Barrier Reef on our doorstep.

I focus on the areas from Cairns to Port Douglas and work in conjunction with my two North Queensland 66

resortbrokers.com.au | INFORMER DECEMBER 2017

colleagues, Shane Mullins and Des Fagg. I have an incredible passion for the area and the business opportunities in FNQ are some of the best Australia has to offer.

TELL US ABOUT AN ISSUE WITH A SALE THAT YOU HAVE OVERCOME AND WHAT YOU LEARNT FROM THAT? As we know, the road to a sale can be a rocky one. From accounting and legal due diligence to a touchy Body Corporate meeting, it is understandable why most vendors can gain an extra grey hair or two. Vendors may have purchased management rights but never actually sold before, so I understand navigating that process can be a scary and daunting time. I have learnt to never presume, always ask.

WHAT HAS BEEN YOUR BIGGEST SUCCESS SINCE STARTING AT RESORT BROKERS AUSTRALIA? In working for my vendors, I pride myself on achieving the best possible outcome. I am very conscious that I need to find them the ‘right buyer’, so the transaction can run smoothly.

I also pride myself on helping an interested buyer make the right decision for them. I believe, to be successful, you need to sell someone something they actually want. I appreciate the emotional aspect and effort that goes with a sale from my vendor’s perspective. Multiple inspections and time spent with

incorrect buyers is not a good outcome for anyone.

WHAT ANNOYS YOU? Dishonesty. Integrity and honesty goes a long way, especially in this industry. Being open and honest from the start builds trust. Trust is an important part in any relationship and is paramount when working with my vendors to achieve the best possible outcome for everyone involved.

WHAT DO YOU LOVE? I am only recently married so, still in that ‘honeymoon’ phase you could say.

I love spending time with my husband and family. I work a lot and I’m lucky to have such an amazing support network.

I also love to workout and be healthy, as I believe having a healthy mind and body promotes positivity. You will find me running up a hill in the morning, or along the Esplanade with my dogs.

DO YOU HAVE A NICKNAME? I have had a few over the years, but none has stuck. Having an unusual name doesn’t help, but I’m open to suggestions.

WHAT DO YOU DO IN YOUR SPARE TIME? In my spare time, I try to spend as much time as I can in the water.

My husband and I have a boat and frequently go fishing and diving out the reef. If the weather is a bit windy for fishing, you will find me at the beach with my two dogs Huey and Monty.

Sold Properties

Resort Brokers Australia has sold and settled 124 properties since the 6th January 2017.

We have a further 132 under contract.

Passive Investment Kimba, SA

Management Rights Biggera Waters, QLD

Leasehold Motel Point Cook, VIC

FH Passive Investment Perth, WA

Leasehold Motel Albury, NSW

Management Rights Port Douglas, NSW

Leasehold Motel Bundaberg, QLD

Leasehold Hotel Cooktown, QLD

Management Rights Bundall, QLD

Freehold Motel Emerald, QLD

Management Rights Hamilton, QLD

Leasehold Motel Portland, VIC

Management Rights Noosa, QLD

Leasehold Hotel Melbourne, VIC

Management Rights Newstead, QLD

Leasehold Motel Wondonga, VIC

Management Rights Strathpine, QLD

Management Rights Surfers Paradise, QLD

Leasehold Motel Spring Hill, QLD

Management Rights Southport, QLD

Leasehold Motel Mundubbera, QLD

Management Rights South Brisbane, QLD

Management Rights Port Macquarie, NSW

Management Rights Labrador, QLD

Leasehold Motel Cairns, QLD

Management Rights Coolangatta, QLD

Leasehold Motel Belmont, NSW

OTP management Rights Mooloolaba, QLD

Management Rights Cairns, QLD

Freehold Motel Maclean, NSW

Freehold Motel Port Macquarie, NSW

Freehold Motel Bundaberg, QLD

Leasehold Motel Point Cook, VIC

Management Rights Noosa Heads, QLD

Management Rights Ningi, QLD

INFORMER DECEMBER INFORMER MARCH 2017 |

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Relief Managers Please note: This is simply a directory service that we provide to assist you. Should you choose to go on holiday or take a break, we recommend you interview and qualify relief managers yourself, before hiring.

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

Steve Reynolds

Barry & Lesley Roberts

MOTELS, RESORTS & CARAVAN PARKS NATIONWIDE

MANAGEMENT RIGHTS & MOTELS BRISBANE, GOLD & SUNSHINE COAST

MOTEL NATIONWIDE

M EE

M E

0413 614 936 steve.managementrightsrelief@gmail.com

M E

0428 422 456 lez.baz@bigpond.com

Llew & Trisha Pointon

Marion & Peter Keulen

Michael Stirling

RESORT & MOTELS NATIONWIDE

CARAVAN & HOLIDAY PARKS NATIONWIDE

MANAGEMENT RIGHTS, RESORTS & MOTELS QLD & NSW

M E

0400 035 359 llewp@tpg.com.au

M E

0411 865 905 marion_keulen@hotmail.com

M E

0437 455 865 stirling6298@yahoo.com

Michael & Carolyn Grealy

Mike and Teresa Thomson

Nanette Mortimore

MOTELS, HOTELS & CARAVAN PARKS QLD, NSW & VIC

MOTELS NATIONWIDE

MANAGEMENT RIGHTS BRISBANE

M E

0437 697 772 cmgrealy@optusnet.com.au

M E

0419 174 221 info@mitemgt.com.au

M E

0419 707 773 nanette.mortimore@gmail.com

Patricia Laverty

Paul & Jane Hansen

Peter & Janine Templeton

MOTELS & RESORTS QLD, NSW & VIC

CARAVAN PARK & VILLA QLD, NSW & VIC

CARAVAN PARK & MOTELS NATIONWIDE

M E

0478 611 202 patricia_laverty@hotmail.com

M E

0438 877 932 happycamperparkmanagement@gmail.com

M E

0408 178 130 tempy7@bigpond.com

Phillip & Sharyn Stallman

Rob & Lyn Keen

Rowena & Pat Magee

MOTELS NATIONWIDE

MANAGEMENT RIGHTS QLD & NSW

MOTEL & CARAVAN PARKS NSW & VIC

M E

0428 931 589 pjstal@bigpond.com

M E

0406 884 343 roblynkeen@gmail.com

M E

0437 232 227 rowenamagee@hotmail.com

Sally & Edward Shirke

Shane & Jodie Adamson

Shane & Madonna Ashman

ALL PROPERTY TYPES NATIONWIDE

CARAVAN PARK QUEENSLAND

MANAGEMENT RIGHTS NATIONWIDE

M E

0437 606 918 sshirkie@gmail.com

M E

0427 155 399 info@safejourneyaustralia.com.au

M E

0438 146 091 shaneashman@outlook.com

Vicki & Wayne Gowland

Yvonne & George Arato

Charlie & Jacky

MANAGEMENT RIGHTS & MOTELS QLD, NSW & VIC

ALL PROPERTY TYPES NATIONWIDE

CARAVAN PARKS & MOTELS QLD & NSW

M E

0434 200 110 vickigowland@hotmail.com

M E

0410 685 003 hgarato@bigpond.com

M E

07 4622 3221 jacquelineryan1@bigpond.com

Belinda & David Gustason

Carmel Moloney

Christian Carbone

ALL PROPERTY TYPES QLD & NSW

MOTEL QLD - GOLD & SUNSHINE COAST

ALL PROPERTY TYPES NATIONWIDE

M E

68 68

0402 255 078 rayann3010@hotmail.com

0403 219 562 gustafsondavid@hotmail.com

resortbrokers.com.au | INFORMER MARCH 2017 resortbrokers.com.au | INFORMER DECEMBER 2017

M E

0400 483 291 carmela1management@mail.com

M E

0432 008 988 alisonandlinley@icloud.com

Jeff Mitchell & Colleen Barnes

The Good Knights

Pauline & Robert Donald

Hotel and Motels NATIONWIDE

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

MOTELS & CARAVAN PARKS QLD & NORTHERN NSW

M E

0418728493 jeff.colleen@bigpond.com.au

M E

0412 005 537 julia@brightandbold.com.au

0419 810 052 donaldhospitality@gmail.com

M E

Gary & Robyn Loakes

Jim & Carmel Ryan

John & Lesley Gibson

ALL PROPERTY TYPES NATIONWIDE

MOTELS AUSTRALIA & NEW ZEALAND

MOTELS NATIONWIDE

M E

0408 798 352 grl21@bigpond.com

M E

0437 404 079 muttley8@optusnet.com.au

0418 681 124 long.yard@bigpond.com

M E

John & Susan Conde

Kane Ansell & Robyn Hall

Kristy & Lance Butt

MOTELS QLD & NSW

MOTELS SOUTH EAST QLD & NORTHERN NSW

MOTELS SOUTH EAST QLD

M E

0438 488 738 jnsmotelrelief@internode.on.net

M E

0416 016 614 info@businessbay6.com.au

M E

0428 902 878 nqpropertygroup@gmail.com

Maria Delange

Paul & Arleene Moore

Paul Anthony Kirkpatrick

MOTEL & MANAGEMENT RIGHTS CENTRAL QLD

MOTEL MANAGERS QLD & NSW

MOTEL, RESORT & HOTEL NATIONWIDE

M E

0425 732 569 mariajdl@bigpond.com

M E

0404 855 711 pfandammoore@live.com

M E

0419 675 671 paul.kirkpatrick@gmail.com

Annie & Gary Miegel

Garry Baker

Chris Campbell

OPERATIONS MANAGERS NATIONWIDE

ALL PROPERTY TYPES NATIONWIDE

MOTELS & MANAGEMENT RIGHTS SOUTH EAST QLD & NORTHERN NSW

M E

0449 790 039 annieandgaz@hotmail.com

M E

0437 455 865 garrybaker7@hotmail.com

M E

0449 957 414 cj.campbell@gmail.com

Christopher Hillman

Colin & Laraine Fields

Elizabeth Grimm

MANAGEMENT RIGHTS, MOTELS & RESORTS QLD & NSW

ALL PROPERTY TYPES QLD & NSW

MANAGEMENT RIGHTS GOLD COAST

M E

0488 550 005 christopher.hillman@bigpond.com

M E

0402 176 933 larainefields@gmail.com

M E

0408 000 891 yellowroses4me2222@yahoo.com.au

Garth & Trish Carey

Geoff & Maryanne Cheeseman

Graeme & Deborah Wallace

RESORT & MOTEL QLD & NSW

ALL PROPERTY TYPES NATIONWIDE

MOTELS QLD & NSW

M E

0421 359 059 garth@careynominees.com.au

M E

0410 662 963 cheezmg@bigpond.com

M E

0427 512 751 graemedeb@motelmanagers.com.au

Peter Mackay

Karen & Robert Nisbet

Karla Harding

MOTELS & CARAVAN PARKS NSW

MOTEL & CARAVAN PARKS NATIONWIDE

B&B & GUESTHOUSE AUSTRALIA & NEW ZEALAND

M E

0408 000 554 mackas@gmail.com

M E

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

M E

0414 767 499 bnbangel@fastmail.net

Grant & Kerry O’Sullivan

Lauren Kropp

Linley and Alison Maddick

ALL PROPERTY TYPES NATIONWIDE

ALL PROPERTY TYPES QLD & NSW

MOTELS NORTHERN NSW & SOUTHERN QLD

M E

0404 473 100 grant2466@bigpond.com

M E

0458 416 484 lauren@realstrategix.com.au

M E

0432 008 988 alisonandlinley@icloud.com

INFORMER MARCH 2017 | resortbrokers.com.au INFORMER DECEMBER 2017 | resortbrokers.com.au

69 69

Directory Introducing Resort Brokers Australia’s national team of accommodation business and property brokers. We are the industry experts at your service in every state and territory.

Ian Crooks

Tim Crooks

Alex Cook

MANAGING DIRECTOR

SALES MANAGER

OFF THE PLAN SPECIALIST

BROKER

Nationwide

Nationwide

Nationwide

North Gold Coast & Surfers & Quest

M 0411 171 648

M 0477 882 210

M 0422 208 450

M 0467 600 610

E iancrooks@resortbrokers.com.au

E trudycrooks@resortbrokers.com.au

E timcrooks@resortbrokers.com.au

E alexcook@resortbrokers.com.au

Carla Cook

Nathan Eades

Gareth Closter

Brent Staker

MARKETING MANAGER

BROKER

BROKER

BROKER

Nationwide

Brisbane

Brisbane

South Brisbane

M 0467 600 611

M 0448 339 920

M 0423 182 766

M 0410 344 344

E carlacook@resortbrokers.com.au

E nathaneades@resortbrokers.com.au

E garethcloster@resortbrokers.com.au

E brentstaker@resortbrokers.com.au

Jessica Wilkie

70

Trudy Crooks

Neville Littleton

Glenn Millar

Arron Bailey

BROKER

BROKER

BROKER

BROKER

South Brisbane

North Brisbane

Sunshine Coast

Sunshine Coast

M 0401 003 023

M 0407 727 194

M 0412 277 804

M 0452 022 387

E jessicawilkie@resortbrokers.com.au

E nevillelittleton@resortbrokers.com.au

E glennmillar@resortbrokers.com.au

E arronbailey@resortbrokers.com.au

resortbrokers.com.au | INFORMER DECEMBER 2017

Paul Mueller

Ian Dore

Jenny Sorenson

Todd Warner

BROKER

BROKER

BROKER

BROKER

Central Gold Coast

North NSW & Gold Coast

South Gold Coast

South Gold Coast

M 0439 255 507

M 0412 752 238

M 0475 089 468

M 0438 170 763

E paulmueller@resortbrokers.com.au

E iandore@resortbrokers.com.au

E jennysorenson@resortbrokers.com.au

E toddwarner@resortbrokers.com.au

Lynne Booth

Des Fagg

Shane Mullins

Chenoa Daniel

BROKER

BROKER

BROKER

BROKER

Central Queensland

North Queensland

Far North Queensland

Far North Queensland

M 0408 704 778

M 0427 849 119

M 0447 185 001

M 0403 143 151

E lynnebooth@resortbrokers.com.au

E desfagg@resortbrokers.com.au

E shanemullins@resortbrokers.com.au

E chenoadaniell@resortbrokers.com.au

Len Booth

Lindsay Cooper

James Carrick

Andrew Rendall BROKER

BROKER

BROKER

BROKER

Central Queensland

West QLD & North NSW

Mid North & North West NSW

Central NSW

M 0438 139 422

M 0418 711 047

M 0400 664 065

M 0412 635 344

E lenbooth@resortbrokers.com.au

E lindsaycooper@resortbrokers.com.au

E jamescarrick@resortbrokers.com.au

E andrewrendall@resortbrokers.com.au

Russell Rogers

Shane Wynhoven

Jim Chapman

Michelle Matthews

BROKER

BROKER

VICTORIAN STATE MANAGER

BROKER

South Coast, NSW

Greater Sydney, Central Tablelands & Hunter

Quest Specialist - NSW, VIC, SA & TAS

Melbourne CBD & West Victoria

M 0416 166 909

M 0424 174 592

M 0413 444 782

M 0400 474 861

E russellrogers@resortbrokers.com.au

E shanewynhoven@resortbrokers.com.au

E jimchapman@resortbrokers.com.au

E michellematthews@resortbrokers.com.au

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71

Damien Loorham

Kelli Crouch

BROKER

BROKER

North East Victoria

South Australia

M 0409 399 932

M 0410 441 750

E damienloorham@resortbrokers.com.au

E kellicrouch@resortbrokers.com.au

Ray Ironside

Jane Fang

BROKER

CHINESE LIAISON BROKER

Tasmania

National

M 0418 130 364

M 0402 399 613

E rayironside@resortbrokers.com.au

E janefang@resortbrokers.com.au

1300 665 966 resortbrokers.com.au

INFORMER DECEMBER 20

INFORMER DECEMBER 20

017 |

QUEENSLAND

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

NEW SOUTH WALES

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

VICTORIA

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

SOUTH AUSTRALIA

PO Box 327 Fulham Gardens, SA 5024 (08) 8356 5057

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

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INFORMER DECEMBER 2017 |

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