Key Investment Insights
1. Beachfront esplanade location with sweeping oceanfront views, positioned on top of Alexandra Headland directly across from the beach.
2. Strong tourism tailwinds, with Alexandra Headland showing increasing visitor numbers and high holiday market occupancies.
3. Established Mediterranean-style resort with a large base of returning guests, indicating repeat business and guest loyalty.
4. Multiple guest amenities including outdoor lagoon pool, indoor heated pool, sauna, spa, tennis court, BBQ area, undercover parking, tour office and WiFi, enhancing guest appeal and length of stay.
5. Manager’s two-bedroom, two-bathroom apartment included on title, valued at $695,000, with adjoining office, two large management storage areas and an exclusive car space, supporting owner-operator living arrangements.
6. Clear commercial financials, asking price $1,675,000 with reported net profit $275,000, implying an approximate price-to-net-profit multiple of 6.1.
7. Body corporate manager remuneration $95,643 excluding GST, with CPI annual reviews, providing a predictable salary component.
8. Long agreements in place and stated room for growth, indicating stability and upside potential.
9. Compact complex scale, 36 total units with 28 in the letting pool, three outside-agent units and one owner-occupy unit, allowing management control over majority of revenue-generating rooms.
10. Prime regional positioning within close distance to Mooloolaba and Maroochydore, enabling access to broader visitor markets and local shops and restaurants.
Management Rights Multiplier: 3.56
ROI Estimate: 16.42%
