Key Investment Insights
1. Net profit $423,567, indicating strong current cashflow for the resort operation.
2. Body corporate remuneration $122,265, reviewed annually by CPI, providing stable management income.
3. Prime, high-demand Cairns location with long-term rental vacancy of 2% and rising rental rates, supporting upside in lettings.
4. Large-scale asset, 95 two and three bedroom apartments, offering economies of scale and diversified unit mix.
5. Substantial letting pool roughly 45 to 47 units, with further conversion to holiday letting in progress to capture higher-yield demand.
6. Mixed use tenure with 34 owner-occupied units and 16 managed by outside agents, allowing flexible revenue streams.
7. Long accommodation agreement in place, 25-year term with 22 years remaining, providing contractual revenue certainty.
8. Manager’s apartment on title valued at $380,000, two bedrooms and two bathrooms, with adjoining office on title and pet allowance.
9. Opportunity for manager to upgrade to a three-bedroom apartment, supporting retention and operational stability.
10. Resort amenities include pool, gym, BBQ area, pay TV and WiFi, enhancing guest appeal and occupancy potential.
11. No major new apartment developments in Cairns for 10 years, implying limited new supply and potential capital growth for high-calibre properties.
Management Rights Multiplier: 4.30
ROI Estimate: 19.25%
