Key Investment Insights
1. The business for sale is a management rights opportunity for a 181-lot complex in Victoria.
2. The complex was originally developed by the reputable Lechte Corp.
3. The complex features a diverse selection of apartments and townhouses, making it attractive to both short-stay and permanent residents.
4. Currently, 80 lots are within the on-site letting pool, with 41 dedicated to short-stay units and 39 to permanent tenancies.
5. The complex has consistently maintained high occupancy rates and stability in both the short-stay and permanent sectors.
6. The property is managed by a full-time property manager, supported by a dedicated receptionist, housekeeping team, and part-time cleaner for common areas.
7. The modern setup requires no on-site residency for managers, making it easy to maintain.
8. The manager's 3-bedroom unit is included in the letting pool and generates an additional $45,000 per annum in gross income.
9. The short-stay business is in high demand, driven by nearby hospitals, Monash University, and bustling business parks, making it resilient to market shifts.
10. Post-pandemic, the short-stay business has shown continued growth, achieving over 83% occupancy and rising ADR.
11. There is potential to increase income by converting additional permanent units to short-stay to meet demand.
12. There is an opportunity to bring in the 62 apartments currently managed by outside agents.
13. The management rights business is well-established, supported by strong caretaking and letting agreements.
14. The supportive committee has a reliable history of topping up agreements, ensuring long-term stability for incoming managers.
15. The business represents an exceptional MR opportunity, with high and stable NOP, flexibility to live off-site, potential for revenue growth, and low-maintenance operational facilities.
16. The total price for the MR and unit is $3.72M, with a net profit of $584,915 and a
Management Rights Multiplier: 5.25
ROI Estimate: 19.05%