Key Investment Insights
1. Motivated sellers seeking a quick sale, presenting potential for negotiated terms and faster transaction timelines.
2. Advertised 3.1x multiplier and 32% ROI on the business, indicating a strong claimed return profile.
3. Asking price $1,750,000, comprising business value $1,025,000 and manager’s apartment valued at $725,000, clarifying the asset split.
4. Net profit $327,230, providing a clear earnings base for valuation and buyer cash flow modelling.
5. Manager remuneration $83,429, CPI indexed annually, offering predictable salary escalation for body corporate management.
6. Absolute beachfront manager’s unit with uninterrupted ocean views, office on title, and residence immediately adjacent to sand, unique lifestyle and marketing advantage.
7. Manager not required to occupy the unit, current managers rent the apartment and that rental income is excluded from reported net profit, creating an additional revenue opportunity.
8. Ten year standard management agreement with ten years remaining, supplying long term contract security and continuity.
9. Holiday complex of 45 units, 25 in the letting pool, 8 owner occupy units, 4 outside agent units, indicating meaningful pool scale and limited external agent competition.
10. Onsite amenities include a pool, BBQ area and WiFi, supporting holiday market appeal and guest experience.
11. Manager’s apartment is a spacious 2 bedroom, 1 bathroom with car space, pets allowed, enhancing residential appeal and letting flexibility.
12. Location in Cairns Northern Beaches with a relaxed village atmosphere, short drive to Cairns city and airport, supporting both lifestyle attraction and accessibility for guests.
Management Rights Multiplier: 3.13
ROI Estimate: 18.70%
