Dubbo, New South Wales
DUBBO LEASEHOLD - VIBRANT REGIONAL CITY -LOW RENT - YIELDING 34%. TEN NEW UNITS BEING CONSTRUCTED
SOLD
Business Description
* New 25 year lease. Ten new units are to be constructed at no cost to tenant. There will be a rent adjustment
* 2020/21 Turnover $671,000
* Low rent. Only 39.6 % of total adjusted net profit. The extra rent for the new units will be more than compensated by the extra profits.
* Tenant's profit is $269,312 after rent of $177,000 (2020/21 figures)
* 23 units +3BR cottage plus a large 2/3 bedroom residence. Additional 10 units being constructed.
* Large solar system 30 kw
* No restaurant - only breakfast is provided.
*Tariffs: Single $115-$135; Double $125-$145; Family (4) $180-$200; Extra Person $20-$25; 3BR Cottage $350 to $500 Per Week
*Occupancy 71%
* This property like many has suffered due to Covid 19. As well as this issue there has been major roadworks at its front door.
Despite these problems its revenue has now jumped back to previous highs. It leaves a wonderful opportunity for the new tenant.
Business Summary
Key Investment Insights
1. New lease with 25-year term provides stability and long-term potential for growth.
2. Ten new units being constructed at no cost to tenant, allowing for potential increase in revenue and profits.
3. Low rent at only 39.6% of total adjusted net profit, providing a favorable financial situation for the tenant.
4. Tenant's profit after rent is $269,312, indicating a strong and profitable business.
5. Property includes a mix of 23 units, a 3-bedroom cottage, and a large 2-3 bedroom residence, providing a variety of accommodation options.
6. Large solar system in place, potentially reducing operating costs and increasing sustainability.
7. No restaurant on site, reducing overhead costs and focusing on the profitable breakfast service.
8. Tariffs for rooms are competitive and offer potential for increase.
9. Current occupancy rate at 71%, with potential for growth.
10. Despite challenges due to Covid-19 and roadworks, revenue has returned to previous highs, indicating resilience and potential for future growth.
