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

Marketing Agent
Jim McDonald
Jim McDonald

Jim McDonald Brokers

Jim McDonald Brokers

Key Investment Insights

1. New 25 year lease provides long-term stability for the business.
2. Ten new units being constructed at no cost to the tenant, increasing potential for higher profits.
3. Low rent, only 39.6% of total adjusted net profit, providing a favorable yield for the tenant.
4. Tenant's profit after rent is $269,312, indicating a profitable business.
5. Property includes 23 units, a 3BR cottage, and a large 2/3 bedroom residence, providing a variety of accommodation options.
6. Large solar system of 30 kw, potentially reducing energy costs for the business.
7. No restaurant on the premises, reducing overhead costs and focusing on providing breakfast for guests.
8. Tariffs for rooms are competitive and offer a range of options for guests.
9. Occupancy rate of 71%, indicating a steady flow of guests.
10. Despite challenges such as Covid-19 and roadworks, revenue has returned to previous highs, presenting a promising opportunity for the new tenant.
Listing location

This Business is sold

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