Key Investment Insights
1. The property, Sevan Apartments, is a highly sought-after and prestigious accommodation complex located in the heart of Forster, a thriving tourist destination on the Mid North Coast of NSW.
2. The property consists of 37 luxury apartments, of which 30 are in the letting pool and managed by the current owners.
3. The financial performance of the property has been consistently strong, with a proven track record of high occupancy rates (73%) and the ability to increase tariffs each year since opening in 2007.
4. The manager's residence is a modern and spacious 2 bedroom, 2 bathroom apartment, providing comfortable and convenient living for the on-site managers.
5. Sevan Apartments has a strong reputation for excellence, with a 4.5 star rating from Quality Tourism Accreditation and high ratings on popular travel websites such as TripAdvisor, Expedia, and Booking.com.
6. The asking price for the business is $2,700,000, which includes the management rights and the manager's unit.
7. The manager's unit has a value of $700,000 and includes 2 bedrooms, 2 bathrooms, and 1 car space.
8. The complex is classified as a holiday accommodation complex and has a total of 37 units, with 32 in the letting pool and 1 occupied by the owners.
9. The management rights agreement is for a standard term of 10 years, with 7 years remaining.
10. The complex offers additional facilities such as a pool, pay TV, WIFI, and function facilities.
11. The current owners have established a strong relationship with the Body Corporate and owners, contributing to the overall success of the property.
12. Sevan Apartments is widely considered the premier accommodation complex in Forster, making it a highly desirable investment opportunity.
Management Rights Multiplier: 3.33
ROI Estimate: 30.03%
