Key Investment Insights
1. Rare central Fortitude Valley location in a vibrant inner-city hub, supporting strong demand for both holiday and permanent letting.
2. Stable net operating profit of $391,652, offering immediate cashflow for an operator.
3. Significant body corporate salary remuneration of $133,730 with reliable annual CPI increases, providing predictable income growth.
4. Long security of tenure with a 25 year agreement originally, and 18 years remaining, reducing re-tender risk.
5. Secure Accommodation Module agreements and an upcoming top-up opportunity that enhance operational security and revenue potential.
6. Substantial organic growth runway, with 23 owner-occupier units and 24 outside-agent managed units representing immediate capture opportunities from the 82-unit complex.
7. Current letting pool of 34 units is profitable, indicating scalable revenue by converting owner-occupiers and outside-agent units.
8. Turnkey daily operations supported by Hirum management software and SSKB strata management, minimising transition friction.
9. Manager’s apartment on title valued at $550,000 with 1 bedroom, 1 bathroom and 1 car space, and direct connection to a dedicated reception and office area.
10. Strong lifestyle and guest appeal from resort-style amenities including heated indoor spa, sauna, fully equipped gymnasium, barbecue area, under-building parking and dual lift access, driving repeat bookings and tenant retention.
11. Expansive level-seven housekeeping storeroom and on-title reception area that support efficient operations and staffing.
12. Flexible residency requirement allowing appointment of a nominee, offering lifestyle adaptability for the manager.
Management Rights Multiplier: 5.59
ROI Estimate: 14.29%
