Gladstone Central, Queensland

EXCEPTIONAL PASSIVE FREEHOLD IN THRIVING GLADSTONE WITH PREMIUM TENANT IN PLACE | Resort Brokers ID : INV007849

Expressions of interest

Business Description

Comprising 37 strata titled lots boasting a yearly rent of $729,349, Gladstone Downtown Central presents an outstanding opportunity to own the freehold passive of a blue-chip accommodation asset ready to capitalise on the Central Queensland port city’s established appeal as a tourist and business destination.

The incoming owner will enjoy the security of having a first-rate tenant in place in the form of Central Apartment Group, one of Australia’s leading privately owned hotel companies.

Central Apartment Group only recently renewed its 5-year lease in July 2023. The lease expires in July 2028 with three further 5-year options to renew, which conceivably extends this premium tenant’s lease to 2043. The hotel is trading well, which will benefit the owner by way of a top-up based on 42.5 per cent of the gross accommodation revenue.

In addition to having the security of a stable tenant, the property is strata titled giving the incoming owner the ability to sell down individual units to benefit from local housing demand should they see fit and reduce rent accordingly.

Astute investors should be quick to consider this exceptional freehold passive investment in the vibrant regional city of Gladstone.

- Central location, walking distance to business/leisure precincts
- Stable, first-rate tenant in place until at least 2028 and conceivably 2043 if options renewed
- 37 strata titled lots incorporatingreception, conference room, ranging from studios to three-bedroom apartments
- High annual rent of $729,349
- Hotel is trading well to benefit from a top-up based on 42.5 per cent of the gross accommodation revenue
- Building less than 15 years old
- No large-scale works under consideration until 2028
- Conference facilities accommodating 40 delegates attract corporate trade
- Property inspections are by appointment only
Date updated: 04 Dec 2023 22:00:02

Business Summary

Business Snapshot

Price: Expressions of interest Net Profit: $553,540

Marketing Agent

Nathan Benjamin

Trudy Crooks

ResortBrokers

Key Investment Insights

1. Prime location in the thriving regional city of Gladstone, with close proximity to business and leisure precincts.
2. Stable, high-quality tenant in place until at least 2028, with the potential to extend the lease until 2043.
3. 37 strata titled lots, including a range of accommodation options from studios to three-bedroom apartments.
4. Annual rent of $729,349, providing a high return on investment.
5. Potential for individual unit sales to benefit from local housing demand.
6. Building is less than 15 years old, with no major works planned until 2028.
7. Conference facilities accommodating 40 delegates attract corporate trade.
8. Property inspections are by appointment only.
9. Net profit of $553,540, providing a strong and stable income for the owner.
10. Expressions of interest are invited, providing an opportunity for potential buyers to negotiate a suitable purchase price.

ROI Estimate: 6.42%