Key Investment Insights
1. Prime riverside location directly opposite the CBD, two minute free ferry ride to Riverside, backing onto Story Bridge Hotel and next to Holman Street Ferry Terminal, enabling strong tenant demand and easy car-free access.
2. Consistently high occupancy, maintained at over 99% year-round, attributed to location and active management.
3. Permanent management rights for a large complex, 219 total units, with 108 units in the letting pool.
4. Owner occupy component of 61 units and 29 outside agent units, indicating diversified income sources and potential stability in cash flow.
5. Long agreement structure, 25 year term with 21 years remaining, providing contract continuity and predictable management rights.
6. Strong reported financials, listed net profit $723,036 with a full P&L prepared by Chartered Accountants Holmans.
7. High body corporate salary/remuneration of $551,162, representing over 75% of total profit and indexed to annual CPI increases, delivering inflation-linked income.
8. Sale price $6.527 million inclusive of real estate, enabling assessment of yield against disclosed profit and salary figures.
9. Two manager’s units, both 2-bedroom ground floor apartments, valued at $950,000 each, with agreements not obliging the manager to reside in a specific unit.
10. Longstanding, stable management under the current owner for over 13 years, with excellent relationships with all committees.
11. Restriction that applicants must be suitably qualified and experienced in owning and managing complexes of similar quality and size, narrowing potential buyer pool to experienced operators.
12. Vendor motivation is non-operational, owner’s interests are elsewhere, not due to business performance, reducing seller-related operational risk.
Management Rights Multiplier: 7.71
ROI Estimate: 11.08%
