Lismore, New South Wales
Refurbished 31 Room Passive Investment Motel
$3,950,000
Business Description
Ras360 Property Solutions exclusively presents an outstanding opportunity to acquire a secure freehold passive investment underpinned by a long-term lease to an experienced and highly regarded motel operator. Comprising 31 well-appointed guest rooms, the property has been extensively refurbished in recent years to a high 4-star standard, providing quality accommodation that continues to attract strong corporate and leisure patronage.
The investment generates a net annual rental of $275,000 (excluding GST) and is offered on an attractive 7.0% yield, providing investors with a reliable and consistent income stream. With approximately 30 years remaining on the lease, the asset offers exceptional long-term security, making it an ideal addition to private, SMSF or institutional investment portfolios seeking stable returns with minimal management responsibilities.
The motel is operated by an established tenant with a proven track record and strong commitment to the business, ensuring ongoing confidence in the rental covenant. Importantly, following the regional flood events, the property has benefited from a comprehensive flood mitigation strategy, incorporating measures designed to significantly improve resilience and protect the long-term integrity of the asset.
Positioned within the thriving regional city of Lismore, the motel services a diverse range of accommodation demand generated by government, health, education, construction, agricultural and tourism sectors. Combined with its modern presentation, secure lease structure and quality tenant, the Karinga Motel represents an exceptional passive investment offering long-term income security, capital preservation and attractive returns in one of regional New South Wales' key accommodation markets.
**Ras360 – Specialists in Motels | Hotels | Pubs | Parks | Management Rights **
Business Summary
Key Investment Insights
1. 31-room freehold motel, offering scale without requiring operator involvement.
2. Extensive recent refurbishment to a high 4-star standard, supporting premium room rates and strong guest appeal.
3. Net annual rental income $275,000 excluding GST, providing a clear income figure for valuation.
4. Offered at an attractive 7.0% yield, indicating competitive income return for investors.
5. Approximately 30 years remaining on the lease, delivering long-term income security and capital stability.
6. Long-term lease to an experienced, highly regarded motel operator, reducing tenant default risk.
7. Established tenant with a proven track record and strong commitment to the business, supporting rental covenant strength.
8. Comprehensive flood mitigation strategy implemented post-regional floods, improving asset resilience and reducing operational disruption risk.
9. Located in Lismore, a thriving regional city, providing a broad and stable demand base.
10. Diverse demand drivers including government, health, education, construction, agriculture and tourism, supporting year-round occupancy.
11. Structured as a passive investment suitable for private, SMSF or institutional portfolios seeking minimal management responsibilities.
12. Modern presentation combined with secure lease structure and quality tenant supports capital preservation and attractive, consistent returns.
