Key Investment Insights
1. Premium riverfront Gympie Terrace Noosa location, described as tightly held and highly sought after.
2. Total purchase price $3,200,000, delivering net profit $407,000 including Body Corporate salary of $102,000 excluding GST.
3. Net profit represents approximately a 12.7 percent return on purchase price, indicating strong income relative to price.
4. Long secured agreement, 25 year original term with 21 years remaining, providing continuity and asset stability.
5. High letting pool participation, 23 of 25 townhouses in the resort letting pool, showing strong owner confidence and stable revenue.
6. Additional income diversification from four external luxury villas in an adjacent building.
7. Manager’s real estate is high quality; two-storey three bedroom, two bathroom townhouse valued at $1,450,000 with Noosa River views, and a separately titled riverfront manager’s office.
8. Comprehensive on-site guest facilities including heated pool and children’s wader, hot spa, sauna, tennis court, BBQ areas, tropical gardens, and WiFi, enhancing guest appeal and ADR potential.
9. Healthy sinking fund and established infrastructure, reducing near-term capital risk for the operator.
10. Body Corporate salary reviewed annually by CPI, providing indexed remuneration protection.
11. Clear operational upside through improved occupancy, refurbishment plans and dynamic pricing, indicating potential for revenue growth under new management.
Management Rights Multiplier: 4.30
ROI Estimate: 12.72%