Key Investment Insights
1. Net profit $309,100 against an asking price of $1,595,000, implying a high ROI stated as 3.73 multiplier and 28% business return.
2. Long agreements in place, 25 year original term with 24 years remaining, providing secure long-term management rights.
3. Established, proven income stream with strong, consistent occupancies and a large repeat client base.
4. Prime Port Douglas location, close to Four Mile Beach, the Great Barrier Reef, the Daintree Rainforest, and the town’s dining and retail precinct, supporting steady tourism demand.
5. Management operation described as well structured and efficient, enabling strong work/life balance for owner-operators.
6. Pooled letting system covering 14 of 18 units, with 2 outside agent units and 1 lockup unit, supporting centralised yield management.
7. Up to 10% monthly levy for refurbishment and maintenance ensures a dedicated funding stream for asset upkeep.
8. Manager’s apartment on title valued at $495,000, 2 bedrooms, 1 bathroom, 1 car space, 102 square metres with patio, adjacent office on title, plus exclusive workshop and storage.
9. Body corporate salary/remuneration $64,270 with annual CPI review, providing predictable owner remuneration.
10. Small, manageable complex size of 18 units total, 14 in the letting pool, facilitating operational control and consistent standards; furnishings and layouts are similar across apartments.
11. Onsite amenities include a pool, spa, BBQ area and WiFi, enhancing guest appeal and repeat visitation.
12. Management rights in Port Douglas are tightly held and rarely offered, indicating limited market supply and potential scarcity value.
Management Rights Multiplier: 3.56
ROI Estimate: 19.38%