Key Investment Insights
1. Asking price $1,595,000 against net profit $309,100, implying a strong earnings yield and advertised ROI of 28% with a 3.73X multiplier.
2. Business value listed at $1,100,000 with manager’s apartment valued separately at $495,000, indicating a split between business and real estate components.
3. Long management agreement structure, 25 year term with 24 years remaining, providing long‑term income security and transferability.
4. Body corporate salary/remuneration $64,270 with annual CPI review, delivering a predictable income component.
5. Pooled letting system in place with up to a 10% monthly levy for refurbishment and maintenance, supporting ongoing asset upkeep and uniform presentation.
6. Highly occupied, established holiday complex with a large repeat client base and recent new letting owner appointments, underpinning consistent revenue.
7. Prime Port Douglas location with direct appeal to tourists visiting Four Mile Beach, the Great Barrier Reef, the Daintree Rainforest and nearby dining and retail precincts.
8. Small, manageable complex of 18 units, 14 in the letting pool, 2 outside agent units and 1 lockup unit, suitable for owner-operator management.
9. Onsite amenities include pool, spa, BBQ area and WiFi, enhancing guest appeal and competitive positioning.
10. Manager’s apartment is on title, 2 bedrooms, 1 bathroom, 102 square metres with patio, adjacent office on title, one car space, plus exclusive workshop and storage, and pets permitted.
11. All apartments share similar layout and furnishings, simplifying maintenance, turnover operations and marketing.
12. No owners permitted to reside onsite, reducing potential conflicts and preserving consistent holiday accommodation standards.
Management Rights Multiplier: 3.56
ROI Estimate: 19.38%