Key Investment Insights
1. Exceptional reported net profit of $541,476, providing a strong earnings base for investors.
2. External letting income of $40,802 is separately accounted and contributes to total profitability.
3. Business priced using a blended multiple of 3.9 times net profit, with the main net profit at a 4.0x multiplier and external letting income at 3.0x.
4. Asking price listed as offers over $2.825 million, reflecting the stated multiples and income.
5. Manager’s apartment included and valued at $700,000, two bedrooms, one bathroom, private balcony and secure parking.
6. Onsite living not required, offering flexibility for owner operators or absentee management.
7. Prime coastal location in central Port Macquarie, steps from a popular beach and close to shops, restaurants and the CBD.
8. Resort-style facilities including multiple pools, landscaped gardens and a gym, supporting consistently high occupancy and repeat guests.
9. Established long agreements, 10 year term with nine years remaining, providing income security and stable Body Corporate relationship.
10. Large permanent complex of 94 units, with 50 units in the letting pool, 23 owner occupy units, 21 outside agent units and four lockup units, indicating scale and diversification of revenue sources.
11. Reported remuneration/Body Corporate salary of $154,171, clarifying operator income within the net profit.
12. Strong leisure and lifestyle market fundamentals in Port Macquarie, implying ongoing demand and growth potential for accommodation operators.
Management Rights Multiplier: 3.92
ROI Estimate: 25.48%