Surfers Paradise, Queensland

Surfers Paradise Prime Management Rights Opportunity

$2,250,000

Business Description

Seize the opportunity to capitalise on this long established Surfers Paradise Management Rights business, whereby the current owner has been operating since 2014.

Centrally located in Surfers Paradise, this Management Rights complex is situated in a prime tourist location. A popular spot for holiday visitors due to being a short stroll to Cavill Avenue, beach, shopping, cafes, restaurants and its accessibility to the tram line.

Offering a mix of one, two and three bedroom fully self-contained airconditioned apartments, all featuring a private balcony with either an ocean, mountain or river view. Guests can enjoy amenities such as a Pool, Spa, Gym and underground secure parking.

With a supportive body corporate the business has just been successful in securing a top of their agreement to 24 years. The complex has just undergone a major refurbishment of their Tennis Court, Undercover BBQ area and Sauna/Public amenities area and as a result there is minimal caretaking duties to be undertaken. The body corporate also a gardener every four months to ensure the high level of presentation around the grounds.

Included is a ground floor airconditioned managers unit comprising of two bedrooms, one bathroom, separate laundry, one car space plus four large storage areas for management. The current owner chooses to live offsite and has an appointed nominee residing onsite.

With the hard work completed and systems in place, there is still huge potential to grow this business even further by securing the 18 outside agents back into the letting pool.

Call me today to discuss this opportunity!

Net Profit: $333,723

Business Summary

Business Snapshot

Price: $2,250,000 Net Profit: $333,723 Remuneration / Body Corp Salary: $112,700Body corp salary review: CPI Annually

Managers Unit

Value of Managers Apartment: $629,500Bedrooms: 2Bathrooms: 1Car Spaces: 1Office: Exclusive Use

2 Bedroom + 1 Bathroom Ground floor airconditioned unit with separate laundry, Car Park + 4 large storage areas

Complex Information

Complex Type: HolidayTotal Units in Complex: 73Total Units in Letting Pool: 26Owner Occupy Units: 26Outside Agent Units: 18Lockup Units: 2Manager Units: 1Agreement Module: AccommodationAgreement Term: 25 yearsAgreement Term Remaining: 24 yearsPool: YesSpa: YesSauna: YesGym: YesTennis Court: YesBBQ Area: Yes

Marketing Agent

Craig Johnson

Hotel Resort Sales

Key Investment Insights

1. Long established Management Rights business in a prime tourist location in Surfers Paradise.
2. Mix of one, two and three bedroom fully self-contained apartments with private balconies and various views.
3. Amenities such as a pool, spa, gym, and secure underground parking.
4. Supportive body corporate with a recently secured 24-year agreement.
5. Minimal caretaking duties due to recent refurbishments and regular gardener.
6. Ground floor managers unit with two bedrooms, one bathroom, and four storage areas.
7. Potential to grow the business by securing 18 outside agents back into the letting pool.
8. Net profit of $333,723 and remuneration/body corp salary of $112,700.
9. Managers apartment valued at $629,500 and agreement term of 25 years with 24 years remaining.
10. Complex information includes 73 units with 26 in the letting pool, 26 owner-occupied units, and 18 outside agent units. Amenities include a pool, spa, sauna, gym, tennis court, and BBQ area.

Management Rights Multiplier: 4.86
ROI Estimate: 20.59%