Key Investment Insights
1. Generates a strong net profit of $470,000 per annum, indicating robust cash returns relative to asking price.
2. Asking price $4,200,000 with business value $2,100,000 and manager’s apartment valued at $2,100,000, showing the package splits accommodation and trading assets.
3. Absolute beachfront location with direct beach access, enhancing demand and premium pricing potential.
4. Boutique holiday complex of 33 units, with 18 currently in the letting pool, representing over 50% of stock actively generating revenue.
5. Clear upside to revenue by reacquiring 11 lock-up apartments into the letting pool, providing identifiable growth potential.
6. Long secured 20-year management agreement with 20 years remaining, offering long-term operational stability.
7. Supported by a cooperative body corporate, reducing operational friction and risk.
8. Easily managed by a two-person team, currently operated by a single operator, implying low staffing overhead and potential to scale or reduce operator workload.
9. Onsite facilities include a heated outdoor pool and BBQ area, plus strong repeat visitation driven by resort amenities.
10. Manager’s three-bedroom residence is absolute beachfront with ocean views, two bathrooms, spa bath, air conditioning, one car space, office on title and pets permitted, enhancing live‑in value and lifestyle appeal.
11. Remuneration/body corporate salary of $122,342 with annual CPI review, providing predictable owner remuneration escalations.
12. Holiday market positioning and proven reputation for quality guest service, evidenced by consistent bookings and solid occupancy levels.
Management Rights Multiplier: 4.47
ROI Estimate: 11.19%