AN investment syndicate formed with the express aim of gaining a foothold in the Gold Coast’s lucrative management rights industry has secured a premium Main Beach apartment business off-market in a $4 million-plus deal just settled.
Specialist accommodation sector agency RESORTBROKERS confirmed it had successfully concluded the sale of the Pacific Views Resort management rights based on a 6-times multiplier.
“A group of investors had already been assembled so we were able to go to the vendor with a syndicate and operating partner ready, which meant we had it under offer within less than a fortnight,” said RESORTBROKERS’ Todd Warner, who negotiated the deal with fellow Gold Coast area broker, Paul Mueller.
Mr Warner said investment syndicates were increasingly viewed by smaller but experienced management rights operators and business partners as an ideal vehicle to access high end, big earning properties.
“Demand for high netting Gold Coast holiday management rights businesses is very high, currently outstripping supply,” he said.
“The number of investors keen to get involved in these types of businesses is increasing rapidly.
“Syndication is an ideal path, opening up the market, but the process requires considerable specialist management rights industry expertise on the part of brokers and professional consultants to negotiate and deliver a good outcome for all parties.”
While the exact purchase price was undisclosed, it is understood to be more than $4 million, including a two-bedroom, two-bathroom manager’s unit and an office on title.
“Pacific Views Resort was a highly desirable propositions, netting more than $650,000 per annum, with 43 of its 65 apartments in the letting pool and 22 years remaining on the original 25-year agreements,” Mr Warner said.
The business was sold by Stephen Chatham, who had owned it since mid-2015 when he returned to Australia after two decades based in Asia working in the hotel and serviced office sectors.
New owner, Pacific Views Property Management Group, includes investors of various management rights industry backgrounds, as well as a former McDonald’s franchisee and builder from New Zealand.
The operational management team is Jodi and Bryce Donnelly whose respective experience was in occupational health and safety and hotel management.
Pacific Views Resort, a 24-level tower overlooking the beach at the corner of Main Beach Parade and Woodroffe Avenue, was developed by Harry Triguboff’s Meriton in the late 1990s.
The resort complex offers one and two-bedroom holiday apartments and includes an outdoor pool and indoor heated pool, spa, sauna, fitness room, games room, tennis court, barbecue area, tour desk and secure undercover parking.