07 Aug 2019
Words Raphaella Saroukos News.com.au
Ever wanted to own a roadhouse or caravan park? Now’s your chance.
TERRITORY motels, roadhouses and caravan parks are dominating the commercial real estate market with more than $7 million worth of regional assets for sale.
The assets are proving popular with buyers. The historic Kulgera Roadhouse, which went to market in February, is now under offer.
On the market is:
The Devils Marbles Hotel for $2.2 million.
The Beagle Motor Inn in Katherine for $2.3 million.
Resort Brokers Australia broker Kelli Crouch said roadhouses were of particular interest to buyers.
“They’re really strong cash flow businesses,” she said.
“Given their isolation and location, it makes them very secure. People have to stop there and that makes them highly profitable. With that comes less competition.”
She said both received significant buyer attention.
“Kulgera we had an offer on it quite quickly and interest has been very strong across Devils Marbles,” she said.
“They’re a really strong mix of hands on owner occupiers, people looking for strong returns who are happy to go out and work in the country and work hard for six or seven years and come out in a different financial position.
“We’ve got investors who run the business under management and then of course accommodation companies who look at them as well.”
She said aside from their location, roadhouses were a secure investment given multiple businesses, such as restaurants and camping sites, were working in the one property.
“They’ve got multiple incomes streaming through which is quite appealing for people,” she said.
Devils Marbles Hotel owner Greg Targett told the NT News in July his business saw a turnover of about $2.5 million in 2018, an increase of $1.2m when he bought the Hotel in 2012.
“You’re really not going to get return like that anywhere else in the country,” Ms Crouch said.