Fri, 25 Jan 2019, Quentin Tod from Gold Coast Bulletin
An investment syndicate formed with the express aim of gaining a foothold in the Gold Coast's lucrative management rights industry has bought a Main Beach it business in a $4 million-plus deal.
The deal involves the rights to Pacific Views, a Main Beach Parade tower completed by Harry Triguboff in 2001.
Resort Brokers, which negotiated the deal, says it was made at six times earnings.
The sale continues a strong start to 2019 by the Gold Coast management rights industry, coming on the heels of a $10 million-plus sale of the rights to the yet-to-be-built Signature tower at Broadbeach to the ULTIQA group.
Todd Warner, who with Resort Brokers colleague Paul Mueller negotiated the Pacific Views purchase, yesterday said a group of investors was assembled before an approach was made to the owners of the tower's rights.
“We were able to go to the vendor with a syndicate and operating partner ready, which meant we had the rights under offer within less than a fortnight,” he said.
Mr Warner said 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 and is 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.”
The Pacific Views price includes a two-bedroom, two bathroom manager's unit and an office on title.
Mr Warner said the Pacific Views rights netted more than $650,000 a year, with 43 of the tower's 65 apartments in the letting pool and 22 years on the 25-year management deal.
Published: The Gold Coast Bulletin, Fri, 25 Jan 2019, article by Quentin Tod.
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