One of Queensland’s largest portfolios of management rights for sale has been released to the market, made up of 11 high end properties in prime suburbs located on the Sunshine Coast, Mackay and Moranbah, and Townsville marketed by ResortBrokers’ Sunshine Coast specialists Glenn Millar and Chenoa Daniel.

The portfolio comprises a total of 815 units with 597 of these managed in the onsite letting pools. It generates an overall net profit in excess of $3.6 million, making it one of the largest hybrid short term and permanent management rights assets ever offered to market.

The expressions of interest campaign is being conducted by ResortBrokers’ Sunshine Coast specialists Glenn Millar and Chenoa Daniel and industry analysts expect the portfolio will attract offers in the range of between $19 million to $20 million, based on current market conditions.

“When you combine the prime locations, the quality of the buildings, the sheer scale of the complexes and their letting pools, the huge combined body corporate salaries and the significant scope for upside, this presents as a genuinely rare management rights opportunity,” Mr Millar said.

“We’re expecting the portfolio to attract the attention of property consortiums, fund managers and probably larger established operators given the scale of what’s on offer,” he said.

“There’s also the potential for a smaller existing operator to establish themselves as one of Queensland’s largest management rights operators.”

The properties in the portfolio include Broadwater, Saltwater, Salt Apartments, and Waterline on the Sunshine Coast; Monterey at Moranbah; Pacific Sands near the Mackay CBD; and The Dalgety, Central Holborn, Central Islington Apartments, Central Kensington and Riverway Point in Townsville.

Management rights typically include the ability for an on-site manager to earn fees from letting out apartments in a strata titled building as well as earning a salary for managing day-to-day duties such as cleaning. The value of a management rights business is generally calculated by applying a multiplier to its annual profit.

“The portfolio covers three separate regions and, combined, they provide access to three distinct markets,” Chenoa Daniel said.

“The Sunshine Coast has one of the hottest real estate markets in Australia right now and it’s attracting both domestic tourists and new locals looking to live and work on the coast. Mining and resources is driving demand in Central Queensland.

“In Townsville, there’s a major university, an army and air force base, and a busy port which is backed by major infrastructure investment including the development of the $290 million Queensland Country Bank Stadium which has transformed the city both socially and economically,” she said.

All complexes in the portfolio are currently owned under a corporate structure and are run entirely under management.

“As such, there is significant scope for a more hands-on operator to grow various aspects of the business,” Ms Daniel said. “The vast majority of the agreements have more than 20 years tenure remaining, providing solid security to the incoming operator.

“All but four of the complexes has no requirement to live onsite, and all but six of the complexes has no set office hours, affording the incoming operator great flexibility in how the businesses are managed.”

Mr Millar said demand for management rights businesses in prime locations has risen so sharply that “bundled” portfolios are set to become a regular feature in the industry with fund managers now joining the hunt for assets along with consortiums, syndicates and larger established operators.

“Multipliers have risen on the Sunshine Coast, and they’re on the rise in places like Central Queensland and Townsville, so putting a portfolio together of similar assets provides a scale that provides a compelling offering with solid revenue,” Mr Millar said.

“Traditionally, we sell these management rights businesses as stand-alone entities but the demand is there for multiple properties to be sold together. This is because the larger established operators and fund managers are looking for scale and they’re looking for quality.”

To request a copy of the Information Memorandum please contact one of the marketing agents via the contact details below.

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