Scheduled for completion in early 2020, Melbourne Village is positioned in West Melbourne between the CBD and the city’s vibrant waterfront precinct and will have superior interior design features and views in every direction.

Melbourne Village was conceived by renowned accommodation developers, the Deague Group, which specialises in luxury projects such as the Art Series Hotel. It will feature a high-end reception area and concierge along with leisure facilities including a central podium garden, 25 metre indoor pool, residents’ lounge and library, business lounge with a boardroom, an art house cinema and a gymnasium.

Resort Brokers Australia national off-the-plan specialist, Tim Crooks, says several operators have expressed strong interest in securing the management rights to Melbourne Village.

Click here to view the full listing on The Hotel Page.

“Based on our last four successful management rights campaigns in Victoria, we are expecting to finish with some high-quality submissions,” Mr Crooks said.

“We’ve had interest from serious contenders including major investment syndicates and large management rights operators with extensive portfolios.”

See also: Get to know Tim Crooks of Resort Brokers Australia

In the past few years, Resort Brokers Australia has led developer interest in selling management rights in Victoria and its recent transactions include Australia 108 for $15 million in 2018, the 454 apartment high-rise Avant in the CBD in 2018 for an undisclosed sum to Minor Hotels and most recently The Ritz in Geelong, which achieved the asking price of $5.88 million.

“The whole concept of management rights is well-established in places like Queensland but in Victoria, it is a relatively new business concept,” Mr Crooks said.

Management rights typically include the ability for an on-site manager to earn fees from letting out apartments and managing day-to-day services like checking in guests. It has only recently emerged in Victoria in part due to the growth of Airbnb and this has led to more developers looking at selling management rights off-the-plan.

See also: Get to know Alex Cook, Senior Broker at Resort Brokers Australia

“We’ve made some really good inroads in Victoria, as we’ve seen from Australia 108, Whitehorse Towers, Avant and The Ritz. Investors are achieving outstanding returns and service. Developers are delighted to see Airbnb dramatically reducing meaning no damage to common facilities or disgruntled owner occupiers whilst still being able to offer a short-term return via the corporate market,” Mr Crooks said.

The management rights package for Melbourne Village comprises a 25-year letting and caretaking agreement. The value of a management rights business is generally calculated by applying a multiplier to its annual profit.

The two towers will be at 21 and 27 levels with 496 apartments and 33 townhouses, for a total of 529 keys, and around 80 percent of accommodations will be sold to investors. This means there will be a letting pool of more than 400 units.

Click here to view the full listing on The Hotel Page.

This is an Elite Property booking.

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