The largest established management rights portfolio for sale ever offer to the market is listed exclusively by ResortBrokers Tim Crooks, who is handling the deal along with Alex Cook and Jessie Shi.

This extensive portfolio consists six high end residential properties in the prime Brisbane inner suburbs of Teneriffe and Toowong. With combined body corporate salaries of $879,000, it generates a net profit of more than $1.7 million.

The portfolio is being sold by a Brisbane based seller and Tessa Group representative Brendan Tutt who said that the portfolio consisted of 644 apartments with 322 in the combined letting pool.

“This is an unprecedented opportunity to acquire Australia’s largest ever, established management rights. We’ve already received strong levels of enquiry due to the sheer scale and quality this offering represents,” said ResortBrokers Tim Crooks, who is handling the deal along with Alex Cook and Jessie Shi.

“Significant portfolios such as this are in extremely high demand. We recently sold DevCorp’s Lume, Lincoln and Tallowwood management rights for just shy of $3 million and at the close of the campaign had received 11 offers, four of which were above asking price. This opportunity is three-times the size, and we have already been inundated with off market appetite to secure this asset,” Mr Crooks said.

“Throughout COVID, permanent management rights were one of the only businesses that the major banks continued to finance as new transactions. The lack of new supply, coupled with consistently strong returns, in fact, drove multipliers upward throughout this uncertain time.  

“Following the apartment oversupply experienced a few years ago, which has now been completely absorbed, we are witnessing some of the lowest vacancy rates and highest rents ever recorded. This is underpinning buyer confidence within the permanent residential sector”

Management rights are also selling strongly because of a thriving rental market. For 12 months now, Brisbane’s rental vacancy rate has been dropping rapidly, down to just 1.3 percent in June 2021which represents a 15-year low for Brisbane, according to SQM Research. (https://sqmresearch.com.au/graph_vacancy.php?region=qld-Brisbane&type=c&t=1)

“What operators are seeing on a daily basis confirms this. In some cases, there are waiting lists for rentals and permanent lettings don’t stay on the market for long,” ResortBrokers Director Alex Cook said.

“When you combine this market confidence with the scale and quality of these assets, as well as the increasingly large pool of buyers, from a variety of purchasing classes looking to add to their portfolio, it translates to a large volume of enquires and genuine interest from a range of purchasing classes,” he said.

“This portfolio opportunity combines prime locations, high quality buildings with large letting pools, an outstanding combined body corporate salary and plenty of upside potential.”

The six properties include White Dawn, Augustus, Landmark, Rivers on the Park and Regatta Riverside at Toowong and Fabric at Teneriffe.

ResortBrokers recent sales activity includes Signature, Broadbeach, by Little Projects which sold for $15 million. Construction is well-progressed at Level 17 with 55 percent of the building completed and settlement is due in May 2022.  

The sale is being conducted by an Expressions of Interest campaign and the closing date is August 13, 2021.

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