Performance Business Sales Phone : (08) 94 ****
Pat Keenan-Smith
08 94 ****

0413 ****


A LONG TERM GROWTH OPPORTUNITY LIKE NO OTHER

Listing Id : 42487

Location : Western Australia -South West

Category : Accommodation

Asking Price : 2,600,000

Business description

 

HAVE YOU EVER WANTED TO FIND A BUSINESS THAT OFFERS:

 

...Total long-term security
...a once-in-a-lifetime chance to leverage your wealth harnessing property AND business
...the chance to triple your turnover with just a few simple steps??

**FAST-TRACK YOUR WEALTH WITH THIS BUSINESS - ALL UNDERPINNED BY PREMIUM, RARE FREEHOLD**


IMPORTANT NOTE 1: Freehold (only) independently valued at $3 MILLION PLUS in 2010!! ...at the height of the GFC!..
IMPORTANT NOTE 2: A $3 million cash-offer recently fell over on this business/freehold as an unavoidable result of the GFC!! - it's now your second chance..

- Want to live the perfect lifestyle?
- Want to work only 5 hours per week?
- Want to make money the easy way?


PREMIUM 18.45 ACRE SOUTHWEST FREEHOLD
COMPLETE WITH PROFITABLE (LOW-MAINTENANCE) ACCOMMODATION BUSINESS

This is the last of its kind in this region.
Pre-approval in place for future expansion

just 2.5km from Dunsborough centre…18.45 ACRES – complete with 4 modern villas, electricity, scheme water and pre-approval for 6 more villas!

This is your chance. Underpinning this investment is 18.45 acres of the most sought-after land in the region…and all the signs point to the next property upturn..

AND HERE’S THE BIG ONE – this freehold was valued (at the height of the GFC) for $3.012million EXCLUDING the business by independent licensed valuers!

Relax and make money the easy way - imagine buying a business which not only generates a substantial profit, but also offers the lucky buyer of this freehold business a lifestyle which is essentially ONE LONG INVESTMENT HOLIDAY.

It is very rare to have the opportunity to purchase premium development land (2.5km from Dunsborough) complete with four fully-functional, self-contained holiday cottages that form part of an already-profitable holiday accommodation business. The 18.45 acre plot of land, complete with scheme water and three-phase power, is premium land in a highly desirable location with long term growth prospects.

In 2010 – during one of the worst stages of the Global Financial Crisis – the freehold (including improvements) was valued by a licensed valuer at $3.012 million. This did not include any valuation for the accommodation business. A subsequent review of freehold prices – particularly in the Southwest – shows this was one of the lowest points in values across the region and a level of appreciation since then may be expected.

AND:

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$3 million cash offer falls through on the business

In 2012, an unconditional cash offer of $3 million was accepted for the freehold property (including the accommodation business). For reasons associated with the GFC, the buyer was unable to maintain his financial position to continue with the offer and unfortunately had to withdraw from the purchase.

Considering the land has been independently valued by a licensed valuer at $3.012 million at the height of the GFC (which excluded the value of the business) and an offer was accepted for $3 million in 2012, the current asking price of $2.6 million has the potential to create outstanding value for a buyer.

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The business has been in operation since 1993 and consists of the following:
• Four modern, short-term holiday rental properties appointed with the finest furnishings and built to exacting standards (three of the four have recently been refurbished);

• Conditional strata approval (valid until August 2015) and planning consent to build an additional six cottages plus a manager’s residence;

• Proposed strata approval for a commercial building (based on a Development Guide Plan for the site which includes permitted uses such as a restaurant, public amusement, art & craft studio, workshop & sales, museum and club); and

• Approved and constructed substantial manager’s/site shed.

The Property is one of the last sites approved of its kind by the City of Busselton for strata approval and building works in the bush for this region. It is also one of the very few rural properties of its kind with both scheme water and underground power.


FREEHOLD PROPERTY SNAPSHOT…

(a) Four existing and beautifully appointed houses

(b) Conditional strata approval (valid until August 2015) and conditional planning approval for an additional six cottages.

(c) Proposed strata approval for a commercial building (i.e. restaurant, public amusement, art & craft studio, workshop & sales, museum and club)

(d) The Property is one of very few rural properties of its kind in the area with scheme water and underground power.

(e) The property is unique and ideally situated. Its sanctuary typenatural bush setting is located a short 2.5km from the bustling tourist township of Dunsborough and the same distance from a host of beautiful swimming and fishing beaches as well as the famous Margaret River wine region.

(f) There is also a spring fed lake and creek on the Property along with nature trails and is a high nature conservation area in which revegetation is currently being undertaken to maintain and enhance all species and local native plants.


LOCAL AREA RESEARCH

Tourism Australia research (20**** **** indicates that the self-contained / serviced holiday market is experiencing stronger growth than any other accommodation category in Australia.

It is also noteworthy that the Lonely Planet guide (2009) nominated the South West of Western Australia as one of the top ten places to visit on the planet (significantly the only Australian destination included).

In the Dunsborough region, the tourism market has developed in recent years to such an extent that accommodation bookings in the winter months (June-September) are now comparable with summer bookings and rural or bush based accommodation (of the kind mentioned here) is viewed as a substantial further growth area. (Dunsborough Visitor Centre, 2010; Cape Executive 2010).


THE ACCOMMODATION & FACILITIES

This business provides accommodation to a wide range of clients. Two of the four dwellings are double storey and two are single storey in a secluded garden setting providing privacy to all guests, whether they are individuals or groups. Each of the dwellings houses different numbers of guests, allowing flexibility for different markets.

There are on-site facilities including two barbecue areas, nature trails and a large spring fed dam.

All cottages are self-contained with modern, new furniture, appliances, new lighting, white goods and reverse cycle air conditioning. Two houses have their own laundry facilities.

The property offers a range of four self-contained houses to fit different customer requirements, whether for 2, 4, 6 or 8 persons in a unit. The houses, many of which are newly renovated, are complemented by top of the line ancillary facilities including:

- New Kitchen Appliances
- Reverse Cycle Air Conditioning
- BBQ’s
- Play Area
- Pot Belly Stoves
- Fireplaces
- The Larger Houses Have Washing Machine And Dryers


WHAT MAKES THIS A LIFE-CHANGING INVESTMENT?

1.  MINIMAL OWNER INVOLVEMENT.

You can choose to take a back-seat and let this business run itself and simply take the profits if you choose. There is a Bookings Manager who oversees the day to day functions of the business and for ease of operation uses an online booking system of which the owners have access.

2.  PREMIUM FREEHOLD UNDERPINS THIS INVESTMENT FOR YEARS TO COME

18.45 acres of premium freehold with development approval, scheme water and three-phase power make this a rare piece of land.

3. BUSINESS INCREASING STEADILY

Revenue has increased steadily over the past 12 months, with occupancy rates climbing to more than 50% - this is with virtually no marketing or sales effort in place – a great opportunity to expand!

4. BOUNDLESS MARKET

Families, groups, couples, corporate groups and small groups are common visitors – and there is plenty of repeat business. The market is virtually endless with an increasing flow of local, interstate and overseas visitors rushing to WA’s southwest.

The Busselton Shire and the South West Tourism Council are constantly adding new events, concerts and attractions to the area which demand accommodation.

5. APPROVAL IN PLACE FOR FUTURE DEVELOPMENT

This is a huge bonus – already conditional planning approval has been granted to expand and build six more houses plus a manager’s quarters – this just makes this a super investment opportunity.


6. VIRTUALLY NO STAFF = EASE OF OPERATION

The business currently has three part time contractors: a bookings manager, cleaner and bookkeeper. The bookings manager works approximately 10 hours per week and handles all emails and enquiries and runs the day to day operations. The cleaner’s hours are subject to the bookings and the bookkeeper works a couple of hours per month.

With this team of dedicated contractors, the business basically runs itself.

Any maintenance issues are carried out by the current owners and total approximately 1.5 hours per week. And all accounts, admin and marketing are also done by the owners which requires approximately 5 to 10 hours per week.

7. CHOOSE TO SEMI-RETIRE OR DEVELOP AND MAKE A FORTUNE

The future of the business is extremely positive - whether it’s developed and substantially increased or from a relatively passive investment point of view - left as is.


8. LOCATION LOCATION LOCATION!!

The business is successful because of its unique rural setting on the doorstep of town surrounded by world class beaches and wineries and offers a truly unique and comfortable home away from home experience.

Demand for accommodation regularly outstrips supply during the peak seasons and the trend is towards increasing growth in the amount of visitors staying in the region during the winter months. The Busselton, Margaret River and Augusta Shires have implemented aggressive marketing strategies depicting the area as ideal for winter breaks. The success of these strategies is reflected in the increased amount of visitors.


“The business’s location fulfils most requirements of visitors as it is close to the beach, the township and also set in bush land.”

9.  NO PROACTIVE MARKETING IN PLACE – AND STILL GROWING

The business is currently conservatively managed and is evidenced by the fact the owners have done very little marketing. It is always a good sign when a business grows with no marketing as it is a good indication it will explode with proactive marketing and sales.


10. UNIQUE PROPERTY FEATURES

The two big ones here are SCHEME WATER and THREE-PHASE POWER – it is rare to find freehold in this region to develop with these two essentials in place.

Alreay, there are four modern cottages/villas in place with approval for another six. 

Contact:

Pat Keenan-Smith

Mob:**** ****


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