Location: QLD - BRISBANE -Global

Category: Accommodation

Asking Price: $4,615,000
Sales revenue: Undisclosed
Net profit: Undisclosed
Furniture/Fixtures value: Undisclosed
Inventory/Stock value: Undisclosed

Investment Summary

* Maintainable normalised EBITDA: $530,000 (60% EBITDA margin)
* Total purchase price: $4,615,000
* Strong returns with 12% yield
* Operated under full management
* Exceptional long-term occupancy
* Premier near CBD location
* Lease paid in advance by Public Trustee

Overview

This freehold going concern is a leading provider of residential accommodation situated in an up-market suburb near the Brisbane CBD. The suburb is well serviced by public transport, medical and retail infrastructure.

The Company is accredited to provide residential accommodation which permits the Company to offer personal care services to residents.

Investment Highlights:

Government Support
Clients of the Company may be entitled to government subsidies. Tenants rent is paid directly by the Government via electronic funds transfer for two weeks rent in advance.

Strong Yield Potential
The Company has delivered strong revenue growth which has translated into 10% annual compound EBITDA growth since 2008. The Company generates a maintainable gross income of $890,000 with a maintainable normalised EBITDA of $530,000 (60% EBITDA margin).
Based on the purchase price of $4,615,000, the investment represents a 12% yield.

Exceptional Industry Demand and Supply Characteristics
The Company services a strong market that is likely to see continued increase in demand with a relative shortage of supply.

Remarkable Occupancy Profile
The Company operates at a sustainable occupancy of over 90% with many tenants residing long-term (several years or more).

Growth Potential

This investment offers acquirers several avenues for growth including:

* Expanded occupancy
* Establishment of new centres
* Rental adjustments
* Provision of additional services