Accommodation & Tourism business for sale in Middlemount
- Accommodation & Tourism
- Middlemount QLD 4746
- Contact Agent
Quality Accommodation Village - Middlemount Qld
Scancorp and Scan Property Consultants have been engaged to manage the sale process of this successful, privately held accommodation village located in Middlemount Queensland.
The facility was purpose built in 2007 and comprises:
• 24 double, 56 single and 4 disabled rooms;
• commercial laundry, meeting / lunch room / conference facilities and full commercial kitchen;
• manager’s residence and reception; and
• on site car parking;
The facility resides on ~1.1ha over 3 titles with a total building area of ~1,400m2.
The business is operated under professional management including administration, in-house property and maintenance manager.
Over the 6 months through to October 2018, occupancy has averaged ~75% with a breakeven occupancy level of 45%.
The business has a clear competitive advantage, operating within a different market to its competitors and presenting as a higher quality to local alternatives.
As such, the business enjoys a highly diversified client base including a broad range of regular clients from the civil works, construction, services, health, education and banking sectors.
A proportion of these revenues are supported by forward contracts with top tier companies.
Compelling Value Proposition
Expressions of Interest are invited for the acquisition of the Village as a freehold going concern.
Initial build cost was ~$8 million. The going concern is offered for sale on a risk effective basis:
* Property: $4 million payment for the established infrastructure at settlement,
* Business: earn-out over 4 years of 75% of EBITDA of the business (representing a 3 time multiple)
As such, the business is effectively 100% vendor financed and subject entirely to profit performance.
It is anticipated that a component debt funding could be obtained for the purchase of the property.
Tangible Opportunities for Expansion
There is further development potential for the property as the current site has approval for an additional 25 rooms with all appropriate DA and head works paid by the current owners.
The Owners anticipate occupancy will continue to be strong over the short-medium term.
The freehold going concern is offered for sale via Expressions of Interest. For further information, or to register your interest, please contact:
T: 0412 313 647
T: 0413 716 557
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|Last updated||14 Nov 2018|