Brisbane brothel Oriental Paradise selling with steady returns

Standing erect at the centre of a high-traffic commercial and industrial hub that sees 50,000 vehicles pass daily, Oriental Paradise offers visitors a “discreet escape to pure pleasure” at 180 Abbotsford Road, Bowen Hills, just a few minutes north of the CBD.

Inside, the pleasure palace dishes up “the finest Eastern-inspired companionship and relaxation” from the comfort of a high-end fit-out.

Listing agent Cadell Rees of Ray White Industrial (Milton) describes the interior as “very professional”, and says the business is in great shape.

“It’s tidy, clean and well looked after … it’s definitely striking to the eyes, because there are strobe lights,” he says. 

“It’s quite high-end; I think that’s what the tenants are going for.”

Walk in through dark-walled corridors and you’ll discover six fully equipped rooms with spas lit by multicoloured lighting, plus modern bathrooms and plenty of resting zones for the team of “service providers” who charge up to $500 an hour for a platinum service.

“There’s some extra space for them to grow into as well, to upscale,” Rees adds.

The asset is underpinned by a long-term tenant with a firm grip on the sex trade sector, says Rees. 

“The tenant is very experienced in the industry. I think he owns another one, and has connections with other brothels in Australia.

“It’s hard to get approval for brothels, and in terms of opportunity, this one really is quite unique.”

In a win for the incoming owner, the asset – which banks on a high turnover of visitors – boasts a historically low tenant turnover.

The tenant has recently re-signed for another 10 years, with a further 10-year option, so investors should benefit from strong capital growth prospects, stability and steady returns, including a reliable income of $240,000 a year, with all outgoing costs covered.

While many businesses endure their ups and downs, this brothel appears to have risen to the occasion, with a “proven track record of uninterrupted operation”. 

Outside, the tenant has added solar panels, complementing significant vendor investment in a newly engineered roof and upgraded stormwater drainage system.

“They’ve spent crazy amounts on the roof,” Rees says.

Oriental Paradise spans 540 square metres on a 1171 square metre site with 18 on-site car parks for staff and customers,. It’s just over the road from another large brothel, Platinum 175.

“These two [brothels] are probably the biggest ones in Brisbane,” Rees says. “Everyone sort of knows where they are, because when you drive past, it’s pretty obvious.”

Without going into all the ins and outs, the asset’s private owner is selling after more than 20 years. Council approval was granted to run the brothel legally in 2005.

Rees says the property has attracted much interest since being listed a month ago.

“There’s been plenty of interest … it’s quite unique to some people,” he says.

In addition to the property’s vast improvements, the large land parcel offers plenty of potential upside due to its size, generous car park and location just three kilometres from the city, plus the tightly held precinct’s recent flurry of improvements.

The investment sits on three titles and boasts future rental uplift and development potential (STCA). It is surrounded by established businesses, national brands, and a wave of upcoming mixed-use development set to drive growth and value in the area, including residential projects The Abbotsford and Exhibition Place.

“The leasing markets have been much higher [recently] in terms of prices previously, so there’s definitely some sort of room for rental uplift,” Rees says.

He adds that recent law changes allow the brothel to rise to its full potential.

“If you have a certain amount of car parks, you can pretty much upscale the business as much as you want,” Rees says.

“There were laws about the amount of rooms you could have, but now I think, really, it’s more just about getting the approval … it’s positive.”

Bowen Hills is well-connected by public transport, including the Bowen Hills railway station, and has easy road access via major tunnels and bypasses.

The suburb – home to landmarks such as the Brisbane Showgrounds, Perry Park, the heritage-listed Bowen Park and the Old Museum – is shaking off its industrial working-class roots to become a mixed-use precinct with modern apartments, cafes, restaurants, and lifestyle amenities after being declared a Priority Development Area (PDA) by the Queensland government in 2008.