Scan Capital Pty Ltd AFSL 400964 and Scan Pty Ltd
Scancorp Queensland Office
Suite 22, Newstead Commercial Village
76 Doggett Street
Newstead QLD 4006
T 07 3902 2400 F 07 3399 4288

Purpose Built Accommodation Village

Professionally management going concern

Vitrinite 2

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 Opportunity
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.

Revenue Profile
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.

Next Steps
The freehold going concern is offered for sale via Expressions of Interest.
For further information, or to register your interest, please contact:

Ross Tiller
T: 0412 313 647

Matthew Richards
T: 0413 716 557


For Sale
Price: Expressions of Interest

By appointment


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