Risk Analysis of Service Apartments

4378 words (18 pages) Essay

23rd Sep 2019 Property Reference this

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Risk Analysis of Service Apartments

Contents

Executive Summary

What are Serviced Apartments?

Why Buy a Serviced Apartment?

Industry Analysis

Snapshot

Legal and Regulatory

What is the Planning Issue?

Subject Property

Background

Site Description

Modification Timeline

Accommodation

2 Bedroom Apartments

1 bedroom apartments

Recent Sales

References

Executive Summary

 

Prepared by   Franco Valuations Pty Ltd

Client    Mr Bob Smith

Purpose Serviced Apartments Report

Date 9 September 2018

Instructions As per instructions from the client Mr. Bob Smith, dated 1St September 2018, Franco Valuations has been instructed to evaluate the current risk environment and finally create a risk management plan for clients’ permission and then prompt implementation.

What are Serviced Apartments?

Fittingly, ‘Serviced Apartment’ is the umbrella phase for a type of furnished apartment ready to use for short-term or long-term stays, which supplies amenities, housekeeping and a range of services for guests and where most expenses and outgoings are included within the rental price.

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Serviced apartments offer hotel like facilities but with additional space, luxury and privacy like home, so you can enjoy all the comforts of home when travelling. They also provide  cooking facilities, occasionally a kitchenette but in some case a complete kitchen with dishwasher and laundry facilities such as a washing machine, bigger living and bedrooms than most average rooms, and generally have access to gyms, restaurants, common areas, attendant and other hotel-like provisions.

‘Serviced Apartment’ as a word which has minimal use outside the corporate relocation and business travel markets. Majority online booking sites have provided them as booking options, but with no independent category – most are just defined as ‘apartment’ and proposed as another preference alongside regular hotel rooms.

Service apartment industry is increasingly having an impingement on leisure travel as consumers find serviced apartments are accessible all over the world as a trustworthy and cost-effective alternative. These apartments are especially economical for stays between two to three weeks as hotels become quite expensive, this allows savings on dining out and offering in-house entertainment as well as allowing you to live like a local.

Unlike certain unregulated parts of the sharing economy, such as home-share sites where you might move into someone else’s home for your stay and take a chance in terms of health and safety and standard of accommodation, we as a trade body aim to ensure the consumer has confidence in what they will find when booking serviced apartment accommodation anywhere in the world.

A typical stay in a serviced apartment is be 2- 4 weeks, where a stay of this time could become quite expensive in a hotel but more economical in a serviced apartment. Even a stay of a few months would be more economically cost effective in a serviced apartment.

In explaining what serviced apartments are simply they are strata titled units within a hotel facilities. Some hotel group’s propose fixed leases to the purchasers of the properties, while some propose a portion of the income produced by that unit or pool of income from the operation as a whole.

Most serviced apartments contain fully fitted  kitchens, Wi-Fi and laundry facilities with washing machines and dryers included.

Corporate clientele are the most common clients for serviced apartments, these individuals may travel from interstate or from overseas. It is also common for executives to stay short term in serviced apartments while they look for more permanent residences as part of their relocation or interim assignment. Not only for corporate clients, serviced apartments are open to any approved members of the public.

Serviced apartment complexes can even come with conference rooms and business suite facilities for clients and their guests.

Serviced apartments offer facilities identical to a hotel but provide more space, comfort and privacy. The cooking facilities as documented previously in this report could be more like a complete kitchen. The bedrooms and living maybe bigger than a normal hotel room. Some serviced apartments complexes may have concierges in the foyers. 

Why Buy a Serviced Apartment?

Banks are less inclined to lend against serviced apartments, usually purchasers need a larger deposit to purchase a service apartment rather than a residential strata units. In some cases they may not lend at all if the size is less than 50sqm. It’s common for banks to have strict criteria about the size and location of the property.

A normal investment in service apartments looks at a 6% to 7% yield on investment with low vacancy rates, this is very enticing to investors. Serviced apartments guarantees security as they can involve a leaseback arrangement with the hotel operator, who may have a five to ten year lease to manage the property as a serviced apartment hotel.

Serviced apartments are sold on the assurance of strong rental yield and short term rental guarantees, it’s becomes a problem where a lot of the obligation are not achieved and the property may have shortcomings as a good investment.

In truth, many rental promises do not deliver or even if they do, the returns following the guarantees are less than expected. Accommodation can be seasonal or reliant the proximity to transport or economic downturns such as the GFC could affect the number of tourists and business persons travelling which will have an effect.

One major point is because of the long leases, serviced apartments are only sold to investors, the owner occupier market is rule out. This seriously affects the level of demand and minimises capital growth. 

Managing agency businesses are also bought and sold and can be very lucrative enterprises. Where for a fixed monthly fee or percentage of the monies collected for managing the leasing of the apartment.

With more and more serviced apartments coming onto the market, the problem of oversupply will be inevitable.

In conclusion, it seems that serviced apartments are fantastic for hotel operators, tourists and corporate travellers but there is a risk involve for investors.

Industry Analysis

 

Snapshot

Number Of Businesses

703

Employees

18,315

Annual Growth

3 – 4%

Revenue

$3 billion

The serviced apartments industry has seen enormous growth over the last five years. Growing domestic, income from tourism and business travellers have driven revenue over this period. Travel to Australia has become cheaper with the decreasing Australian dollar.

With tourism activity at an all time high which has obviously seen an increasing demand for accommodation including serviced apartments. Rising business profit and increased business anticipation regarding finances as indicted by a general increase in business confidence since 2013 – 2014.

All this increase activity has therefore indicated many more travellers particularly domestic travellers over the past 5 years. On average an additional 3,000 apartments are being projected each year till 2021/22.

The serviced apartments industry is projected to grow, strong market drivers such as

  • Having a loyal customer base
  • Product is located in a high profile location
  • Effective product promotion
  • Referral “word of mouth”
  • Industry recognition and partnership agreements

Legal and Regulatory

 

Over many years there has been a level of discussion across the accommodation sector on how to govern short term rentals of commercial and residential properties under the current planning and zoning rules.

This has arisen due to the following issues.

  • The restrictions of the zoning system, which does not take into consideration such matters when defining residential activities.
  • Fluctuations in demands and social expectations, both for and against short term rental accommodation being located within residential zones 
  • The growth of interest in the sharing of residential properties as short term rentals
  • The fact that some of these “holiday” rentals are in fact also awarded as a serviced apartment type organisation where for an extra fee, the property will be regularly cleaned and provisioned.

What is the Planning Issue?

The number one problem from a planning viewpoint is how to decide the range of activities that are assign as short term rental accommodation. The main issues are

The activities can be vary and alter in the degree of demand that makes them hard to distinguish. How is “activity” defined in terms of the Local Environmental Plan (LEP)? The degree of activity from a single occupant to a party of businessmen or travellers. The definitions under the LEP template and whether it is permissible under the zoning and needs council consent.

Definitions such as:

  1. Dwelling or dwelling house
  2. Serviced apartment
  3. Bed and breakfast
  4. Tourist and visitor accommodation

Recommendations to the NSW government have been centred on the definition and appropriate amendments to the Act and LEP’s.

The following excerpt details the recommendations.

The decision, published on Wednesday follows the government inquiry ‘Adequacy of the regulation of short-term holiday letting in New South Wales’, which proposed 12 changes, including:

  • Amend The Standard Instrument – Principal Local Environment Plan and The State Environmental Planning Policy (Exempt and Complying Development Codes) 2008 to include short-term rental accommodation;
  • Develop a compliance system for short-term rental accommodation under the Environmental Planning and Assessment Act 1979;
  • Give local councils more advice and responsibilities in relation to short-term letting; and
  • Give owners more power to manage and respond to the results of negative short-term letting on properties.

The NSW government backs all the proposed changes, with additional amendments to be explored at a non-specified fate through a consultation paper on potential regulatory approaches to short-term holiday letting.

(Local Government NSW, 2015) 

Subject Property

Balmain Wharf Apartments

10 Darling St Balmain East 2041

Address

10 Darling St Balmain

Year Built

1841

Size

267m2

Zoning

General Residential

Lot/DP

11/1183400

Heritage

1364 Schedule 5 Leichhardt LEP 2013

LGA

Inner West Council

Owner

Fam

Purchase Date

18 October 2017

Purchase Price

$6,500,00

Positioned right at the tip of the peninsula, Balmain Wharf Apartments is a boutique collection of five beautifully appointed apartments housed in sensitively restored sandstone building. Originally the site of the Shipwrights Arms Hotel, renowned as Balmain’s first pub, this historic landmark was built c1844 by shipwright John Bell and is entrenched in Balmain’s maritime, cultural and social history. A unique setting right on the foreshore affords unobstructed views over the harbour centred on the Harbour Bridge and is surrounded by Barangaroo Reserve and Darling Street’s charming village hub.

-Carefully preserved sandstone treasure completely refurbished 4 years ago
-Sandstone walls remain as they were almost two centuries ago
-Panoramic views over Sydney Harbour and the city skyline
-5 private apartments including a 100sqm 2 bedroom penthouse
-x 2 two-bed apartments and x 3 one-bed apartments
-Each with a private deck or courtyard, apartment 4 with parking
-Sleek minimalist interiors allowing the views to take centre stage
-Designer kitchens, luxurious bathrooms, double beds with built-ins
-Tastefully appointed interiors by acclaimed designer Romy Alwill
-An integral part of Balmain’s history and a treasured city landmark

 

The ferry service located outside is a reminder of its earlier heritage. Of local historic, aesthetic and social significance as a good and relatively intact example of an early colonial maritime sandstone building. From around 1840’s era.

Background

Source: Balmainimages.com

 

Site Description


Two storey stone and rendered brick building with hipped and flat roof clad in corrugated steel with rendered chimneys with profiled capping. Located on the south eastern corner of Weston Street, the building is constructed to the street frontages and also faces the Darling ST Wharf and is elevated above the adjacent bus turning circle.

A rendered quoin detail is located at the corner the Darling St Façade which also features a rendered stringcourse, simple timber framed double hung windows and single door opening with top light over located at the northern western corner of the building.

A painted brick in filled two storey veranda with flat roof over extends across the north eastern façade of the building. The rear of the building features a double hip and timber framed windows and doors and faces a terraced open yard which includes an elevated concrete slab/car space accessed from Weston Street.

 

Modification Timeline

1967  Conversion into 5 flats engineers details (8011)

1993  Alterations and additions (92/516)

2005 Occupation of footpath by temporary propping to unstable wall (R/2005/60) (R2007/45)

2009 Repair Wall (LGA/2009/40)

2010 Alterations to existing building (D/2010/76)

2010 s96 modification (M/2010/149) relocation of A/C units, two new windows in Southern elevation and metal screen to screen air conditioning

2011 Works including rebuilding the Darling Street, ground floor façade were in progress at the time of inspection by Inner West Council.

Accommodation

One and two Bedroom Apartments Floor Plan

Apartment 1

Size

96 sqm

Features

Harbour Views, High Value kitchen and bathroom appliances

Cost per month

$6,250.00

Apartment 2

Size

72 sqm

Features

High value kitchen and bathroom appliances

Cost per month

$6,250.00

1 bedroom apartments

 

 

Apartment 3

Size

30 sqm

Features

Harbour Views, High Value kitchen and bathroom appliances, Spa.

Cost per month

$3,250.00

Apartment 4

Size

44 sqm

Features

Private courtyard and spa

Cost per month

$3,650.00

Apartment 5

Size

61 sqm

Features

Harbour Views , Spa

Cost

$3,950.00

 

 

 

 

Recent Sales

22 Brook hollow Ave Baulkham Hills

Category

Hotel/Serviced Apartments

Sale Price

$60 million

Sale Date

April 2016

No of Apartments

109

Floor Area

10,299m2

Land Area

1.06 Hectares

Parking

330 spaces

WALE (Weighted Ave Lease Expiry)

5.38 years

Located very close to the new Norwest rail link at Norwest development area. Designed by Scott Carver Architects it is a seven storey one hectare site. Other tenants include Flight Centre, Esan Braw Homes and a Baptist Community Centre.

22 Kincaid St Wagga Wagga

Source: Corelogic

 

 

Category

Hotel/Serviced Apartments

Sale Price

$8.3 million

Sale Date

October 2016

No of Apartments

45

Floor Area

1950m2

Land Area

2677 m2

Parking

30 spaces

Current Rent

$694,129 +GST

Remaining Lease

28 years

 

 

Privately owned branding for Mantra Holdings, central, location recently renovation to restaurants and rooms .Leasehold serviced apartment, hotel complex in Wagga Wagga. Conference centre and associated client with Australian Council of Trades Union, Clyde Cameron Centre.

58- 62 Delhi Rd North Ryde

Category

Hotel/Serviced Apartments

Sale Price

$4 million

Sale Date

October 2017

No of Apartments

173

Floor Area

3950m2

Land Area

7173 m2

Parking

75 spaces

Current Rent

$780,000 +GST

Remaining Lease

8 +20 years

An example of a leasehold sale for a serviced apartment complex, situated in Macquarie Park commercial precinct. Superior recent refurbishment with new swimming pool and gym facilities. Featuring studio, 1, 2 and three bedroom apartments. Under offer.

Risk Analysis of Service Apartments

Contents

Executive Summary

What are Serviced Apartments?

Why Buy a Serviced Apartment?

Industry Analysis

Snapshot

Legal and Regulatory

What is the Planning Issue?

Subject Property

Background

Site Description

Modification Timeline

Accommodation

2 Bedroom Apartments

1 bedroom apartments

Recent Sales

References

Executive Summary

 

Prepared by   Franco Valuations Pty Ltd

Client    Mr Bob Smith

Purpose Serviced Apartments Report

Date 9 September 2018

Instructions As per instructions from the client Mr. Bob Smith, dated 1St September 2018, Franco Valuations has been instructed to evaluate the current risk environment and finally create a risk management plan for clients’ permission and then prompt implementation.

What are Serviced Apartments?

Fittingly, ‘Serviced Apartment’ is the umbrella phase for a type of furnished apartment ready to use for short-term or long-term stays, which supplies amenities, housekeeping and a range of services for guests and where most expenses and outgoings are included within the rental price.

Serviced apartments offer hotel like facilities but with additional space, luxury and privacy like home, so you can enjoy all the comforts of home when travelling. They also provide  cooking facilities, occasionally a kitchenette but in some case a complete kitchen with dishwasher and laundry facilities such as a washing machine, bigger living and bedrooms than most average rooms, and generally have access to gyms, restaurants, common areas, attendant and other hotel-like provisions.

‘Serviced Apartment’ as a word which has minimal use outside the corporate relocation and business travel markets. Majority online booking sites have provided them as booking options, but with no independent category – most are just defined as ‘apartment’ and proposed as another preference alongside regular hotel rooms.

Service apartment industry is increasingly having an impingement on leisure travel as consumers find serviced apartments are accessible all over the world as a trustworthy and cost-effective alternative. These apartments are especially economical for stays between two to three weeks as hotels become quite expensive, this allows savings on dining out and offering in-house entertainment as well as allowing you to live like a local.

Unlike certain unregulated parts of the sharing economy, such as home-share sites where you might move into someone else’s home for your stay and take a chance in terms of health and safety and standard of accommodation, we as a trade body aim to ensure the consumer has confidence in what they will find when booking serviced apartment accommodation anywhere in the world.

A typical stay in a serviced apartment is be 2- 4 weeks, where a stay of this time could become quite expensive in a hotel but more economical in a serviced apartment. Even a stay of a few months would be more economically cost effective in a serviced apartment.

In explaining what serviced apartments are simply they are strata titled units within a hotel facilities. Some hotel group’s propose fixed leases to the purchasers of the properties, while some propose a portion of the income produced by that unit or pool of income from the operation as a whole.

Most serviced apartments contain fully fitted  kitchens, Wi-Fi and laundry facilities with washing machines and dryers included.

Corporate clientele are the most common clients for serviced apartments, these individuals may travel from interstate or from overseas. It is also common for executives to stay short term in serviced apartments while they look for more permanent residences as part of their relocation or interim assignment. Not only for corporate clients, serviced apartments are open to any approved members of the public.

Serviced apartment complexes can even come with conference rooms and business suite facilities for clients and their guests.

Serviced apartments offer facilities identical to a hotel but provide more space, comfort and privacy. The cooking facilities as documented previously in this report could be more like a complete kitchen. The bedrooms and living maybe bigger than a normal hotel room. Some serviced apartments complexes may have concierges in the foyers. 

Why Buy a Serviced Apartment?

Banks are less inclined to lend against serviced apartments, usually purchasers need a larger deposit to purchase a service apartment rather than a residential strata units. In some cases they may not lend at all if the size is less than 50sqm. It’s common for banks to have strict criteria about the size and location of the property.

A normal investment in service apartments looks at a 6% to 7% yield on investment with low vacancy rates, this is very enticing to investors. Serviced apartments guarantees security as they can involve a leaseback arrangement with the hotel operator, who may have a five to ten year lease to manage the property as a serviced apartment hotel.

Serviced apartments are sold on the assurance of strong rental yield and short term rental guarantees, it’s becomes a problem where a lot of the obligation are not achieved and the property may have shortcomings as a good investment.

In truth, many rental promises do not deliver or even if they do, the returns following the guarantees are less than expected. Accommodation can be seasonal or reliant the proximity to transport or economic downturns such as the GFC could affect the number of tourists and business persons travelling which will have an effect.

One major point is because of the long leases, serviced apartments are only sold to investors, the owner occupier market is rule out. This seriously affects the level of demand and minimises capital growth. 

Managing agency businesses are also bought and sold and can be very lucrative enterprises. Where for a fixed monthly fee or percentage of the monies collected for managing the leasing of the apartment.

With more and more serviced apartments coming onto the market, the problem of oversupply will be inevitable.

In conclusion, it seems that serviced apartments are fantastic for hotel operators, tourists and corporate travellers but there is a risk involve for investors.

Industry Analysis

 

Snapshot

Number Of Businesses

703

Employees

18,315

Annual Growth

3 – 4%

Revenue

$3 billion

The serviced apartments industry has seen enormous growth over the last five years. Growing domestic, income from tourism and business travellers have driven revenue over this period. Travel to Australia has become cheaper with the decreasing Australian dollar.

With tourism activity at an all time high which has obviously seen an increasing demand for accommodation including serviced apartments. Rising business profit and increased business anticipation regarding finances as indicted by a general increase in business confidence since 2013 – 2014.

All this increase activity has therefore indicated many more travellers particularly domestic travellers over the past 5 years. On average an additional 3,000 apartments are being projected each year till 2021/22.

The serviced apartments industry is projected to grow, strong market drivers such as

  • Having a loyal customer base
  • Product is located in a high profile location
  • Effective product promotion
  • Referral “word of mouth”
  • Industry recognition and partnership agreements

Legal and Regulatory

 

Over many years there has been a level of discussion across the accommodation sector on how to govern short term rentals of commercial and residential properties under the current planning and zoning rules.

This has arisen due to the following issues.

  • The restrictions of the zoning system, which does not take into consideration such matters when defining residential activities.
  • Fluctuations in demands and social expectations, both for and against short term rental accommodation being located within residential zones 
  • The growth of interest in the sharing of residential properties as short term rentals
  • The fact that some of these “holiday” rentals are in fact also awarded as a serviced apartment type organisation where for an extra fee, the property will be regularly cleaned and provisioned.

What is the Planning Issue?

The number one problem from a planning viewpoint is how to decide the range of activities that are assign as short term rental accommodation. The main issues are

The activities can be vary and alter in the degree of demand that makes them hard to distinguish. How is “activity” defined in terms of the Local Environmental Plan (LEP)? The degree of activity from a single occupant to a party of businessmen or travellers. The definitions under the LEP template and whether it is permissible under the zoning and needs council consent.

Definitions such as:

  1. Dwelling or dwelling house
  2. Serviced apartment
  3. Bed and breakfast
  4. Tourist and visitor accommodation

Recommendations to the NSW government have been centred on the definition and appropriate amendments to the Act and LEP’s.

The following excerpt details the recommendations.

The decision, published on Wednesday follows the government inquiry ‘Adequacy of the regulation of short-term holiday letting in New South Wales’, which proposed 12 changes, including:

  • Amend The Standard Instrument – Principal Local Environment Plan and The State Environmental Planning Policy (Exempt and Complying Development Codes) 2008 to include short-term rental accommodation;
  • Develop a compliance system for short-term rental accommodation under the Environmental Planning and Assessment Act 1979;
  • Give local councils more advice and responsibilities in relation to short-term letting; and
  • Give owners more power to manage and respond to the results of negative short-term letting on properties.

The NSW government backs all the proposed changes, with additional amendments to be explored at a non-specified fate through a consultation paper on potential regulatory approaches to short-term holiday letting.

(Local Government NSW, 2015) 

Subject Property

Balmain Wharf Apartments

10 Darling St Balmain East 2041

Address

10 Darling St Balmain

Year Built

1841

Size

267m2

Zoning

General Residential

Lot/DP

11/1183400

Heritage

1364 Schedule 5 Leichhardt LEP 2013

LGA

Inner West Council

Owner

Fam

Purchase Date

18 October 2017

Purchase Price

$6,500,00

Positioned right at the tip of the peninsula, Balmain Wharf Apartments is a boutique collection of five beautifully appointed apartments housed in sensitively restored sandstone building. Originally the site of the Shipwrights Arms Hotel, renowned as Balmain’s first pub, this historic landmark was built c1844 by shipwright John Bell and is entrenched in Balmain’s maritime, cultural and social history. A unique setting right on the foreshore affords unobstructed views over the harbour centred on the Harbour Bridge and is surrounded by Barangaroo Reserve and Darling Street’s charming village hub.

-Carefully preserved sandstone treasure completely refurbished 4 years ago
-Sandstone walls remain as they were almost two centuries ago
-Panoramic views over Sydney Harbour and the city skyline
-5 private apartments including a 100sqm 2 bedroom penthouse
-x 2 two-bed apartments and x 3 one-bed apartments
-Each with a private deck or courtyard, apartment 4 with parking
-Sleek minimalist interiors allowing the views to take centre stage
-Designer kitchens, luxurious bathrooms, double beds with built-ins
-Tastefully appointed interiors by acclaimed designer Romy Alwill
-An integral part of Balmain’s history and a treasured city landmark

 

The ferry service located outside is a reminder of its earlier heritage. Of local historic, aesthetic and social significance as a good and relatively intact example of an early colonial maritime sandstone building. From around 1840’s era.

Background

Source: Balmainimages.com

 

Site Description


Two storey stone and rendered brick building with hipped and flat roof clad in corrugated steel with rendered chimneys with profiled capping. Located on the south eastern corner of Weston Street, the building is constructed to the street frontages and also faces the Darling ST Wharf and is elevated above the adjacent bus turning circle.

A rendered quoin detail is located at the corner the Darling St Façade which also features a rendered stringcourse, simple timber framed double hung windows and single door opening with top light over located at the northern western corner of the building.

A painted brick in filled two storey veranda with flat roof over extends across the north eastern façade of the building. The rear of the building features a double hip and timber framed windows and doors and faces a terraced open yard which includes an elevated concrete slab/car space accessed from Weston Street.

 

Modification Timeline

1967  Conversion into 5 flats engineers details (8011)

1993  Alterations and additions (92/516)

2005 Occupation of footpath by temporary propping to unstable wall (R/2005/60) (R2007/45)

2009 Repair Wall (LGA/2009/40)

2010 Alterations to existing building (D/2010/76)

2010 s96 modification (M/2010/149) relocation of A/C units, two new windows in Southern elevation and metal screen to screen air conditioning

2011 Works including rebuilding the Darling Street, ground floor façade were in progress at the time of inspection by Inner West Council.

Accommodation

One and two Bedroom Apartments Floor Plan

Apartment 1

Size

96 sqm

Features

Harbour Views, High Value kitchen and bathroom appliances

Cost per month

$6,250.00

Apartment 2

Size

72 sqm

Features

High value kitchen and bathroom appliances

Cost per month

$6,250.00

1 bedroom apartments

 

 

Apartment 3

Size

30 sqm

Features

Harbour Views, High Value kitchen and bathroom appliances, Spa.

Cost per month

$3,250.00

Apartment 4

Size

44 sqm

Features

Private courtyard and spa

Cost per month

$3,650.00

Apartment 5

Size

61 sqm

Features

Harbour Views , Spa

Cost

$3,950.00

 

 

 

 

Recent Sales

22 Brook hollow Ave Baulkham Hills

Category

Hotel/Serviced Apartments

Sale Price

$60 million

Sale Date

April 2016

No of Apartments

109

Floor Area

10,299m2

Land Area

1.06 Hectares

Parking

330 spaces

WALE (Weighted Ave Lease Expiry)

5.38 years

Located very close to the new Norwest rail link at Norwest development area. Designed by Scott Carver Architects it is a seven storey one hectare site. Other tenants include Flight Centre, Esan Braw Homes and a Baptist Community Centre.

22 Kincaid St Wagga Wagga

Source: Corelogic

 

 

Category

Hotel/Serviced Apartments

Sale Price

$8.3 million

Sale Date

October 2016

No of Apartments

45

Floor Area

1950m2

Land Area

2677 m2

Parking

30 spaces

Current Rent

$694,129 +GST

Remaining Lease

28 years

 

 

Privately owned branding for Mantra Holdings, central, location recently renovation to restaurants and rooms .Leasehold serviced apartment, hotel complex in Wagga Wagga. Conference centre and associated client with Australian Council of Trades Union, Clyde Cameron Centre.

58- 62 Delhi Rd North Ryde

Category

Hotel/Serviced Apartments

Sale Price

$4 million

Sale Date

October 2017

No of Apartments

173

Floor Area

3950m2

Land Area

7173 m2

Parking

75 spaces

Current Rent

$780,000 +GST

Remaining Lease

8 +20 years

An example of a leasehold sale for a serviced apartment complex, situated in Macquarie Park commercial precinct. Superior recent refurbishment with new swimming pool and gym facilities. Featuring studio, 1, 2 and three bedroom apartments. Under offer.

References

  •  Available at: https://rpp.rpdata.com/rpp/dashboard.html?execution=e1s1
  • Available at: http://www.leichhardt.nsw.gov.au/Planning—Development/Planning-Controls
  • Available at: http://www.cityofsydney.nsw.gov.au/development/planning-controls/local-environmental-plans
  • Available at: http://profile.id.com.au/
  • Anon., n.d. Colliers International. [Online]
    Available at: http://www.colliers.com.au/find_research/retail/retail_-_second_half_2016/
  • Government, N., 2017. [Online]
    Available at: http://www.planning.nsw.gov.au/About-Us/NSW-Planning-Portal
  • Govt, C., 2011. Australian Bureau Of Statistics. [Online].
  • idprofile.com.au, dcdc. cdcd. [Online]
    [Accessed cdcdc cdcdc cdcd].
  • Institute, A. P., 2017. Australian Property Institute. [Online]
    Available at: https://www.api.org.au/risk-management-modules
  • Local Government NSW, 2015. Submission to the Inquriy into the Adequacy of the Regulation of short-term letting in NSW., Sydney: s.n.
  • Meriton Blog, 2017. https://www.meritonsuites.com.au. [Online]
    Available at: https://www.meritonsuites.com.au/blog/what-is-the-future-of-serviced-apartments-in-australia/

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