15 Aug 2017
Words
Quentin Tod
Small Investors a Management Hit
Featured in the Gold Coast Bulletin August 15, 2017
A syndicate dominated by Gold Coast mum-and-dad investors has taken a $13 million plunge into the management rights business – buying the rights to 10 buildings adjacent to Harbour Quays and East Quays towers developed from 2012 by George Mastrocostas and Evan Raptis via their Emandar group.
The Deal by the 10 investors includes seven apartments and 10 offices.
Alex Cook, of Resort Brokers, said the sale was believed to be a record for management rights to permanent-letting properties on the Gold Coast.
He said the price, partly because of the large real estate component, eclipsed the figure Mantra was believed to have paid for the rights to the 788-unit Southport Central towers.
At the time of the deal, industry sources suggested it was worth $10.5 million.
Mr Cook said he also sold a group of investors, for an undisclosed amount, the rights to the 263-unit Waterford project at Bundall.
“These sales demonstrate the purchasing power of syndicates and partnerships."
“Mum and dad investors are able to pool their resources to buy high quality, high netting assets.” Garry McKenzie.
Spokesman for the Harbour Quays East Quays buyers, said the mum-and-dad investors were people on the verge of retiring or who were looking for a superannuation investment.
“With this deal they can get a stable return – it’s a rock-solid investment.
“The permanent letting business is not subject to the market fluctuations that can affect returns in the holiday-letting business.
“In this case, there is upside in the economies of scale available from the size of the properties.”
The Harbour Quays-East Quays towers have 666 apartments, with the 450 in the letting pool netting managers around $1.5 million a year.
James and Sandra Stapelberg, who have been in the management rights business for several years and head the buying syndicate, will be the Harbour Quays on-site managers.
Mr McKenzie said the extent of real estate in the deal provided the syndicate with an opportunity to improve convenience and amenity for residents and tenants.
“We also plan to use some of these spaces to introduce new on-site facilities, perhaps a café or coffee kiosk, real estate office, and a concierge style cleaning and maintenance outlet where residents can easily book anything from housekeeping to car detailing.”
Emandar completed Harbour Quays in 2014 and wast Quays in 2016 and elected to retain and operate the management rights.
They have been sold in the wake of the Emandar principals deciding to go their own ways.
Mr Mastrocostas is becoming a solo developer and Mr Raptis will join the business of his father, developer Jim Raptis.
Image: Sirocco one of the towers in the Harbour Quay Projects at Biggera Waters
