01 Dec 2024
Words Resort News

Management Rights Regional Snapshot: Opportunities Across Victoria & NSW

ResortBrokers, a prominent player in the management rights industry, reports a growing portfolio of listings across the two states, with around 10 active listings in Victoria and over a dozen in NSW.

Directors Tim Crooks and Alex Cook told Resort News that the management rights sectors in Victoria and NSW remain relatively small compared to Queensland.

For instance, Melbourne has approximately 200 schemes, whereas the smaller Gold Coast boasts over 1,000 schemes.

Both Victoria and NSW impose shorter term limits for operators than Queensland, though exceptions exist. In Victoria, these exceptions can enable agreements with longer terms than those permitted in Queensland.

In Victoria, ResortBrokers offers a diverse range of listings, from small family-run buildings to large-scale complexes suitable for corporate operators. Prices span from below $500,000 to over $10 million.

Their active listings include properties in Melbourne suburbs such as Camberwell, Bentleigh East, St Kilda, Malvern East, West Melbourne and the CBD.

The portfolio also features regional properties, including an established scheme in Port Fairy, an off-the-plan development in Shepparton — the 67-key Eden Hotel Apartments, now under contract to a Queensland syndicate — and two schemes in Geelong being sold in one line.

The Eden Hotel Apartments, due for completion in the September 2025 quarter, is particularly significant. It represents one of the few off-the-plan transactions since the Owners Corporations and Other Acts Amendment Act 2021 came into effect. The Act restricts developers from entering into agreements longer than three years for permanent residential schemes.

However, as a short-stay scheme catering to Shepparton’s high-end business and leisure market, Eden Hotel Apartments is exempt from these restrictions and operates under 50-year agreements, providing its new operator with stability and security.

Before the New Year, ResortBrokers is also expected to finalise Geelong’s largest-ever management rights sale.

This off market, one-line transaction involves two 4.5-star apartment hotels, comprising over 180 keys in total.