Strategic Investment Prime real estate investment in one of Australia’s emerging property hot spots. Wandoan is at the very heart of the biggest energy boom in Australia’s history. With over $10 billion in gas projects completed and operational, and a further $20 billion in gas, coal and Solar projects now approved and commencing 2018 - the biggest energy focus is now on the town of Wandoan in Queensland.   This Investment is a quality motel complex built in 2013 and in the very heart of the action. Centre of town and the preferred location of mining executives – home away from home.   The investment includes:   28 rooms 6 staff rooms Manager’s Unit 55 seat licenced    restaurant    Offering   The Wandoan Central Motel is located in the heart of South East Queensland’s “Energy Hub.” This area is a multi-billion-dollar resource for CSG gas, Natural gas, low-sulphur thermal coal (“clean coal”) and now a massive 1,000 Megawatt solar farm. Billions of dollars in CSG gas projects have been built and now supply the massive QGC, Origin Energy & ConocoPhillips CSG/LNG plants in Gladstone, and $billions more are approved and underway.   Wandoan is a genuine energy resource boom town.  The companies active in Wandoan include:   Shell/British Gas/QGC – Gas (biggest gas producer in Australia - Wandoan) Origin Energy – Gas (largest domestic gas supplier in Australia) Santos – Gas (largest gas holdings in Australia – Now moving north to Wandoan) Glencore – Coal (largest approved mining lease in Australia – in the heart of Wandoan) New Hope – Coal (massive coal tenements surrounding Wandoan) Equis Energy – Solar (commencing Australia’s largest Solar Farm on 5000 acres in Wandoan)   Buyco Pty Ltd built and has owned and operated Wandoan Central Motel since 2013. Wandoan Central Motel commands the best location in the very centre of Wandoan township. Wandoan Central has enjoyed 95% occupancy since it was opened.   The owners of Wandoan Central Motel have decided to sell the freehold assets and lock down with a long-term leaseback of the business. This offer is for a savvy investor to secure a key and well-located property with a solid income return, security and increasing asset value.   Price:                $4,880,000 Net Return:    $390,000 per year (8% net return) CPI annual increases Lease:               3 x 3 x 3 years (commence on settlement)     The Location Wandoan is 400 km north west of Brisbane Queensland. By road it is a 4.5 hour drive taking the Warrego Highway west and then north on the Leichhardt Highway. There is an airport 25 km north of Wandoan and another 65 km south of Wandoan at the town of Miles. The town is 350m above sea level, flood free, and has a local community of 500 people and a regional farming community of 2,000 people.   Wandoan is at the very heart of the gas pipe interchange and pumping plants for 85% of the CSG gas sourced from the Surat Basin and pumped to the CSG/LNG conversions plants at the Port of Gladstone. Wandoan is also home to the largest clean coal reserve in Australia owned by Glencore This low-sulphur rich coal resource is part of the “Clean Coal,” energy push by governments worldwide. Wandoan has been a focus point for the last decade and is now emerging as a key operational centre for some of the world’s largest energy resource companies. In August 2017, Equis Energy (Asia-Pacific’s largest renewable energy company) was granted approval for the Wandoan South Solar Project – a 1,000 Megawatt Solar Farm with 3 million solar panels over 5,000 acres. Construction commences in 2018 with power coming on line in 2019. Each of the gas, coal and solar projects now underway provide Wandoan with a long-term future in construction and operational phases of over $200 billion in known and approved energy resources.   The recent Glencore coal mine approval activates the 220Km rail project between Wandoan and Banana, therein completing the missing rail link that will support Wandoan coal to port for many decades to come.   Who are the Customers? Since this Motel was opened in 2013 the customer profile has been as follows:   Mining executives and corporate managers 50% Independent consultants and engineers 20% Local government representatives and councillors 10% General passing by 10% State government administrators and managers    5% Functions    5%   NOTE: The occupancy levels have remained at 90% to 100% since opening. It is usual that those fitting into the category of “general passing by,” are most often unable to get a room. Building & Property Components WANDOAN CENTRAL MOTEL 53-55 Royd Street Wandoan Qld 4419 Lot 2 on SP 258142, Parish Wandoan, County Fortescue Land: 3036m2, Commercial Zone, 40m frontage 100m depth   This motel complex comprises of: 8 x 1 bedroom apartments (self-contained); 20 x 1 bed motel rooms (self-contained); 6 x 1 bed staff quarters; 1 x Manager’s apartment; 80 seat restaurant (60 indoor and 20 outdoor configuration); Fully equipped commercial kitchen and sub kitchen and bar; 1 Laundry (5 commercial Washing/Drying machines); Large Dry Store, food store, chemical store; Large general store and a garden store; 30 Car spaces, Service dock; Covered BBQ area; Crossover switch and line cable for backup generator; Security cameras, Wifi booster, network hubs, VIN card.   Liquor License:  164633 and Food License:   EH 134-2013 Lease Back Agreement The property is leased by Comarco Pty Ltd. Comarco is a significant player in the accommodation industry in SE Qld through its ownership of Central Queensland Enterprises Pty Ltd and Central Queensland Management Pty Ltd. Comarco Pty Ltd has leased the property since the completion of the building in 2013. This lease will renew upon settlement on a 3x3x3 year basis.   The Lease features the following terms;   Lessor: The Purchaser Lessee: Comarco Pty Ltd Lease Term: 3 years, Options: two 3 year options Commencement Date: On settlement (new lease) Commencement Rent: $390,000 per annum plus GST (paid monthly in arrears) Rental Increases: CPI annually. Market review: at the commencement of each option term. (but rent not less than CPI increase over previous term) Outgoings: Lessee pays council rates, insurance, general maintenance, utility charges. Bond: 3 months’ rent                                                  (not Land Tax) Lease Guarantee: Director’s guarantee     Ownership Costs (paid by tenant)   Rates:                                   $17,020 (full year) Water Charges:                 Motel - $5,275 (full year) Insurance:                           $5,301.06 (complete complex) inc Public Liability $20mill Maintenance:                    $10,000.00 per year (budget, inc replacements) Compliance:                       $1,200.00 (Liquor License, ASIC, etc.)   Liquor License:                  Queensland - # 164633 Health Department:       Approved WDRC – food service operation – EH 164 633 Registered Name:            Wandoan Central Motel Phone on site:                   (07) 4627 5222 (motel) Web Domain:                     WandoanCentral.com     Management   The current owners (and proposed lessees) are highly experienced in Hotel and Motel management and large mining camp management. The owner employs the following staff in its business:   Operations Manager (full time – and Licensee); Accounts Reception (full time); Chef (full time) - Kitchen Staff (1 full time and 2 part time) Restaurant Staff (1 full time and 1 part time) Manager Housekeeping (full time) - Housekeepers (1 part time) Groundsman (part time) Casuals (2 when required)   General Operation   Rooms are serviced at least once a week but generally twice a week on changeovers. Breakfast is served between 4.30am to 7.30am daily. Lunch is a comprehensive crib buffet set up and available during the breakfast sitting that provides for pre-packaging lunches. Dinner is served from 5.00pm to 8.30pm nightly. There is both a buffet service and an al-a-carte menu for dinner. The buffet is “all you can eat.” The restaurant is fully licenced and there are 8 beer choices and 10 wine choices. BBQ packs and special meal event nights are offered. Free WiFi is available throughout the complex. VAST (76 TV channels) is available in all rooms. Foxtel is available in all rooms. The most significant clients have 30 day trading accounts from EOM. All alcohol is cash only. Other smaller company/individual business is credit card on check in. Restaurant stores hold 60-90 day advance stock in dry stores and 2 day advance in perishables and 3-15 day advance in meat & dairy, and daily milk and bread deliveries. The motel has 50m3 in commercial freezer/fridge storage, not including drink fridges or ice fridges. Staff rosters are generally 2 weeks on and 1 week off for FiFo and 5/6 day weeks for locals. There are 5 separate staff accommodation rooms and a Manager’s unit on site. The motel has a fully equipped patrons’ laundry, and uses Knights Laundry Service in Toowoomba who collect and deliver linen every second day. Comarco uses Hiram Motel Management system software for all bookings, management and billing, and has its own integrated direct booking feature for rooms on its own webpage. There are also POS registers for bar sales. The Motel has been operating in its current form and capacity for 4 years. Processes and COG’s are actively regulated and monitored with ITP’s and active reporting. Several key staff have been with Comarco for more than 10 years. Room Rates have been regularly adjusted to market. The room rates have ranged from $50 to $180 per night. Meals packages are $50/day. Where there have been periods of longer term contract commitment, the rates have been locked in at the lower rates, sometimes on long term “take or pay” basis. The operation of Wandoan Central Motel has generally been tailored to suit the needs of the major mining companies. Hours of operation, meals, standards, policies, room changes, amenities, security, and OH&S compliance, have all been determined by the needs of the customer. The owners have been very responsive and proactive to ensure Wandoan Central Motel has remained commercially aligned to the operations and projects of the major mining companies. The owner’s, and Wandoan Central Motel’s reputation in this space is impeccable.   Building Depreciation  Reports prepared by Grey Robinson and Cottrell Quantity Surveyors Brisbane Qld - 2013