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:
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:
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:
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:
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;
(but rent not less than CPI increase over previous term)
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:
General Operation
Building Depreciation Reports prepared by Grey Robinson and Cottrell Quantity Surveyors Brisbane Qld – 2013