Australasia Investment and Trade Association Inc Australasia Investment and Trade Association Inc
澳亚投资与贸易协会

Great Ocean Road Retreat

The Great Ocean Road Retreat development to be established at Peterborough, located near the Iconic Bay of Islands at the western end of Great Ocean Road, will provide resort amenity, quality dining and guest amenities to allow visitors to fully experience the Shipwreck Coast.

This region of the Great Ocean Road provides convenient proximity to the many iconic and internationally recognised natural attractions.  However there is a scarcity of quality accommodation and dining options to attract overnight stays. This development seeks to redress this and redefine Peterborough as a destination.  Key target markets include traditional family groups and growing international markets from the eastern hemisphere.

The development has been approved, having recently been through Victorian Civil and Administrative Tribunal (see enclosed media reports). Work on the 36-bedroom motel, which includes restaurant, pool and gym, is expected to begin in the next six months.

The development has been approved as strata title motel units.  The proponents having researched and developed this concept and negotiated the necessary planning approvals now seek to attract investors to fund the development and provide leaseback management rights to the facility and the restaurant.  In addition a high quality property in Port Campbell is also offered as part of the investment package.  This could be used as required for private and/or commercial purposes.

 

Project proponents

Project proponents Peter and Peta Hunt have established GOR Retreat Peterborough Pty Ltd (ACN 164 949 866) to drive this investment.

The project proponents have successfully developed self-contained and other accommodation amenity in neighbouring Port Campbell, comprising investment in the $3.5M to $4M range. Peter has also successfully operated agri-businesses in the region.

This project, since inception, has demonstrated evidence of capability of the developers and access to skilled and experienced local professional support, including building relationships with key stakeholders.  The nature and scale of the development that has emerged through this process necessitates external capital to ensure that the project maximises investment potential.

 

Investment  

The total project investment opportunity is AUD $15M.  In addition a quality accommodation asset (already established) in Port Campbell is available at an additional AUD $1.5M.

 

The project investment incorporates development of

  • Restaurant, bar & reception
  • 36 strata title accommodation units
  • All plant, furnishings & fit-out
  • Car-parking and landscaping
  • Adjoining land purchase for expansion

 

The project is ready to commence as soon as appropriate investment partners are sought.  Investors will be required to place deposits before commencement and release funding commensurate with project build.

 

The finalisation of permits and engineers assessment will likely take 3 months and the tender finalised in a further 6 weeks.  Proposed construction and development date from April 2015.

 

The return on the proposed development will depend on type of investment package entered and the likely business model of operation.  Modelling using industry benchmark pricing, utilisation and margins indicates an average internal rate of return of between 17% to 20% over a 10 year period.  This excludes capital growth which is expected to be significant given the current underinvestment in the region.

 

Equity stake of amounts up to 100% is offered with sale of management rights back to project proponents.

 

Further, there is potential to purchase the adjoining property including hotel in the medium term to further develop 20 self-contained units and convert premises to a family friendly licensed venue.   Such a purchase and development would enhance the current investment significantly.

 

Value Proposition: 

This investment provides significant value and potential for international investors.  Specifically;

  • It provides an opportunity to invest in an iconic region of Australia with rapidly growing levels of visitation from China and south east Asia.
  • It provides flexible investment and “investment liquidity options” with strata title on motel units to enable potential sale of individual units and separate sale of the rights to the dining and accommodation management. This enables passive investment with strong on-site management capability.
  • The investment has strong endorsement from local and regional government and peak tourism bodies, and aligns to regional strategic priorities including:
    • Developing new tourism product in high visitation areas
    • Located in a region with high natural environment value to visitors on key touring routes; and
    • Provide direct and in-direct economic and social benefits to small towns.
  • One of the most sought after and dynamic tourism regions in the country