NT’s Knotts Crossing resort snapped up
Sydney funds manager Mandala Asset Solutions has snapped up the Knotts Crossing Resort in Katherine, Northern Territory, paying $7.61 million.
“Mandala is very experienced in identifying prime accommodation-driven assets in regional Australia, and Knotts Crossing ticked all the boxes for earnings and growth outlook,” says Resortbrokers executive Trudy Crooks, who negotiated the deal.
“Mandala’s activity is evidence of this trend, with plans for a new fund, its biggest portfolio yet, and all by investing primarily in accommodation-driven assets across regional Australia,” says Crooks. The resort sold for the asking price of $7.61 million before she took it to market.
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The 3ha Knotts Crossing Resort, located near Katherine Gorge, includes 35 powered caravan sites with private ensuite amenities, 36 cabins with ensuites, 86 motel rooms, the Savannah Bar and Restaurant plus a casual poolside alfresco bistro.
It was offered to the market by a privately owned Queensland-based investment syndicate that had owned it for about 15 years.
The resort has been operated by the current lessee for 10 years and, with 13 years remaining on the lease, it is a very secure and profitable long-term freehold investment, she says, adding that the high-earning resort returned a rare 11.5% per annum.
Crooks says demand for high quality accommodation assets in regional Australia is gaining momentum.
Resortbrokers’ NT and South Australian broker Kelli Crouch also negotiated the deal.
This article originally appeared on www.theaustralian.com.au/property.