Grantham Farmworkers Lodge For Sale by HTL

On behalf of the Katarzyna Group, HTL Property has been exclusively appointed to sell Grantham Farmworkers Lodge located in the Brisbane-Toowoomba growth corridor; representing one of Australia’s largest and independently owned hospitality and accommodation groups.

The freehold going concern interest in this rare worker’s accommodation facility is strategically located in southeast Queensland’s food bowl, where the majority of local workers require long-term but still temporary accommodation. Grantham Lodge is also located within the booming Brisbane-Toowoomba growth corridor, which is seeing strong population growth and consequently unprecedented demand for housing.

Grantham Farmworkers Lodge currently operates 272 beds in a range of dormitories, single and twin share rooms; all of which are fully occupied. Having been recently completed in 2019, the near-new accommodation offering is complemented by a range of high quality facilities and amenities – including a commercial hotel license, bar, two communal kitchens, two pools, a volleyball court, two laundries and expansive outdoor open areas.

The 272 beds are currently leased out to two major employers in the region – being Rugby Farms and Stanbroke Beef. The accommodation service agreements provide a highly passive and secure income that is effectively guaranteed via minimum occupancy clauses. A recently executed agreement has provided exclusive use to Stanbroke Beef for an even larger number of beds, which could see the business generate circa $3 million by FYE 2024.

“Grantham Farmworkers Lodge is structured with minimal management requirements and is therefore a reasonably passive and simple business operation. There are effectively only two clients to deal with so that management focus is largely indexed to maintenance and cleaning. This is one of the simplest and most effective business models I have come across, and would be ideal for a purchaser seeking a hands-off, self-perpetuating style investment” advised HTL Property Director, Brent McCarthy.

The substantial 36.25 hectare Property holds a current DA approval for a total of 548 beds, as well as a separate approval for a 54 site Residential Land Lease Community. Providing an incoming purchaser the opportunity to capitalise upon the final stages of development and associated increase in revenue, as well the inherent diversification and potential development profits upon the sale of the manufactured homes.

“An incoming purchaser can easily continue to build out the worker’s accommodation and/or the residential land lease component. In this way, they will not only capitalise upon the substantial earthworks already completed; but also on an increased and diversified income profile and potentially the development profits upon the sale of the manufactured homes” commented HTL Property Accommodation Director, Paul Nyholt.

“However, the current DA need not be continued as the substantial 36.25 hectare landholding is effectively a blank canvass. The flexible zoning, strategic location and levelled, cleared site work together to provide a wide range of development opportunities – of course subject to council approvals. For example residential subdivision, storage facilities or traditional style of tourist accommodation could be explored” added Nyholt.

Grantham Farmworkers Lodge is strategically positioned in the Lockyer Valley, one of the most established and yet rapidly growing areas of southeast Queensland. The Lockyer Valley is one of the most fertile regions in the world, producing 18% of Queensland’s total vegetable supply and averaging 30% of the winter vegetable crop. Farm workers are required year-round and with the unprecedented demand for migrant labour who are only now beginning to return to Australia, Grantham Farmworkers Lodge is a highly viable business.

Being located within 1.5 hours drive to Brisbane CBD, Australia’s third largest city and 30 minutes to Toowoomba, a major regional city, Grantham Farmworkers Lodge is in a highly convenient location which is attractive to not only migrants to the agricultural workspace; but also the future residential population of this booming growth corridor. An infrastructure development pipeline of over $13 billion for Toowoomba and housing price growth of in excess of 25% over the past two years speaks volumes for the heightened interest in the regionand its future growth.

“We anticipate strong interest in this opportunity from a wide range of investors including both listed and unlisted funds, private syndicates and high net worth individuals who are seeking relatively passive assets underpinned by strong cash flow, strategic locations and substantial underlying land value” believes HTL Property Director, Glenn Price.

“There are many local people who would like the idea of being their own boss and owning a substantial landholding with undeniable potential” Price added.

“We also expect interest to come from all over Australia as this asset is truly a rare opportunity to enter the commercial property market at an affordable entry point, whilst also offering enormous scope for development, profits and income growth” continued Nyholt.

“Accordingly, we wholly expect Grantham Farmworkers Lodge to generate interest from a diverse investor audience who will be immediately attracted to the asset’s established, passive and effectively guaranteed income stream” commented Nyholt.

“Accommodation assets have remained incredibly popular amongst investors and owner-operators even throughout the challenging trading periods recently faced, and the current economic climate. The broad market demand for these types of assets is simply outweighing the available supply” Jackson concluded.

Grantham Farmworkers Lodge is being exclusively sold by HTL Property via an Expression of Interest campaign closing at 4pm on 1^st March, 2023.

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