THE AUSTRALIAN HOTEL TOWNSVILLE

Transcription

1 THE AUSTRALIAN HOTEL TOWNSVILLE INFORMATION MEMORANDUM MARCH

2 CONTENTS INTRODUCTION 4 EXECUTIVE SUMMARY 5 LOCATION OVERVIEW 6 SITE DETAILS 7 THE HOTEL OVERVIEW 8 DEVELOPMENT OPPORTUNITIES 24 FINANCIAL OVERVIEW 25 ONLINE DATA ROOM 26 INVESTMENT ATTRIBUTES 27 SALES PROCESS 28 DISCLAIMER 29 ANNEXURES

3 1 INTRODUCTION 2 EXECUTIVE SUMMARY On behalf of Guy Edwards, Darryl Kirk and Paul Kirk of PricewaterhouseCoopers, acting as Receivers and Managers of the property referred to in this information memorandum ( The Receivers ), CBRE Hotels are delighted to offer this rare opportunity to purchase The Australian Hotel, Townsville. The Australian Hotel is situated on Palmer Street, Townsville. The property is located 1,384 kilometres north of Brisbane, and 354 kilometres south of Cairns and occupies a prominent site in Townsville s south business district. Key investment considerations include: South Townsville location, enjoying significant passing traffic. 4,554m²* site (5 titles) presenting expansion or development opportunities (subject to relevant approvals). Cash flow in excess of $3.3M for 2009/2010. The freehold property, together with the business, Queensland hotel licence and 18 poker machines authorities are offered for sale via an Closed Tender Campaign, closing Thursday 5th of May at 4:00pm. For further information, please contact the exclusive agent on the details listed below. Craig Harley T: M: E: craig.harley@cbre.com.au Property The Australian Hotel 11 Palmer Street, Townsville, QLD Position The Australian Hotel is located between Palmer and Mcllwraith Streets in Townsville Building Area The Australian Hotel - 4,554m²* The Detached Bottleshop - 148m²* Title Details Property/Address Lot Plan Title Reference The Australian Hotel 35 CP T Hotel (10 Mcllwraith Street) 52 CP T Hotel (Mcllwraith Street) 28 RP Palmer Street 34 CP T Palmer Street 36 Cp T County of Elphinstone, Parish of Coonambelah Property Facilities 18 gaming machine authorities Detached bottleshop Garden Bistro (indoor and outdoor dining) Large public bar Courtyard bar Spacious gaming room with dedicated cashier station Beer garden 1st floor boardroom facility Refurbished 2 bedroom managers residence 3 hotel rooms Total smoking solution (DOSA) Licence Liquor Licence: Gaming Licence : Trading Hours: 10:00am to 12:00am (Monday to Sunday) Services The property has all the normal connections and access to standard services and utilities, including electricity, town water, sewerage and telephone. * Approximately * Approximately 4 5

4 3 LOCATION OVERVIEW 4 SITE DETAILS Townsville is a city on the north-eastern coast of Australia, in the state of Queensland. Adjacent to the central section of the Great Barrier Reef, it is in the dry tropics region of Queensland. Townsville is Australia s largest urban centre north of the Sunshine Coast, the town lies approximately 1,384 kilometres north of Brisbane, and 354 kilometres south of Cairns. Townsville has a strong and diverse economy in which significant industries include retail trade, health and education services, government administration and defence, contruction, mining, manufacturing and property and business services. Together the Queensland Rail and the Port of Townsville provide a transport hub for the region s mining and agricultural industries, as well as for locally-based Xstrata Copper Refinery, Sun Metals Zinc Refinery, Queenslands Nickel and the Queensland Sugar Corporation Distribution Centre. The city is a major service centre, and the main centre for government administration outside Brisbane. Regional health services are provided by the Townsville Hospital. There are a number of research instituions such as the James Cook University, the Australian Institue of Marine Science, the Great Barrier Reef Marine Park Authority, Department of Primary Industries and CSIRO Davies Laboratory. Lavarack Barracks is Australia s largest defence force military base which strongly influences the local economy. Title Particulars: The subject property is referred to as: Lot 35 of CP T11868 County of Elphinstone, Parish of Coonambelah Lot 52 of CP T11868 County of Elphinstone, Parish of Coonambelah Lot 28 of RP County of Elphinstone, Parish of Coonambelah Lot 34 of CP T11868 County of Elphinstone, Parish of Coonambelah Lot 36 of CP T11868 County of Elphinstone, Parish of Coonambelah Dimensions and Area: Palmer Street Frontage: m* Mcllwraith Street Frontage: m* Depth Eastern Boundary: m* Details: At the rear of the hotel there is approximately 1,518m²* of vacant land. 9 Palmer Street is an older style 2 story mixed use building which is tenanted to a mortgage broker. The first floor is a 2 bedroom flat, which is also tenanted. 13 Palmer Street is a single story restaurant premises which has a lettable area of 258m². The restaurant (Saltcellar) is tenanted. Local Authority: Townsville City Council * Approximately Map of South Townsville and the Australian Hotel location * Site outline indicativley only Amalgamated land holdings * Site outline indicativley only 6 7

5 5 THE HOTEL OVERVIEW * Site outline indicativley only Overview The Australian Hotel is located at 11 Palmer street in Townsville s entertainment precint. Townsville is situated 1,384 kilometres north of Brisbane, and 354 kilometres south of Cairns. The hotel occupies 5 titles and includes 18 gaming machine authorities, garden bistro, public bar, courtyard bar, detached bottleshop, gaming room, commercial kitchen, designated outdoor smoking area DOSA, administration office, boardroom, 3 hotel rooms and a 2 bedroom mangers residence. A detailed overview of these facilities are highlighted on the following pages. 8 9

6 Public Bar Key Features: Palmer street frontage Polished timber bar service counter Glycol beer reticulation system 2 service points including 12 beer taps Stool seating Footpath seating (DOSA) Pool table Cold room with 8 display doors Ducted air conditioning and ceiling fans 10 11

7 Courtyard Bar Key Features: Polished timber service counter 1 service point including 5 beer taps Cold room with 8 display doors Open air courtyard with umbrellas Sail protection cover Timber deck Tropical landscaping Male and female amenities 12 13

8 Gaming Room Key Features: Located at the rear of the hotel which offers discreet access and privacy 18 gaming machine authorities Cashier station with a polished granite counter Private bar Dedicated outdoor smoking area adjacent (DOSA) Ducted air conditioning and ceiling fans 14 15

9 Garden Bistro Key Features: Garden bistro capacity for approximately 160 patrons Open air courtyard dining Undercover courtyard dining Polished timber service counter Elevated rotunda Commercial kitchen Tropical landscaping Male and female amenities 16 17

10 Commercial Kitchen Key Features: Well located for ease of service direct to the bistro Fully equipped commercial kitchen Preparation area, scullery, dry and cold goods storage Stainless steel benches Various kitchen appliances Cold room and freezer room 18 19

11 Detached Bottleshop Key Features: Located within a local retail service centre in the suburb of Vincent Large retail floor space Spacious beer cold rooms Wine and spirit racks Display fridges Single sales service point Ducted air conditioning 20 21

12 Administration Office Key Features: Management office complete with computer work station Security system with surveillence Audio nightlife system Cash room equipped with safe Air conditioned 22 23

13 6 DEVELOPMENT OPPORTUNITIES The Australian Hotel occupies a significant and large 4,554m²* site in the heart of Townsville s entertainment precinct. The existing hotel occupies approximately one quarter of the site, with the remaining area being designated car parking and two adjacent buildings, thus enabling significant development opportunities for potential purchasers. Included in the sales offering of The Australian Hotel (Lot 35), their are 4 addional lots adjacent to the hotel. Lot 52 - Vacant lot Lot 28 - Vacant lot Lot 34 - Two storey mixed building tenanted Lot 36 - Single storey restaurant tenanted These additional lots offer purchasers potential development opportunities (subject to relevant approvals) such as: Multi dwelling/short term accommodation facilities Mixed use residential development Office/retail development Child care centre Education establishment Medical centre Car parking *Approximately 7 FINANCIAL OVERVIEW The Australian Hotel Townsville Profit & Loss Statement July 2009 through June 2010 Total Income Liquor Sales - Bar $981, Detached Bottleshop $1,037, Courtyard Bar $254, Total Liquor Sales $2,274, Food Sales - Bar Snacks $13, Bistro $702, Food Transfers to Bars $1, Total Food Sales $717, Merchandise Sold $ Insurance Claims $5, Gaming Poker Machines - Poker Machine Turnover $2,523, Payouts to Players ($2,276,145.12) - Gaming Tax ($97,747.43) Total Gaming $149, Sundry Income - Cigarettes $81, Cigarette Commission $10, ATM $4, Arcade Game Commission $ Pool Table $2, Vouchers Expired $ Total Sundry Income $100, Rentals Rent - Inde One Pty Ltd $69, Rent - Ryder Resources $28, Rent -Palmer Street Residence $12, Total Rentals $110, Sundry ($29.50) Total Income $3,358, More detailed financial information is provided in the online data room

14 8 ONLINE DATA ROOM Further and more detailed information will be made available to prospective purchasers via the online data room. Access to this site will be available to genuinely interested parties (upon request to CBRE Hotels) who will be required to complete a Confidentiality Agreement attached in Annexure I. Upon completion and return of the Confidentiality Agreement to CBRE Hotels, your details will be provided to PricewaterhouseCoopers for approval. If approved, you will receive an with access details and instructions for opening and using the online data room. Investment Attributes 9 INVESTMENT ATTRIBUTES Hotel property occupies 5 lots 4,554m²* site with expansion and development opportunities Cah flow in excess of $3.3M for 2009/2010 Hotel licence and 18 gaming machine authorities Commercial tenancy income $73,213* annually Value Adding Opportunities Marketing and promotion of all business departments Further capitalise on the thriving Palmer street entertainment precinct Potential to either expand or develop *Approximately 26 27

15 9 SALES PROCESS 10 DISCLAIMER CBRE Hotels has been retained exclusively by PricewaterhouseCoopers acting as Receivers and Managers to offer for sale The Australian Hotel, Townsville. The Australian Hotel is being offered for sale by way of a Closed Tendor campaign. Interested and qualified parties are advised to undertake a detailed review including financial and operation analysis and an escorted site inspection. CBRE Hotels, instructed by the Receivers and Managers, requires bidders to submit Closed Tender offers by no later than 4:00PM on Thursday 5th May Closed Tendor offers should be sent by facsimile, or in a sealed envelope. Attention: Mr Craig Harley, QLD Manager, Hotel Brokerage Facsimile: (07) craig.harley@cbre.com.au Postal: Level 33, 1 Eagle Street, Brisbane, QLD, 4001 Hand delivery: Level 33, 1 Eagle Street, Brisbane, QLD, 4001 Disclaimer for Information Memorandum This information memorandum ( IM ) has been prepared by CBRE Hotels ( CB Richard Ellis ) and is prepared on the basis of information provided to CB Richard Ellis in connection with the relevant transaction. Any statement or opinion made by CB Richard Ellis in connection with the transaction contemplated in the IM is not based on any actual or implied knowledge or consideration of the investment objectives, financial situation, legal or taxation position or any other particular needs or requirements of the recipients of this IM. All parties must make their own independent assessment and investigation including without limitation, seeking professional advice and must determine its interest in proceeding upon the basis of such independent assessment, investigation and appraisal. Any statement or opinion of CB Richard Ellis whether express or implied is not, nor should be construed as a recommendation by CB Richard Ellis or any of its officers, agents or employees to participate in the transaction and, to that extent, no reliance will be placed on CB Richard Ellis or its associates. CB Richard Ellis and its associates do not warrant (expressly or impliedly) that information contained in this IM is complete, true and correct and not misleading or not likely to be misleading or deceptive. CB Richard Ellis and its associates are not responsible and will not under any circumstances be liable (whether at law, in equity, under statute or otherwise) for any statement made or anything contained in or arising out of the information including, without limitation, any errors, misrepresentation or omissions. CB Richard Ellis disclaims all responsibility for any loss or damage caused by reliance by any person on this IM or any representation, warranty or statement made by or on behalf of CB Richard Ellis and its associates. This IM is confidential and is for the sole use of persons directly provided with it by CB Richard Ellis and is not to be reproduced, copied or sent to any other person without the prior written consent of CB Richard Ellis. The use by, or reliance upon this document by any other person is not authorised by CB Richard Ellis and and without limitation to the above disclaimers, CB Richard Ellis is not liable for any loss arising from such unauthorised use or reliance. General The information set out in this document has been prepared using information derived from a variety of external sources. CB Richard Ellis does not warrant the accuracy of any of the information and does not accept any legal liability or responsibility for any injury, loss or damage incurred by the use of, or reliance on, or interpretation of the information contained herein

16 Receivers and Managers Disclaimer The information in this Information Memorandum and any other written or verbal information given in respect of the Hotel referred to in this Information Memorandum (the Information) is provided to you (Recipient) on the following conditions: 1. The Hotel is sold on an as is/where is condition (that is, in its present condition and subject to all legal and physical defects). 2. No assurance, representation, warranty or guarantee (express or implied) is given by the Vendor, CB Richard Ellis, Australia and New Zealand Banking Group Limited, PricewaterhouseCoopers, the Receivers and Managers or any of their respective officers, partners, employees, advisers or consultants (collectively referred to as the Parties) or any other person or entity that the Information, whether or not in writing, is complete, accurate or balanced, or has or will be audited or independently verified, or that reasonable care has been or will be taken in compiling, preparing and furnishing the Information. 3. The Information does not constitute, and should not be considered as, a recommendation in relation to the purchase of the Hotel or any other matter, or as a solicitation or offer to sell the Hotel or a contract of sale for the Hotel. 4. The Information shall not constitute an assurance, representation, warranty or guarantee that there has been no change in the Hotel or in the matters referred to in the Information since the date at which the Information is expressed to be stated. 5. None of the Parties assume any obligation to the Recipient to provide additional Information or updated Information or to correct any inaccuracies in the Information which may become apparent. 6. The Information should not be relied upon in any way by the Recipient or its related entities, their respective officers, employees, agents, advisors, shareholders and associates (collectively the Recipient Parties). The Recipient Parties should satisfy themselves as to the accuracy and completeness of the Information through inspections, surveys, enquiries, and searches by their own independent consultants. 7. The Information does not purport to contain all of the details which the Recipient would require to make a decision to make an offer to purchase for the Hotel. Recipients should seek independent legal and financial advice. 8. None of the Parties make any representations or warranties with respect to fixtures, fittings, plant and equipment in the Hotel. 9. None of the Parties make any representations or warranties with respect to the continuation or enforceability of any licence, lease, supply, service, consultancy, certification, standard or other agreement referred to in this Information Memorandum following completion of the sale of the Hotel. 10. None of the Parties make any representations or warranties with respect to the legality of the current use of the Hotel or the ability of any purchaser to redevelop the Hotel. 11. The Information does not and will not form part of any contract of sale for the Hotel. If any Recipient Party makes an offer or signs a contract of sale for the Hotel that Recipient Party represents that it is not relying on the Information supplied by any of the Parties (unless otherwise agreed in a written contract with the Vendor). The only information, representations and warranties upon which the Recipient Parties will be entitled to rely will be as expressly set out in such a contract. 12. Recipients will be responsible for meeting their own costs of participating in the sale process for the Hotel. The Parties shall not be liable to compensate any Recipient Parties for any costs or expenses incurred in reviewing, investigating or analysing any Information, whether that Information is contained in this Information Memorandum or otherwise. 13. None of the Parties are liable to compensate or reimburse the Recipient Parties for any liabilities, costs or expenses incurred in connection with the sale of the Hotel. 14. Those persons associated with the Receivers and Managers who have responsibility for the sale have provided all Information provided to Recipients in good faith. Their knowledge may not be as extensive as that of the Vendor on whose behalf the Receivers and Managers provide that Information. Furthermore, the Receivers and Managers are the agent of the Vendor and shall not, except to the extent required by law, incur any personal liability to any of the Recipient Parties or the purchaser on any basis (including in respect of the Hotel, the sale of the Hotel, the contract of sale, this Information Memorandum or any dealings with any Recipient Parties whatsoever). 15. Except as may be expressly provided in any agreement in writing between the Parties and the Recipient, the Recipient acknowledges and agrees (for itself and the other Recipient Parties) that to the maximum extent permitted by law, all terms, conditions, warranties and statements, whether express, implied, written, oral, collateral, statutory or otherwise, relating to the Information Memorandum and the sale of the Hotel are excluded, and each of the Parties disclaim all liability for any loss and damage (whether foreseeable or not) suffered by any person acting on any of the Information whether the loss or damage arises in connection with any negligence, default or lack of care on the part of the Parties, any misrepresentation or any other cause by reason of or in connection with the provision of the Information or by the purported reliance thereon by any of the Recipient Parties. 16. No person is authorised to give information other than the Information in this Information Memorandum or in another brochure or document authorised by the Receivers and Managers. Any statement or representation by an officer, agent, supplier, customer, relative or employee of the Vendor will not be binding on the Vendor or on the Receivers and Managers. 17. The Information is confidential. The Information must not be reproduced, transmitted or otherwise made available or communicated to any person other than the Recipient Parties without the prior written approval of the Receivers and Managers. The Recipients acknowledge and agree that upon deciding that they do not wish to proceed with the purchase of the Hotel, or at the request of the Parties, they will immediately return the Information together with any reproduction thereof

17 11 ANNEXURES CONFIDENTIALITY AGREEMENT CONFIDENTIALITY AGREEMENT CLOSED TENDER FORM CONFIDENTIALITY DEED POLL To: (a) the Receivers and Managers of The Oaks Apartment Management Pty Ltd (Receivers and Managers Appointed) ACN as trustee (Oaks); and (b) Oaks From:... (the Recipient) (write name of company or entity requesting disclosure including ACN if a company) Address of Recipient: Name of Personal Representative of Recipient:. (individual to be provided access to the Data Room) address of Personal Representative:.. In this document the following terms have the following Meanings: Agent means CBRE Hotels or any other agent appointed by the Receivers and Managers for the sale of the Property and the Business. Business means the businesses being conducted from the Property and the detached bottle shop at Shop 2 corner Nathan Street and Fulham Road, Townsville, Queensland, Data Room means the data room prepared by the Receivers and Managers and containing Confidential Information in respect of the Property and the Business. Property means the hotel described as the " Australian Hotel" located at 11 Palmer Street, Townsville, Queensland, 4810 described as being: (a) (b) (c) (d) (e) lot 34 on CP T11868, contained in the County of Elphinstone, Parish of Coonambelah and contained within title reference ; lot 35 on CP T11868, contained in the County of Elphinstone, Parish of Coonambelah and contained within title reference ; lot 36 on CP T11868, contained in the County of Elphinstone, Parish of Coonambelah and contained within title reference ; lot 52 on CP T11868, contained in the County of Elphinstone, Parish of Coonambelah and contained within title reference ; and lot 28 on RP , contained in the County of Elphinstone, Parish of Coonambelah and contained within title reference Receivers and Managers means jointly and severally, each of: (a) (b) (c) Guy Alexander Edwards; Darryl Edward Kirk; and Paul William Kirk. The Recipient has asked for information (Confidential Information) in relation to the Property and the Business to investigate the purchase of the Property and the Business. In consideration of receiving that _

18 CLOSED TENDER FORM Confidential Information, the Recipient agrees to the terms of this document. The Recipient acknowledges and agrees that: (a) (b) 2. the Confidential Information that Oaks or the Receivers and Managers may give to the Recipient (including by way of allowing the Recipient access to the Data Room) is confidential and valuable to Oaks. Any unauthorised use or disclosure may significantly damage the Business of Oaks, and the sale value for the Property and the Business; to the extent permitted by law, it may not make any contact in any way (including whether in person, by telephone or by correspondence) with any employee of Oaks, or any supplier of any goods or services to Oaks, or any other person in any way connected to the Business being conducted by Oaks, unless such contact is made in the presence of the Agent or a representative of the Receivers and Managers; and Attention: Closed Tender Form To be lodged at CB Richard Ellis, Brisbane, Level 33, 1 Eagle Street, Brisbane Fax: (07) Craig Harley (c) Oaks is only prepared to disclose this Confidential Information to the Recipient on the understanding that the Recipient will keep it confidential. Property: The Australian Hotel, Townsville, Queensland Oaks will permit the Recipient to use the Confidential Information to investigate the purchase of the Property and the Business and the Recipient may disclose the Confidential Information to its employees and professional advisers but only if they first agree to keep it confidential. The Recipient must not use or disclose any of the Confidential Information for any other purpose or to any other person or entity, unless it first receives the consent of the Receivers and Managers of Oaks in writing. These obligations continue until all of the Confidential Information ceases to be confidential, other than because of a breach of any obligation of confidence. The Confidential Information is considered to be accurate. However, because the Confidential Information given in respect of the Property and the Business could possibly be inaccurate or incomplete, please note that: No assurance is given by the Receivers and Managers, the Agent, Pricewaterhouse Coopers, Australia and New Zealand Banking Group Limited or any of their respective officers or employees, advisers or consultants that any Confidential Information is accurate, complete or balanced or has or will be audited or independently verified, or that reasonable care has been or will be taken in compiling, preparing and furnishing the Information. Purchaser: Purchaser s Solicitor: Name: Address: Phone: Fax: Firm: Address: You should not rely on the Confidential Information. You should satisfy yourself as to its accuracy and completeness through inspections, surveys, enquiries, searches, etc by your own independent consultants. Phone: Fax: If you make an offer or sign a contract for the Property and the Business, you will be taken to be not relying on any Confidential Information (unless otherwise agreed in a written contract with Oaks). Any Confidential Information given will not form part of a contract. Nothing contained in the Confidential Information should be taken as a recommendation with respect to the Property or the Business. Proposed Funding Arrangements:- Attention: You should seek your own independent financial advice. This disclaimer does not exclude any statutory rights you may have which cannot be excluded. I have read and accept, and the Recipient accepts, the terms of this document. Executed as a Deed this day of Signed for and on behalf of the Recipient Name of person signing for the Recipient: Position of person with Recipient: _

19 NOTES Closed Tender - Interest Form (Cont.) Proposed Purchase Price $ In Words: Conditions: Signature: Name: Company Name: Date: 36 37

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