Heavy investment into Port property
THE first phase of a major redevelopment of the Driftwood Mantaray property in Port Douglas has started with a new management company taking the helm.
The prospective owners aim to invest heavily in the property over the next four years and raise the nightly tariff by 50 per cent.
Driftwood Mantaray Ltd, headed by financial services professional Zac Sarnecki, has been established to initially manage the property for management rights owner Latitude 16, which manages 10 holiday complexes in Port Douglas.
Driftwood Mantaray is a fourstar holiday apartment complex offering two and three-bedroom apartments and Mr Sarnecki aims to transform the property into the “most sought-after accommodation” in the region and maximise returns for investors.
“The opportunity currently exists to purchase the management rights business from the parent company, which already achieves revenues in excess of $450,000 per annum,” Mr Sarnecki said.
“Contracts have been signed both for the initial lease of the management rights in the short term, as well as for the purchase in the medium term.
“The long term goal of the company is to purchase outright the underlying apartments, giving the property scope to be converted into a freehold offering over a period of time.
“This strategy will facilitate an increase in the businesses value to potentially more than double within the next five years.”
Mr Sarnecki said the company’s initial business plan is to purchase the management rights, the owner’s unit and two apartments in the complex.
“Our next phase will be to purchase four apartments per year over the next four years and spend around $50,000 to renovate each of them,” he said.
Business partner Amanda Zsifko already manages Driftwood Mantaray and has increased revenue by 45 per cent in nine months and had a 30 per cent increase in forward-bookings this season.
The property has recently signed a global distribution deal with Flight Centre to include it in holiday recommendations.