Investing the ‘rights’ way

A UNIQUE form of commercial property investing is gaining traction in the Far North and will only continue as the economy and tourism improve.

CBRE agent Shane Mullins said the number of management rights sales was “starting to fire”.

Management rights is the industry name for a business arrangement between resident managers of strata titled properties and a property developer or body corporate made up of unit owners.

“The current market activity in Cairns and North Queensland has resulted in a good array of inquiry, activity and sales, increasing in the last couple of months,” he said.

“Management rights businesses are still proving to be the bread and butter of sales for corporate entities and mum and dad operators wanting to enter the market.

“Sales have ranged from Airlie Beach and Magnetic Island through to Cairns and the northern beaches and Port Douglas.”

CBRE settled management rights deals at Alassio Palm Cove and InnCairns Boutique Apartments last month, with several others awaiting settlement.

“Management rights business allow anyone wanting a change from their current situation to go and work for themselves in a vibrant, stable industry,” Mr Mullins said.

“These businesses are very attainable for all and there are many opportunities to suit all types of budgets.

“The hotel market has resulted in some big wins recently with exciting times over the next month with new arrivals and the settling of some inner-city beauties.

“Hotel groups are still relying on Cairns to perform into the future.”

For the first time in 18 years, The Palms at Palm Cove on Veivers Rd went on the market in July and Tourism Palm Cove president Richard Hewitson bought the management rights to Sanctuary Palm Cove in 2016.

The resort offers one, two and three-bedroom luxury, architecturally-designed apartments surrounded by tropical gardens and including a sparkling 25m pool, a shaded wading pool and a spa.

Mr Hewitson and his wife got into management rights almost a decade ago and the couple split their resort management duties and cover for each other at any time.

GROWING SALES: Alassio Palm Cove is one property that recently settled a deal for its management rights, a form of investing which is gaining popularity in the Far North, according to CBRE.