Our RRAF2 assets are all significant properties which have been acquired across three states and are a mix of leisure properties and business properties.  All have a value add element to them.  Seagulls resort Townsville is a substantial 70 room resort on 4 acres of waterfront reserve premium real estate just 100 metres from Rowes Beach.  The property was acquired for $5.5m and included two additional waterfront reserve residential properties.  The resort was very run down but bought substantially below the $14m estimated rebuild cost and we have commenced a major redevelopment of the property involving full refurbishment of every room which is expected to be completed in late 2023.   Occupancy has increased substantially, from 20% occupancy pre acquisition, to regularly trading at 100% occupancy under our management in 2023.  Average room rate has increased 60%, and the asset value has increased 25% within the first year of ownership after netting off capex, adding significant value for fund investors.

Our 48 room Boulevard Mildura property in VIC was essentially closed when acquired but has reopened with significant success and an estimated value significantly above the acquisition price.  The Dubbo Oxley Motel is one of the largest in the major inland city of Dubbo on a key road network.  Acquired including a restaurant, bar and tow adjoining houses, it is building up to be a core property in our second fund.  Finally, the 60 room Centrepoint Motor Inn in Rockhampton was acquired at little more than land value and post a planned low cost renovation will prove to be delivering a compelling return on investment.  Again we expect this property has appreciated at least 20% in value vs acquisition price in just over 12 months of ownership.  We expect the ROI from upgrades to meaningfully increase this value uplift further.