|Cullen Bay Resort and Marina View are serviced apartments overlooking a marina on the outskirts of the CDB of Darwin NT.|
Darwin is the capital city of the Northern Territory and the major hub for the North Coast of Australia. Darwin is essential to Australia’s defence and also provides access to the tourist areas of the Northern Territory and beyond. Located within a few hours drive of Litchfield, Kakadu, Katherine and other major tourism areas, Darwin is especially popular in the peak winter tourist season. With agriculture, aquaculture and a strong military presence, Darwin enjoys year round government and business visitors. As the main regional centre, Darwin is an important distribution centre for government services, healthcare and business. With further infrastructure spending announced for Darwin and additional direct international flights, there is likely to be good upside in the town itself.
TARHF have purchased its interest in this property as a Management Rights (operator). There are approximately 80 apartments in the letting pool in a mix of short term and permanent rentals. With a strong base salary and many out of town owners, the income is considered sound within a range and should provide strong income stability. Operationally and in terms of distribution and marketing, Mandala see upside in both income and capital gains.
For the Fund, this property provides excellent income returns with moderate capital gains potential and additional upside in a key regional town. Management Rights have a different risk profile to direct ownership and provide better insulation for downside protection with little property exposure. This provides an excellent diversification to the rest of the TARHF portfolio in terms of location, market drivers and general economic factors.