Hey Kingston, i wasn't going to detail all of this but here we...

Hey Kingston, i wasn't going to detail all of this but here we go.
Development potential on the 27 acre site
Highrises down the track (land bank for the next 10 years min with great cash flow and facilities) but in the meantime there should be more cabins - currently 118 but this park could sustain over 200 at present with the balance sites then becoming approx 89. Currently an industry average price for a site is approx $37 / per night compared to a cabin is approx $140 / night (i'm being very low here as the most expensive is $260 for 2 adults in off peak) At approx 75% occupancy (Cairns hot and wet season is a slow time for sites) there is a increase of over $2.6mill a year along with the huge depreciation rates of  approx 20%  on manufactured homes ( cabins).
Along with this the resort needs a licensed restaurant with the ability for room service and group catering, conference rooms (another park has successfully implemented this in Airlie beach - Adventure Whitsunday), gold buggy hire for guests, bar around new pools (check out Blue Dolphins new areas at Yamaba), 2 story cabins, duplex style cabins which be rented as a single room or 3 rooms, more ensuites on existing sites for great tariffs, approx 16 new cabins to added in the back left near splash pool to generate approx  over $.5mill, replace the really old holiday units (12 of ?) which have been there for ever with 2 - 3 story cabins, an indoor kids play interactive area fully air conditioned and an adventure ropes course  (check out Bendigo Park Lane),  the 35 long term sites are getting old and some of them unfortunately the time is coming close to an end and to buy these out can cost between $5k to $100k depending on how if they have issues Manufactured homes act agreements which go through QCAT court (pretty tricky but manageable) or RTA for caravans which require 3 months notice to leave (approx current rent per site would be $200 a week compared to $980 with holiday cabins)  and there are a few more ideas i have!!!!! The Chinese market to Cairns is where another new income will come - purpose built easy to clean can be built to suit the 2 night stay market and a Australiana themed  village for these groups would be be just the ticket.

The current owner i read had a unfortunate crash a few years ago in the Dakar rally which broke his back and i take it this would have had a long recovery and could be a reason for the sale.
http://www.cairnspost.com.au/sport/...h/news-story/aedc18ccd434b11223945f996566a3f8

I see upside in new management (and cash injections) with a fresh approach but this resort is already leagues in front of the rest of the market with massive potential ahead.

I work the turnover at around $9 mill a year and there hasn't been loads on capital spend which would have been a plan to sell to get figures as high as possible (great profit margin). Along with low interest rates set the scene for high yield  and a good sale. This sale will seem cheap over the next year or so as i remember the first time a park got 10 mill, then 20 mill then 30 mill. I can say that most if not all of the private sector didn't this resort was on the market and Ingenia's model wouldn't have paid any more that what they thought it was worth.

This isn't just the flagship for Ingenia but a whole new vision and name for them in the Tourism industry.

Having a resort in the top 10 for Australia on trip advisor for the last 10 years is no mean feat.

A few notes - cabins cost between $80 - $130 per cabin to clean depending on beds, linen, size, facilities and amenities included.

Getting to the extra 20 % return wont be easy but is manageable with the right changes and advice IMHO

All of this is my workings and not advice (I COULD SELL IT!!!!) - DYOR