2 Stages | Residential |Retails | Commercial |
SIRE Management Rights has been appointed as an agent for the sale for the following:
A. The Letting and Caretaking Rights for Stages 1.
Stage 1 consists of 228 Apartments and approximately 5,700m² of retail;
Stage 1A and Stage 1B Management Lot; and
Stage 1 Manager’s Apartment.
B. A Put and Call for Stage 2:
Stage 2 consists of 113 apartments and approximately 950m² of retail.
Letting and Caretaking Rights;
Managers Apartment;
Managers lot of Stage 2; and
Price and terms to be consistent with the basis of Stage 1.
The transaction will need to be for stage 1 with a put and call on stage 2. The two stages will be linked on completion. The attached Development Plan identifies the location of the development as part of the overall development site.
The put and call on stage 2 will be conditioned that both parties will have an exit if the commencement of stage 2 does not take place within 1 year of completion of stage 1.
The information below outlines the position for Stage 1.
LETTING AND CARETAKER RIGHTS
The Management Rights for stage 1 will be for the term of 25 years and will entitle the Manager to a fee in the first year of $1,300 plus GST being a total of $296,400 plus GST based on 228 apartments.
These rights will also provide the purchaser during its ownership and the term, with the exclusive on site letting rights from the residential complexes. The Purchase Price of the Letting and Caretaking Rights for stage 1 will be $4,000,000 plus GST.
There will be a Claw Back of $13,500 plus GST for each key that does not provide the purchaser with an appointment under 200 apartments. Claw Back will be calculated from 60 days of the settlement of the last apartment. There will be maximum Claw Back of 40 apartments.
There will be no Claw Forward.
MANAGEMENT LOT
Adjoining the ground level foyer of each tower of the complex is an area to be used as reception, office and storage by the Manager. This is to be referred to as the Managers Lot and is anticipated to be an area of approximately 25m2. This will be a separate title.
The price of this lot will be $140,000 plus GST for each tower. The price for stage 1 will be $280,000 plus GST.
MANAGERS APARTMENT
The Purchaser will be required to purchase a two bedroom apartment on the first level close to the lift in Tower 1A.
As discussed above, a condition of the Resident Management Rights is that the Manager must own its employee’s residence, an apartment within the complex.
In previous projects this has been sold to a third party nominated by the Manager. We can attempt to sell this during the sales campaign for the other apartments.
MANAGEMENT EXPERIENCE
Prior to entering into a contract of sale the prospective purchasers will need to provide evidence to the satisfaction of the Vendor to the experience of the Purchaser and its staff for a minimum of 5 years’ experience in managing buildings of the size and type of project.
GENERAL ITEMS
1.
Premises:
Owner occupied, long term rental and Serviced Apartments and associated areas, Brisbane.
2.
Brand:
If applicable then a minimum of a 4 Star rating.
3.
Trading Hours:
7 day per week reception operation will be required. The reception in Tower 1A must be manned from 7am until 8pm as the minimum hours.
4.
Deposit:
5% deposit will be paid on execution of the contracts of sale
and a further 5% will be provided at commencement of construction.
5.
Interest on Deposit:
The Deposit if paid in cash will be invested by the lawyers for the Vendor within 30 days of receipt of the deposit funds. The interest accrued on these invested funds will be paid to the Purchaser at Settlement if no default has occurred.
6.
Security:
The Directors of the Purchaser will provide personal guarantees to the performance of the Purchase to the terms of the contract.
7.
Costs:
Each party is to bear their own legal costs.
The developer will pay survey fees and any mortgagee consent fees.
8.
Formal Documentation:
To be provided by the developers solicitors but generally in accordance with the legal terms set out within this document and the documents used for Apartments.
9.
Contemporaneous:
All three agreements (Management Lot, Management Apartment and Sale of Management Rights) above are subject to the completion of each other happening.
10.
Confidentiality:
The purchaser and developer will treat all information within this proposal as confidential and will not release any part of it to any party without prior each other’s consent.
11.
Caretaker Duties:
Attached is a draft set of caretaker duties. These will be finalised and form part of the contract.
12.
Body Corporate Bylaws:
These will be finalised over the next month or so and included in the contracts for the sale of the management rights.
13.
Admin and Sinking Fund Budgets:
These will be finalised over the next month or so and included in the contracts for the sale of the management rights.
Without derogating from the generality of the Caretaker’s duties above, the Caretaker shall be responsible for the following duties.
DAILY ROUTINE
Duties to be completed 7 days per week including weekends and Public Holidays.
Pool, BBQ and Recreation Areas
Sweep area clean.
Spot clean floors (tile and pool deck).
Clean all glass surfaces/areas.
Empty all rubbish bins.
Wipe clean all furniture (if required) and report any items damaged or missing.
Check electricity and all lighting is working correctly and report problems as necessary.
Check lawns, plants and shrubs to ensure automatic sprinklers are watering as required.
Pick up isolated rubbish, e.g. cans, bottles, papers, etc.
Align all furniture and report any damage.
Clean barbecue plates (if required).
Toilet/Shower Change Room
Spot clean floors where necessary.
Replenish soaps and toilet paper when necessary.
Spot clean WC and basin where necessary.
Clean glass to shower area and mirror above basin.
Pool
Clean and empty skimmer baskets.
Remove all floating and suspended matter from pool.
Empty filter baskets in filter/plant room.
Replenish water (if required).
Check that automatic chlorinators are working correctly (adjust/rectify when chlorine is low).
Report any malfunctions.
Back wash if necessary.
All Lobbies and Lifts
Spot clean floors, surfaces, stairs and balustrading internal and external to reception/lobby area.
Clean glass internal and external and other surfaces internal and external to reception/lobby.
Pick up isolated rubbish internal and external to reception/lobby and surrounds.
Tidy and wipe over furniture to lobby area.
Inside/outside of lifts to be cleaned with particular attention to all stainless steel and mirror areas.
Walkways/Accessways
Spot clean floors, balustrading and walkway walls.
Remove all rubbish.
Garbage Bin/Shute Areas
Empty refuse/recycled bins from each refuse area and transfer to the industrial bin on the ground floor or basement area where positioned.
Replace liners to emptied bins.
Clear isolated rubbish.
Sweep out refuse areas.
Spot mop with detergent.
Deodorise and clean rubbish shute area (if required) and clear/clean any matter or residue that may be evident.
Emptying of refuse bins should not be carried out between the hours of 6pm to 9am.
Position industrial bins and recycling bins ready for collection by the waste removal contractors as needed.
Letter Box Areas
Tidy letterbox area and remove any discarded junk mail.
TWICE WEEKLY ROUTINE
Pool, BBQ and Recreation Areas
Check for chlorine and PH levels and add chemicals when necessary.
Log test results.
All Lobbies and Lifts
Mop clean tiled floors.
Garbage Bin/Shute Areas
Empty recycling bins from each refuse cupboard and transfer to the collection area as required.
Deodorise recycling bins.
Emptying of recycle bins should not be carried out between the hours of 6pm to 9am
Carparks, Driveways
Pick up rubbish and deal with any discarded or misplaced items that may obstruct free access to private parking bays,
WEEKLY ROUTINE
Pool, BBQ and Recreation Areas
Mechanically clean tiled areas, sweep, hose or blow out other areas.
Replenish gas bottles if empty.
Clean BBQ plates
Toilet/Shower Change Room
Mop clean tiled floors.
Deodorise and clean WC and Basin
Clean wall tiles to shower area.
General/Recreation Areas
Hose or blow clean.
Pool/Spa
Vacuum settled matter from pool/Spa.
Clean filters as necessary.
Check pumps and motors for serviceability and report any damage/malfunction.
Carparks, Driveways
Hose or blow all car park areas and all entries of driveways and ramps including main access roads.
Walkways/Accessways
Mechanically clean floors, wipe down balustrading and clear any other matter from walls or ceilings.
Stairwells
Sweep, hose or blow all stairwells
Dust all handrails.
Clear isolated rubbish.
Garbage/Shute areas
Hose around industrial and recycling bins.
Hose out bins and apply disinfectant/cleaner.
Deodorise/Disinfectant garbage/shute areas.
Fire Safety
Check fire hoses are properly re-set if used.
Irrigation System
Check and ensure in good working order, replace fittings as required.
Gardens and Lawns
Mow lawns (weather permitting).
Edge paths (weather permitting).
Edge gardens (weather permitting).
Spray control chemicals to retard growth of unwanted vegetation and trim/tidy as necessary (weather permitting).
Blow clean paths and landscape areas (weather permitting).
MONTHLY ROUTINE
Gardens
Spray control chemicals to prevent damage to plants from insects, pests and blights (weather permitting).
Service all gardens including removal of unwanted vegetation.
Pool
Blow clean plant room and leave in a neat and tidy condition.
Communications
Blow clean plant room and leave in a neat and tidy condition.
Hot Water System
Blow clean plant room and leave in a neat and tidy condition.
Community lighting and Electrical
Check all lights and replace bulbs as needed.
Ensure lift, security gates and any other electrical appliances/engines are in working order.
Buildings
Check general exterior of building and advise the body corporate manager of any maintenance issues needing attention.
Roof
Check all building roofs to ensure that there is no leave build up in box gutters, remove and clean as required.
BI-ANNUAL ROUTINE
Gardens
Fertilise gardens (seasonally).
Community lighting and Electrical
Clean insects, etc. out of light fittings.
ANNUAL ROUTINE
Gardens
Fertilise gardens (seasonally).
Fertilise lawns.
Apply mulch to gardens.
AVAILABILITY
The caretaker shall be contactable by owners and occupiers of each lot:
Between the hours of 7:00am and 7:00pm every day (including public holidays) by: telephone, mobile phone, pager or similar device such that contact can be made with the caretaker immediately; and
All other times: by answering machine or message system available for emergency contact and the Caretaker shall respond within 24 hours of being contacted.
GENERAL
a) To have possession of the master key or keys for the switch room, substation, and other rooms under the control of the Body Corporate and the lots in the Building so far as individual proprietors will permit. The Caretakers will not give possession of those keys to anyone except a person designated in writing by the Committee or the individual proprietor concerned.
b) To provide common area contractors with access to the building and where necessary supervise such contractors in the performance of their duties.
c) To account promptly and faithfully to the Body Corporate for any property of the Body Corporate which comes into the Caretaker’s hands or custody?
d) To report promptly on all things requiring repair and on all matters creating a hazard or danger and to take remedial action where practicable
e) To take such precautions as are reasonably necessary to safeguard the Building and the common property against unlawful entry by any persons.
f) To perform all other acts and things as are reasonably necessary for the discharge of the Caretaker’s obligations under the Agreement.
g) To carry out the written directions of the Body Corporate with regard to specific matters of policies or procedures to be observed in performing the Services, subject to the Caretaker’s right to refer any disputed matter to arbitration in accordance with the Agreement.
A. The Letting and Caretaking Rights for Stages 1.
Stage 1 consists of 228 Apartments and approximately 5,700m² of retail;
Stage 1A and Stage 1B Management Lot; and
Stage 1 Manager’s Apartment.
B. A Put and Call for Stage 2:
Stage 2 consists of 113 apartments and approximately 950m² of retail.
Letting and Caretaking Rights;
Managers Apartment;
Managers lot of Stage 2; and
Price and terms to be consistent with the basis of Stage 1.
The transaction will need to be for stage 1 with a put and call on stage 2. The two stages will be linked on completion. The attached Development Plan identifies the location of the development as part of the overall development site.
The put and call on stage 2 will be conditioned that both parties will have an exit if the commencement of stage 2 does not take place within 1 year of completion of stage 1.
The information below outlines the position for Stage 1.
LETTING AND CARETAKER RIGHTS
The Management Rights for stage 1 will be for the term of 25 years and will entitle the Manager to a fee in the first year of $1,300 plus GST being a total of $296,400 plus GST based on 228 apartments.
These rights will also provide the purchaser during its ownership and the term, with the exclusive on site letting rights from the residential complexes. The Purchase Price of the Letting and Caretaking Rights for stage 1 will be $4,000,000 plus GST.
There will be a Claw Back of $13,500 plus GST for each key that does not provide the purchaser with an appointment under 200 apartments. Claw Back will be calculated from 60 days of the settlement of the last apartment. There will be maximum Claw Back of 40 apartments.
There will be no Claw Forward.
MANAGEMENT LOT
Adjoining the ground level foyer of each tower of the complex is an area to be used as reception, office and storage by the Manager. This is to be referred to as the Managers Lot and is anticipated to be an area of approximately 25m2. This will be a separate title.
The price of this lot will be $140,000 plus GST for each tower. The price for stage 1 will be $280,000 plus GST.
MANAGERS APARTMENT
The Purchaser will be required to purchase a two bedroom apartment on the first level close to the lift in Tower 1A.
As discussed above, a condition of the Resident Management Rights is that the Manager must own its employee’s residence, an apartment within the complex.
In previous projects this has been sold to a third party nominated by the Manager. We can attempt to sell this during the sales campaign for the other apartments.
MANAGEMENT EXPERIENCE
Prior to entering into a contract of sale the prospective purchasers will need to provide evidence to the satisfaction of the Vendor to the experience of the Purchaser and its staff for a minimum of 5 years’ experience in managing buildings of the size and type of project.
GENERAL ITEMS
1.
Premises:
Owner occupied, long term rental and Serviced Apartments and associated areas, Brisbane.
2.
Brand:
If applicable then a minimum of a 4 Star rating.
3.
Trading Hours:
7 day per week reception operation will be required. The reception in Tower 1A must be manned from 7am until 8pm as the minimum hours.
4.
Deposit:
5% deposit will be paid on execution of the contracts of sale
and a further 5% will be provided at commencement of construction.
5.
Interest on Deposit:
The Deposit if paid in cash will be invested by the lawyers for the Vendor within 30 days of receipt of the deposit funds. The interest accrued on these invested funds will be paid to the Purchaser at Settlement if no default has occurred.
6.
Security:
The Directors of the Purchaser will provide personal guarantees to the performance of the Purchase to the terms of the contract.
7.
Costs:
Each party is to bear their own legal costs.
The developer will pay survey fees and any mortgagee consent fees.
8.
Formal Documentation:
To be provided by the developers solicitors but generally in accordance with the legal terms set out within this document and the documents used for Apartments.
9.
Contemporaneous:
All three agreements (Management Lot, Management Apartment and Sale of Management Rights) above are subject to the completion of each other happening.
10.
Confidentiality:
The purchaser and developer will treat all information within this proposal as confidential and will not release any part of it to any party without prior each other’s consent.
11.
Caretaker Duties:
Attached is a draft set of caretaker duties. These will be finalised and form part of the contract.
12.
Body Corporate Bylaws:
These will be finalised over the next month or so and included in the contracts for the sale of the management rights.
13.
Admin and Sinking Fund Budgets:
These will be finalised over the next month or so and included in the contracts for the sale of the management rights.
Without derogating from the generality of the Caretaker’s duties above, the Caretaker shall be responsible for the following duties.
DAILY ROUTINE
Duties to be completed 7 days per week including weekends and Public Holidays.
Pool, BBQ and Recreation Areas
Sweep area clean.
Spot clean floors (tile and pool deck).
Clean all glass surfaces/areas.
Empty all rubbish bins.
Wipe clean all furniture (if required) and report any items damaged or missing.
Check electricity and all lighting is working correctly and report problems as necessary.
Check lawns, plants and shrubs to ensure automatic sprinklers are watering as required.
Pick up isolated rubbish, e.g. cans, bottles, papers, etc.
Align all furniture and report any damage.
Clean barbecue plates (if required).
Toilet/Shower Change Room
Spot clean floors where necessary.
Replenish soaps and toilet paper when necessary.
Spot clean WC and basin where necessary.
Clean glass to shower area and mirror above basin.
Pool
Clean and empty skimmer baskets.
Remove all floating and suspended matter from pool.
Empty filter baskets in filter/plant room.
Replenish water (if required).
Check that automatic chlorinators are working correctly (adjust/rectify when chlorine is low).
Report any malfunctions.
Back wash if necessary.
All Lobbies and Lifts
Spot clean floors, surfaces, stairs and balustrading internal and external to reception/lobby area.
Clean glass internal and external and other surfaces internal and external to reception/lobby.
Pick up isolated rubbish internal and external to reception/lobby and surrounds.
Tidy and wipe over furniture to lobby area.
Inside/outside of lifts to be cleaned with particular attention to all stainless steel and mirror areas.
Walkways/Accessways
Spot clean floors, balustrading and walkway walls.
Remove all rubbish.
Garbage Bin/Shute Areas
Empty refuse/recycled bins from each refuse area and transfer to the industrial bin on the ground floor or basement area where positioned.
Replace liners to emptied bins.
Clear isolated rubbish.
Sweep out refuse areas.
Spot mop with detergent.
Deodorise and clean rubbish shute area (if required) and clear/clean any matter or residue that may be evident.
Emptying of refuse bins should not be carried out between the hours of 6pm to 9am.
Position industrial bins and recycling bins ready for collection by the waste removal contractors as needed.
Letter Box Areas
Tidy letterbox area and remove any discarded junk mail.
TWICE WEEKLY ROUTINE
Pool, BBQ and Recreation Areas
Check for chlorine and PH levels and add chemicals when necessary.
Log test results.
All Lobbies and Lifts
Mop clean tiled floors.
Garbage Bin/Shute Areas
Empty recycling bins from each refuse cupboard and transfer to the collection area as required.
Deodorise recycling bins.
Emptying of recycle bins should not be carried out between the hours of 6pm to 9am
Carparks, Driveways
Pick up rubbish and deal with any discarded or misplaced items that may obstruct free access to private parking bays,
WEEKLY ROUTINE
Pool, BBQ and Recreation Areas
Mechanically clean tiled areas, sweep, hose or blow out other areas.
Replenish gas bottles if empty.
Clean BBQ plates
Toilet/Shower Change Room
Mop clean tiled floors.
Deodorise and clean WC and Basin
Clean wall tiles to shower area.
General/Recreation Areas
Hose or blow clean.
Pool/Spa
Vacuum settled matter from pool/Spa.
Clean filters as necessary.
Check pumps and motors for serviceability and report any damage/malfunction.
Carparks, Driveways
Hose or blow all car park areas and all entries of driveways and ramps including main access roads.
Walkways/Accessways
Mechanically clean floors, wipe down balustrading and clear any other matter from walls or ceilings.
Stairwells
Sweep, hose or blow all stairwells
Dust all handrails.
Clear isolated rubbish.
Garbage/Shute areas
Hose around industrial and recycling bins.
Hose out bins and apply disinfectant/cleaner.
Deodorise/Disinfectant garbage/shute areas.
Fire Safety
Check fire hoses are properly re-set if used.
Irrigation System
Check and ensure in good working order, replace fittings as required.
Gardens and Lawns
Mow lawns (weather permitting).
Edge paths (weather permitting).
Edge gardens (weather permitting).
Spray control chemicals to retard growth of unwanted vegetation and trim/tidy as necessary (weather permitting).
Blow clean paths and landscape areas (weather permitting).
MONTHLY ROUTINE
Gardens
Spray control chemicals to prevent damage to plants from insects, pests and blights (weather permitting).
Service all gardens including removal of unwanted vegetation.
Pool
Blow clean plant room and leave in a neat and tidy condition.
Communications
Blow clean plant room and leave in a neat and tidy condition.
Hot Water System
Blow clean plant room and leave in a neat and tidy condition.
Community lighting and Electrical
Check all lights and replace bulbs as needed.
Ensure lift, security gates and any other electrical appliances/engines are in working order.
Buildings
Check general exterior of building and advise the body corporate manager of any maintenance issues needing attention.
Roof
Check all building roofs to ensure that there is no leave build up in box gutters, remove and clean as required.
BI-ANNUAL ROUTINE
Gardens
Fertilise gardens (seasonally).
Community lighting and Electrical
Clean insects, etc. out of light fittings.
ANNUAL ROUTINE
Gardens
Fertilise gardens (seasonally).
Fertilise lawns.
Apply mulch to gardens.
AVAILABILITY
The caretaker shall be contactable by owners and occupiers of each lot:
Between the hours of 7:00am and 7:00pm every day (including public holidays) by: telephone, mobile phone, pager or similar device such that contact can be made with the caretaker immediately; and
All other times: by answering machine or message system available for emergency contact and the Caretaker shall respond within 24 hours of being contacted.
GENERAL
a) To have possession of the master key or keys for the switch room, substation, and other rooms under the control of the Body Corporate and the lots in the Building so far as individual proprietors will permit. The Caretakers will not give possession of those keys to anyone except a person designated in writing by the Committee or the individual proprietor concerned.
b) To provide common area contractors with access to the building and where necessary supervise such contractors in the performance of their duties.
c) To account promptly and faithfully to the Body Corporate for any property of the Body Corporate which comes into the Caretaker’s hands or custody?
d) To report promptly on all things requiring repair and on all matters creating a hazard or danger and to take remedial action where practicable
e) To take such precautions as are reasonably necessary to safeguard the Building and the common property against unlawful entry by any persons.
f) To perform all other acts and things as are reasonably necessary for the discharge of the Caretaker’s obligations under the Agreement.
g) To carry out the written directions of the Body Corporate with regard to specific matters of policies or procedures to be observed in performing the Services, subject to the Caretaker’s right to refer any disputed matter to arbitration in accordance with the Agreement.