11/11/2010 - 00:00

Settlers House hits market

11/11/2010 - 00:00

Bookmark

Save articles for future reference.

A SURGE in demand for short stay accommodation in York has given investors the opportunity to buy into heritage property Settlers House, which has recently undergone a $7 million expansion, taking it from 18 to 88 units.

Settlers House hits market

A SURGE in demand for short stay accommodation in York has given investors the opportunity to buy into heritage property Settlers House, which has recently undergone a $7 million expansion, taking it from 18 to 88 units.

Perth-based property entrepreneur Des Mullins has placed 24 of the 88 one-bedroom units at Settlers House on the market for $142,500, on a leaseback arrangement that would provide a guaranteed 8.85 per cent investment return regardless of occupancy.

The leaseback condition is for an initial 10 years, with options to leaseback for an additional five years every five years over the next 15.

Owners can sell property at anytime, but it must be under a leaseback condition with Mr Mullins.

The property is being marketed by Michelle Symes at Handmade Marketing.

The $7 million expansion includes restaurant and function facilities and is designed to take advantage of inadequate short-term accommodation, function and conference facilities in the heritage town.

There are also plans in place for further development of the restaurant facilities, from its current capacity of 100 to 140.

Real Estate Institute of Western Australia statistics for the last ten years show an average annual price growth for properties in the Avon Arc region, which includes York, at 14 per cent, compared to 12 per cent overall for properties in regional WA.

REIWA also said in the last financial year York was the second biggest property seller in the Avon Arc region, with 100 sales, behind only Northam with 150 home sales.

Settlers House unit values have increase 12 per cent over the last eight years, while 16 of the original units have cycled 34 times between buyers over this period.

Ten owners of the original 18 units have traded up to purchase into the new 70-unit development, Ms Symes said.

According to Ms Symes, demand for Settlers House’s facilities is already high, after the state Liberal Party hosted its annual convention at the venue in York late last month.

Ms Symes said an approach has been made to the Federal Department of Immigration to utilise the property to accommodate management and construction crews associated with the $174 million refurbishment of the Northam Army barracks for 1,500 asylum seekers, and to later lodge the staff while alternative houses are built.

Mr Mullins purchased the 1840s-built Settlers House in 2002 amid a spike in interest for convention and wedding venues close to Perth.

The property was originally built as a coach-stop for gold-rush era travellers, and the old coach stables have been refurbished into some of the accommodation units.

 

STANDING BY BUSINESS. TRUSTED BY BUSINESS.

Subscription Options