Past Projects - Asset Management
Or see below for some of our practical examples:
Novotel Gold Coast (formerly Hotel Grand Chancellor
Dransfield was engaged by the joint bidders to review the financial performance and forecasts for the hotel as part of the acquisition financial due diligence. The mandate subsequently expanded to:
- Selecting and negotiating terms with a new operator
- Creating and owning a special purpose vehicle to employ the hotel employees, to assist with managed investment compliance issues
- Closing the debt facility to fund the acquisition of the hotel
- Transactional support including managing the transition process on acquisition
- Advising on the $20m renovation of rooms and public areas to the new operator’s brand standards.
Art Series Hotels
Dransfield was engaged by the owner to assist with their portfolio ownership and development strategy. This included:
- Assessment of management structure and review of existing operator performance including benchmarking to comparable operators.
- Renegotiation of management agreement between the owners and the existing operators which resulted in a significant uplift in value of the underlying assets
- Clearly defining the roles to be played by each party to ensure the active owner was able to control the assets going forward without encroaching on the operators capacity to fulfil their duties.
Following the renegotiation of the Management Agreement for the hotels Dransfield was subsequently engaged to assist in the growth strategy for the Art Series Brand including assessment of new development opportunities and ongoing asset management advice.
Old Woolstore Apartment Hotel
Dransfield was engaged asset manager of this institutionally owned asset to provide strategic advice and assistance throughout the growth phase of the investment. Dransfield provided a range of services including:
- Advised on the 2-stage refurbishment of the property
- Developed operations and marketing plans, detailed budgets and long term forecasts
- Completed detailed analysis and interpretation of monthly operations
- Considered the sale of the building under strata title scheme
- Restructured the management agreement into a market-facing lease arrangement.
The outcome was a significant increase in net profit over a three year period which saw an a 70% uplift in asset value and facilitated an equity raising and debt reduction.
Sebel Harbourside Kiama
Dransfield acted for the mortgagee to take control of the incomplete and unfunded hotel development, complete its development and devise and execute a full asset management and realisation strategy over a three year period. This project involved a range of service streams with activities including:
- Development management of incomplete parts of the hotel
- Restructuring of the management rights scheme
- Marketing and managing the sale of the individual components of the asset
- Preparation of the business plan, operating budgets and forecasts
- Appointing and negotiating terms with a new operator
The combination of services enabled replacement of the insolvent developer and achievement of equity-like recovery for the lender.
EcoPoint Group, 5 retreat/resort assets
Dransfield established, developed, managed and sold the five resort group in the period 2004 to 2006. Dransfield took a principal position as part owner in the development of eco resorts with a value exceeding $80m. Major activities included:
- Acquisition (including due diligence) and development
- Site identification, assessment and development planning
- Work-up of commercialised master plans and schemes for numerous sites
- Development and upgrade of existing cabin based resorts and caravan parks
- Detailed commercial design of 4.5 star demountable villas inside a national park with numerous stakeholders
- Operational management of three resorts and two tourist parks.
Noosa North Shore
Upon the sale of EcoPoint Dransfield retained negotiation rights in respect of this significant tourist precinct which included development exceeding $200 million including a substantial Tourist Park.
We subsequently negotiated a long-term management agreement and development management roles in respect of the site including:
- Operational management of the existing pub and food and beverage facilities as well as 32 villas and Tourist Park
- Pre-opening of the Beach Road Holiday Home precinct (24 Luxury homes)
- Development planning for additional precincts including a substantial upgrade to the Tourist Park, a new demountable villa precinct of 42 villas, and a 72 apartment resort.
Some of our other Asset Management experience includes:
- Accor Purchase of Mirvac Hotels
- Mantra Group development and growth strategy
- Indigenous Business Australia - $70m Portfolio
- AMP Capital - Strategic guidance, development assessment and exit strategy
- Crowne Plaza Newcastle
- Crowne Plaza Adelaide
- Australian Development Capital - Hay St site Perth
- Soul Gold Coast
- Darwin Central
- Holiday Inn Melbourne Airport
- Oxford Koala Apartments
- Pacific Bay Resort
- Twin Creeks Gold Club
- Vibe North Sydney