Christmas Island Lodge - $1800000

Description

Location: Christmas Island is located in the Indian Ocean, 2,600 kilometres North-West of Perth, Western Australia. Even though it is an Australian Territory, its closest neighbour is Java, 360 kilometres to the North. The island is approximately 23 kilometres long and on average 7 kilometres wide, which equates to an approximate land mass of 135 square kilometres. Of this, 63% is dedicated national park, which comprises of predominantly thick native rain forest. The island average temperature is 27 degrees with an annual rainfall of 2,000mm (80 inches). Christmas Island is the summit of a submarine mountain, rising steeply to a central plateau dominated by stands of rainforest. This plateau reaches heights of up to 361 metres and consists mainly of limestone and layers of volcanic rock. The island's 80 kilometre coastline is an almost continuous sea cliff of up to 20 metres in height. In a few places, the cliff gives way to shallow bays with small sand and coral shingle beaches. The largest of these bays forms the island's only port; Flying Fish Cove. The island is surrounded by a narrow encircling coral reef. There is vitually no coastal shelf and the sea plummets to a depth of about 500 metres within 200 metres of the shore. The island's population of approximately 1,200 is predominantly made up of Chinese, Muslim and European nationalities. The subject property know as the Christmas Island Lodge is comprised of two buildings situated within the locality of Poon Saan, which is geographically identified as the area bounded by Murray Road to the South and Lower Poon Saan Road to the North. More precisely, the subject property is located on the North side of Lower Poon Saan Road straddling the Poon Saan commercial strip. Located opposite are several strata titled residential apartment blocks. Poon Saan caters primarily for the Chinese and European community and provides for a small supermarket, travel agency, Chinese restaurant, outdoor cinema and a fish and chip shop. Site Details: The Lodge is comprised of two identical buildings located on two separate parcels of land known as Block 504 and 506. 1. Block 504 is situated on Lot 264 (1063) The land is an irregular shaped lot with a frontage to Lower Poon Saan Road of 100.29 metres, an eastern truncated boundary of 31 metres, a northern boundary of 73.71 metres and a western boundary of 39.06 metres. The site has an aggregate land area of 4,051 square metres. 2. Block 506 is situated on Lot 26 (106) The land is an irregular shaped lot with a frontage to Lower Poon Saan Road of 100.89 metres, an eastern boundary of 39 metres and a northern truncated boundary of 71.76 metres. The site has an aggregate land area of 3,272 metres. Both sites are level with soils comprising of clay. The aggregate land area is 7,232 metres square. Market Commentary: Christmas Island, unlike the mainland, is predominantly reliant for its economy on the Federal government's commitment ot capital works projects and military operations. For a short period of time in the early to mid 1990s a successful casino was operating. However, due to a combination of overseas political intervention and dubious management practices, the casino folded. With the recent change in the Federal election, there is a strong possibility of the casino licence being reissued. The other project is the proposed rocket launching facilities in the southern part of the island; although indications are that unless there is an appropriate financial backer, this project is unlikely to eventuate, but is still under consideration by the Federal government. The island's other economy is the export of phosphate rock to South East Asia. However, this operation is due to be discontinued when current leases expire. Future: The island needs stability in its economy. Many on the island believe this lies in the island's fledgling tourism market. The island is GST and duty free, has an abundance of unique flora and fauna and is regarded by some as one of the world's top diving locations. The full realisation of this market can only be achieved in the short to medium period with significant capital works on the existing airport runway. The runway and aprons require resurfacing and lengthening by up to 600 metres in order to permit larger aircraft such as the 727, 767 and airbus. The capital cost for this project has been estimated in excess of fifty million dollars. It is felt that the carrying out of this project would greatly assist the island's tourism market by reducing current airfares (currently at $1,200 return ex-Perth). It should be noted that the Federal government expenditure committee has approved of this project, however, it is yet to get final approval from Cabinet. Improvements: The original layout of the buildings (Block 504 and 506) provided for 120 rooms with common bathrooms, laundry and kitchens. The complex has since been renovated and now provides for 30 lettable rooms per block (60 rooms in total). The current refurbishment of the lodge has resulted in the transformation from a traditional Singapore-style single quarters to a comfortable motel-style accommodation. All rooms contain and are serviced with air-conditioning, private bathroom, tea and coffee making facilities, colour television, bar fridge and are serviced daily. The lodge also houses BBQ facilities, communal kitchen, divers storage facility, iron/board on request and can organise car hire, fishing charters and rainforest tours. Construction of the lodge is of double brick on raft slab concrete flooring throughout. The roof is of concrete construction. Services: Services to the locality include scheme water, deep sewerage, electricity and telephone. Poon Saan Road and all surrounding roads are bitumen paved, storm water drained and concrete kerbed. Town Planning: The subject property falls within Shire of Christmas Island Town Planning Scheme No. 1 and has a split zone of Residential R80 and R40. Discussions with the Shire indicate they would continue to permit the current non-conforming use of the land and would look favourably at a rezoning to Commercial. Trading Figure: Profit & Loss Statements, occupancy rates and other information is available on request.