The Letting Agreement
Your contract may include a letting agreement to CONSTELLATION GROUP (CHIFLEY). Your net rental return will be based on a percentage of the gross rental pool minus costs including Fitting Fixtures & Equipments Fund (3%), strata fees tec. Unlike other agreements that lock you into a conservative base rent, this agreement allows you to maximise your return by taking advantage of increases in the overall rental returns being achieved by the operator. Note that there is a 2 month rent free period to allow CONSTELLATION GROUP (CHIFLEY) to set the building up, and get the hotel business running.
Your Furniture Package
The Management Agreement with the developer requires the developer to provide CONSTELLATINO GROUP (CHIFLEY) with furniture and furnishings to a 4 1/2 star level. The furniture package includes (dependant on unit type) lounge, coffee table, lamp table, study desk, chairs, 55cm flat screen TV, mini home theatre/DVD player, etc. The kitchen is fully supplied with cutlery, bowls, plates, mugs, glasses, saucepans, salad bowls, toaster, kettle, 240L fridge, dishwasher, microwave, cook top and oven. The bedroom contains queen bed, bedside tables etc. The laundry will be supplied with washing machine and clothes dryer. A full linen and towel pack is also supplied. The balcony will have an outdoor table and chairs. The furniture package is included in the base price of your unit. CONSTELLATION GROUP (CHIFLEY) is required under the agreement to replace at their cost any item costing up to $100.00 (say plate breakages or new kettle or toaster). A more detailed list of furniture, fittings and equipment is provided within the contact of sale.
The Finishes
The apartment is required by the operator to be completed at 4 1/2 star level. The plan shows the separate tiled and carpeted areas of the apartment.
The kitchens are two-pack with Caesar (or similar) stone tops. The bathroom/laundry areas are tiled. Internal walls are painted gyprock. Door handles and bathroom fittings are brushed stainless (or similar) finish. Windows and external sliding doors are powdercoated aluminium. Balconies are tiled with glass framed balustrading. All apartments are air-conditioned with wall mounted split or ducted system units. Condenser units are on the roof, not on the balconies.
Securing Your Apartment
A 10% deposit is required to secure your apartment. Once you have met with your sales consultant and your accountant or financial advisor, please follow the attached steps to secure the apartment of your choice:
- Provide the sales agent with the details of the entity you are using to purchase the property as well as the name of your solicitor or conveyancer.
- Pay a deposit of $5,000.00
- As soon as possible make an appointment with your solicitor/conveyancer to receive advice on and sign the contract. Your apartment IS NOT secured until contracts of sale have been exchanged.
- Within 28 days of contract exchange, you are required to:
(a) "Top up" the initial deposit to equal 10% of the purchase price. The deposit will be invested and ALL the interest will accrue to the purchaser on completion OR (b) Replace your $5,000.00 deposit with a bank guarantee equivalent to 10% of the sale price OR (c) Replace your $5,000.00 deposit with a deposit bond equivalent to 10% of the sale price, with an expiry date no earlier than 30th December 2010. The vendor will only accept deposit bonds underwritten by GE, Sun Alliance, QBE, Great Lakes Reinsurance or Lumley.
The Developer
The project is to be developed in a joint venture partnership between Pacific Lifestyle Developments Pty Limited, Ray White Invest and the JML Group. Pacific Lifestyle Developments Pty Ltd director Chris Chapman and JML have been involved in many projects around the Newcastle area including the Menkens Apartments, The Cove and Worth Place. Significantly, Chris and JML jointly developed the Quest Apartments in Hunter Street, providing valuable experience in development of managed apartment hotels.
The Hotel Manager
Constellation Hotel Group is a specialist hotel management company and licensor of the hotel product brands owned by Touraust Corporation:
- The Country Comfort Hotels
- The Chifley Hotels
- Australis Hotels, Resorts & Apartments
- Sundowner Motor Inns
Constellation Hotel Group is the fifth largest hotel operator in Australia and proudly the largest privately Australian-owned Hotel Management Company The Group's portfolio consists of 75 hotels and approximately 4000 rooms across Australia and New Zealand.
Our brands link popular leisure destinations, major regional centres and capital cities in Australia and New Zealand, Providing a clearly defined and comprehensive network that meets the needs of our core target markets.
As an owner, manager, lessee and licensor of hotel businesses, our perspective is unique within the industry. Our private ownership structure means decision making is a seamless and swift process to capitalize on opportunity, and our Australian heritage gives us a distinctive understanding of Australian markets that leads us to strive to be the best, rather than the biggest player in the market.