A desire to diversify capital can mean investment in assets outside the obvious is in order. For example, investment into accommodation, hospitality, hotels, and leisure private venues presents a true diversification for the investor looking to add assets to their portfolio that cannot only operate relatively unaffected by many market factors but often have a higher intrinsic value than purchase price. Additionally, in the event the investor loses their operator, they have the opportunity to transition to owner-occupier – and essentially pick up a free business. 

For many such venues, weddings are their mainstay, and with good reason. According to recent data, the average cost of a wedding in Australia will range from $36,000 to $51,000. That’s quite an investment for a single day, and of course covers much more than the venue for the reception and indeed the ceremony. But as the centrepiece of the event, the venue has a pivotal role – last year, more than 90 per cent of Queensland couples hired a venue and spent an average of $12,500 on its hire – so for venues that get it right, it’s rare to have a blank space in the calendar. 

While there is no shortage of venues on the Gold Coast, those most desired by happy couples are scooping up the majority of that matrimonial revenue. One such venue has come to market – Kwila Lodge at Mudgeeraba, which underwent a $2.5 million-plus renovation to transform the historic property into a premier event and accommodation offering. It includes the original 1923 homestead and attached function room, alongside several self-contained and renovated lodges. 

The five-star asset is being offered via an expressions of interest campaign by Adam Grbcic and Tony Grbcic of Kollosche Commercial, closing on August 22. On the doorstep of Springbrook National Park, the freehold property holds a 10-year lease with a highly reputable tenant. 

The main building features a large function room with a commercial-grade kitchen and bar; with a capacity of 160 guests seated or 250 cocktail guests. The Great Lodge is a loft-style accommodation suite with stone fireplace, bathroom, kitchen, dining room, and bar that sleeps four and holds a liquor license. It is approved to operate as a restaurant. The Kwila Lodges comprise three self-contained one-bedroom studios that each sleep up to four, and one self-contained, two-bedroom lodge that sleeps up to eight. The property also holds DA approval to expand the accommodation component.  

“This commercial property presents an excellent entry into the hospitality market,” says Kollosche Commercial agent Adam Grbcic. “It features a secure 10-year lease (with 2 x 5-year options) with Kwila Lodge as the tenant, generating a stable rental income of $540,000 + GST, with the tenant covering 100% of outgoings.  

“The lease also includes fixed annual rent increases, ensuring consistent income growth. Moreover, the property offers significant upside potential, allowing the investor to add additional lodges, thereby increasing the current rental income.  

“With high intrinsic value and the unique benefit of ownership without the operational burden of managing a wedding venue, this opportunity is not to be missed.” 

Learn more: 5 Boomerang Road, Mudgeeraba