THE GRAND HOTEL| GLADSTONE - YouVu

THE GRAND HOTEL| GLADSTONE
INFORMATION MEMORANDUM | MARCH 2011
1

CONTENTS
INTRODUCTION 4
EXECUTIVE SUMMARY 5
LOCATION OVERVIEW 6
SITE DETAILS 7
THE HOTEL OVERVIEW 8
DEVELOPMENT OPPORTUNITIES 28
FINANCIAL OVERVIEW 29
ONLINE DATA ROOM 30
INVESTMENT ATTRIBUTES 31
SALES PROCESS 32
DISCLAIMER 33
ANNEXURES 34
2 3

1
INTRODUCTION
2
EXECUTIVE SUMMARY
On behalf of Guy Edwards, Darryl Kirk and Paul Kirk of PricewaterhouseCoopers, acting as Receivers and Managers of
the property referred to in this information memorandum (“The Receivers”), CBRE Hotels are delighted to offer this rare
opportunity to purchase The Grand Hotel, Gladstone.
The Grand Hotel is situated on Goondoon Street, Gladstone. The property is located 546 kms north of Brisbane and 1,100
kms south of Cairns and occupies a prominent site in the heart of Gladstone’s central business district.
Key investment considerations include:
• Gladstone is located in the heart of Queensland’s booming mining industry.
• Central Gladstone location, enjoying significant passing traffic.
• 3,900m²* site presenting expansion or development opportunities (subject to relevant approvals).
• Cash flow in excess of $7.7M for 2009/2010.
• Potential to increase revenue and operating margins through injection of energy and fresh ideas into the business;
The freehold property, together with the business, Queensland hotel licence and 40 poker machines authorities are offered
for sale via a Closed Tender Campaign, closing Thursday 5th of May at 4:00pm.
For further information, please contact the exclusive agents on the details listed below.
Craig Harley
Joel Fisher
T: 07 3833 9779 T: 02 9333 3429
M: 0409 039 461 M: 0414 562 610
E: craig.harley@cbre.com.au E: joel.fisher@cbre.com.au
Property
The Grand Hotel
79 Goondoon Street, Gladstone, QLD
Position
The Grand Hotel is situated on the northern side of Roseberry Street between Goondoon Street and
Central Lane in Gladstone.
Building Area The Grand Hotel - 3,900m²*
The Detached Bottleshop - 58m²*
Title Details Property/Address Lot Plan Title Reference
The Grand Hotel 22 RP885338 50035167
County of Clinton, Parish of Gladstone
Property Facilities 40 gaming machine authorities
Bistro/cafe
Public bar
Sports bar
Lounge bar
Drive through bottleshop with walk in retail liqour shop
Detached bottleshop
Conference/function room
Sportsbet, TAB and KENO facilities
Spacious gaming room
Commercial kitchen
Designated outdoor smoking area “DOSA”
Children’s play area
Administration offices
Licence Liquor Licence: 82157
Gaming Licence : 73566
Trading Hours: 10:00am to 12:00am (Monday to Sunday)
Services
The property has all the normal connections and access to standard services and utilities, including
electricity, town water, sewerage and telephone.
* Approximately
* Approximately
4 5

3
LOCATION OVERVIEW
4
SITE DETAILS
The Gladstone Region is located in Central Queensland, 546 kilometres north of Brisbane and 1,100 kilometres South of
Cairns. The Gladstone Region encompasses 10,488 square kilometres and has a combined population of approximately 60,
000 residents.
Title Particulars:
The subject property is referred to as:
Lot 22 of Registered Plan 885338
County of Clinton, Parish of Gladstone
The region is recognised as a strategic and logical choice for industrial, commercial, retail and residential investment. Since
the 1960’s the Gladstone Region has been recognised as an industrial hub, due to an excellent harbour, availability of
services, transport systems and raw materials.
Australia’s energy industry is at the beginning of an era of momentous change, with multibillion - dollar investments aimed
at the development, pioneering and implementation of Coral Seam Gas into Liquefied Natural Gas (LNG). The Gladstone
region will be a major beneficiary of Australia’s and Queensland’s mining boom, with Gladstone being the major mining/
LNG export hub.
Dimensions and Area: Land Area 3,900m²*
Goondoon Street Frontage: 40.25m
Roseberry Street Frontage: 92.35m
Corner Truncation: 5.66m
Central Lane Frontage: 36.33m
Depth Northern Boundary: 97.53m
Local Authority:
Gladstone City Council
*Approximately
Map of Central Gladstone and the Grand Hotel location
* Site outline indicativley only * Site outline indicativley only
6 7

5
THE HOTEL OVERVIEW
* Site outline indicativley only
Overview
The Grand Hotel is located in Gladstone, Australia major mining/LNG export hub. The property is situated on Goondoon
street and occupies a prominent site in Gladstone, 546 kms north of Brisbane and 1,100kms south of Cairns.
The hotel includes 40 gaming machine authorities, bistro, public bar, sports bar, lounge bar, conference/function room,
sportsbet, TAB and KENO facilities, gaming room, drive through bottleshop with walk in retail liqour shop, detached
bottleshop, commercial kitchen, designated outdoor smoking area “DOSA”, children’s play area and administration offices.
A detailed overview of these facilities are highlighted on the following pages.
8 9

Public Bar
Key Features:
• Direct access from Goondoon Street
• Corian bar service counter
• Glycol beer reticulation system
• 1 Service point including 8 beer taps
• Cold room with 5 display doors
• Glass refrigeration unit
• Designated outdoor smoking area adjacent (DOSA)
• KENO facilities available
• Ducted air conditioning
• Male and female toilet amenities
10 11

Sports Bar
Key Features:
• Bar with 1 service point including 8 beer taps
• Glycol beer reticulation system
• 2 TAB terminals
• KENO register terminal
• 2 TAB information terminals
• TAB form filing area
• TAB plasma screen monitors
• KENO plasma screen monitors
• Ducted air conditioning
12 13

Conference/Function Room
Key Features:
• Access from main foyer
• Located on the first floor
• Covered verandah (DOSA)
• Timber entertainment stage
• Polished granite bar service counter
• Glycol beer reticulation system
• 1 service point including 4 beer taps
• Finishing functions kitchen with lift access
• Male and female amenities
• Ducted air conditioning
Bi-fold partition walls enable the partitioning of the first floor into three function rooms and the
capacities of each room are tabled as follows:
ROOM THEATRE SEATING BANQUET SEATING COCKTAIL
Phoenix 130 80 150
Heron 50 50 60
Sandpiper 70 60 120
Grand Ballroom( Phoenix and Heron combined) 200 160 300
14 15

Gaming Room
Key Features:
• Located at the rear of the hotel which offers discreet access and privacy
• 40 gaming machine authorities
• Cashier station
• Raised ceiling with suspended lighting
• Casual seating
• Private designated outdoor smoking area (DOSA)
• Ducted air conditioning
16 17

Bistro
Key Features:
• Bistro capacity for approximately 120 patrons
• Open floor plan dining
• Built in ordering service station
• Internal dining
• External dining
• Seperate cafe area
• Lounge seating
• ATM
• Continuous bar serivce counter
• Male and female amenities
• Ducted air conditioning
18 19

Commercial Kitchen
Key Features:
• Well located for ease of service direct to the bistro
• Fully equipped commercial kitchen
• Preparation area, scullery, dry and cold goods storage
• Stainless steel benches
• Various kitchen appliances
• Cold room and freezer room
20 21

Children’s Play Area
Key Features:
• Fully enclosed and able to be viewed from the bistro
• 1 flat screen monitor screening a range of DVD movies
• 3 Sony playstations with a range of games
• Various children’s toys available
22 23

Drive Through Bottleshop
Key Features:
• Large retail liquor store
• 3 walk in customer friendly cold rooms
• 2 vehicle service lanes in the drive through
• 3 pallet high beer storage
• Single sales service point
• Ducted air conditioning
• 2 pallet high beer storage
• Auto lift roller shutter doors
24 25

Detached Bottleshop
Key Features:
• Located within a convenience retail centre which has prime location at the
intersection of two major arterial roads
• Well designed retail floor space
• Wine and spirit racks
• Display fridges
• Single sale service point
• Ducted air conditioning
26 27

Administration Offices
Key Features:
• Management office complete with 2 computer work stations located on the ground level
• General managers office located in the basement
• Security systems with surveillence
• Audio nightlife system
• Cash room equipped with safe
• Offices are air conditioned
• Function co-ordinator office located on level 1
28 29

6
DEVELOPMENT OPPORTUNITIES
7
FINANCIAL OVERVIEW
15/03/2011 MYOB / Excel
The Grand Hotel occupies a strategically significant and large 3,900m² site in the heart of Gladstone CBD. The existing hotel
occupies approximately one third of the site with the remaining area being designated car parking and landscaped gardens,
thus enabling significant development opportunity for potential purchasers.
The current owner had identified the development opportunity some time ago and has an existing Development Approval in
place as follows:
DA Status
The Gladstone City Council endorsed the development application for material change of use, on the 6th March 2007 and
has given consent to the “construction of 96 room hotel/motel and associated parking” adjacent to the existing pub.
This DA expired on 11th May 2008 and mirrored an earlier approval issued in January 2001.
Other development opportunities
Whilst a DA has previously been approved for the development of 96 hotel/motel rooms (adjacent the pub) as mentioned
above, this may not necessarily be the best and highest use for the site. Other potential uses for the site that have been
identified (subject to approvals by the relevant authorities) include;
• A detached bottle shop
• Mixed use commercial and residential development
• Convenience shopping and small scale mixed business use
• Office/retail development
• Service industry related development
• Medical centre
• Showroom
The Grand Hotel - Gladstone
Profit & Loss Statement
July 2009 through June 2010
Total
Income
Liquor Sales
Bar $1,424,001.76
Detached Bottleshop $1,977,153.10
Drive Thru $1,872,780.46
Functions $231,331.92
Total Liquor Sales $5,505,267.24
Food Sales
- Bistro $728,686.29
- Function Food $279,348.33
Total Food Sales $1,008,034.62
Functions
- Extras/Decorations $3,252.32
- Hire Recoverable $9,038.64
- Room Hire $78,886.89
- Staffing $1,261.35
- Tea/Coffee $16,818.29
Total Functions $109,257.49
Insurance Claims $15,348.66
Apprentices Rebate $6,500.00
Gaming
Poker Machines
- Poker Machine Turnover $15,396,552.57
- Payouts to Players ($13,932,991.68)
- Gaming Tax ($592,407.61)
Total Poker Machines $871,153.28
Commission - TAB $60,067.17
Commission - Keno $40,488.20
Total Gaming $971,708.65
Sundry Income
- Cigarettes $69,423.19
- Cigarette Commission $12,361.50
- ATM $5,612.58
- Vouchers Expired ($267.00)
Total Sundry Income $87,130.27
Sundry $367.66
Total Income $7,703,614.59
More detailed financial information is provided in the “online data room”.
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8
ONLINE DATA ROOM
Further and more detailed information will be made available to prospective purchasers via the “online data room”. Access
to this site will be available to genuinely interested parties (upon request to CBRE Hotels) who will be required to complete a
Confidentiality Agreement attached in Annexure I.
Upon completion and return of the Confidentiality Agreement to CBRE Hotels, your details will be provided to
PricewaterhouseCoopers for approval. If approved, you will receive an email with access details and instructions for opening
and using the online data room.
Investment Attributes
9
INVESTMENT ATTRIBUTES
• Gladstone is Queensland’s mining industry export hub
• Spacious 3,900m²* site with expansion and development opportunities
• Cash flow in excess of $7.7M for 2009/2010
• Hotel licence and 40 gaming machine authorities
Value Adding Opportunities
• Vast influx of both short and long term mining contractors
• Further capitalise on the mining industry
• Optimise the property’s location
• Marketing and promotion of all business departments
*Approximately
32 33

10
SALES PROCESS
11
DISCLAIMER
CBRE Hotels has been retained exclusively by PricewaterhouseCoopers acting as Receivers and Managers to offer for sale The
Grand Hotel, Gladstone.
The Grand Hotel is being offered for sale by way of a Closed Tendor campaign. Interested and qualified parties are advised
to undertake a detailed review including financial and operation analysis and an escorted site inspection.
CBRE Hotels, instructed by the Receivers and Managers, requires bidders to submit Closed Tender offers by no later than
4:00PM on Thursday 5th May 2011.
Closed Tendor offers should be sent by facsimile, email or in a sealed envelope.
Attention: Mr Craig Harley, QLD Manager, Hotel Brokerage Attention: Mr Joel Fisher, National Director, Hotel
Brokerage
Facsimile: (07) 3833 9830 Facsimile: (02) 3833 9830
Email: craig.harley@cbre.com.au
Email: joel.fisher@cbre.com.au
Postal: Level 33, 1 Eagle Street, Brisbane, QLD, 4001 Postal: Level 26, 363 George Street, Sydney, NSW, 2000
Hand delivery: Level 33, 1 Eagle Street, Brisbane, QLD,
4001
Hand delivery: Level 26, 363 George Street, Sydney, NSW,
2000
Disclaimer for Information Memorandum
This information memorandum (“IM”) has been prepared by CBRE Hotels (“CB Richard Ellis”) and is prepared on the basis
of information provided to CB Richard Ellis in connection with the relevant transaction. Any statement or opinion made by
CB Richard Ellis in connection with the transaction contemplated in the IM is not based on any actual or implied knowledge
or consideration of the investment objectives, financial situation, legal or taxation position or any other particular needs
or requirements of the recipients of this IM. All parties must make their own independent assessment and investigation
including without limitation, seeking professional advice and must determine its interest in proceeding upon the basis of such
independent assessment, investigation and appraisal.
Any statement or opinion of CB Richard Ellis whether express or implied is not, nor should be construed as a recommendation
by CB Richard Ellis or any of its officers, agents or employees to participate in the transaction and, to that extent, no reliance
will be placed on CB Richard Ellis or its associates. CB Richard Ellis and its associates do not warrant (expressly or impliedly)
that information contained in this IM is complete, true and correct and not misleading or not likely to be misleading or
deceptive. CB Richard Ellis and its associates are not responsible and will not under any circumstances be liable (whether at
law, in equity, under statute or otherwise) for any statement made or anything contained in or arising out of the information
including, without limitation, any errors, misrepresentation or omissions. CB Richard Ellis disclaims all responsibility for any
loss or damage caused by reliance by any person on this IM or any representation, warranty or statement made by or on
behalf of CB Richard Ellis and its associates. This IM is confidential and is for the sole use of persons directly provided with
it by CB Richard Ellis and is not to be reproduced, copied or sent to any other person without the prior written consent of
CB Richard Ellis. The use by, or reliance upon this document by any other person is not authorised by CB Richard Ellis and
without limitation to the above disclaimers, CB Richard Ellis is not liable for any loss arising from such unauthorised use or
reliance.
General
The information set out in this document has been prepared using information derived from a variety of external sources. CB
Richard Ellis does not warrant the accuracy of any of the information and does not accept any legal liability or responsibility
for any injury, loss or damage incurred by the use of, or reliance on, or interpretation of the information contained herein.
34 35

Receivers and Managers Disclaimer
The information in this Information Memorandum and any other written or verbal information given in respect of the Hotel
referred to in this Information Memorandum (the Information) is provided to you (Recipient) on the following conditions:
1. The Hotel is sold on an “as is/where is” condition (that is, in its present condition and subject to all legal and physical
defects).
2. No assurance, representation, warranty or guarantee (express or implied) is given by the Vendor, CB Richard Ellis,
Australia and New Zealand Banking Group Limited, PricewaterhouseCoopers, the Receivers and Managers or any
of their respective officers, partners, employees, advisers or consultants (collectively referred to as the Parties) or any
other person or entity that the Information, whether or not in writing, is complete, accurate or balanced, or has or will
be audited or independently verified, or that reasonable care has been or will be taken in compiling, preparing and
furnishing the Information.
3. The Information does not constitute, and should not be considered as, a recommendation in relation to the purchase of
the Hotel or any other matter, or as a solicitation or offer to sell the Hotel or a contract of sale for the Hotel.
4. The Information shall not constitute an assurance, representation, warranty or guarantee that there has been no change
in the Hotel or in the matters referred to in the Information since the date at which the Information is expressed to be
stated.
5. None of the Parties assume any obligation to the Recipient to provide additional Information or updated Information or
to correct any inaccuracies in the Information which may become apparent.
6. The Information should not be relied upon in any way by the Recipient or its related entities, their respective officers,
employees, agents, advisors, shareholders and associates (collectively the Recipient Parties). The Recipient Parties should
satisfy themselves as to the accuracy and completeness of the Information through inspections, surveys, enquiries, and
searches by their own independent consultants.
7. The Information does not purport to contain all of the details which the Recipient would require to make a decision to
make an offer to purchase for the Hotel. Recipients should seek independent legal and financial advice.
8. None of the Parties make any representations or warranties with respect to fixtures, fittings, plant and equipment in the
Hotel.
9. None of the Parties make any representations or warranties with respect to the continuation or enforceability of any
licence, lease, supply, service, consultancy, certification, standard or other agreement referred to in this Information
Memorandum following completion of the sale of the Hotel.
10. None of the Parties make any representations or warranties with respect to the legality of the current use of the Hotel or
the ability of any purchaser to redevelop the Hotel.
11. The Information does not and will not form part of any contract of sale for the Hotel. If any Recipient Party makes an
offer or signs a contract of sale for the Hotel that Recipient Party represents that it is not relying on the Information
supplied by any of the Parties (unless otherwise agreed in a written contract with the Vendor). The only information,
representations and warranties upon which the Recipient Parties will be entitled to rely will be as expressly set out in such
a contract.
12. Recipients will be responsible for meeting their own costs of participating in the sale process for the Hotel. The Parties
shall not be liable to compensate any Recipient Parties for any costs or expenses incurred in reviewing, investigating or
analysing any Information, whether that Information is contained in this Information Memorandum or otherwise.
13. None of the Parties are liable to compensate or reimburse the Recipient Parties for any liabilities, costs or expenses
incurred in connection with the sale of the Hotel.
14. Those persons associated with the Receivers and Managers who have responsibility for the sale have provided all
Information provided to Recipients in good faith. Their knowledge may not be as extensive as that of the Vendor on
whose behalf the Receivers and Managers provide that Information. Furthermore, the Receivers and Managers are the
agent of the Vendor and shall not, except to the extent required by law, incur any personal liability to any of the Recipient
Parties or the purchaser on any basis (including in respect of the Hotel, the sale of the Hotel, the contract of sale, this
Information Memorandum or any dealings with any Recipient Parties whatsoever).
15. Except as may be expressly provided in any agreement in writing between the Parties and the Recipient, the Recipient
acknowledges and agrees (for itself and the other Recipient Parties) that to the maximum extent permitted by law, all
terms, conditions, warranties and statements, whether express, implied, written, oral, collateral, statutory or otherwise,
relating to the Information Memorandum and the sale of the Hotel are excluded, and each of the Parties disclaim all
liability for any loss and damage (whether foreseeable or not) suffered by any person acting on any of the Information
whether the loss or damage arises in connection with any negligence, default or lack of care on the part of the Parties,
any misrepresentation or any other cause by reason of or in connection with the provision of the Information or by the
purported reliance thereon by any of the Recipient Parties.
16. No person is authorised to give information other than the Information in this Information Memorandum or in another
brochure or document authorised by the Receivers and Managers. Any statement or representation by an officer,
agent, supplier, customer, relative or employee of the Vendor will not be binding on the Vendor or on the Receivers and
Managers.
17. The Information is confidential. The Information must not be reproduced, transmitted or otherwise made available
or communicated to any person other than the Recipient Parties without the prior written approval of the Receivers
and Managers. The Recipients acknowledge and agree that upon deciding that they do not wish to proceed with the
purchase of the Hotel, or at the request of the Parties, they will immediately return the Information together with any
reproduction thereof.
36 37

12
ANNEXURES
CONFIDENTIALITY AGREEMENT
CONFIDENTIALITY AGREEMENT
CLOSED TENDER FORM
CONFIDENTIALITY DEED POLL
To: (a) the Receivers and Managers of The Oaks Apartment Management Pty Ltd (Receivers and
Managers Appointed) ACN 089 015 065 as trustee (Oaks); and
(b)
Oaks
From: ................................................................................................
(the Recipient)
(write name of company or entity requesting disclosure including ACN if a company)
Address of Recipient: ………………………………………………………………………………………………
Name of Personal Representative of Recipient: ……………………………………………………………….
(individual to be provided access to the Data Room)
Email address of Personal Representative: ……………………………………………………………………..
In this document the following terms have the following Meanings:
Agent means CBRE Hotels or any other agent appointed by the Receivers and Managers for the sale of
the Property and the Business.
Business means the businesses being conducted from the Property and the detached bottleshop at 58
Philip Street, Sun Valley Queensland, 4680.
Data Room means the data room prepared by the Receivers and Managers and containing Confidential
Information in respect of the Property and the Business.
Property means the hotel described as the "Grand Hotel" located at 79 Goondoon Street, Gladstone,
Queensland, 4680, described as being lot 22 on RP 885338, contained in the County of Clinton, Parish of
Gladstone and contained within title reference 50035167.
Receivers and Managers means jointly and severally, each of:
(a)
(b)
(c)
Guy Alexander Edwards;
Darryl Edward Kirk; and
Paul William Kirk.
The Recipient has asked for information (Confidential Information) in relation to the Property and the
Business to investigate the purchase of the Property and the Business. In consideration of receiving that
Confidential Information, the Recipient agrees to the terms of this document.
The Recipient acknowledges and agrees that:
(a)
(b)
the Confidential Information that Oaks or the Receivers and Managers may give to the
Recipient (including by way of allowing the Recipient access to the Data Room) is
confidential and valuable to Oaks. Any unauthorised use or disclosure may significantly
damage the Business of Oaks, and the sale value for the Property and the Business;
to the extent permitted by law, it may not make any contact in any way (including whether
in person, by telephone or by correspondence) with any employee of Oaks, or any supplier
of any goods or services to Oaks, or any other person in any way connected to the
Business being conducted by Oaks, unless such contact is made in the presence of the
Agent or a representative of the Receivers and Managers; and
212690882_1
38 39

CLOSED TENDER FORM
2.
(c)
Oaks is only prepared to disclose this Confidential Information to the Recipient on the
understanding that the Recipient will keep it confidential.
Oaks will permit the Recipient to use the Confidential Information to investigate the purchase of the
Property and the Business and the Recipient may disclose the Confidential Information to its employees
and professional advisers but only if they first agree to keep it confidential. The Recipient must not use or
disclose any of the Confidential Information for any other purpose or to any other person or entity, unless it
first receives the consent of the Receivers and Managers of Oaks in writing. These obligations continue
until all of the Confidential Information ceases to be confidential, other than because of a breach of any
obligation of confidence.
The Confidential Information is considered to be accurate. However, because the Confidential Information
given in respect of the Property and the Business could possibly be inaccurate or incomplete, please note
that:
Attention:
Closed Tender Form
To be lodged at CB Richard Ellis, Brisbane,
Level 33, 1 Eagle Street, Brisbane
Fax: (07) 3833 9830
Craig Harley/Joel Fisher
No assurance is given by the Receivers and Managers, the Agent, Pricewaterhouse Coopers,
Australia and New Zealand Banking Group Limited or any of their respective officers or employees,
advisers or consultants that any Confidential Information is accurate, complete or balanced or has
or will be audited or independently verified, or that reasonable care has been or will be taken in
compiling, preparing and furnishing the Information.
Property:
Purchaser:
The Grand Hotel, Gladstone, Queensland
Name:
You should not rely on the Confidential Information. You should satisfy yourself as to its accuracy
and completeness through inspections, surveys, enquiries, searches, etc by your own independent
consultants.
Address:
If you make an offer or sign a contract for the Property and the Business, you will be taken to be
not relying on any Confidential Information (unless otherwise agreed in a written contract with
Oaks). Any Confidential Information given will not form part of a contract.
Nothing contained in the Confidential Information should be taken as a recommendation with
respect to the Property or the Business.
You should seek your own independent financial advice.
This disclaimer does not exclude any statutory rights you may have which cannot be excluded.
Purchaser’s Solicitor:
Phone:
Fax:
Email:
Firm:
Address:
I have read and accept, and the Recipient accepts, the terms of this document.
Executed as a Deed this day of 2011
Phone:
Attention:
Fax:
.............................................................................
Signed for and on behalf of the Recipient
Proposed Funding
Arrangements:-
Name of person signing for the Recipient:
Position of person with Recipient:
212690882_1
40 41

NOTES
Closed Tender - Interest Form (Cont.)
Proposed Purchase Price
$
In Words:
Conditions:
Signature:
Name:
Company Name:
Date:
42 43