Members-only Loan-Licence-to-Occupy investment in Student Accommodation and Family holiday facilities at Collegiate Family Resort on Murray is invited.
In addition to Annual Academy Membership fees providing member access to all Collegiate resort facilities, ANCOM on Murray Inc. our ACNC Registered educational Charity, offers individual and family membership investment in a Negotiable Loan Licence to Occupy as a way of collective financing of the College on Murray properties, facilities, boats and activities equipment.
A Foundation Investor is already interested in the College on Murray Project.
We have a foundation investor member considering an investment of US$12,000,000 to secure riverfront properties, purchase boats and associated equipment and to build a new River Cruise Ship. He has approved the concept and is currently undertaking due diligence on the financials. Funding is expected by December 2019 for a summer season start and admission of students for semester one of 2020. We are all aware that Education and training is a business in perpetual motion.
Selected assets of the College will be available for member's private investment and use. Should a member not use their occupancy entitlements each year of ownership, rental to tourism, recreation, accommodation and cruise hire will produce an income for them. Each 24hour period licence entitles the investor to use for those 24 hours each year for so long as they own the licence. The college undertakes to hire the member's licence on behalf of the member and will pay a 15% return to the investor only if hired out. The Licence is a negotiable asset that can be resold to other members through the College office.
As an example of a student berth school year licence:
The annual maintenance fee is set by the Board at each Annual General Meeting.
Say a two share ensuite Collegiate Family Resort room has a capital value of $40,000. The capital value of one of the beds for one night would be $40,000/2/365 @ 100% occupancy = $55 per night. Allowing for occupancy downtime for seasonal variation and school holiday periods at say 80% occupancy, The Licence to Occupy has an adjusted value of $68 + asset maintenance fee per night = (Say $20,000 for a 4 term school year OR $25,000 per berth for the full year exclusive family use).
If the college rented that berth to a student or a holiday visitor it would need to charge $78 per night rental of that berth. That rental money for the student would have gone. The member student who owns the berth licence having invested $68 per night + annual maintenance levy to purchase the one night would still have the asset for next year and could sell it on to another student or family when they no longer required, recovering their initial investment of about $20,000 with inflation less resale fees. The college proposes to charge a fee 15% of resale value to eventually fully capitalise the asset over time. Student care of their asset and the personal marketing promotion of their College with enhance their capital return. This structure is very common for university colleges throughout the world.
If the LtO is for the full year at $25,000, the college offers to rent the berth to Holiday visitors if possible at a higher holiday season rate, when not required by the member-owner. The owner receives a share of Holiday Rental.
Houseboats are another alternative for a student berth in the resort marina: College on Murray can purchase houseboats. The value per houseboat berth is about the same as an ensuite room in the student residence. The investment would be the same under the same arrangements. The houseboats would be moored at the Resort Marina under supervision. At least four houseboats with 10 berths are available for purchase at the right price. Smaller boats are also available for about the same berth value. They can be used by College members as private boats during vacation periods when the students are home. If the houseboats are in hire survey, College can put them into the Hire Houseboat market managed by the College.
The Licence to Occupy Loan Investment is a negotiable asset that can be resold to other members through the college. The value of the licence is determined by current market value and will fluctuate with the general reputation and desirability of membership of the collegiate resorts and enrolment in their programs. It is to the financial benefit of the investor members to promote and assist the college to market its services thus enhancing the value of the licence on resale.
We have established this arrangement as an incentive to attract investment in college facilities rather than have our members pay high rent. Our programs will generate a good rental return from our facilities so we can pay good interest to members on investment units that are placed with the college for rental to our student and tourist clients.
Each Loan Licence to Occupy has the Capital asset value of One-night use for each of the types of the College's available capital facilities and equipment, taking into consideration an anticipated occupancy rate of that asset. The one-night use-value is calculated on the capital value of the asset for every 24 hrs or part thereof.
A schedule of Capital assets available for Loan Licence to occupy is being prepared as a preliminary estimate and will be published here when ready.
- Any student berth - a two share, ensuite room berth in the student residence, a berth on a College houseboat or in the new cruise ship student cabins Invest $20,000 for the 20-week academic year berth and sell it through the College when no longer needed. Get your capital back less the College resale fee. The licence is specific to one style of berth in the licence agreement but with agreement from the College, they could occupy any other similar style student berth within the College facilities according to their course requirements (eg experience time on one of the other boats).
- In the case of a remote student starting year 10 next year, they would have their licence to occupy their berth for their three senior years 10,11,12 and be able to sell it when no longer required, probably for what they paid for it. They still pay for food and supervision care as normal living costs. The Capital comes back when sold on to the next student.
- Invest in a short term LtO Houseboat (Boat Share Management) and put it into College management. This would be a member purchase of all the berths in the houseboat for one or more nights each year. It can be a hire-houseboat or a private houseboat. Members have use of the boat once per year for that number of nights so long as they own the licence. Owner Members can arrange with College to allow friends to use the boat during their licence time. College manages and maintains the boat. There would be a seasonal fee associated with fuel and use maintenance services under this arrangement. (eg Long weekend v Winter week period) The asset value remains the same.
Please phone Principal Bouc on 0418 836 137 to discuss these option.
Last Modified on 03/09/2019 13:17