Urban Group Finance is an outstanding business based in regional NSW with 2 key attributes:
- A commercial property situated at 11 Bowen Crescent, West Gosford
- A business to business finance / rental business focussed on the golf industry
The freehold property is set on 4,008 m2 of industrial land that is situated around 5 minutes from the Gosford CBD. Improvements include a fully modern construction office, showroom and warehouse facility of some 2,120 m2.
These premises are leased for $230,000 plus GST plus outgoings, indexed at 3% per annum. The lease agreement is for 3 years (from 1 September 2015) with 2 additional 3 year renewal options.
The size of the land lends scope to further development and value enhancement of the site, subject to statutory approvals.
The property will be sold as part of the business venture and not separately.
Finance / Rental Business
Urban Group Finance (“UGF”) was established in 2009 as a specialist financier of travel carts to the golf, leisure and resort industries. UGF’s client list includes some of Australia’s premier golf courses, tourism resorts, retirement villages, aged care facilities, schools and shopping centres.
UFG not only funds golf carts through either finance or operating leases or rentals but has recognised greater opportunities and expanded its operating niche to include multi-passenger vehicles, off-road vehicles and custom vehicles for diverse uses such as funeral homes, medical centres and construction work sites. UFG funds these transactions on a fully secured basis against the asset.
At present, the finance business generates gross sales in excess of $1.387m (2015 FY) and is operated by a manager with a single staff member in an administrative support role.
If UGF was simply allowed to “run out” the existing book, the business would generate gross margin of around $3,450,000 over the next 3 years and would then own 371 golf carts and 660 Visage GPS systems with a residual value in the order of $600,000.
However, we believe that UGF has substantial opportunity for growth and could be easily expanded with a proactive owner and management team.
Business Price and Terms of Sale
Urban Group Finance is offered for sale on the following terms and conditions:
Property: To be sold unencumbered
Lease: Included – to be assigned at the current rent of $230,000 per annum plus GST plus outgoings.
Plant and Equipment: Included unencumbered
Intellectual Property: Includes all business systems, financial information, supplier information, brands, intangible property and rights
Employees: The purchaser will have the right, but not the obligation, to engage the current employees of Urban Group Finance, on terms no worse than those currently in place. The purchaser may assume employee liabilities and deduct that sum from the gross sale price. Alternatively, BPS Advisory has identified appropriately skilled staff who could be engaged to operate the business in accordance with our growth plan.
Training: The current owners will provide a training period of 14 days maximum duration during which time the purchaser may videotape, photograph or otherwise record conversations, systems, procedures and any other necessary information to ensure proper transfer of the intellectual property.
Going Concern Sale: The vendor and the purchaser agree that the sale of the business is the sale of a going concern and no GST is payable in respect of the sale of the business.
Price: $6.9 million
Inventory / Stock: included in the price above.
m: 0417 564 727