The Peppers Airlie Beach resort on Queensland’s Whitsunday Coast operated by Mantra Group has been listed for sale by receivers with expectations of about $15 million.
Up for sale are 59 of the 106 strata apartments in the complex, the resort’s facilities including reception, restaurant, meeting and conferencing venue and a day spa leased to and operated by Endota, as well as the management rights.
The $80 million resort was developed in 2009 by Josh Thompson’s Latitude Development Group, which has undertaken of tourism projects in the Whitsundays that include The Whitsundays Resort and Peppers Coral Coast Resort.
Latitude was placed in the hands of receivers McGrathNicol in March, with CBRE Hotels’ agents Wayne Bunz, Paul Fraser and Hayley Manvell, in conjunction with PRD Nationwide Airlie Beach recently appointed to manage the sale of the Peppers Airlie Beach hotel.
The 4.5-star resort is on a 1.8-hectare, north-facing site, with views across the Port of Airlie Marina and the Coral Sea Coast. It is managed under an agreement with Mantra Group under its luxury brand, Peppers. Mr Bunz said Mantra might choose to continue as managers.
He declined to comment on price expectations. Local insiders said the resort could fetch about $15 million.
Mr Bunz said appetite was strong for North Queensland leisure assets after several prominent sales, including the Club Crocodile Resort Airlie Beach, acquired by Well Smart Investment Holdings Singapore, and Daydream Island and South Molle Island bought by China Capital Investment Group.
“We have been inundated with inquiries for leisure assets of late, particularly from mainland China. Investors are looking to enter key leisure markets and capitalise on their potential for further growth, particularly in light of the softening Australian dollar, which is creating favourable market conditions for the local tourism market,” Mr Bunz said.
Also driving investor appetite is the improved performance of the local tourism market, with the Whitsunday Coast Airport becoming Australia’s fastest-growing airport in January.
Read more: http://www.afr.com/real-estate/commercial/hotels-and-leisure/receivers-to-sell-peppers-airlie-beach-resort-20160914-grg19f#ixzz4KH6kgTGX
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SOURCE: AUSTRALIAN FINANCIAL REVIEW