The prominent Peppers Airlie Beach resort in north Queensland is to be offered for sale via an International Expressions of Interest campaign.
CBRE Hotels’ agents Wayne Bunz, Paul Fraser and Hayley Manvell, acting in conjunction with PRD Nationwide Airlie Beach, have been appointed to manage the receivership sale on behalf of McGrathNicol.
“The sale of this asset presents an exceptional counter-cyclical opportunity for buyers,” Mr Fraser said.
“Values in regional areas are significantly below replacement cost and this imbalance, combined with the strong performance of Australia’s major leisure markets in a lower Australian dollar environment, is spurring buyer interest in available investment opportunities.”
The Peppers Airlie Beach offering comprises 59 of the 106 strata apartments in the complex, the remainder of which are held in private ownership.
It also entails the resort management rights for the entire complex in addition to central facilities such as the resort reception, Tides Restaurant and Bar, a meeting and conferencing venue and a commercial tenancy leased to third party operating as an Endota Day Spa.
The 4.5-star resort is situated on a 1.8 hectare, north facing site, which offers spectacular views across the Port of Airlie Marina and the Coral Sea Coast. It is within walking distance of the Airlie Beach CBD.
Included in the sale are 56 x 1, 2 and 3 bedroom apartments and 3 x 4-5 bedroom villas.
The resort is currently managed under an agreement with Mantra Group operating as their luxury brand, Peppers.
"The sale offers a purchaser the opportunity to sell down the individual apartment stock under a management rights model, whilst also allowing an incoming owner the flexibility to sell the apartments on either a short, medium or long term basis,” Ms Manvell said.
“Further opportunities exist, with the ability to separate the restaurant and bar from the management rights business and lease this to a third party.”
The Airlie Beach region has been the subject of renewed investor interest thanks to a strong rebound in tourist arrivals, which led the Whitsunday Coast Airport to become Australia’s fastest growing airport in January 2016.
CBRE’s Mr Bunz said; “We have been inundated with enquiries 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.”
He noted that strong interest was expected in Peppers Airlie Beach following a number of recent CBRE Hotels’ sales in the region – among them Club Crocodile Resort Airlie Beach to Well Smart Investment Holdings Singapore and Daydream Island to China Capital Investment Group (CCIG). CCIG also recently transacted on South Molle Island.
Expressions of Interest close October 20, 2016.
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CBRE Group, Inc. (NYSE:CBG), a Fortune 500 and S&P 500 company headquartered in Los Angeles, is the world’s largest commercial real estate services and investment firm (based on 2015 revenue). The Company has more than 70,000 employees (excluding affiliates), and serves real estate investors and occupiers through more than 400 offices (excluding affiliates) worldwide. CBRE offers a broad range of integrated services, including facilities, transaction and project management; property management; investment management; appraisal and valuation; property leasing; strategic consulting; property sales; mortgage services and development services. Please visit our website at www.cbre.com.