Double delight for investors

Expert predicts strong interest if controversial Far North island hits open market

Private investors’ interest would be piqued if Double Island, close to the premier tourism mecca of Palm Cove, hit the market, an industry expert says.

The future of the dilapidated island is unclear, with current lessee Benny Wu, who paid $5.68m for the 17ha lease 11 years ago, providing a report to the Department of Resources on March 31.

The department had set that date as the deadline for Mr Wu’s company Fortune Island Holdings to have both day use facilities and public amenities and the resort itself actively operating.

It does not appear either requirement has been met, with the Department of Resources saying only that it had received a report.

Public sentiment reflects disappointment that the resort which once hosted A-list actors is in a such a sad state of disrepair.

JLL Hotels and Hospitality Group senior vice president investment sales Gareth Closter said there would be strong interest in Double Island if it hit the market.

“The Queensland market is definitely in the midst of an island sales cycle with an unprecedented number of these assets transacting over the past 12 months,” Mr Closter said.

“With such close proximity to an international airport, and being just off Palm Cove, Double Island would no doubt attract interest from established investors and new entrants to the tourism sector.

“High net worth private investors have been the most active buyers in the island sector with new entrants or ‘non-traditional’ buyers for these opportunities,” Mr Closter said.

“This type of property would receive interest from both domestic and off shore buyers, especially given it is situated under an hour from an international airport,” he said.

Fitzroy Island was listed in February with an ambitious price tag of $35m for the 4.4ha resort, with the rest of the island being a 339ha national park.

Local Doug Gamble paid $8m for it in 2010.

Last year Atlassian co-founder Mike Cannon-Brookes’s wife Annie bought Dunk Island for about $24m – but she has been silent about plans, with Cassowary Coast Regional Council yet to receive a development application.

JLL has said the cheap Australian dollar combined with further easing to travel restrictions in Asia was providing the opportunity for foreign capital to come back to the market.

The tired state of a number of Queensland island resorts prompted an inquiry last year and the government is now considering the inquiry report, which made 18 recommendations to enhance the regulatory framework with specific measures to ensure island resorts worked at optimal capacity and were redeveloped.