JUST ADD PEP­PERS

In­ter­na­tional cam­paign a bid to sell Air­lie Beach re­sort

Whitsunday Times - - FRONT PAGE - Chris Herde

ONE of the Whit­sun­days’ prom­i­nent main­land re­sorts is on the mar­ket through re­ceivers for the sec­ond time in two years.

Pep­pers Air­lie Beach is be­ing sold through an in­ter­na­tional ex­pres­sions of in­ter­est cam­paign run by CBRE Ho­tels on be­half of the ap­pointed re­ceivers, Matthew Caddy and Jamie Har­ris of McGrath Ni­col.

The cam­paign will of­fer 59 of the 106 strata apart­ments and vil­las in the com­plex, the re­main­der of which are held in pri­vate own­er­ship.

The re­sort man­age­ment rights for the com­plex in ad­di­tion to cen­tral fa­cil­i­ties such as the re­sort re­cep­tion, Tides Restau­rant and Bar, a meet­ing and con­fer­enc­ing venue and a com­mer­cial ten­ancy which is cur­rently va­cant, will also be sold.

In­dus­try sources say price ex­pec­ta­tions for the re­sort were be­tween $15 mil­lion and $20 mil­lion.

CBRE Ho­tels’ Paul Fraser, who is sell­ing the prop­erty with Wayne Bunz and Hay­ley Man­vell, said the re­gion was re­bound­ing well af­ter the re­open­ing of is­land re­sorts hit by Cy­clone Deb­bie.

The sale of­fers a pur­chaser the opportunit­y to sell down the in­di­vid­ual apart­ment stock un­der a man­age­ment rights model...

“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,” he said.

In 2017, US ho­tel and time­share gi­ant Wyn­d­ham ex­changed con­tracts to buy the 4.5-star re­sort for about $20 mil­lion which was well above mar­ket ex­pec­ta­tions. How­ever, the deal fell through.

Josh Thomp­son’s Lat­i­tude De­vel­op­ment Group built the re­sort in 2009 for about $80 mil­lion.

In Septem­ber 2016, the com­pany was placed in the hands of the re­ceivers.

The prop­erty sits on a 1.8ha north-fac­ing site on Her­mitage Dr with views across the Port of Air­lie Ma­rina and is man­aged by ASX-listed Mantra Group un­der lux­ury brand Pep­pers.

How­ever, it is be­ing of­fered with va­cant pos­ses­sion, pro­vid­ing a re­brand­ing opportunit­y.

“The sale of­fers a pur­chaser the opportunit­y to sell down the in­di­vid­ual apart­ment stock un­der a man­age­ment rights model, while also al­low­ing an in­com­ing owner the flex­i­bil­ity to sell the apart­ments on ei­ther a short, medium or long-term ba­sis,” Ms Man­vell said.

FOR SALE: Pep­pers Air­lie Beach re­sort is is be­ing sold through an in­ter­na­tional ex­pres­sions of in­ter­est cam­paign run by CBRE Ho­tels on be­half of the ap­pointed re­ceivers.

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