THE Peppers Airlie Beach resort in north Queensland has been put to the market for the second time since its developers were placed in receivership three years ago.
CBRE’s Wayne Bunz, Paul Fraser and Hayley Manvell have been appointed to manage the sale on behalf Matthew Caddy and Jamie Harris of McGrathNicol, via expressions of interest closing 17 October.
US hotel and timeshare company Wyndham agreed to buy the 4.5-star resort for about $20 million in 2017 before the deal fell through. Latitude Development Group had spent about $80 million building the resort in 2009, and was placed in the hands of receivers three years ago.
The Peppers Airlie Beach offering comprises 59 of the 106 strata apartments and villas in the complex, with the remainder held privately. There are 56 one, two and three-bedroom apartments, and three villas comprising four to five-bedrooms.
It also entails the resort management rights for the entire complex, in addition to facilities such as the resort reception, Tides Restaurant and Bar, a meeting and conferencing venue and a commercial tenancy that is currently vacant.
The resort on a north facing site of around 1.8 hectares and offers views across the Port of Airlie Marina and the Coral Sea Coast, and is within walking distance of the Airlie Beach CBD.
The resort is currently managed by Accor under its luxury brand Peppers, but 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, whilst also allowing an incoming owner the flexibility to sell the apartments on either a short, medium or long-term basis,” Manvell said.
She said the Whitsundays’ region has been the subject of renewed investor interest due to a strong rebound in tourist arrivals post Cyclone Debbie, and the reopening of island resorts, including Intercontinental Hamilton Island and Daydream Island.
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.