Counter cyclical investors tipped to circle Hinchinbrook assets

Queensland, 24 July 2014 –Liquidators FTI Consulting have engaged CBRE to conduct an  international sales campaign for the Hinchinbrook Island Resort and Port Hinchinbrook assets in North Queensland.

The high profile Cardwell properties, located at the halfway point between Cairns and Townsville, were developed by the late Keith Williams. They will be offered separately or in one line in a move tipped to generate strong interest from counter cyclical investors.

CBRE’s Danny Betros and Rem Rafter will steer the sales campaign, with Expressions of Interest closing August 26, 2014.

The Hinchinbrook Island Resort closed in 2010, just prior to Cyclone Yasi, while the commercial tenancies at Port Hinchinbrook were closed in 2011, as a result of damage caused by the cyclone.

 “The acquisition of these strategically located assets, combined with the completion of major works funded by the State and Commonwealth Governments, provides a counter cyclical opportunity for an astute purchaser to acquire one or both assets and redevelop them,” Mr Rafter said.

“Investors who understand the appeal of Hinchinbrook Island National Park and its location at the southern entrance to the Cassowary Coast have a unique opportunity to rebuild the marina and onshore tourist accommodation and the resort on Hinchinbrook Island. Similarly, there is significant opportunity to rebuild the existing Port Hinchinbrook assets and to further develop the surrounding land.”

Cardwell is situated on the Bruce Highway, 171 kilometres north of Townsville and 203 kilometres south of Cairns at the gateway to the Cassowary Coast Region. The FTI offering comprises two distinct assets: Port Hinchinbrook, comprising circa 94.5 hectares of land at Cardwell, and the Hinchinbrook Island Resort situated 8 kilometres off the Cardwell coast.

Port Hinchinbrook was developed in the 1990s, with marina basins and boat channels formed at Oyster Point. Developer Williams Corp created more than 200 single residential, medium density residential and commercial lots adjacent to the marina.

Current improvements include a tavern, a marina office and a single level commercial building. There is also capacity to rebuild the 200-250-berth Port Hinchinbrook Marina, which was substantially destroyed by Cyclone Yasi.

Also up for sale through CBRE is the Hinchinbrook Island Resort, which was developed under a special crown lease on 8.26ha of waterfront site with frontage to Turtle Beach.

Improvements include 22 accommodation units, a lodge which was used for dining and recreational purposes, staff accommodation, water, electricity, sewerage infrastructure, a pool and a jetty/mooring site.

However, Mr Betros said the resort had suffered extensive damage since Cyclone Yasi.

“Whilst most of the infrastructure for the resort is in place there will be a substantial rebuild/refurbishment program required to reopen the resort,” Mr Betros said.

“The attraction for buyers will be the rare access the site provides to a World Heritage listed National Park.”

While North Queensland’s island resorts have been through some challenging years due to the impact of adverse weather events and the high Australian dollar, Mr Betros said there have been some significant sales in recent years which highlighted the investor appeal of this style of asset.

“The sales of the Club Med resort on Lindeman Island and the resorts on Dunk, Bedarra and Orpheus Islands in Far North Queensland all point to ongoing demand for tourism opportunities in this region,” Mr Betros said.

At 39,900ha, Hinchinbrook Island is one of Australia’s largest island national parks. The island is approximately 37 kilometres long and 10 kilometres wide and is world-renowned for its long-distance wilderness walk, the Thorsborne Trail, which extends for 32km along the eastern side of the island.