Japanese real estate group Cosmos Initia Co Ltd has put up its Fraser Island Kingfisher Bay Resort, Eurong Beach Resort and accompanying tour and marine businesses up for sale, with price expectations of more than $50 million.
All four businesses on freehold property – Kingfisher Bay Resort and Village, Eurong Beach Resort, Fraser Explorer Tours and Fraser Island Ferries – are expected to be sold together.
Cosmos Initia, which developed the Kingfisher Bay Resort and Village 25 years ago, was looking to diversify into other areas such as residential development, sources said.
The two resorts in the group account for more than 90 per cent of commercial accommodation options on Fraser Island, selling agent Colliers International said.
They turned over $55 million in 2016 and made a net profit of about $7 million.
"The operations could be integrated within another established tourism portfolio in Australia or operated under full management as it is today," said Colliers' Neil Scanlan who is managing the expressions of interest campaign with Gus Moors. "In addition to this, a large amount of surplus freehold development land offers an incoming purchaser a significant upside with extensive new development or redevelopment options."
Fraser Island was World Heritage Listed by UNESCO in 1992.
"Less than 1 per cent of the island is freehold or leasehold land, so new development options are very limited," Mr Scanlan said.
The four-star Kingfisher Bay Resort covers an area of 64 hectares and includes 14.62 hectares of vacant residential development land with existing approvals for medium and low-density development.
"There is also an opportunity to redevelop 1.4 hectare of beach front land at Eurong Beach Resort," Mr Moors said. "Development options are very flexible and could include a mixed use tavern/hotel, new hotel or strata titled apartment development."
