Two large hospitality businesses on Queensland’s Magnetic Island have come to market, as a family operation looks to wind up and capitalise on the market for strong-performing coastal assets.
Magnetic Island is eight kilometres off the coast from Townsville, with 2,335 permanent residents. Only a 20-minute ferry ride away, it is effectively a suburb of the northern hub.
The Island is home to the Picnic Bay Hotel, on the southern tip, and Marlin Bar, in Horseshoe Bay on the northern coast.
Found on Picnic Bay’s The Esplanade, the Hotel title spans 1.1 hectares, providing an indoor and outdoor restaurant, gaming area with Keno and TAB facilities and 20 EGMs, an operational function centre, and onsite owner’s accommodation.
It also counts an onsite and a detached bottleshop, 23 motel rooms and a swimming pool.
The large site also boasts residential development potential on unutilised land, with a DA for apartments previously in place.
To the north, the Marlin Bar is located on 1,019sqm of Pacific Drive, also offering indoor and outdoor restaurant facilities, onsite bottleshop and both on- and off-site parking.
Key family members are looking to retirement, prompting engagement of Knight Frank Townsville’s Paul Dury and Mark Fitzgerald, who anticipate strong interest from local, interstate and intrastate operators amid surging market interest in A-grade freeholds.
“Well-operated and island-located commercial hotels with absolute beachfront positions are viewed as a safe investment with larger-scale hotel operators now looking to regional areas to expand their property portfolios,” reports Dury.
The agents note the upside in the accommodation and particularly any future development, in light of yield compression keeping step with interest rate reductions, as post-pandemic economic conditions improve and mature.
“We believe that Queensland tourist locations will be sought after, especially after border restrictions are eased and Australians look to travel domestically,” furthered Dury.
“And there are very few places in Queensland that offer what Magnetic Island can offer.”
Both properties are being sold via Expressions of Interest, closing Thursday 22 October.
