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News release

Brisbane

Iconic World Heritage Fraser Island assets up for sale


Brisbane, 5th March 2010 - Kingfisher Bay Resort Village Pty Ltd have appointed exclusive agents Jones Lang LaSalle Hotels to market for sale their multi-award winning freehold and leasehold resort interests and associated businesses on Fraser Island. The assets being offered for sale include the 152 room Kingfisher Bay Eco-Resort located on the protected western-side of Fraser Island which contains four restaurants and bars, conference facilities, shopping village, significant excess development land as well as management rights to 100 self contained villas and a 200 bed Wilderness Lodge.
 
Kingfisher Bay Resort Village P/L, in partnership with Japanese owned Cosmos Australia developed Kingfisher Bay Resort Village in 1990 and has operated the resort since opening in 1992. In 2002, the company extended its interests on the island by acquiring the Eurong Beach Resort, on the eastern-side of Fraser Island, along with associated substantial tour and barge businesses. These assets were acquired from Sid Melksham, the original developer who had progressively built up the assets since the 1960’s. Eurong Beach Resort is situated on 3.4 hectares of land of which approximately 1.4 hectares of immediate beachfront freehold land is surplus to current business requirements and presents a prime future development opportunity.
 
Kingfisher Bay Resort Village Managing Director Mr. Gary Smith said “the Kingfisher Bay Resort Village group is in a strong financial position with negligible debt and strong cash flows. Cosmos Australia has been very happy with its involvement from inception of such an iconic and awarded project. After 20 years of involvement Cosmos Australia have decided to withdraw from offshore businesses to focus wholly on their Japanese operations.” Consequently the directors of Kingfisher Bay Resort Village P/L have decided to put the assets to the market. Due to recent strong interest from new overseas entrants into the Queensland resort market, an Expression of Interest process has been initiated by the vendor.
 
Commenting on the sale Mr. Wayne Bunz, Senior Vice President said “Jones Lang LaSalle Hotels were extremely proud to be exclusively appointed to offer one of the rarest and most unique opportunities for many years. The location of these assets on the largest sand island in the world ranks alongside other World Heritage Listed destinations such as Ayres Rock and the Great Barrier Reef.

Having recently marketed the Voyages Portfolio and Fitzroy Island, Jones Lang LaSalle Hotels are very confident that this unique offering will create enormous investor interest.
Fraser Island, due to its unique natural environment and World Heritage listing, receives over 350,000 visitors per year with a significant proportion being international tourists. Unlike most island operations, Kingfisher, Eurong and associated businesses have for many years provided strong historical cashflows with combined revenues of approximately $50million per annum.
 
Both resorts offer an extensive range of accommodation and associated facilities catering for a very diverse range of guests - from the many thousands of international backpackers that venture to Fraser Island each year, to the domestic leisure family market and discerning eco focused international guests looking for such a unique experience. The touring arm of the group, Fraser Explorer Tours offers an extensive and diverse range of day and overnight accommodated tour activities through its fleet of 30 Four Wheel drive tour buses carrying over 80,000 passengers annually on tours from Kingfisher Bay Resort, Eurong Beach Resort, Hervey Bay and Rainbow Beach.
 
Fraser Island Barges operates five vessels on four different routes between Inskip Point (Rainbow Beach) and Hook Point (Fraser Island) as well as from Hervey Bay (River Heads & Urangan Boat Harbour) to three different drop off points on the island.
 
The properties and associated tour and barge businesses are being offered for sale by way of Expressions of Interest closing on the 14th of April 2010.