Popular multi-tourism and entertainment property in Ballarat offers vast future potential
Kryal Castle in Ballarat is expected to attract interest from a wide array of potential purchasers keen to explore its vast potential when it hits the market following a multi-million dollar redevelopment.
Colliers International’s Guy Wells and CBRE’s Scott Callow have been appointed to sell the 10.967ha property located at 121 Forbes Road in Leigh Creek, Ballarat, known as Kryal Castle.
“Kryal Castle is a multi-use tourism and entertainment facility which has undergone extensive redevelopment since 2011 to cater to domestic and international visitors as a theme park and accommodation and function facility,” Mr Wells said.
The property comprises a fantasy-based medieval castle and theme park, more than 15 individual attractions, 17 four-star accommodation suites, three food and beverage outlets, function and event spaces, retail outlets and established educational programs.
Kryal Castle is situated within the township of Leigh Creek, 8km east of the city Ballarat and about 105km, or one hour by car, north-west of the Melbourne CBD. Ballarat comprises a resident population of an estimated 100,000 in 2015, making it Victoria’s largest inland regional centre.
“The Ballarat Station redevelopment and proposed hotel and convention centre is testament to the strength of the Ballarat economy and growth in the tourism market, which Kryal Castle can capitalise on going forward,” Mr Callow said.
Mr Wells said after investing in a substantial redevelopment which had seen visitor numbers swell significantly since re-opening, the owners had been approached by potential purchasers over recent years.
“Given the growth in visitation and buyer appetite, they now feel the time is right for a new owner to usher this unique property into its next phase,” he said. “Both local and offshore interest is already being fielded.
“An opportunity like this cannot be replicated within the Australian marketplace and provides significant growth potential as a multi-use theme park and leisure centre. For the astute investor, this is a strategic investment in a yet-to-be-realised, unique piece of Australian tourism real estate which services both the domestic and international market."
The property was originally developed in the 1970s and was extensively upgraded in a multi-million dollar redevelopment during 2012 after being acquired by the current vendors. Kryal Castle re-opened to the public in March 2013, winning the Best New Tourism Development Award at the 2013 Victorian Tourism Awards.
The venue went on to win a gold award at the 2015 RACV Victorian Tourism Awards, the award for Special Events & Attractions at the 2015 Commerce Ballarat Business Excellence Awards and was a finalist in the Tourist Attractions category at the 2015 QANTAS Australian Tourism Awards.
More recently, the property has experienced an increase in its appeal to both local school groups and mainland Chinese study tours. The property is receiving up to five inbound tourist groups a week with Chinese students being a strong demand driver both for the educational visits and the utilisation of accommodation.
“Kryal Castle has traction in the marketplace and has set the foundation of a highly successful, unique tourism, leisure and events business, from which significant growth can become a reality delivering an excellent return on investment,” Mr Wells said.
“The opportunity and business potential along with the ongoing development of Kryal Castle as a multi-use tourism, hospitality, leisure and events venue is extensive. The ability to further add value through additional accommodation and events capabilities mean that the next five to 10 years will see this property grow exponentially with the potential to extensively add to this exciting attraction."
Mr Callow said there was potential for further redevelopment in the future, including construction of further accommodation, both boutique and budget-style, and the addition of new retail spaces, team building areas and more rides and attractions.
He said zoning could potentially allow for the property to also be utilised for other purposes, including events or expanded accommodation.
“The low level of investment necessary to increase the accommodation capacity and include caravan park or camping possibilities would allow for increased revenue and would open the castle up to an even wider customer base,” he said.
The property is for sale by Expressions of Interest closing May 12, 2016.