The award-winning Ocean Dunes Golf Course on King Island is for sale with expectations of circa $16million, as offshore investors vie for tourism-related opportunities.
The recently completed 18-hole course on the island’s rugged coastline has only been in operation since September 2016 but is already considered the fourth best public golf course in Australia and, while yet to be ranked on a global scale, is drawing comparisons to the nearby Cape Wickham.
The properties being offered for sale include the golf course and adjoining development land which benefits from a further planning permit and potential for a second course. Also included is the King Island Hotel, providing investors with an existing food and beverage facility located in the main township of King Island with accommodation to house guests or staff while any further development is undertaken.
Colliers International’s Guy Wells, in conjunction with Paul Mason of Comac Property Group, have been appointed to run the international expressions of interest campaign for the 190.6ha property, which is permit-approved for holiday accommodation and a clubhouse.
“The initial 12 months of operation have exceeded the owners’ expectations completely,” Mr Wells said. “Following the recent sale of the nearby Cape Wickham course, the owners have been gauging investor interest and consider now to be the prime time to present a new owner with a seamless operation to simply step in and take over, as well as maximise the significant upside possibilities."
Mr Wells said the development potential would be a key driver in the sale, allowing a new owner to capitalise on the infancy of the course.
“The benefit of the planning approval for a more permanent clubhouse, 21 motel suites and 80 visitor accommodation units truly sets Ocean Dunes apart in the market,” he said. “The property has potential to become the base for a King Island experience, both as a stay-and-play golf destination but also as the island continues its tourism resurgence.
“There is endless untapped potential for growth in player numbers and visitation during the coming years, as King Island rapidly becomes an internationally renowed golfing destination."
Mr Wells said strong interest was expected from foreign golf course owners and operators, investment syndicates and private investors.
“The owners have been approached a number of times since opening by investors and we anticipate that the development potential and iconic asset is going to draw interest from both domestic and offshore interests.” he said.
The course has been designed and developed by a consortium of private owners who shared a vision to craft the rugged sand dune corridors, rock formations and natural vegetation along this 2km stretch of coastline into something truly special. The course took nearly four years to develop and continues to grow into its natural environment.
King Island is becoming an increasingly popular holiday destination, with regular flights from Melbourne and Tasmania.
“As Tasmania grows in appeal from a tourism perspective, it is anticipated that King Island will further benefit,” Mr Wells said. “The first-class Barnbougle and Lost Farm experience in Bridport is something that is already being replicated on King Island and the stay-and-play golfing experience will only improve with four of the best courses in Australia on King Island and northern Tasmania.”