Kelsian Group is offloading its K’gari resorts and tourism operations to Journey Beyond as part of its exit from Australian tourism.

The deal includes Kingfisher Bay Resort (pictured, top), K’gari Beach Resort, K’gari Explorer and SeaLink Fraser Island, along with other tourism businesses including Captain Cook Cruises, SeaLink Marina, SeaLink Tasmania and SeaLink Northern Territory.

The transaction was originally announced at an enterprise value of $161 million, but has since been reduced to $145.8m following the removal of SeaLink Rottnest.

K’gari resorts

Kingfisher Bay Resort, on the western side of the World Heritage-listed island, has 269 rooms, villas and holiday houses.

K’gari Beach Resort, formerly Eurong Beach Resort, is on the eastern side.

The sale also includes K’gari’s ferry and four-wheel-drive touring operations.

Journey Beyond is owned by US private equity firm Crestview Partners (continues below).

It operates the Ghan and Indian Pacific rail services and has been expanding its Australian tourism portfolio, including with the c$300m Ayers Rock Resort last year and, in May, the 110-room Mercure Kakadu Crocodile Hotel in Jabiru.

Kelsian quits tourism

The sale follows Kelsian’s decision to exit Australian tourism.

Last April, realestatesource.com.au reported the group sold three Western Australian bus depots with leasebacks for a combined $20.38m.

The Australian Competition and Consumer Commission and Foreign Investment Review Board have approved the Journey Beyond deal.

Completion is expected by the end of the year.

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Trilogy Funds has bought a major logistics investment in Darwin’s east.

The Northline-backed asset, 16 Dawson Street, East Arm, set it back $41.4 million.

A Charter Hall-managed partnership was the seller.

The property was acquired for $29m in 2019 by the then Investec Australia Property Fund, as part of an $81m three-property portfolio bought from Charter Hall Industrial Fund.

It subsequently formed part of Irongate Property Fund I, which was acquired by a Charter Hall-managed partnership in 2022 as part of the $1.6 billion takeover of Irongate.

The deal comes four years since realestatesource.com.au reported Brisbane-based Trilogy acquired its maiden NT asset – the Homezone at 660 Stuart Highway, Berrimah, three kilometres from East Arm, for $29m.

Another East Arm deal

On four hectares within the Darwin Business Park, 16 Dawson St contains 14,835 square metres and extensive hardstand.

Developed in 2015 by Vaughan Constructions, Northline has been the only occupier, utilising it as a warehouse and depot.

Its present lease runs nearly nine years with fixed three per cent annual rent rises (continues below).

There are then two five-year options.

The site has potential for further development, with low site coverage and surplus land.

Trilogy doubles down in Darwin

Trilogy will hold it in a single asset trust – the Northern Logistics Trust – now calling on investors for $23.7m.

The asset manager is promoting a 7.85pc average income yield and 12.5pc IRR over an initial six-year term.

The deal comes 11 months since we reported Sentinel Property Group bought two logistics properties also in the Darwin Business Park at East Arm, on O’Sullivan Circuit, for $57.4m.

Elanor Investors Group was that seller.

Colliers’ Gavin Bishop, Sean Thomson and Mark Jagla marketed 16 Dawson St.

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Osprey Property Holdings has paid $8 million for an industrial investment in Toowoomba’s Wellcamp.

United Petroleum sold 7/57 Heinemann Road.

On two hectares, the asset contains a 1924 square metre office/warehouse surrounded by hardstand.

There is also a drive- through awning and wash bay.

It was offered with an ancillary lease to Pacific Petroleum expiring 2028 for an unmanned service station.

Annual net income was $184,795.

It will instead be rented to Sunstate Truck Group which is expanding into the region (continues below).

Cushman & Wakefield’s Daniel Cullinane was the agent.

Settlement was a short 30 days.

The deal comes four months since realestatesource.com.au reported Perth-based Ascot Capital paid $43m for three Queensland industrial properties sold by Wagners, including a 4.6ha facility at Harristown.

Last year, Sentinel Property Group sold its only Toowoomba asset, a five-building industrial complex at Wilsonton, for $16.25 million, having paid $11 million for it in 2020.

Wellcamp, about 20 kilometres west of central Toowoomba, contains the Toowoomba Wellcamp Airport and major freight infrastructure.

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The Northern Australia Manufactured Accommodation Investment Trust was announced this month with a $25m capital raising.

Ebert Investment Group will contribute $10m.

The banks will fund the balance.

The business is believed to be Northern Transportables, with three manufacturing and fabrication facilities, in Darwin, Alice Springs and Adelaide.

Sentinel’s Northern Territory portfolio exceeds $800m, including Darwin’s Casuarina Square.

Earlier this week we reported Wesfarmers backed Built Living would build a modular housing manufacturing plant in Perth (continues below).

Diversified modular business

Based at Darwin Business Park, Northern Transportables designs, manufactures, transports and installs modular buildings, including residential and worker accommodation.

Established in 1987 with a major expansion in 2008, it has won several NT Government contracts including for the HomeBuild remote housing program

In 2020, Northern Transportables was among four NT construction companies awarded contracts totalling almost $69m to build, transport and assemble 134 houses and duplexes.

The company has also worked across the mining, oil and gas, government and commercial sectors, with projects including worker accommodation and mine-site camps.

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Backed by United, 209 Stuart Highway, Parap, collected $7.8 million following an off-market deal.

The result reflects a six per cent yield.

The service station recently renewed a lease five years.

NTC Property’s Nigel Sharp brokered the deal.

The same agent sold the property to the vendor in 2012, for $4.5m.

It was repurposed as a mixed convenience and quick service restaurant investment in 2015 at a cost of $2m according to documents lodged with the application.

United Parap

On 5050 square metres at the corner of Ross Smith Avenue, the property includes retail and fast-food restaurant tenancies – one presently for rent with a drive-thru (continues below).

United is on a triple-net ground lease.

Parap is two kilometres north-east of the CBD.

The result comes as institutional and private investors continue to trade Darwin commercial property.

Another Darwin deal

In April, Holdfast Funds Management paid a speculated $7m for Customs House at 21 Lindsay Street, following its $13.1m acquisition of two Stuart Park car yards.

In January, Trilogy Funds paid $6.912m for a Tyremax distribution centre at Berrimah

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Discovery Parks is set to buy four holiday parks – in Victoria, Western Australia and the Northern Territory.

The $40 million-plus deal with Breeze Holiday Parks needs ACCC approval.

It includes assets at Halls Gap and Eildon in Victoria and Busselton in Western Australia.

A Katherine property spans 17.8 hectares near the Nitmiluk Gorge (also known as Katherine Gorge) system and the area’s thermal springs (continues below).

Discovery is owned by G’Day Group, backed by Australian Retirement Trust, with some 90 national holiday parks and resorts.

Earlier this year it acquired Cradle Mountain Wilderness Village in Tasmania, Porepunkah Bridge Holiday Park in Victoria — subsequently rebranded Discovery Parks – Mount Buffalo — and Western Kangaroo Island Caravan Park in South Australia.

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Journey Beyond has bought what is believed to be the world’s only large-scale crocodile-shaped building, expanding its presence in the Northern Territory.

The Adelaide-based tourism operator backed by US private equity firm Crestview Partners – and owner of The Ghan and Indian Pacific rail businesses – acquired the Mercure Kakadu Crocodile Hotel from Indigenous-owned Kakadu Tourism Group.

The deal includes the associated leasehold interest from Gundjeihmi Aboriginal Corporation Jabiru Town.

The Australian Competition and Consumer Commission approved the purchase last week.

Journey Beyond was acquired by US tourism operator Hornblower Group in 2022 before ownership transferred to Crestview Partners following Hornblower’s restructuring two years later.

Kakadu Crocodile Hotel

Spanning 4.4 hectares in Jabiru, within the UNESCO listed Kakadu National Park about 250 kilometres east of Darwin, the 110-room Kakadu Crocodile Hotel was developed in 1988 by the Gagudju Association.

With 2671 square metres in the shape of a saltwater crocodile it is 250 metres long and 30m wide with a central outdoor swimming pool.

Mercure, an Accor brand, has run it over a decade.

Before that it was branded the Gagudju Crocodile Hotel (continues below).

With conference facilities for up to 250 guests, and 33 square metre rooms, it was marketed for its repositioning potential.

Colliers’ Karen Wales, Jackie Su and Sam Abel were the agents.

Journey Beyond expands into top end

The acquisition adds to Journey Beyond’s growing Northern Territory tourism portfolio linked to its national rail and experiential travel operations; one brand, Outback Spirit, uses accommodation there on certain tours.

Besides The Ghan, which runs between Adelaide and Darwin, the group controls Darwin Harbour Cruises.

It also holds a range of Northern Territory touring products tied to outback and remote tourism itineraries.

Earlier this year, it bought Voyages Indigenous Tourism Australia, with the Ayers Rock Resort in Yulura and Mossman Gorge Cultural Centre in far north Queensland.

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EXCLUSIVE

Holdfast Funds Management, formed mid-last year and chaired by former Vicinity Centres chief executive Grant Kelley, has bought its second asset in four months.

The Holdfast Group arm has again chosen Darwin, paying a speculated $7 million for Customs House at 21 Lindsay Street.

The six-level building contains 2539 square metres, 83 per cent occupied to the Federal Government a major tenant on a lease expiring in August, with two three-year options.

Australian Customs & Border Protection and the Consulate-General of the Democratic Republic of Timor-Leste are amongst the occupiers.

Annual net income is $615,000.

The NABERS rating is three stars.

The 726 sqm site is a block from Garramilla Boulevard, near the new $300m Charles Darwin University campus (continues below).

Holdfast portfolio surpasses $20m

Mr Kelley said Customs House was acquired at a significant discount to replacement cost.

With the deal, he added, the group’s portfolio value surpasses $20 million.

“Holdfast Funds Management was established to invest in assets offering both capital growth and above-market yields, given pricing dislocation, income security and the asset’s potential for active management,” he said.

In December, the asset manager outlaid $13.1m for 1 and 11 Stuart Highway, Stuart Park, three kilometres south east of Darwin’s CBD. That asset — Lexus and Toyota car yards leased to AP Eagers — covers 1.3 hectares.

Knight Frank’s Peter McVann and Matthew Knight marketed that property and 21 Lindsay St.

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A prominent Northern Territory office has been sold by the developer which built it 40 years ago.

Satepak House at 11 Palmerston Circuit, Palmerston, fetched $6.4 million following an off-market campaign.

With 1600 square metres in eight tenancies over two floors, it is 84 per cent occupied by the Territory government, Anglicare and Venture Housing.

Adjacent to Palmerston Shopping Centre, Goyder Square and Highway House, it also holds longer term development upside (continues below).

“Investor enquiry across the Northern Territory remains strong with demand spanning investment assets, development sites and value-add opportunities,” McGees Property’s Craig Inkster, who marketed Satepak House with Tessa Sealey, said.

Palmerston is 16 kilometres east of Darwin.

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Trilogy Funds has bought a new purpose-built investment near Darwin International Airport for the Industrial Property Trust.

Part of the Berrimah Industrial Estate, 2 Pak Street set it back $6.912 million – a 6.3 per cent net passing yield.

With 3192 square metres, including modern offices and a high clearance warehouse, it is occupied by Tyremax as a distribution centre.

The initial lease runs eight years.

There are two five year options.

The 6612 sqm site at the north east corner of Vaughan St also contains 36 car parks.

“The acquisition aligned with the trust’s strategy of targeting industrial assets that deliver income security and long-term growth potential in strategically connected locations,” Trilogy Funds Head of Property, Laurance Parisi, said.

“This is a high-spec asset that’s been custom designed for a national tenant with deeply embedded operations in the Northern Territory,” he added.

“Tyremax services a wide footprint of regional and remote customers across northern Australia,

particularly the mining and agribusiness sectors and this facility supports its long-term distribution capability in a critical catchment,” according to the executive.

“Darwin’s role as a northern logistics hub and the scarcity of comparable industrial products in the market added further strength to the investment” (continues below).

The trust now holds 17 assets worth a total $308m.

Milton office sale

Meanwhile, Trilogy has sold an inner west Brisbane office held eight years by the single-asset Milton Office Trust.

In a deal also sealed last month, it collected $19.686 million for 16 Marie Street, pre-adjusted for outstanding incentives, rental guarantee and capital expenditure requirements.

Over five levels, the investment contains 3901 sqm of A-grade rated space, 90 per cent which is occupied, and 52 car parks.

The NABERS Energy rating is 4-star.

The site spreads 1206 sqm zoned Light Industry, about two kilometres from the CBD.

Colliers’ Sam Arkell and Hunter Higgins with Knight Frank’s Blake Goddard and Matthew Barker were the agents.

Based on the fully let annual return – $1.764m – the result reflects an 8.9pc yield.

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