Slice of Queensland tropical island all yours for $40m

First opened in 1986, the Bedarra Island Resort has since been transformed under the ownership of hoteliers Sam and Kerri-Ann Charlton of Charlton Hotel Group and now has 12 villas with access to both north and south-facing beaches.

The pair purchased the resort in 2011 after it was devastated by Cyclone Yasi and spent 18 months renovating the property.

Sam Charlton said after almost 15 years running the business, the pair felt they had achieved everything they wanted for the property and resort.

“We’re excited to hand it over to the next owners,” he told The Australian Financial Review.

Through their accommodation business, the couple also own the 20-room Elandra Resort in South Mission Beach, a five-hectare beachfront estate called The Bungalows Mission Beach, and Mt Ommaney Hotel Apartments in Mount Ommaney – all in Queensland.

CBRE Hotels’ Tom Gibson and Wayne Bunz are managing both listings – the resort and the neighbouring parcel of land. Both declined to comment on its price guide.

“There’s not a lot of hotels out there in Australia, let alone the region, that deliver in the way that Bedarra delivers in its incredible experience,” Gibson told The Australian Financial Review.

“The natural beauty is absolutely stunning, lush rainforest, and then the surrounding Coral Sea and the reefs that surround the islands.

“Unlike the Whitsundays, it’s not built up. It’s a truly secluded location, and that’s why it’s always been a fan favourite of the Australian luxury market.”

It’s also one of few freehold island resorts in Australia to come onto the market, Gibson said, as the majority of resorts in the region are operated through either long-term or rolling-term leaseholds.

“So that gives flexibility, from a new investor’s point of view, to not be governed by the strict rules and regulations that are in place with other leaseholds,” he told the Financial Review.

Last year, Hong Kong businessman Benny Wu was stripped of his tourism lease of Double Island near Cairns, which was returned to the Queensland government after he breached the lease conditions and for which he had paid $5.68 million in 2013. It was home to a luxury resort about seven years ago.

“The risk of adhering to government requirements to manage and operate resorts under their rule of law can be restrictive and can be financially challenging,” Gibson said.

“Though when it’s freehold title, one single lot, you can convert it into your own residence. You can continue to run it as a profitable lodge that it is today.”