Confidence in Cairns soars again with $50 million Coconut Holiday Resort sale
If you had any lingering doubts the tourism boom in Cairns was real, it's time to become a believer.
Today's sale of the Cairns Coconut Holiday Resort for $50 million to ASX-listed Ingenia Communities Group is the latest example in a mounting body of evidence that the TNQ economy is back to its booming best.
Today's sale of the 11ha park at Woree follows other tourism-related investments such as GA Group's triple hotel development program in Cairns and the sale of Raging Thunder for more than $15 million.
Cairns Coconut Holiday Resort was first opened by the Olholm family in 1984, and today's sale represents Australia’s largest single holiday park transaction.
Ingenia CEO Simon Owen described the holiday park as an award-winning "premium asset".
Mr Owen said the holiday park site included development potential for a further 34 tourist cabins in the future.
"This is an exceptional mixed-use asset with an emphasis on the strongly performing tourism market which will become a flagship asset for Ingenia's Holidays brand and has significant, fully approved opportunities for further growth," he said.
"Cairns is one of the most visited tourism tourism markets in Australia, generating a high level of tourism visitation that underpins existing cash flows and is generated from a diverse tourist base."
InCapital Advisers managing director and economy watcher John Mlikota described the sale of Cairns Coconut Holiday Resort as a huge show of confidence in the local tourism industry.
"This is a massive tick of approval for Cairns and our tourism industry, and shows particular confidence in the future of the domestic traveller market," Mr Mlikota said.
"In addition, the available land to further develop the site will provide construction jobs in the future."