Developer purchases shuttered Alice Springs Airport Motel for $3.8m, lodges plans with authority

A local developer has unveiled a proposal to return a shuttered motel, which spent time as affordable housing and on the private rental market, back to its original use.

The former Alice Springs Airport Motel and, more recently, Airport Apartments, has been sold to a local developer for $3.8m, with plans to return it to its use as a hotel/motel. Picture: LJ Hooker

An Alice Springs developer has unveiled a proposal to return a block of affordable housing units and private rentals its original use as a motel, after a recent history that included a firesale when its former owner entered liquidation.

Recently, a development company helmed by a director who works for a local disability services provider, lodged plans with the Development Consent Authority to rezone 119 Gap Rd, The Gap.

The site was for many years the Alice Springs Airport Motel, which was first developed in the 1980s, before in 2012 becoming affordable housing registered under the National Rental Affordability Scheme.

The former Alice Springs Airport Motel and, more recently, Airport Apartments, has been sold to a local developer for $3.8m, with plans to return it to its use as a hotel/motel. Picture: LJ Hooker

The scheme provides subsidies to property owners – in this case investors in Ethan Affordable Housing, which purchased the motel – to rent housing at below market rates.

However, in 2019, Ethan Affordable Housing was liquidated amid claims by the liquidator more than $5.4m was funnelled into bank accounts controlled by its two former directors, Ashley and Cielo Fenn.

Ethan Affordable Housing’s liquidator is currently pursuing the Fenns in the Federal Court of Australia, with no findings made against the pair, who are defending the claim.

The Fenns argue the payments they received from Ethan Affordable Housing were above board and compliant with the arrangement struck with investors, The Australian reported.

The former Alice Springs Airport Motel and, more recently, Airport Apartments, has been sold to a local developer for $3.8m, with plans to return it to its use as a hotel/motel. Picture: LJ Hooker

The site was sold off by the liquidator and became Airport Apartments for about four years, before its sale last year for $3.8m to the current owner, the developer.

According to the application filed with the DCA, the developer wants the land rezoned back from dwelling to hotel/motel.

Furnishings for the 50 rooms are currently in the process of being upgraded, the application stated.

The development would involve no changes to the external built form.

The developer told this masthead his intention was to “soft list” the motel while it was being developed, with the intention of selling the asset as a walk in walk out investment.

Should a sale not be achieved, the developer would then look to operate the motel for a year or so to demonstrate its viability before looking to make a sale as a going concern.

He would also consider leasing the facility to government agencies or not-for-profits, so it could be used for things like crisis accommodation.

Originally published as Developer purchases shuttered Alice Springs Airport Motel for $3.8m, lodges plans with authority