Foreign and high net worth domestic investors would be keen to buy neglected Double Island

A cheap Australian dollar, continued easing of travel restrictions in Asia and fierce interest in Queensland island assets would make Double Island an attractive proposition if it hit the market, according to an industry expert.

Private investors’ interest would be piqued if Double Island, close to the premier tourism mecca of Palm Cove, hit the market, an industry expert says.

The future of the dilapidated island is unclear, with current lessee Benny Wu, who paid $5.68m for the 17ha lease 11 years ago, providing a report to the Department of Resources on March 31.

The department had set that date as the deadline for Mr Wu’s company Fortune Island Holdings to have both day use facilities and public amenities and the resort itself actively operating.

Millionaire Hong Kong businessman Benny Wu has owns the lease to Double Island and provided a report to the Department of Resources on March 31. A Department of Resources spokeswoman said there was no timeline to consider and act on the report. Picture: Brendan Radke

It does not appear either requirement has been met, with the Department of Resources saying only that it had received a report.

Public sentiment is of deep disappointment that the resort which once hosted A-list actors is in a such a sad state of disrepair.

JLL Hotels and Hospitality Group senior vice president - investment sales Gareth Closter said there would be strong interest in Double Island if it hit the market.

“The Queensland market is definitely in the midst of an island sales cycle with an unprecedented number of these assets transacting over the past 12 months,” Mr Closter said.

Businessman Benny Wu has allowed resort and public facilities at Double Island to fall into disrepair, in breach of lease conditions set out by the Queensland Government. Picture: Brendan Radke

“With such close proximity to an international airport, and being just off Palm Cove, Double Island would no doubt attract interest from established investors and new entrants to the tourism sector.

“High net worth private investors have been the most active buyers in the island sector with new entrants or ‘non-traditional’ buyers for these opportunities,” Mr Closter said.

Millionaire Hong Kong businessman Benny Wu has held the lease for Double Island since 2012. Picture: Brendan Radke

“This type of property would receive interest from both domestic and off shore buyers, especially given it is situated under an hour from an international airport,” he said.

Fitzroy Island was listed in February with an ambitious price tag of $35m for the 4.4ha resort, with the rest of the island being a 339ha national park.

Fitzroy Island Resort is on the market for $35m. Picture: Brendan Radke

Local Doug Gamble paid $8m for it in 2010.

Last year Atlassian co-founder Mike Cannon-Brookes’s wife Annie bought Dunk Island for about $24m – but she has been silent about plans for the island, with Cassowary Coast Regional Council yet to receive a development application.

Hook Island sold for $12m and Lindeman Island resort sold for a reported $20m.

JLL has said the cheap Australian dollar combined with further easing to travel restrictions in Asia was providing the opportunity for foreign capital to come back to the market.

The House at Lizard Island, owned by Brisbane-based philanthropist and businessman Steve Wilson and his wife Jane Wilson, rents for $16,000 per night. Picture: Elise Hassey

The tired state of a number of Queensland island resorts prompted an inquiry last year and the government is now considering the inquiry report, which made 18 recommendations to enhance the regulatory framework with specific measures to ensure island resorts worked at optimal capacity and were redeveloped.

A glistening jewel in Queensland islands is exclusive Lizard Island.

It was bought by Andrew ‘Twiggy’ Forrest and his wife Nicola’s private investment company Tatterang for $42m in November 2021.

Delaware North holds the sublease on Lizard Island for the high end resort.

Deep-pocketed patrons have included US TV show host Ellen de Generes and wife, actor Portia de Rossi, and Australian actor Russell Crowe.

In July 2022, The House on Lizard Island, with accompanying luxe cottage, opened its doors – it costs $16,000 per night.

Originally published as Foreign and high net worth domestic investors would be keen to buy neglected Double Island