Local families combine to buy Magnetic Island hotel assets

Two of Magnetic Island’s most popular pubs have changed hands. Find out what they have planned.

Two of Magnetic Island’s best pubs have changed hands as two local families combine to breathe new life in some tired but much loved tourism assets.

The Bredhauer family, which operates the old post office-located Townsville Brewing Co, and the Goicoechea family, who helped develop Annandale and Bushland Beach, have bought the businesses and freehold of Island Adventures Pty Ltd.

The business holdings include the Picnic Bay Hotel and adjoining land, the Marlin Bar and restaurant in Horseshoe Bay and a detached bottle shop in Nelly Bay.

While a price was not disclosed, as much as $10m was sought for the assets.

Kim Bredhauer, chairman of international development company the Palladium Group, said they were excited to acquire the hotels and were keen to do the “right thing”.

“We want to do the right thing by the land (at Picnic Bay). We want to take it steady and we want to consult with the locals,” Mr Bredhauer said.

The Picnic Bay Hotel and 1.1ha holding which has been sold.

Former owners Bill and Lorraine Carnell were in the midst of a 70-apartment resort project alongside the hotel when they tragically died of cancer within days of one another in 2005.

The function area of the Picnic Bay Hotel on Magnetic Island.

The Carnells famously kept a 5m crocodile called Rin Tin Tin in a pool enclosure alongside the hotel’s nightclub as a display.

The Marlin Bar in Horseshoe Bay which has been sold.

But the resort project was never completed and the site has remained with exposed reinforced steel and blockwork ever since.

Kim Bredhauer and partner Lydia Leong with son Tristan at the Townsville Brewery.

The first European settlement on the island is believed to have been at Picnic Bay in the 1870s by Harry Butler and his family who established a farm.

Entrepreneur Robert Hayles bought some of the Butler’s huts and erected a two-storey hotel, dance hall and a jetty from 1898.

Mr Bredhauer said the seafront location was a “fantastic site” they now hoped to develop.

“We have some consultants having a look and doing a masterplan which, eventually, we’ll put to the council. Hopefully, we’ll turn it into a bit of a resort,” Mr Bredhauer said.

Rin Tin Tin in his enclosure at the Picnic Bay Hotel in 2000. Pic Evan Morgan

Mr Bredhauer said they would possibly refurbish the hotel’s existing 23 on-site motel rooms to “get some accommodation going”.

They planned to retail their award-winning spirits and beer, distilled and brewed in Townsville, with “regular beer that everyone seems to like” on the island.

He said all staff had been retained.

Knight Frank head of agency Paul Dury and Mark Fitztgerald, who marketed the properties, said they received overwhelming interest.

“Multiple offers were submitted from both local and interstate investors and hoteliers,” Mr Dury said.

“It was very pleasing that the successful bidders were business entities that have had a long association with Townsville and Magnetic Island and will be looking to improve the assets.”

Long-time island resident Di Mackie said the island needed “new blood”.

Completing the Picnic Bay development would make it a much better place to go, she said.

One hotel staff member said the change would “bring some life back to Picnic Bay”.

The staff member said she was sure former owners Bill and Lorraine Carnell, who died before completing their dream project, would be happy to see it flourish.

Originally published as Local families combine to buy Magnetic Island hotel assets