China Capital Investment Group puts South Molle Island on the market

One of Queensland’s old-school resorts, South Molle Island, has hit the market after years of failed promises by owners China Capital to restore it to glory.

South Molle Island.

One of Queensland’s old-school resort islands has hit the market courtesy of its mainland Chinese owners.

Virtually destroyed by Cyclone Debbie in 2017, China Capital Investment Group has put the long shuttered South Molle Island, in the heart of the idyllic Whitsunday Islands, on the market through agents CBRE.

China Capital, who also own Daydream Island Resort and Spa, purchased South Molle in 2019 for $25m splashing out a further $10m upgrading its jetty.

In 2019 China Capital had promised to restore South Molle, which is one of the closest major islands to the mainland, into a “world class five-star tourist resort”.

The resort could be sold for up to $30m. Picture: Allards Across Oz

But the island resort remains completely untouched with the resort’s rooms collapsed, the pool unusable and the infrastructure wrecked.

The asking price via an expression of interest campaign through CBRE agents Raymond Tran, Wayne Bunz and Tom Gibson is more than $30m, according to sources.

South Molle Island encompasses combined development parcels totalling around 28 ha of beachfront and island centre land across perpetual and long-term leasehold lots.

At the time of purchase China Capital, which was founded in Shanghai in 1995, said purchasing the island was a great opportunity to expand its presence in the Whitsundays.

Established in 1937, South Molle was once a 200-room resort on the northern end of the island at Bauer Bay and also featured a nine-hole golf course.

South Molle Island’s main resort. Picture: Supplied

The combined parcels of beachfront land and island centre land allow for varying scales of developments, from boutique villas to glamping sites and sizable resorts.

Two years ago China Capital looked to offload nearby Daydream Island.

The diversified investment group had purchased it for about $30m a few years earlier and spent at least $100m refurbishing it.

It put a $200m price tag on it in 2021 but failed to sell it.

Although Mainland Chinese tourists are now allowed to return to travel here - and once accounted for Australia’s biggest and highest spending inbound arrivals - many mainland Chinese real estate owners have been told to get their money out of Australia.

Lindeman Island’s Chinese owners recently sold up.

Indeed, the listing of South Molle comes after a recent flurry of Whitsunday Island transactions, with not only Lindeman’s owner William Han offloading his island but the owners of Dunk Island, Lizard, Long and Hook Islands all selling out over the past two years through CBRE Hotels.

CBRE Hotels director Raymond Tran said the opportunity to acquire South Molle Island provides investors with the ability to redevelop the asset in line with other nearby successful resorts such as Hamilton Island or a more experiential offering such as boutique villas or glamping sites.

“With this significant growth in Australia’s tourism market, the weakening dollar and

the volume of international capital flight heading to Australian shores, CCIG is eager to capitalise on its investment to recycle the funds back into its Australian businesses,” Mr Tran said.

The resort on South Molle Island.

Mr Tran said the sale of South Molle Island will allow the group to recycle its capital into other business opportunities and will assist with funding capital works at Daydream Island Resort and “improving its facilities and guest experience, which remains a core focus for the group.”

CBRE Hotels national director Wayne Bunz said South Molle Island was one of the closest islands to the coastline of Queensland, given Hamilton Island and Proserpine airports are a short boat and helicopter ride away.

“The Whitsunday region proved to be one of the most resilient markets through the pandemic and was recognised as the world’s second most loved tourist destination in 2022 by the Tourism Sentiment Index highlighting the region’s robust tourist market and recent strong demand,” Mr Bunz said.

The expressions of interest campaign closes September 28.