Dunk Island sale to Upsense Media Capital crashes but new owner may be in the wings

The multimillion-dollar sale of Dunk Island has fallen though for the second time in three years, but there may be a new buyer.

The bid to find a new owner for one of Queensland’s faded island resort gems has failed for the second time in three years but there may be a new owner waiting in the wings.

In July last year entertainment and media wholesale private equity fund Upsense Media Capital, co-founded by Mark Spillane and RJ Bucaria, announced they will buy Dunk Island for a price believed to be between $20m and $25m.

At the time Mr Spillane, who has interests in live music, television and film production as well as finance, artist management, and entertainment industry consultancy, said he was delighted to have the opportunity to bring new life to the “iconic Australian asset”.

However, sources say the deal fell through late last year leaving the Bond family holding the freehold island.

Family representative Adam Bond confirmed they were in negotiations with another party but refused to offer more information.

“There may be something to say in the new year,” he said.

Dunk Island still searching for a new owner.

Dunk Island was destroyed by cyclone Yasi in early 2011 and was later acquired by Linc Energy founder Peter Bond for about $7.5m with plans to repair and reopen the resort.

The island about 4km off Mission Beach, was sold in 2020 for around $31m to interests associated with financial entrepreneur James Mawhinney.

However, Mr Mawhinney’s Mayfair 101 group ran into a regulatory trouble and financial advisory firm Grant Thornton was called in as provisional liquidator.

The company’s failure to complete the island purchase pushed it back into the hands of the Bond family, who put it back on the market through JLL Hotels & Hospitality Group’s Andrew Langsford and Nick Roche who refused to comment.

Mr Roche said last year that Dunk Island attracted significant interest from a broad range of capital sources, both domestic and international, despite the uncertainty around the Covid-19 environment.

The sale of Dunk Island has crashed the second time in three years.

The island is one of only a few freehold islands on the entire Great Barrier Reef and offers significant potential to develop Australia’s next major tourism icon, with mainland power connection, commercial sealed airstrip, perpetual water, and extensive utilities infrastructure.

Previously owned by Qantas and international cruise line company P & O, the former Dunk Island Resort operated as a 4.5-star family resort featuring 160 guest rooms, a 9-hole golf course, multiple food and beverage outlets, tennis courts, and day spa.

Upsense Media Capital was a joint venture between Australia’s Unbreakable Group Holdings and US-based Prolific Media Holdings.

Originally published as Dunk Island sale to Upsense Media Capital crashes but new owner may be in the wings