Mark Spillane’s Upsense Media Capital fund to buy Dunk Island

A high-profile music entrepreneur is behind the investment firm that will pay about $11m less for one of Queensland’s faded island resort gems than it sold for in 2020.

Dunk Island which has sold for between $20 and $25m.

An entertainment and media wholesale private equity fund will buy one of Queensland’s faded island resort gems.

Upsense Media Capital, co-founded by Mark Spillane and RJ Bucaria, will pay between $20m and $25m for Dunk Island.

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”.

“We look forward to working closely with the local community, regional and state government and other key stakeholders in planning a sustainable development,” he said.

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 its former owner, the Bond family, who put it back on the market through JLL Hotels & Hospitality Group’s Andrew Langsford and Nick Roche.

Muggy Muggy Beach on Dunk Island

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

“This deal is a clear demonstration of the capital depth in the Australian hotel and resort market, and we anticipate our appeal as an investment destination will only increase as domestic travel continues to soar,” he said.

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.

The pool area at the Dunk Island resort.

Mr Langsford said Australia’s regional hotel market has been a huge beneficiary of Australia’s high overseas spend being diverted domestically.
“However, when international travel resumes, we expect to see accelerated demand from international travellers visiting Australia as our attractiveness as a safe and trustworthy place to visit has been significantly enhanced,” he said.

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

Mr Spillane, the chief executive of the Unbreakable Group, has been in the Australian music industry for 20 years as a promoter, musician, artist manager, publishing and label owner and ran the live broadcast entertainment for the Indy 500 motor race on the Gold Coast each year.

Mr Bucaria is the chief executive of Prolific Media in the US has been involved in A & R, talent management and as an executive and board member in public and private corporations.

Originally published as Mark Spillane’s Upsense Media Capital fund to buy Dunk Island