Sands Torquay golf resort for sale as receivers called in

A major resort and golf course on the Surf Coast will hit the market this month after receivers were appointed.

The mortgagee for the Sands Torquay appointed Stephen Hathaway of Helm Advisory as receiver soon after the business’s previous operator went into voluntary administration.

The golf course and health resort is being offered as a going concern, on a walk-in, walk-out basis, by Colliers International agents Guy Wells, Gus Moors and Joseph Lin.

The trio will oversee the expressions of interest campaign from mid-August to September 23. But agents have already had suitors on the phone who were keen to bid.

The resort covers 195 hectares and includes a championship links golf course, designed by nine-times PGA Tour winner Stuart Appleby.

Also on site is a hotel with 112 upscale rooms, a health club and pool, and a restaurant and bar.

The Sands Torquay golf club and resort is being sold via an expressions of interest campaign after receivers were appointed.

Hathway describes the resort as a great investment opportunity, regardless of market conditions caused by the coronavirus pandemic.

Originally opened in 2007, the resort generates multiple income streams, including golf club memberships and green fees from public users, accommodation and conferencing, health club memberships and revenue from food and beverage offerings.

Agents said golf course memberships and green fees had been increasing since the closure of the border of metropolitan Melbourne.

Administrators PKF Melbourne continue to trade the business.

Wells says groups that have tried to hold talks with the previous owners about acquiring the resort have reached out to show their interest.

“Whether they are the eventual buyers, or someone else, is too early to tell, but the phone has been ringing,” he says.

The asset will be sold as vacant possession, including all plant and equipment and the right to operate the business, Wells says.

“They’re buying the right to operate the business, but it will be all plant and equipment, walk in, walk out,” Wells says.

It has been reported the receiver hopes to sell for about $15m, which it is estimated would cover all creditors.

“The end price will be borne out through the process but there has been interest circling that number,” Mr Wells said. “So I think if we can get there or a bit more it will be a good result.”

The sale could open the door to a rebrand, refurbishment or a reposition for the hotel to capture the growth in domestic tourism expected in the medium term.

“As we unlock from these restrictions we’re not going to be travelling overseas,” Wells says.

“So people are going to be travelling at home, so the Surf Coast and Great Ocean Road, which is so often focused on international tourism, is going to be a playground for domestic tourists, which is a great outcome for everyone.”

This article from the Geelong Advertiser originally appeared as “The Sands Torquay on the market after lenders call in receivers”.