Zagame Corporation is reportedly putting their Grand Hotel & Casino resort in Vanuatu
on the market with expectations of fetching around $25 million for the premier property.
The casino is part of the Zagame family's hospitality business. Aside from the casino resort, family investments include pubs, luxury cars, property development, restaurants, and hotels.
According to a report in the Australian Financial Review, the property was originally developed in 2003. Features of the Grand Hotel & Casino include an eight-story, 74 key hotel on the waterfront overlooking Port Vila Harbour with views toward nearby Iririki Island. A restaurant, four bars, conference rooms, and a pool with spa add to the casino which offers 136 slot machines, 15 gaming tables, and a top-floor VIP gaming salon.
The Review reports that the Zagame family initially got involved in the area in 2001 as part of a consortium that purchased the 69-acre private island of Iririki along with resort amenities there. Iririki now has its own small upscale casino to complement six-star accommodations and dining.
According to a report in the Fiji Times Online, Rob Cross and Andrew Jackson of CBRE Hotels will guide the expressions of interest campaign. That work is planned to be completed by May 30, 2017. The family is reportedly listing the asset for sale so that they can focus on their hospitality interests including pubs and accommodations in Australia.
"We're expecting considerable interest, predominantly from Australian
and New Zealand
investors," said Cross.
"The campaign provides an opportunity to acquire the best hotel and casino in Vanuatu, which is currently owner operated but is being offered with vacant possession.
"While the hotel and casino has enjoyed trading growth in recent years, the introduction of a professional management company with a strong brand reputation could lead to further trading upside."
According to the Review, investor appetite is rising as evidenced by three Cairns
hotels that have sold recently. The Rydges Tradewinds, Novotel Oasis, and Rydges Esplanade's combined total sales price reach over $120 million.
The Zagame Group owns and operates the luxury car group Zagame Automotive and in 2015 purchased Fairfax Media's Victorian print site in Tullamarine. More recently the family, which owns five hotels in Victoria as well as restaurants and pubs, purchased the Poinciana Place Shopping Centre in Tewanti.
In the last two years, Zagame has sold $145 million in hospitality properties including three pubs for $75 million and the Gold Coast
Paradise Resort for $70 million.
The Grand Hotel & Casino is situated on the waterfront on Port Vila Bay about 10km from the Bauerfield International Airport in Vanuatu, a South Pacific Ocean nation made up of roughly 80 islands.