China Capital Investment Group in Shanghai buys South Molle Island in Queensland for $25 million

Chinese apartment buyers in Sydney and Melbourne may have abandoned their contracts due to stricter overseas remittance rules in China and tighter lending regulations in Australia, but in Queensland, a Chinese company just purchased an island. China Capital Investment Group, based in Shanghai, confirmed on Wednesday that it bought South Molle Island for US$25 million (A$32.4 million).

The Chinese company is apparently on a buying spree since in February it acquired for US$30 million (A$38.88 million) the nearby West Molle Island from Vaughn Bullivant. After owning the island, China Capital renamed it Daydream Island Resort and Spa, reports The Courier Mail.

The two getaways are just two kilometres apart which indicates the new owner would likely operate the two as complimentary destinations. Peter Harper, sales agent of the JLL Hotels & Hospitality, says South Molle Island may be redeveloped as a more luxurious offering.

The island, which currently has a 188-room resort, is subject to a perpetual lease. Its waterfront land, measuring 12 hectares, is available for development as well as a 600-metre beach facing north.

The previous owner, Craig Ross, placed South Molle Island on perpetual leasehold on the market in April. He used to run it as a backpacker’s paradise, reports Brisbane Times.

Harper said the Chinese company’s purchase of the adjoining islands is an example of the international investment community’s confidence in the long-term outlook for Australia, particularly for the leisure tourism markets of Queensland.

South Molle and West Molle islands belong to the Whitsundays and north Queensland region where other developers are also focusing their efforts. The White Horse Group, owned by William Han, has a plan to redevelop Lindeman Island – also in the Whitsundays, into a US$600 million (A$777.6 million) eco resort.

At Surfer’s Paradise, owned by China’s richest man – Wang Jianlin of the Dalian Wanda Group – would build a three-tower Jewel development.

VIDEO: South Molle Island – Adventure Island Whitsundays