Just over two decades ago, the Oatley Family rescued Hamilton Island from receivership and quietly set about rebuilding it into one of Australia’s most recognisable tourism assets.
Now, in one of the largest private M&A deals in the local leisure sector, the family is handing the keys to Blackstone in a transaction understood to value the island at around $1.2bn, subject to Queensland government approval.
The deal
Sitting in the Whitsunday Islands on the edge of the Great Barrier Reef, Hamilton Island spans 1,133 hectares across two islands, with around 70% left undeveloped.
The resort includes five hotels, 20+ bars and restaurants, retail outlets, a marina, an 18-hole golf course on neighbouring Dent Island and its own commercial airport with direct flights from Sydney, Melbourne, Brisbane and Cairns.
The Oatleys bought the island in 2003 for ~$200m and have since invested more than A$450m upgrading accommodation, infrastructure and services, transforming it into one of the country’s most visited destinations.
For Blackstone, the acquisition adds another marquee asset to its Australian hospitality exposure, following its $8.9bn takeover of Crown Resorts.
The US private equity giant manages more than $1.2tn globally.
Who’s acting
Ashurst is advising the Oatley Family, led by partners Tony Damian and Anton Harris, supported by teams across corporate transactions, digital economy, employment and global loans.
Clayton Utz is acting for Blackstone, led by corporate M&A partners David Wilkie and Rory Moriarty with a large multidisciplinary team spanning banking and finance, real estate, environment, employment and corporate M&A.
Source: Ashurst, Clayton Utz