An aerial shot of the Sonaisali Island Resort which is now up for sale by owners, the McGrath family after being owners for the last 20 years.
By RACHNA LAL
The McGrath family, after operating resorts in Fiji for 20 years, is preparing to sell both its Sonaisali Island Resort and Tadrai Island Resort.
The McGraths are considering new opportunities both here and abroad and wish to offer their current holdings for sale.
They have described this as an exciting and vibrant forward-looking tourism investment market.
The two resorts have been put on sale by an International Expressions of Interest campaign through Colliers International Hotels, CBRE Hotels and The Professionals West Realty (Fiji).
The campaign will be conducted over the next two months, closing on August 1.
The resorts are for sale in-one-line or individually.
Group managing director, Aaron McGrath said they very much enjoyed developing and operating both resorts over the years.
“It is now time, however, for others to take over and continue the operation of the properties and make the most of the wonderful opportunities that lay ahead,” he said.
“We wish to thank the fantastic team at both resorts for their commitment, hard work and continued support over the years.
“We also thank and recognise our industry partners for their strong support and commitment over many years.
“We seek to reassure our partners and valued customers that we will work tirelessly to ensure a seamless transition to the new owners over the coming months.”
Strategic investment
National Director of Colliers International Hotels, Dean Humphries, said the resorts present major strategic investments.
“Both properties are available with vacant possession, giving buyers the opportunity to partner with regional or international operators under an established brand,” he said.
“With the unprecedented growth in Fiji’s tourism market, we expect strong interest in these strategic property opportunities.”
Both resorts are located on large tracts of long term leasehold land (the most common form of land tenure in Fiji) and come with significant facilities, infrastructure and expansion/development opportunities.
Sonaisali Island Resort
Sonaisali Island Resort is conveniently located on Naisali Island, 300 metres off Viti Levu and just 20 minutes from Nadi International Airport.
Regional Director of CBRE Hotels, Rob Cross, described the four-star Sonaisali Island Resort as a truly iconic asset.
“Sonaisali is a household name among the many Australian and New Zealand families who have stayed there over the past two decades,” he said.
The resort has been owned by the McGrath family for the past 20 years.
Mr Cross said: “The owners have decided the time is right to sell the property and pass it on to a new owner who can take advantage of the unprecedented trading conditions at play in Fiji.”
The resort has an extensive inventory of 123 bures and hotel rooms as well as a large poolside restaurant, conferencing and retail facilities.
It also has its own dive business, a small marina and a passenger ferry providing 24/7 access to the mainland.
Tadrai Island Resort
Completed in 2011, the exclusive five-star Tadrai Island Resort is located on Mana Island in the Mamanuca Island Group.
It is 15 minutes by air from Nadi International Airport or 30 minutes by water taxi from Denarau Marina.
The all-inclusive, adults-only retreat offers just five luxury beachfront villas, a restaurant, infinity pool and health spa.
Each 100 metre-squared villa has its own private plunge pool and spacious ensuite facilities.
Future development
Mr Cross said Tadrai Island Resort offers significant future development potential.
“Tadrai Island Resort is located on a large 27.6 hectare parcel of pristine coastal land with three beaches and planning permission granted for a second resort of up to 331 rooms on the site,” he said.
“This is the last remaining parcel of land in the Mamanucas that is available for future development, making the property a strategic land holding.”
Mr Humphries said Tadrai Island Resort is the newest retreat to be opened in Fiji and is one of the country’s best kept secrets.
“It offers a real slice of paradise for an investor or developer,” he said.
“As the closest and all-inclusive, five-star resort to Nadi International Airport, its accessibility is a key demand driver over other exclusive resorts that are located in more remote locations.”
Investment with tourism growth
Mr Humphries said the properties come to the market at a time of unprecedented popularity of Fiji as a holiday destination.
“Despite a challenging global economic backdrop in recent years, visitor numbers to Fiji increased by 25 per cent from 2009 to 2011, and are expected to reach 750,000 in 2013,” he said.
“Particularly strong growth has come from Australia, which remains Fiji’s key source of tourists, accounting for half of all visitors.
“With this growth in visitor numbers, hotels and resorts are enjoying excellent trading conditions.
“Fiji has been the star performer in the wider Asia Pacific region over the past three years, recording exceptional growth in occupancy and room rates.”
Mr Humphries said hotels in Fiji have recorded an a exponential increase in revenue per available room since 2009.
“With a relatively benign supply pipeline, a favourable exchange rate and the unsurpassed hospitality of the Fijian people, the performance of the resort sector is likely to flourish into the foreseeable future,” he said.
“The resorts therefore offer the opportunity to acquire major strategic assets in a thriving sector.”